Rat Castle Retail Hits the Market for $4M

Posted on: September 19th, 2017 at 5:09 am by

The notorious “Rat Castle” building on Ludlow Street is back in the news. This time for something as innocuous as a real estate listing.

Indeed, the owner of the ground-floor commercial condo at 179 Ludlow Street is looking to sell. The 1,650 square-foot space, currently home to national salon chain Drybar, is going for just over $4 million.

Cushman & Wakefield has the listing. And it’s interesting to note that that DryBar is still on the hook until 2026 with annual dole of $180,000 per year (with incremental increases).

The 1,650 SF unit features approximately 22′ of frontage, a 550 SF lower level, and 14′ ceiling heights. The space is currently leased to Drybar, a California-based blow-dry bar chain, which operates 69 stores across the United States and Canada. Drybar’s lease carries a corporate guarantee and runs through August 2026 paying $180,000/Year with 3% annual increases and reimburses 100% of the real estate taxes over base year 2016/2017. Drybar also pays 8% over a natural break point to the owner. The property benefits from a strong location, only steps away from neighborhood hotspots such as Mr. Purple, Whole Foods, Pianos, and the newly opened Public Hotel. Additionally, the property is located next door to a mixed use development site.

That new “development site” name-checked is none other than Ben Shaoul’s 196 Orchard Street. You’ll recall that the condo board allegedly restricted building access to the developer back in 2015, resulting in a subsequent lawsuit.

The Rat Castle nickname was coined by the Village Voice in 2008 due to the terrible infestation at the then-abandoned project, which broke ground in 2006. And remember that there was a time, albeit briefly, when Madonna actually considered opening a Kabbalah center here.

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