Say high to the latest retail tenant at this 2nd Avenue storefront

Signage is up now for the new tenant at 97 Second Ave. — Hi Society, a cannabis shop. (And why not High Society? There is already an online weed delivery service by that name in NYC.) 

The arrival comes as New York State started taking new measures to crack down on unlicensed cannabis shops last month ... with the Office of Cannabis Management able to fine the establishments $10,000 per day; $20,000 if sales persist. 

There are at least four regulated, licensed dispensaries in the immediate area. 

The address here between Fifth Street and Sixth Street was the laundromat Launderette for years until 2014. Recent ventures include several hot pot restaurants... and a pick-up spot for the grocery delivery company Getir.

Top photo by Steven; second shot by Derek Berg

Delivery app biz Getir gets home at 97 2nd Ave.

The Istanbul-based Getir, the "ultrafast grocery delivery company," has set up a distribution outpost at 97 Second Ave. between Fifth Street and Sixth Street. (Thanks to Steven for the pic!) 

Getir launched its NYC app service last month and plans to expand to more neighborhoods in the year ahead. 

Here's some blah-blah info about them via their arrival missive:

The company revolutionized last-mile delivery to customers with its 10-minute grocery delivery proposition, offering approximately 2,000 everyday items from chocolate to soft drinks, dairy to cleaning materials, and chips to pet food. Getir was founded in 2015 as the world's first ultrafast grocery delivery service in Istanbul and has grown rapidly in recent years. 

Getir joins Gorillas and Buyk in using EV space as outposts... and there are others in NYC, like 1520, Fridge No More and JOKR. 

In November, The New York Times reported on this app-based speedy delivery world. 

Superfast grocery companies have their fans. Nick O'Keefe, a construction project manager who lives in the East Village of Manhattan, signed up for JOKR and Fridge No More in August and now says he may never go back to the supermarket. "The convenience of it far outweighs anything else," he said. "It's the future." 

But the new services have drawn criticism. One concern is that they could siphon business away from local stores in a city where running to the corner bodega when you run out of orange juice or milk has long been a part of daily life. Some people also worry that online grocers will send more deliverers onto streets already crowded with food app workers racing to deliver takeout orders while they are still hot, or at least warm. 

And!

[Now-former Manhattan Borough President] Gale Brewer questioned whether companies were pushing the need for speed too far. "Who the hell needs an apple in 15 minutes?" she said. "If you want something in 15 minutes, go to the store."

Getir might not necessarily be in this space long-term. The six-story building, notable for being the source of a legal tussle between Raphael "I will bury you" Toledano and developer Michael Shah, has been on the sales market for nearly three years. The storefront previously housed some hot pot.

97 2nd Ave. is for sale — again

[Photo via LoopNet]

The 6-story building between Fifth Street and Sixth Street has returned to the sales market.

First, here's more from the pitch:

The 10,948 square foot building (approx.) contains 10 residential units and one retail unit. Currently, of the 10 apartments, eight are free market and two are rent stabilized.

69% of the property’s income is derived from the residential component and 31 percent from the ground floor retail. The 10 residential apartments comprise 9,123 SF of the building’s gross square footage and are made up of two, three, and four bedroom units. The retail tenant on the ground floor is a restaurant currently paying $249,142 annually.

Asking price: $14.5 million.

This building is notable for being the source of a legal tussle between Raphael "I will bury you" Toledano and developer Michael Shah.

During a hearing in November 2017, a federal judge tossed a bankruptcy case filed by Toledano, ending his bid to stop the sale of 97 Second Ave. to Shah’s Delshah Capital, The Real Deal reported at the time.

Both landlords were claiming ownership of the building. It's a little complicated. Read the Real Deal piece here for the full blow by blow.

According to the documents filed by Shah, Toledano allegedly told him, "I will bury you, literally. I will bury this building and make sure of it."

However, it was never buried, and now awaits another owner. Toledano reportedly lost control of the property when he defaulted on a $2-million loan.

No. 97 was one of the first East Village properties purchased by Toledano. Public records show that Toledano paid $4.95 million for it in April 2014.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: Threats made in ongoing battle over 97 2nd Ave.

Hot pot switcheroo on 2nd Avenue

An EVG reader shares these photos from over at 97 Second Ave., where coming soon (Aug. 31) signage for Spicy Noodle Hot Pot is up in the window at the current home of Hou Yi Hot Pot...



So apparently there will be a hot pot switcheroo taking place here. The phone number listed for Spicy Noodle Hot Pot is the same as for Hou Yi Hot Pot.

Hou Yi Hot Pot, which also has a spot on Hester Street in the northern fringes of Chinatown, opened here between Fifth Street and Sixth Street in December 2015.

No. 97 is also the address of an ongoing legal battle between now-former landlord Raphael "I will bury you" Toledano and Delshah Capital. (Background here.)

Report: Judge dismisses Raphael Toledano suit over 97 2nd Ave.

During a hearing on Monday, a federal judge tossed a bankruptcy case filed by Raphael "I will bury you" Toledano, ending his bid to stop the sale of 97 Second Ave. to Michael Shah’s Delshah Capital, The Real Deal reports.

Both landlords were claiming ownership of the 11-unit building between Fifth Street and Sixth Street. It's a little complicated. Read the Real Deal piece here for the full blow by blow.

According to the documents filed by Shah, Toledano allegedly told him, "I will bury you, literally. I will bury this building and make sure of it."

The 6-story building was one of the first East Village properties purchased by Toledano. Public records show that Toledano paid $4.95 million for it in April 2014.

Toledano reportedly lost control of the property when he defaulted on a $2 million loan.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

Report: Threats made in ongoing battle over 97 2nd Ave.

Report: Threats made in ongoing battle over 97 2nd Ave.

Raphael Toledano continues to build his impressive tapestry of quotable quotes in his tenure as an East Village landlord.

“I’m worth a fuckload of money bro.” @markgmaurer’s profile on the rapid & rocky ascent of EV landlord Rafi Toledano https://t.co/Y3Qvbea8jT

— Kerry Barger (@kerrybarger) June 1, 2016

His latest keepsake soundbite came during the ongoing battle over 97 Second Ave. between Toledano and Michael Shah’s Delshah Capital. Both landlords are claiming ownership of the 11-unit building. (It's complicated.)

The Real Deal has all the details about the legal drama here.

In August ... Toledano filed for Chapter 11 bankruptcy protection on the property and tried to procure a buyer. According to court documents filed by Shah, Toledano also used that time to threaten and extort him. Toledano threatened to instruct the tenants to withhold rent, according to the documents, and told Shah, “I will bury you, literally. I will bury this building and make sure of it.”

The 6-story building between Sixth Street and Fifth Street was one of the first East Village properties purchased by Toledano. Public records show that Toledano paid $4.95 million for it in April 2014. Toledano said in the bankruptcy protection filing that the property is valued at $15.1 million, per the Commercial Observer.

As for the status of Tolednao and his other neighborhood properties, The Real Deal reported:

The 27-year-old landlord is awaiting approval for the sale of the deeds of 15 distressed East Village properties to lender Madison Realty Capital, which recently replaced him as property manager on the buildings.

Previously on EV Grieve:
Claim: Landlord of 444 E. 13th St. threatened 'to drop dynamite on the building'

More legal drama with Raphael Toledano and 97 2nd Ave.

The 6-story building at 97 Second Ave. between Sixth Street and Fifth Street was one of the first East Village properties purchased by Raphael Toledano, who would later buy several portfolios of buildings.

Now the building, which has a complicated recent history (there was a lawsuit in 2014 involving Toledano and another broker), is involved in more legal drama.

The Commercial Observer breaks it down:

Landlord Raphael Toledano is seeking Chapter 11 bankruptcy protection for an East Village walk-up building, which he says Delshah Capital’s Michael Shah has “commandeered,” according to a filing in the United States Bankruptcy Court for the Eastern District of New York...

And...

On July 21, Delshah Capital announced the “acquisition of a defaulted note encumbering the property” at 97 Second Avenue. Delshah said in a news release that day, “Shortly after acquiring the defaulted senior note, Delshah worked directly with the building’s now former owner to enable them to recoup their capital and to take possession of the property at 30 percent below market value.”

Public records show that Toledano paid $4.95 million for it in April 2014. Toledano said in the bankruptcy protection filing that the property is valued at $15.1 million, per the Commercial Observer.

Previously on EV Grieve:
Raphael Toledano-owned 97 2nd Ave. is on the auction block

Raphael Toledano-owned 97 2nd Ave. is on the auction block

The 6-story, 10-unit building at 97 Second Ave. between Sixth Street and Fifth Street was one of the first East Village properties purchased by Raphael Toledano.

Now the building, which has a complicated recent history (there was a lawsuit in 2014 involving Toledano and another broker), is on the auction block.

Here are the details:

On the 28th day of February, 2017 commencing at 10:30 a.m. Eastern Standard Time, at Polsinelli PC, 600 Third Avenue, 42nd Fl., New York, NY 10016, Lefko Funding LLC (Secured Party) will sell the following property by public auction to the highest qualified bidder: 100% of the membership interests in 97 2nd LLC, a New York limited liability company, which owns real property consisting of apartments and a first floor commercial space, in New York, NY with an address of 97 Second Avenue, New York, NY 10003.

Secured Party reserves the right to reject all bids and terminate or adjourn the sale to another time or place, or to effectuate a private sale instead of a public sale, without further publication, and further reserves the right to bid for the collateral at the sale and to credit bid by applying some or all of its secured debt to the purchase price. Interested parties who would like additional information concerning the items to be sold at the sale and the terms and conditions of the sale, including the eligibility requirements to be a qualified bidder.

Public records show that Toledano paid $4.95 million for it in April 2014.

In 2014, Douglas Pratt, whose family had operated the longtime laundromat here since the early 1970s as well as owned the building, said that they needed to sell "for a host of personal and business reasons."

The retail space is now home to Hou Yi Hot Pot. They have a lease through February 2030.

Earlier this month news broke that, facing foreclosure, Toledano was selling off most of his East Village properties.

Raphael Toledano selling 97 2nd Ave.

The 6-story building at 97 Second Ave. between Sixth Street and Fifth Street was one of the first East Village properties purchased by Raphael Toledano, who would later buy several portfolios of buildings.

Now the building, which has a complicated recent history (there was a lawsuit in 2014 involving Toledano and another broker), is on the market.

Cushman & Wakefield has the listing. Here's the pitch:

The building consists of a ground floor retail space currently leased to a restaurant until February 2030 with 10 residential units.

The restaurant pays $105 per square foot which is slightly below market and reimburses for 50% of the increases in the real estate taxes over base year 2015. The FM residential units have recently undergone extensive renovations and feature high ceilings, washers and dryers, dishwashers, wide plank wood flooring, and stainless steel appliances. Four units feature private access to the rooftop or a balcony which command a premium in rent. The building has also been outfitted with a new video intercom system and security cameras. This is a rare opportunity to acquire a high cash flowing, recently renovated mixed-use building in the heart of the East Village.

There isn't a listing price: Potential buyers need to submit offers. Public records show that Toledano paid $4.95 million for it in April 2014.

In April 2014, Douglas Pratt, whose family operated the longtime laundromat here since the early 1970s as well as owned the building, said that they needed to sell "for a host of personal and business reasons."

The retail space is now home to Hou Yi Hot Pot.

In July, The Real Deal reported that the controversial Toledano was aiming to sell six East Village buildings less than a year after buying them.

Image via Cushman & Wakefield

It will be 'easy to convert' Launderette into a restaurant on 2nd Avenue

Late last month, the owners of the longtime laundromat at 97 Second Ave. near East Sixth Street posted a detailed letter about why they are closing their business later in the summer. (You can revisit that post here.)

Now the brokers put up a "for lease" sign in the front window … showing a "rendering of possible new storefront" and offering other details about the space…



… such as it will be "easy to convert to restaurant" and something about hot air.

Oh, and the asking rent per the listing: $25,500 a month.

Longtime Second Avenue Launderette will close this summer

The longtime laundromat here on Second Avenue between East Sixth Street and East Fifth Street is closing... some time in August, most likely.

EVG regular peter radley shares these photos... and the sign on the front window goes into great detail about the situation here...


[Click on image to enlarge]

Douglas Pratt, president of the Launderette, discusses how his family operated this laundromat since the early 1970s ... that they were "forced" into buying the building a short time later or face losing the lease. However, more recently, the family had to sell the building here at 97 Second Ave. "for a host of personal and business reasons."

According to the letter, the new owners are courting a variety of tenants — restaurants, convenience stores and laundromats. As of now, Pratt doesn't believe a new tenant has signed a lease.

Aug. 15 is the tentative closing date.