Eastern Consolidated has been retained as the exclusive agent to market for sale the long-term leasehold interest at 437-439 West 16th Street in the Meatpacking District, for $52 million.
Located on the North side of West 17th Street between Ninth and Tenth Avenues, the five-story, 27,000-square-foot property is net leased to luxury home furnishing brand Restoration Hardware.
The property, which features 51 feet of frontage along the North side of West 16th Street, is directly across from Chelsea Market and steps from the High Line. The property features five above-grade floors, measuring to a total of 22,000-square-feet, which are currently occupied by Restoration Hardware and the company’s art gallery, RH Contemporary Art Gallery.
In addition, there is another 5,000 square-feet of space in a usable basement, a portion of which is occupied by professional photo and production lab Picturehouse and The Small Dark Room. The building also features an additional 4,000 square foot landscape roof terrace.
“This offering presents investors the opportunity to acquire a high credit, income-producing, long-term net leased boutique office and gallery building in one of the most desired locations in the United States,” said David Schechtman, Executive Managing Director at Eastern Consolidated, who along with Senior Director Lipa Lieberman, Director Abie Kassin, and Associate Director Elie Dayan represent the seller, 437 West 16th Street LLC. “This property also has future potential to be an owner-occupied/user property and part of a future assemblage.”
Picturehouse and The Small Dark Room has a lease expiration in March 2018. Upon their expiration, Restoration Hardware will take over the basement, 2nd floor, and a portion of the 3rd floor, all of which are currently occupied by Picturehouse and The Small Dark Room. This results in them occupying the entire building for the remaining years of their lease.
“The net lease to Restoration Hardware runs through January 2029, therefore nearly 80 percent of the property’s in-place income is contractual for the next 14 years,” Lieberman added. “This offers investors an extremely stable and high credit income stream during this time.”
Located in the Meatpacking District, this neighborhood features a cutting-edge mix of international luxury retail brands, world-class dining and trendy nightlife venues, museums and art galleries, boutique hotels, exclusive residential addresses, and now has emerged as the premier destination for technology and creative industry office campuses.
The property is in close proximity to multiple transportation networks, including the 1, 2, 3, A, C, E, and L subway lines from the 14th Street subway station. In addition, bus service includes the M11 at West 16th Street and 10th Avenue and the M11, M12, M14A, and M14D busses at 9th Avenue and West 17th Street.