Hotel Chantelle HQ on Ludlow Street is up for Sale
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The stout mid-block warehouse building that houses Hotel Chantelle is now up for grabs. It appears the landlord (Margie Salstein, per public record) placed the property on the market, and is currently fielding offers. Capitalizing on Essex Crossing while still in its infancy.
The real estate listing does not show a price tag, but think big dollars. Like everything on the Lower East Side these days, 92-94 Ludlow is pitched as a development opportunity, albeit with a caveat. Hotel Chantelle carries a long term lease and is not immediately affected by a property transaction. Unless business goes belly up or decides to sell out the remainder of the lease. You see, the nightclub is tied to this location until 2020, according to the literature accompanying the listing.
As such, the Cushman & Wakefield brokerage seeks a patient buyer who is “willing to wait out the lease term.” The light at the end of this proverbial tunnel is lit by Essex Crossing.
To the broker-babble…
The subject property is a single story commercial building located on the east side of Ludlow Street between Delancey and Broome Streets, just one block from the Essex Crossing site. The entire building, which sits on a 38.5’ x 88.06’ lot, is leased to the popular neighborhood restaurant & club Hotel Chantelle. In addition to the ground floor, Hotel Chantelle occupies the lower level and the rooftop which is partially enclosed throughout the year. 92 Ludlow is zoned C6-1 which has a Commercial FAR of 6.00 (20,342 BSF), Residential FAR of 3.44 (11,663 BSF) and a Community Facility FAR of 6.50 (22,037 NSF).
Hotel Chantelle pays all utilities associated with the space as well as 100% of the Real Estate taxes (base year 2012/13) in addition to 50% of the previous billed Real Estate taxes (base year 2007/08). Their original lease is dated November 27, 2007 and was amended on June 8, 2010 (1st amendment), August 14, 2013 (2nd amendment) and March 24, 2014 (3rd amendment). Among other items, these amendments included language relating to: (1) extending the lease term until November 30, 2020; (2) permitting tenant to use additional space at the rear of the property in exchange for additional supplementary rent; (3) 4% annual increase associated with the supplementary rent; (4) adjusted Real Estate tax pass-throughs from 50% to 100%.
The property is suitable for an investor or developer who is willing to wait out the lease term considering Essex Crossing should be up and running at that time (circa 2020).
Hotel Chantelle debuted at 92 Ludlow Street in December 2010. The club replaced the Community Healthcare Network outpost that operated here for years (now at 150 Essex Street).