High Rents Force ‘Prema Hair’ from 101 Stanton Street After its $12.9M Sale
No sooner did 101 Stanton Street change hands than this enormous, eye-grabbing leasing banner appear above the corner store. It seems rather apparent that the new owners now want the Prema Hair salon gone from the ground-floor retail.
You’ll recall that a small consortium of real estate firms – Penn South Capital, Conway Capital, and Rudd Realty Management – scooped up 101-103 Stanton in June for $12.9 million. Seller 101 Owners Corp., a shell company for Arwen Properties/Luthien Group which also sold other holdings in the immediate vicinity, had acquired the building in 2004 for $2.7 million.
The new ownership group will reportedly “renovate the vacant apartments as well as secure new tenants for one of the most exciting retail plays in the Lower East Side,” according to a hype email received from Penn South.
In other words, Prema Hair is gone. “[The landlords] want a ridiculous rent and believe they can get it elsewhere,” owner Francesco Ruggerino told us matter-of-factly. “With no liquor allowed (ed: it’s more difficult to obtain a license in Hell Square), I don’t know who is going to pay them the sort of money they are looking for. My clients are in an uproar, as we have worked so hard to turn this business around and bring more quality to the local area.”
However, Ruggerino has his eyes on a new space around the corner on Ludlow Street. And word on the street is that it’s the store currently occupied by ODD. That boutique is on its way out after spending five years on the block.
For Prema, though, the goal with the new location is retail cohabitation – to create a “collaborative space with a local fashion store, photographer, an artist or a kind of business that would be complementary to us can sublease with us.” We’re told that the new landlord is more reasonable on the rent.
It’s unclear whether the Ma Non Troppo boutique occupying the other ground unit at 101 Stanton is affected.