[Photo from Dec. 31]
As I reported on Jan. 2, the potential development sites at 24 First Ave. (the onetime home of Lucky Cheng's) and 99-101 E. Second St. are headed to the auction block.
The bidding action begins today at 1 p.m. at the Hotel on Rivington. The minimum opening bid is $10 million. (Find more details at the auction site here.)
Landlord Carmar Development, LLC, had put the two-building parcel up for sale in February 2017. (We wrote about that here.) The L-shaped properties were seeking $26 million then.
Uri Marrache, a principal at Carmar Development, was reportedly at risk of defaulting on his $11 million loan against the vacant buildings.
As Crain's reported, while the bidding will start at $10 million, a winning offer must at least exceed the $11 million owed to the lender.
“The owner was behind with the lender on payments,” said Richard Maltz, chief executive of Maltz Auctions. “Going through an auction process like this allows a property owner that needs a quick exit to execute on a sale.”
As for what a new landlord might be able to do here, we'll go back to the auction site:
Currently Improved with a 7,748 Sq Ft Mixed-Use Building & 4,648 Sq Ft Retail Building
Substantial Unused Air Rights
• 28,540 Sq Ft Buildable Site (3,418 Sq Ft Cellar) – Per Architect Plans, with Inclusionary Housing
• 26,483 Sq Ft Buildable Site (5,297 Sq Ft Cellar) – Per Architect Plans, without Inclusionary Housing & with Full Lot Merge
• 24,610 Sq Ft Buildable Site (5,298 Sq Ft Cellar) – Per Architect Plans, without Inclusionary Housing
Annual Real Estate Taxes: $141,977
Hayne Suthon, who owned and and operated Lucky Cheng's, the cross-dressing cabaret, also lived in the building. She died of cancer at age 57 in June 2014.
Suthon had owned the properties since 1986, paying $800,000, city documents show. According to public records, the address changed hands to Carmar Development in February 2015 for a little more than $9.6 million.
Previously on EV Grieve:
Myron Mixon's Pride & Joy BBQ now in the works for the former Lucky Cheng's space
Fire reported at incoming Pride and Joy BBQ on East Second Street
Myron Mixon lawsuit puts opening of Pride and Joy BBQ in question at former Lucky Cheng's space
More alterations for the Pride and Joy space
Report: Pride and Joy BBQ partners suing landlord Hayne Suthon for $22 million
Report: New owners of building that housed Lucky Cheng's looking to attract restaurant group
Onetime home of Lucky Cheng's and adjacent property on the development market for $26 million
Building that housed Lucky Cheng's on 1st Avenue now on the auction block