In the latest indicator of Lower Manhattan’s real estate revival, a prominent food retailer is making a significant commitment to this burgeoning neighborhood.
Fairway Group Holdings, the operator of New York City’s legendary grocery chain, Fairway Market, has signed a 20-year, 52,242-square-foot lease for its first Lower Manhattan location at Jack Resnick & Sons’ 255 Greenwich Street.
The new Fairway store will occupy 11,358 square feet on the ground floor and 40,894 square feet on the lower level of the property. Situated just two blocks from the 16-acre World Trade Center site, the supermarket plans to have a main entrance at street level on the corner of Greenwich and Murray Street and elevators/escalators to the store downstairs. It is projected to open in fall 2014.
“The Greenwich Street corridor is the spine that connects TriBeCa with Downtown, and we’re delighted that Fairway will make that link even stronger than with its presence at 255 Greenwich,” stated Burt Resnick, Chairman and CEO of Jack Resnick & Sons. “We are confident that the new Fairway location will boost three great neighborhoods – Battery Park, the Financial District and TriBeCa – establishing a popular shopping and dining destination for residents, workers and visitors alike as Lower Manhattan’s retail renaissance continues on.”
Brett Greenberg and Dennis Brady of Jack Resnick & Sons represented the building owner in the long-term transaction, while Alan Cooperman of Welco Realty and Jason Pruger of Newmark Knight Frank represented Fairway.
According to Mr. Greenberg, asking retail rents at 255 Greenwich Street, a 14-story, 600,000 square-foot tower that is 100% leased, are in the $200 to $250 range. Previously known as 75 Park Place, the Resnick Family built the property in 1984 and renamed it in 2012 in effort to rechristen the Greenwich Street thoroughfare. Other tenants in the building include RR Donnelley & Sons, the City of New York and the Borough of Manhattan Community College.
Before the Fairway deal came to fruition, the lower level of the property, which has ceiling heights of over 20 feet and a dedicated loading dock and freight facilities, was used to house a financial printing operation by RR Donnelly.
For more than 80 years, Fairway has established itself as a leading food retailing destination in the Greater New York City metropolitan area, with stores that emphasize an extensive selection of fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries.
A fast-growing chain, Fairway operates 14 markets in the region, including five in Manhattan (Upper West Side, Upper East Side, Harlem, Chelsea and Kips Bay); one in Brooklyn (Red Hook); two in New Jersey (Paramus and Woodland Park); two in Westchester County (Nanuet and Pelham Manor); two on Long Island (Plainview and Westbury); and one in Queens (Douglaston). Fairway will also be the anchor food market at Hudson Yards on Manhattan’s Far West Side, which is scheduled to open in 2015.
A full service real estate organization, Jack Resnick & Sons has been an industry leader in development, construction, ownership and management since its founding in 1928. Its Manhattan portfolio currently includes approximately six million square feet of commercial office and retail space, including One Seaport Plaza, its signature office tower at 199 Water Street. It also has developed thousands of luxury residences and continues to own, manage and lease approximately 1,000 rental apartments.