Metrogrid Report: Soho
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MetroGrid Report: SoHo FOCUS ON NYC SUBMARKETS July 2016 SoHo Attracting International Investors Investment sales in the SoHo area totaled nearly $780 million in the sale leaseback arrangement. The 1905 building was in the first six months of this year, with the neighborhood fully renovated in 2015 and will be affiliated with Starwood remaining particularly attractive to international investors. Hotels and Resorts under its new Design Hotels flag. Significant sales included the $170 million acquisition of a The landmarked E.V. Haughwout Building at 490 Broadway newly completed 221 room boutique hotel at 11 Howard was acquired by Spanish firm Ponte Gadea for $140 million. Street by Commerz Real, a fully owned subsidiary of The classic cast-iron building constructed in 1857 was Commerzbank AG. The seller, SoHo Hotel Owner LLC, which originally home to luxury retailer Haughwout’s, renowned for is part of RFR Holding USA, will remain the long-term tenant its cut glass, silverware, chandeliers, and china, including the MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services hand painted china Mary Todd Lincoln commissioned for the In addition, Eastern Consolidated arranged a number of White House. The five-story building also is notable as being retail leases including two leases for Café Grumpy and a the first to feature a safe passenger elevator. tech consulting firm at 177 Mott Street; an office lease for Sixty Hotels at 206 Spring Street; and a lease for Ato, a new China Cinda Asset Management Co. acquired a $135 million Japanese restaurant opening at 28 Grand Street. equity stake in a 115-unit condo project that broke ground last year at 565 Broome Street (aka 100 Varick Street). The SoHo continued to remain a hot market for retailers, project is being developed by Bizzi & Partners Development although a recent survey shows that asking rents have with Aronov Development and Halpern Real Estate Ventures. moderated and are now averaging $312 per square foot. The Bank of China reportedly provided a $320 construction Asking rents were highest on Broadway where they average loan for the project, which required an assemblage of $487 per square foot, Prince Street where they average properties on Varick Street from Broome to Watts Streets. $768 per square foot, and Spring Street where they average $494 per square foot. In April, Hines announced it had been selected by Hudson Square Properties LLC, a joint venture of Trinity Church Wall Street and Norges Bank Real Estate Management, as the operating partner for 11 office buildings totaling 4.9 million of commercial space, including nine in the SoHo area. As part of the agreement, Hines acquired a minority stake of 1 percent in the portfolio totaling $35.5 million. Eastern Consolidated has sold dozens of properties in SoHo and was active in the last six months, arranging the sale of all the shares in a 4-story, ±20,600-square-foot residential co-op at 61-63 Crosby Street for $42 million, or over $2,000 per square foot. By selling the shares simultaneously, the transaction unlocked greater value for the seven loft owners, many of whom had owned their apartments since the building first went co-op in 1981. The firm also is selling other properties in the area including retail condos at 262-272 Mott Street, a five-story, mixed-use building at 135-137 Thompson Street, and a 3-story loft at 52 Greene Street. 01 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services SoHo Area | Sales * Portfolio sale/partial interest Property Address Property Type Sale Date Sale Price 11 Howard St Hospitality 4/14/2016 $170,000,000 61-63 Crosby St Mixed Use 2/1/2016 $42,000,000 329-331 Canal St Mixed Use 1/8/2016 $24,000,000 125-127 Grand St Mixed Use 5/13/2016 $20,377,000 58-60 Elizabeth St Mixed Use 5/13/2016 $16,700,000 24 Prince St Mixed Use 4/18/2016 $13,750,000 42 Grand St Mixed Use 1/28/2016 $12,750,000 490 Broadway Office 1/8/2016 $140,000,000 100 Varick St Condo Development 1/21/2016 $135,000,000 123-127 Lafayette St Office 1/12/2016 $33,500,000 243 Canal St Office 5/4/2016 $25,000,000 121 Varick St, 7/7th Floor Office 6/8/2016 $10,800,000 75 Varick St * Office 4/29/2016 $7,592,307 345 Hudson St * Office 4/29/2016 $6,364,602 100 Avenue of the Americas * Office 4/29/2016 $4,283,495 205 Hudson St * Office 4/29/2016 $3,271,838 225 Varick St * Office 4/29/2016 $3,076,042 160-172 Varick St * Office 4/29/2016 $2,8 37,29 6 350 Hudson St * Office 4/29/2016 $2,135,730 435 Hudson St * Office 4/29/2016 $1,868,919 155 Avenue of the Americas * Office 4/29/2016 $1,464,943 151 Canal St Retail 1/22/2016 $9,140,244 134-138 Greene St, 138 Greene Retail 3/17/2016 $38,500,000 75 Kenmare St Specialty 6/6/2016 $55,000,000 Total $779,412,416 SoHo | Average Residential Rents Studio 1 Bedroom 2 Bedroom 3 Bedroom Vacancy Rate $2,943.00 $3,730.00 $5,545.00 $8,006.00 1.43% 02 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services SoHo | Average Retail Rents by Corridor Retail Corridor Asking Rent Ave of the Americas $250.00 Broadway $ 487.0 0 Broome Street $264.00 Canal Street $107.0 0 Crosby Street $ 327.0 0 Grand Street $180.00 Greene Street $205.00 Greenwich Street $65.00 Howard Street $180.00 Hudson Street $114.00 Lafayette Street $257.0 0 Mercer Street $439.00 Prince Street $768.00 Spring Street $494.00 Sullivan Street $209.00 Thompson Street $175.00 Varick Street $131.00 West Broadway $299.00 West Houston Street $106.00 Wooster Street $228.00 SoHo | Average Retail Rents SF Lease Price (PSF) Average 4,152 $312 Median 2,600 $243 Minimum 375 $48 Maximum 30,000 $1,250 03 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services SoHo Community District Data Source: NYU Furman Center, State of New York City’s Housing and Neighborhoods in 2015 04 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services Select Eastern Consolidated Transactions | SoHo & Nolita Commercial Development MIXed Use Residential Retail Retail Leasing 1. 210 Bowery 11. 15-25 Kenmare Street 20. 148 Spring Street 24. 113-115 Mercer Street 32. 122-124 Spring Street 42. 133 Grand Street 2. 21-27 Mercer Street 12. 176-178 Sixth Avenue 21. 19-21 Crosby Street 25. 152-154 Thompson 33. 133 Greene Street 43. 149-151 Elizabeth Street 13. 180-186 Avenue of the Street 3. 216 Bowery 22. 91 Crosby Street 26. 234-236 Mulberry 34. 145 Greene Street Americas Street 44. 181 Grand Street 4. 29 Greene Street 14. 250-252 Bowery 35. 20-26 Greene Street Office 27. 239 Mulberry Street 45. 206 Spring Street 5. 40-42 Thompson Street 15. 27-29 Wooster Street 23. 131-137 Spring Street 28. 475-477 & 480-482 36. 204-210 Lafayette Street 46. 21 Thompson Street 16. 311-323 West West Broadway 6. 448-452 Broome Street Broadway 29. 58-62 Spring Street 37. 221-225 Centre Street 47. 28 Grand Street 7. 470 Broome Street 17. 350 West Broadway 30. 61 Sullivan Street 38. 481 Washington Street 48. 30-32 Grand Street 8. 525 Broome Street 18. 47-49 Greene Street 31. 61-63 Crosby Street 39. 57-63 Greene Street 49. 38-40 Grand Street 9. 67-69 & 71-73 Spring 19. 55 Mercer Street Street 40. 60 Spring Street 50. 403 Broome Street 10. 72-76 Greene Street 41. 81 Spring Street 51. 98 Kenmare Street 05 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services Eastern Consolidated’s Recently Closed Transactions | SoHo & Nolita 61-63 Crosby Street Property Type Mixed-Use Location SoHo Square Footage 20,600 SF Selling Price $42,000,000 47-49 Greene Street Property Type Mixed-Use Location SoHo Square Footage 25,000 SF Selling Price $31,000,000 216 Bowery Property Type Commerical Location Nolita Square Footage 4,900 SF Selling Price $13,000,000 61 Sullivan Street Property Type Multifamily Location SoHo Square Footage 5,474 SF Selling Price $8,050,000 06 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services Eastern Consolidated’s Recently Closed Transactions | SoHo 20-26 Greene Street Property Type Retail- Leased Location SoHo Square Footage $9,950,000 28 Grand Street Property Type Retail- Leased Location SoHo Square Footage 700 SF 21 Thompson Street Property Type Retail- Leased Location SoHo Square Footage 1,080 SF 30 Grand Street Property Type Retail- Leased Location SoHo Square Footage 700 SF 07 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services Eastern Consolidated’s Recently Closed Transactions | SoHo 403 Broome Street Property Type Retail- Leased Location SoHo Square Footage 400 SF 38-40 Grand Street Property Type Retail- Leased Location SoHo Square Footage 1,660 SF Eastern Consolidated’s Select Exclusives | SoHo 135-137 Thompson Property Type Mixed- Use Location SoHo Square Footage 9,572 SF Asking Price $17,500,000 08 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services Eastern Consolidated’s Select Exclusives | SoHo 42-44 Grand Street Property Type Multifamily Location SoHo Square Footage 10,150 SF Asking Price $13,900,000 52 Greene Street Property Type Mixed-Use Location SoHo Square Footage 5,425 SF Asking Price $19,950,000 262-272 Mott Street Property Type Retail Condo Location SoHo Square Footage 10,444 SF Asking Price $27,500,000 21 Crosby Street Property Type Retail Location SoHo Square Footage 4 Spaces Available: 300-520 SF Asking Rent Ground Floor: $325 PSF, Lower Level: $75 PSF 09 | MetroGrid Report | SoHo FOCUS ON NYC SUBMARKETS Real estate investment services Eastern Consolidated’s Select Exclusives | SoHo 330 Spring Street Property Type Retail Location