Developer CBSK Ironstate has struck a $150 million deal with Olmstead Properties for a NoHo ground lease.
The Hoboken, NJ-based developer plans to develp a commercial building at the site to be financed by Wells Fargo.
“This block-long parcel, located in the heart of NoHo, is one of the last prime development sites in Manhattan’s most cutting-edge neighborhood,” said Richard Baxter, vice chairman at JLL who structured the 49-year ground lease at 363 Lafayette Street for Olmstead along with Stephen Shapiro, an executive vice president at the brokerage.
Olmstead Properties had once planned to develop the site themselves but allowed variances they secured to lapse in 2007.
However, according to Baxter, “The ground lease structure was the most advantageous given the long-term investment horizon of Olmstead.”
The vacant, 5,500 s/f parcel, located between Bond Street and Great Jones Street, can accommodate a development of nearly 32,000 buildable square feet.
“Surrounded by luxurious, brand-new residential properties, boutique retailers and the city’s finest restaurants, the development at 363 Lafayette Street offers tremendous potential by tapping into the city’s most highly sought-after submarket,” said Shapiro.
“CBSK Ironstate’s success in NoHo ensures that they will develop a special asset consistent with the vibrant character of the community.” The ground lease, which is valued at more than $150 million to Olmstead, runs for 49 years with extension options.
The principals of CBSK Ironstate include Abe Shnay, Scott Shnay, Charles Blaichman, Greg Russo and The Barry Family, all of whom have been active throughout the city and in NoHo.