Weilgus & Sons Building on East Broadway Hits the Market for $11M
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The eastern fringe of Chinatown is really starting to sell off. Lots of building transactions, hoity-toity galleries, and bar-restaurants. As a result, the area totally resettled, and should succumb to the pressures of hyper-gentrification in short order.
Case in point is 158 East Broadway, with Weilgus & Sons on the ground level. The tenement just hit the market earlier this week for $11 million. Cushman & Wakefield is the exclusive broker. They claim this to be a “cash flowing block,” and it’s easy to see why. Some of the Chinese businesses are closing, and places like Gracias Mama and white-box galleries are moving in.
The subject property is a five-story mixed-use building, located between Essex and Pike Streets and runs block through from East Broadway to Canal Street. The ground floor is built full on the lot and currently occupied by a hardware store paying $12,500/mo with 7 years remaining on their lease. The tenant reserves the right to cancel lease after 3 years. Furthermore, the retail tenant benefits from lower level storage with great ceiling heights. Floors 2 through 5 are separated by 25’ x 10’ courtyard. There are 16 apartments in total. 8 apartments are on the East Broadway side and 8 apartments are on the Canal Street side. 6 of the 16 apartments will be delivered vacant. The remaining 10 units are occupied and rent stabilized.
This offering poses an excellent opportunity to acquire a cash flowing block through property with excellent short and intermediate term upside potential in both the retail and apartments. The air rights are intact.
The five-story property is through-block with exposure on Canal Street, as well. The Weilgus family – which maintains the locksmith business on the ground floor – has owned the building for nearly forty years, according to public records. The store itself is third-generation, open since 1932.