NEW YORK CITY-Real Estate Equities Corp. announced Wednesday it has acquired 375 West Broadway through a joint venture, with the buyers paying $81 million for the property. The mixed-use building is just 60,000 square feet of office and retail space, but commercial rents in Soho can run as high as more than $700 per-square foot, according to recent retail reports.
The retail is 16,000 square feet with upscale clothing store Anthropologie as the main tenant currently, and 45,000 of commercial space. There is great potential with this building, according to the announcement, because it has retail expansion possibilities and most leases are under market.
Steve Fenster, managing director of the Carlton Group, arranged both the equity and the debt for the deal with a major fund and an international bank. The principals of REEC are Michael Miller, Brandon Miller and Mark Siegel. Laurence Ross, managing principal of Highcap Holdings, represented REEC, while Lee Spiegelman of Ripco represented the seller, Elwell Associates LLC.
"This was an off-market opportunity which presented many hurdles including months of intense negotiations between buyer and seller, and challenges with the fallout from Superstorm Sandy," Ross says in a release. "The property has considerable upside with below market office rents, as well as an undervalued ground floor retail lease. The lack of product and strong demand for well positioned, quality assets has helped fuel the prices throughout Manhattan, especially in Soho."
REEC is currently developing the Mobil Gas station site at the corner of 14 Street and 10 th Avenue in the trendy Meatpacking District, right under the High Line. Also sourced by Carlton, the project is slated for completion in October. REEC appears to be on a buying spree, according to its announcement. The company plans on completing another $200 million of deals in the next 60 days.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
