Ashkenazy Acquisition has purchased the retail condominium at 1991 Broadway for $22 million, after a previous lawsuit was settled out of court.
Ashkenazy initially signed a contract to purchase the space for $28 million, but in April sued the seller, alleging that they had failed to inform the buyers about restrictions on use of the public atrium inside the building.
The price reduction was a result of the lawsuit settlement, according to representatives of Stan Johnson Company, which represented the seller in the deal.
Jason Maier and his team at Stan Johnson Company’s New York office represented the seller, Manhattan-based Small Fish Corp. The deal has a projected 4.75 percent cap rate, according to the brokerage.
“The transaction appealed to a variety of domestic investors, and given New York City’s strong fundamentals we were able to achieve premium pricing for Small Fish Corp,” Maier said in a statement. “The purchase provides Ashkenazy with a prime asset on the coveted Broadway corridor. They have the ability to increase their NOI by re-tenanting the space to include a possible flagship store.”
The retail condominium is comprised of 7,500 square feet of space including 5,000 square feet of mezzanine and ground-floor retail, with 60 feet of frontage on Broadway between 67th and 68th Streets. The space is located directly adjacent to the new Apple flagship store and close to the Subway, Lincoln Center, Julliard and the AOL Time Warner Center.