The Feil Organization used a 1031 Exchange to purchase a retail condo at the base of the new Tempo apartment building on the southeast corner of Second Avenue and 23rd Street in Gramercy Park.
The condominium comprises 11,145 s/f over two floors, space currently occupied on a long term lease by Duane Reade, a wholly owned subsidiary of Walgreen Co.
SRS Real Estate Partners arranged the sale of the retail condo to an affiliate of the Feil Organization. The sale price was $16.142 million.
Patrick A. Smith and Corey Zolcinski, from SRS’ New York office, represented ownership (MUS 23, LLC) in both the sale of the retail condominium and the lease of the premises to Duane Reade.
Brian Feil, vice president of leasing for the Feil Organization, said the purchase was part of the company’s ongoing strategy of investing in stable assets in core markets.
“We have been active in the market for 50 years and are always looking for good properties,” said Feil.
Noting that the purchase was made with money from “another disposition,” Feil said the retail condo deal was indicative of a game plan made for longevity in the market.
“The location is very strong already and, with the expansion of the Second Avenue subway, that potential will be fully realized,” said Feil, noting that recently-signed Duane Reade is a “stable, credit worthy tenant.”