How the New Owners Really Feel About the Demolition of Sunshine Cinema
In a Q&A with the Commercial Observer this week, Gregory Kraut, a managing partner at K Property Group, exhuded a rather flippant attitude toward the 1898-era building. Kraut’s firm and East End Capital together purchased the property in May 2017 for $31.5 million. The exchange features tidbits about why the location was chosen for a glassy new nine-story office tower, the Sunshine itself, and timeline of demolition.
Commercial Observer: Why did you want the Sunshine Cinema building?
Gregory Kraut: Because we saw where retail is going. We saw what was happening on Orchard Street where they have Equinox, CVS and T.J. Maxx, and Whole Foods was on the other side so we’re right there. We’re like, Are you kidding? This is a great location. We’re putting up a spec 63,000-square-foot office building that’s going to be nine stories. Roger Ferris is our architect. He is awesome.
CO: So no theater there.
GK: No theater. Zero. We’re demolishing it in two months.
CO: You don’t feel bad?
GK: No, not at all. First of all they were trying for years to make money and they couldn’t. The area has changed, and quite frankly, the business model didn’t, and so we gave them options to renew. They had several opportunities to buy the building.
CO: What kind of rents are you going to seek?
GK: Probably be at somewhere right under $100 a square foot more or less. 300 Lafayette is that brand new building that’s being built. They think they’re going to get $150 a foot. We think we’re going to have a better product than them, and we’re going to be 80 percent of the cost, meaning we’re going to be at a lower price point and a better product in a cooler area.