7-story residential building pending at the former Lucky Cheng's space

[Photo of 24 1st Ave. from April]

Developer Sergey Rybak filed plans with the city yesterday for a 7-floor, 22-unit residential building at 99-101 E. Second St., part of the L-shaped assemblage that once housed Lucky Cheng's. In total, the building will encompass 19,000 square feet, as The Real Deal first reported.


[Photo of 99-101 2nd St. from April]

As we first reported in March, Rybak, of the South Brooklyn-based Rybak Development, was the winning bidder during an auction in February. According to EPIC Commercial Realty, who represented the buyer and the seller, the winning bid was $12.25 million.

So far, there aren't any demolition permits on file.



Hayne Suthon, who owned and and operated Lucky Cheng's, the cross-dressing cabaret, also lived on the upper floors at 24 First Ave. She died of cancer at age 57 in June 2014.

No. 99-101 Second St. housed a variety of short-lived restaurants in recent years, including Bento Burger ... Marfa... and Waikiki Wally's.

Previously on EV Grieve:
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

Onetime home of Lucky Cheng's and adjacent property sell for $12 million

A reminder of the development to come at 24 1st Ave. and 99-191 E. 2nd St.

These "sold" development site banners went up yesterday at 24 First Ave. ... and on its sister property at 99-101 E. Second St. ...



As reported late last month, Sergey Rybak of the South Brooklyn-based Rybak Development was the winning bidder during an auction in February. According to EPIC Commercial Realty, who represented the buyer and the seller, the winning bid was $12.25 million.

So far there's nothing new on file with the DOB for the addresses. The property can be developed with or without the inclusionary housing air rights, providing between an additional 19,000 and 22,000 square feet. No word yet about what Rybeck plans to do with the L-shaped assemblage.

Previously on EV Grieve:
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

Onetime home of Lucky Cheng's and adjacent property sell for $12 million

Onetime home of Lucky Cheng's and adjacent property sell for $12 million

[24 1st Ave.]

The potential development sites at 24 First Ave. (the onetime home of Lucky Cheng's) and 99-101 E. Second St. have a new owner.


[99-101 E. 2nd St.]

Sergey Rybak of the South Brooklyn-based Rybak Development was the winning bidder during an auction last month. According to a news release from EPIC Commercial Realty, who represented the buyer and the seller, the winning bid was $12.25 million.

The property can be developed with or without the inclusionary housing air rights, providing between an additional 19,000 and 22,000 square feet. No word yet about what Rybeck plans to do with the L-shaped assemblage...



As previously reported, landlord Carmar Development, LLC, put the two-building parcel up for sale in February 2017. (We wrote about that here.) The properties were seeking $26 million at that time. Uri Marrache, a principal at Carmar Development, was reportedly at risk of defaulting on his $11 million loan against the vacant buildings.

Hayne Suthon, who owned and and operated Lucky Cheng's, the cross-dressing cabaret, also lived on the upper floors at 24 First Ave. 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

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

$10 million minimum opening bid today at auction of former building that housed Lucky Cheng's

[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.

Per Crain's:

“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
Currently Vacant

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

Building that housed Lucky Cheng's on 1st Avenue now on the auction block

After failing to attract a buyer in recent years, the potential development sites at 24 First Ave. (the onetime home of Lucky Cheng's) and 99-101 E. Second St. will be put up for auction later this month...



The auction is Jan. 24 at 1 p.m. Here are a few details about that from the auction site:

Terms & Conditions of Sale: Property will be sold free and clear of all monetary liens. In order to register to bid, all prospective bidders must present a cashier’s check in the amount of $1,000,000 made payable to “____________________”. Within 48 hours following the auction, Successful Bidder must post a deposit in the total amount of 14% of the high bid.

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.

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
Currently Vacant

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

New broker for former home of Lucky Cheng's and adjacent property

There's a new broker for the potential development sites at 24 First Ave. (the onetime home of Lucky Cheng's) and 99-101 E. Second St. The adjacent properties now feature the Eastern Consolidated broker signage...



Landlord Carmar Development, LLC, had put the two-buidling parcel up for sale back in February. (We wrote about that here.)

Here's the new listing (PDF is here) via Eastern Consolidated:

The Property consists of two existing mixed-use buildings with frontage on both First Avenue and E. 2nd Street in the extremely desirable East Village. Both buildings will be delivered vacant.

The offering presents multiple options going forward including becoming components of a larger assemblage for a new construction development project, with up to ±30,000 buildable SF, redeveloping the Property by renovating and enlarging the existing structures or repositioning for a national retailer or user purchaser seeking to control a location for ±10,000 SF of multi-level retail and a mix of other uses.

Pricing upon request. The L-shaped properties were seeking $26 million back in February. (The properties were also available for net lease. That deal is no longer apparently an option.)

The sales materials include a variety of diagrams showing the development potential here...



... and the aerial view...



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

Onetime home of Lucky Cheng's and adjacent property on the development market for $26 million

Onetime home of Lucky Cheng's and adjacent property on the development market for $26 million

[Photo from March 2016]

In March 2016, there were reports that the building that once housed Lucky Cheng's on First Avenue and an adjacent property on Second Street were in the process of being divided by new landlord Carmar Development, LLC.

Now, though, Uri Marrache, a principal at Carmar Development, is putting the two-buidling parcel up for sale for development.

Here's a news release on the property that arrived in our inbox yesterday:

The adjoining, L-Shaped properties enjoy combined frontage of 60' spread across East 2nd Street & 1st Avenue; buildings are comprised of roughly a 14,000 SF structure and boast around 12,000 SF of unused air rights; located in a versatilely zoned area. The properties can be acquired for $26 Million.

Both buildings are also available for Net Lease.

24 1st Avenue & 99-101 East 2nd Street are strategically located along the vibrant 1st Avenue corridor in the East Village. The properties are located within four blocks from Peter Brant's illustrious exhibition space at the celebrated artist — Walter De Maria's historic home; which has nurtured and pioneered a new era of artistic progress within the region. The Notable Art Collector & Industrialist recently purchased the legendary property for $27 Million.

A flurry of progressive & chic development projects have transformed the nature of the immediate area, further characterizing the region as New York City's most desirable destination to live, shop, and play. The New Museum and world-renowned eateries like Katz's Deli, Daniel Boulud's DBGB, Russ and Daughters; the emergence of several prominent art galleries; have all fostered the majestic aroma of the neighborhood.

These factors, coupled with the pre-existing dynamism of the investment & residential sales markets have paved the way for unwavering cultural and economic growth in the East Village and Lower East Side. All the while, neighboring development projects such as 215 Chrystie Street by Ian Schrager have registered sales at unprecedented condominium prices, thus cementing the region's aesthetic appeal and establishing the East Village & Lower East Side as amongst the world's most magnetizing neighborhoods.

The properties are ripe for a user who is seeking to benefit from the unparalleled retail presence on both 1st Avenue and East 2nd Street. The acquirer will also be able to creatively utilize the curb cut (on 99-101 East 2nd Street) and the vast ceilings, coupled with unique layout; while capitalizing on the underlying development potential of the properties. The acquirer is also certain to benefit from the inevitable reallocation of retail value from the neighboring corridors in SoHo & NoHo.

Here's an aerial view of the properties...



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.

She had been in a legal fight with the operators behind Pride and Joy BBQ, who were renting the space to open a 220-seat honky tonk. (You can read more about this lawsuit here and here.)

The East Second Street space had been home to an array of short-lived concepts in recents years, including Bento Burger ... Marfa... and Waikiki Wally's...


[Photo from last March]

Suthon had owned the property 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

Pride and Joy's unpaid electric bill

Report: New owners of building that housed Lucky Cheng's looking to attract restaurant group

[Photo from last evening]

Plans are reportedly underway to convert the former Lucky Cheng's on First Avenue and its adjacent space on East Second Street.

Real Estate Weekly has the story:

Carmar Development, LLC, is in the throes of converting the former club and restaurant into which occupied two contiguous mixed-use properties totaling 14,000 s/f at 24 First Avenue and 99-101 East Second Street.

Uri Marrache, a principal at Carmar Development said, "As it stands, it seems like we’ll be dividing the East 2nd street property and the 1st Avenue property so I think ultimately we’ll see two retail tenants."

Noting that talks were "very, very far along," Marrache said, "The 1st avenue side is going to be a restaurant."

Marrache declined to name the tenant, noting only that it "will be the newest location of what is already an established restaurant group." He also said that the L-shaped property has 12,000 square feet of air rights.

Hayne Suthon, who owned and and operated Lucky Cheng's also lived in the building. She died of cancer at age 57 in June 2014.

She had been in a legal fight with the operators behind Pride and Joy BBQ, who were renting the space to open a 220-seat honky tonk featuring three bars and about 20 TV screen. (You can read more about this lawsuit here and here.)

The East Second Street space has been home to an array of short-lived concepts in recents years, including Bento Burger ... Marfa... and Waikiki Wally's...


[Photo from last evening]

Workers had gutted the space in late 2012-early 2013 to make way for BBQ chef Myron Mixon's restaurant/saloon. He later had a falling out with his partners, who decided to push forward with a BBQ restaurant here without Mixon. And the space was strangely gutted again.

Suthon had owned the property 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.

There are complaints on file with the DOB for work being done at 24 First Ave. and 99 E. Second St. without a permit. There is also an open violation from the city for work without a permit, per public records. The DOB doesn't currently list any active work permits for the properties.

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

Pride and Joy's unpaid electric bill