Katz’s Adjacent Retail Condo Sells for Record $89M
The hot pastrami sandwich at Katz’s Deli costs $22.95; the ginormous commercial condo in Ben Shaoul’s luxury development next door costs $89 million.
Developer Ben Shaoul reportedly sold the retail portion of the building to the AR Global affiliate New York City REIT. Stated sale price is $88.75 million, which makes it the most expensive deal for a retail condo in more than two years.
At a total commercial floor area of about 60,000 square-feet, the price works out to more than $1,475 per square-foot. The space itself is also rented at full capacity to three big-box retailers – CVS, Marshalls, and Equinox gym.
As The Real Deal notes, this price tag is somewhat of an anomaly given the slumping trend of retail across the city.
The mixed-use condo project at 196 Orchard took nearly five years from start to finish. Landlord Ben Shaoul, along with Real Estate Equities Corp., together purchased the gargantuan assemblage of twelve single-story stores in 2014 from the Magnano family (which owned and operated the Ray’s Pizza), plus the valuable air rights from Katz’s Deli, for a combined $75 million. (Katz’s Deli reportedly made off with $17 million of the total.)