Ceruzzi Holdings and Kuafu Properties have executed a lease with Old Navy, a division of The Gap, for an 18,500 s/f retail location in its upcoming 18-story, 61-unit luxury condominium building at 147 East 86thStreet.
Ripco vice chairman/principal Andrew Mandell represented ownership in the transaction, while Robert K. Futterman & Associates vice chairman Ariel Schuster represented the tenant.
Old Navy will have a portion of the ground floor and the second-floor space, with all of its frontage toward the mid-block of 86th Street in an area that features other prominent retailers within the 86th Street corridor such as Whole Foods, H&M, Sephora, Bank of America, Barnes & Noble, Shake Shack and AT&T.
In addition to Old Navy, the commercial component of the project includes 6,000 s/f of retail space at the corner of 86th Street and Lexington Avenue available for lease.
As part of the project improvements, the sidewalk on 86th Street will be widened significantly, and the MTA entrance currently located within the existing building will be moved to the sidewalk.
The residential entrance to the building will be located on Lexington Avenue. Demolition for the project is on schedule for completion within the next two weeks.
Current architectural renderings detail the building’s stone and glass façade and modern design. New building construction will commence upon completion of demolition, with the project slated for completion in early 2019.
Earlier this year, ownership secured a $290 million construction loan from the Children’s Investment Fund for the project. Construction financing was arranged by HFF.
The construction, which will encompass a 229,751 s/f area, includes new subway entrances for commuter convenience and an overall streetscape, in keeping with a classic Upper-East-Side residence.
The project team consists of Ceruzzi Holdings and Kuafu Properties, with Hellmuth, Obata + Kassabaum (HOK) leading design. Shelton, Mindel & Associates has served as the interior-design architect for the project.
The tower will feature residential amenities including a resident lounge, a children’s playroom, a teen room, a fitness center and a rooftop terrace.
“It’s been a pleasure to work with our partners, our lender and the excellent design team in planning this strategically located, state-of-the-art mixed-use development,” said Ceruzzi Managing Director Art Hooper.
“This has been a collaborative effort and we are very pleased to have achieved this major milestone, and look forward to the commencement of new building construction.”