Thursday, June 19, 2014

Retail space housing The Smith and M2M asking $25.5 million on 3rd Avenue

[Image via Massey Knakal]

The Benchmark Real Estate Group picked up the 12-story residential building with retail space on the southeast corner of Third Avenue and East 11th Street late last year for a whopping $57 million.

The developers are currently gut renovating the building, now called Eleventh and Third, upgrading the space to luxury apartments that will fetch more than $10K a month for two bedrooms.

Now the retail space — three separate spaces encompassing 15,000 square feet — is on the market with an asking price of $25.5 million.

Here are details from the Massey Knakal listing:

The plans call for the existing lobby space to be moved further east along 11th Street which will allow the current lobby to be incorporated into the corner retail space upon vacancy, thus increasing the most valuable Third Avenue ground floor retail footage by approximately 1,314 square feet. Upon M2M vacating and the implementation of the proposed strategy, there is potential to instantly double the asset’s net operating income.

Currently, 2 of the spaces are occupied by locally anchored tenants The Smith, a casual and lively American brasserie with three locations in NYC, and M2M, the area’s convenient grocery store. The Smith currently occupies approximately 3,886 SF above grade and pays $496,500 annually equating to approximately $127 psf. M2M currently occupies the corner space which totals approximately 3,266 SF above grade paying approximately $352,315 annually equating to approximately $108 psf.

These leases expire in 2027 and 2017 respectively with no further extension options or renewals for either tenant. The remaining unit, with frontage on East 11th Street, will be delivered vacant at the time of sale.

So M2M or The Smith aren't going anywhere for a few years. But they will have to vacate upon the end of their respective leases. That third storefront is already vacant. NY Copy & Printing moved to East Seventh Street after 22 years on East 11th Street.

Previously on EV Grieve:
Someone actually paid $57 million for this East Village building

Reimagining this 12-story East Village building, now on the market

NY Copy & Printing forced out of longtime E. 11th St. home, opening second location on E. 7th St.

Rebranded 'Eleventh and Third' will have rentals upwards of $10k


Anonymous said...

Thank you NYU for making this neighborhood a place for the rich parents of your rich students.

Gojira said...

Will we NEVER reach a saturation point? How much more "luxury" is out there, just waiting to move to New York to ruin it further?

blue glass said...

anonymous 6:52 - yes - and replacing our neighborhood stores with those establishments that cater to the young student and bridge and tunnel crowds that can afford these new entertainment businesses that provide no product or service.
it is happening so fast it's like a tornado of money pushing everything away.

Anonymous said...

I'm glad I'll be gone from the neighborhood before M2M is forced out. The Smith seems perfect for this NYU and their parents vibe - that's their entire clientele.

M2M, on the other hand, is a reminder that there is still some diversity in the area. Since such a large portion of the NYU student body has Asian heritage of some kind the store is always busy. The real impetus must be from the building owners not wanting something so déclassé as a grocery store beneath their $10,000 a month apartments.

I've tried to live with the changes here, I really have. But the last 3 or 4 years have tipped me over the edge. Regular, working people (even those making 6 figures) are not wanted in this neighborhood. It's a theme park for millionaires and their children. Well, fuck them, I'm not playing any more.

Anonymous said...

@952am "NYU and their parents vibe" that's so fucking apt. APT!!!

Anonymous said...

I take solace in the fact that Sunrise Mart is only a block away and I have a few years to start shopping there.

Anonymous said...

I've lived here since another age - an age when my friends wouldn't visit b/c it was too "dangerous" to go below 14th St. I thought I'd seen it all in the intervening years, but this tops everything.

For as long as people are stupid enough to pay what this place will be asking for rentals, and some commercial space will be willing to pay top dollar for the retail space, the developers walk away laughing all the way to the bank.

When people wise up (or when we run out of people who can pay stupid rents) then maybe sanity will return. But I'm not betting on it, b/c NYU is a mill turning out people who *must* live here or they'll just dry up & die.