Regency East Apartment Corporation, the owner of the 18-story, 147-unit Regency East co-op apartment building at 301 East 64th Street, has purchased the 13-year master lease on four ground floor retail units at the building for $5.5 million.
Eastern Consolidated’s director Martin Ezratty represented the seller, Onyx Corp, and procured the buyer for the 12,200 s/f retail property, which is home to an 8,000 s/f Gourmet Garage, an upscale marketplace; a 1,500 s/f H&R Block; a 1,800 s/f Furry Paws, a pet store; and a 900 s/f nail salon.
According to Ezratty, the retail units offer an “extraordinary opportunity” for the co-op buyer to capture market-rate rents once the leases expire, as well as to gain the opportunity to control the use of their asset.
“The anticipation of the Second Avenue Subway is driving many investors to consider long-term, strategic retail investments close to the new stations,” he said, noting that the master lease at 301 East 64th Street expires in April 2026 with no increases in annual rent.
“The subtenants are currently below market, and that will change as the neighborhood’s access to transit evolves.”