Zarin Fabrics Building at 314 Grand Still for Sale, Price Chopped to $29.5M
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Amster Family Investments, current owner of the block-long building housing Zarin Fabrics, is apparently having trouble finding a customer. The Massey Knakal brokerage placed 314-320 Grand Street on the open market last summer for a whopping $32.7 million, as first reported here. In the interim seven months, neither onsite banners nor online listings baited a sale.
So, the price was recently chopped to $29.5 million.
Meanwhile, Zarin Fabrics, currently on the second floor, continues to renovate its future showroom around the corner at the shared address of 69 Orchard. You’ll recall that this storefront previously hosted Howard Sportswear which went out earlier this fall.
Still no sign of the TD Bank branch, though, which remains a selling point in the real estate listing. Bank of America already holds court on the corner. Can never have enough banks, right?
More explanation from the posting:
The rents at 314 Grand Street are substantially below market. Although the TD Bank lease is new, it will only rise to $88/SF once its reduced rental period burns off in about two years. This is almost half of what some of the other stores nearby on Orchard Street are asking; meanwhile retail corners on Delancey are achieve well into the $100s/SF. Finally, the office space is only $24-29/SF without a loss factor. If a market rate loss factor of 27% was applied, these floors could rent for upwards of 8,750 SF, meaning that these rents are truly only in the low $20s per square foot when compared to their comp set. In all, the long term income growth potential at this property is incredibly unusual.