NEW YORK CITY-Continuing to show its bullish stance on the Meatpacking District—and even some areas surrounding it—DelShah Capital has purchased 69 Gansevoort St., for $8.6 million. In addition, GlobeSt.com has learned EXCLUSIVELY that the company is under contract to buy a mixed-use property in the West Village.
DelShah already owns 55-61 Gansevoort and it plans to soon sign a lease with a national retailer at that building, Marc Watkins, EVP and director of acquisitions, tells GlobeSt.com. He declined to name the prospective tenant.
That retail agreement, coupled with other area developments on tap, promise to make the MPD even hotter than it is today, according to Watkins. “We see huge potential for the area with the Highline, the upcoming Whitney Museum and Thor Equities' project at 837 Washington St.," he says. “We think the Meatpacking District will be different in a couple of years because of these anchors and with the new pedestrian walkway that'll extend from 58 Gansevoort to 40 Gansevoort. That'll bring a lot of foot traffic down 9th avenue to Gansevoort street.”
The company's latest purchase, 69 Gansevoort, also stands to go through something of a change. The 2,950-square-foot property has another 7,160 square feet of unused air rights and 25 feet of frontage on Gansevoort street.
The retail space has been leased to the Line Group, an operator of entertainment venues across Manhattan, but the tenant may change in the near future, Watkins says. “Once all of this development happens and the neighborhood changes, we may want to change the retail concept.
The West Village property will be purchased soon for approximately $27 million. Watkins declines to reveal the address, but does divulge that the building offers 38 apartments and three retail spaces, with two of them holding leases that are set to expire within the next nine years.
He shares some additional details. “It is on a street with excellent visibility to Bleecker and it's a value-add property with a long-term hold. Some of the free market units have been renovated, but we expect to update the remaining ones.”
DelShah has placed its bets on submarket MXDs after getting priced out of the multifamily segment, Watkins adds. “A lot of real estate firms have tended to relax their return targets with the rise of prices in the multifamily space. However, we anticipate maintaining an optimistic IRR with big bets on submarkets we are excited about where, more often than not, there's a retail component that's going to help us meet our return targets.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
