Wednesday, August 5, 2015

Historic carriage house on East 13th Street hits the market for $18 million



First, let's check out the Cushman & Wakefield listing for the building at 126-128 E. 13th St between Third Avenue and Fourth Avenue:

A NNN leased three level, Beaux-Arts style, loft building located on the south side of East 13th Street between 3rd and 4th Avenues. The space is leased to Peridance, a dance studio, until March 2028 with a 5 year option. The rent will increase to $623,673 per year in March 2016 and then have 3% annual increases thereafter. The tenant is responsible for all operating expenses and repairs for the property. The rent of only $40/RSF, is half of market value providing tremendous future upside. The lease is guaranteed by Capezio Ballet Makers Inc.

The asking price is $18 million. In addition, the same seller is offering the adjacent property to the south, 123 E. 12th St., for $8.5 million.

As for 126-128 E. 13th St., this is believed to be the last surviving horse and carriage auction mart building in New York City, according to the Greenwich Village Society for Historic Preservation (GVSHP), who helped keep the structure from becoming a seven-story condo back in 2006.

In addition, the building served as the studio of artist Frank Stella, and during World War II was an assembly-line training center for women. (Read more about the building's history at the GVSHP website here.)

In May 2012, the NYC Landmarks Preservation Commission voted unanimously to landmark the building. Several months before this vote, a State Supreme Court judge ordered the sale of the property after the condo developers lost a foreclosure suit, according to The Real Deal.

Image via Cushman & Wakefield

11 comments:

Anonymous said...

Coffee and depression...

Anonymous said...

always loved that building. puzzling, how can a dance studio afford $623k annual rent?

Anonymous said...

from horses to hoofers.

Greg Masters said...

This was the studio of artist Frank Stella in the 80s and 90s

Anonymous said...

Just shows the craziness of real estate markets. That rent reflects a less than 0.5% return on an $18MM purchase price. If you bought this with a mortgage, you would be out of pocket $5MM more in interest than the rent by the end of this lease.

Anonymous said...

...which begs the question: what type of business could afford a "profitable" rent?!

Anonymous said...

@3:43: What kind of business could afford a "profitable" rent? Bars and drug dealers.

Anonymous said...

"What kind of business could afford a "profitable" rent? Bars and drug dealers."

Are not bars the new drug dealers?

Christopher Pelham said...

Peridance is pretty much packed but a dance school can only charge its students so much. Rents go up much faster than the ability of da cars to pay for classes. Post war NYC has been the international capital of dance, arguably of ballet as well as modern and jazz and some types of street and social dance. But if nothing is done to control real estate costs and further subsidize the schools, presenters and companies, then this will come to an end, perhaps around the time Peridance's lease is up....

Anonymous said...

That's right, Christopher. There seems to be little correlation between the many places in the City that train (dancers, artists, writers, etc. etc.) and the "marketplace" that expects top performers to magically appear!

Anonymous said...

Perhaps Capezio should buy it.