Back on Jan. 3, we pointed out that 235-237 E. 14th St., which houses the IHOP, was on the market for $14.5 million. The Massey Knakal listing noted that IHOP was paying $45,833 per month on a 10-year lease.
The Real Deal had more details on the sale in this piece published Monday:
Just over a year after buying a bland, mixed-use building on the border of the East Village for less than $4 million, retail-focused landlord Ashkenazy Acquisition is ramping up efforts to sell that location, which is home to a popular International House of Pancakes restaurant, for $14.5 million. That extraordinary, potential growth in value at 235 East 14th Street, between Second and Third avenues, is due to the long-term IHOP lease inked at the building last year, property sales marketing material shows. But that valuable lease was a bit of an inside deal, because Ashkenazy Acquisition Chairman and CEO Ben Ashkenazy is a managing member of the company that owns the IHOP franchise rights in the tri-state area.
So to review, as a friend of EV Grieve did for us. Buy an undervalued asset. Place a retail client that you own the rights to in the space with a long-term lease. Then turn around and sell the building for more than triple what you paid for it. Not a bad day's work...