The sale of a vacant Lower East Side building may set a new price range for the area.
According to commercial real estate firm Eastern Consolidated, 216 Bowery, a 25 ft. wide property with 4,900 s/f of space, just sold for $13 million, or over $2,650 per s/f.
The price per square foot is almost double the average in Manhattan. According to Cushman & Wakefield’s 2015 property sales report, the average price for a mixed-used property in the borough stands at $1,419 per s/f.
“The price paid for this property is further validation that the Bowery has arrived,” said Adelaide Polsinelli, the Eastern Consolidated principal in charge of marketing the building.
“Now in the lineup as one of the hottest, most sought after New York City commercial, retail corridors, the Bowery is taking its place as an established Main Street in Manhattan.”
216 Bowery, which sits between Prince and Spring Streets, was sold to an out-of-state buyer. According to property records, the previous owner was Robert Balter from Rego Park, Queens. Balter owned the building for more than 60 years. Polsinelli represented both the buyer and the seller for the transaction.
The Bowery has been the site of major real estate deals over the past few years. Last year, photographer Jay Maisel sold 190 Bowery for $55 million. The sale may represent the biggest return on a New York City real estate investment ever. Maisel originally bought the building for $102,000.
A former Salvation Army shelter at 225 Bowery also sold two years ago for $30 million. The site now contains the 200-room Ace Hotel.
Other Bowery projects underway include the 19-story, 300-key Citizen M Hotel at 185 Bowery; an eight-story, mixed-use condo project at 258 Bowery and a 13-story, mixed-use condo project at 347 Bowery.
Nearby Essex Crossing, which will bring 1.9 million s/f of commercial, residential and community spaces to the neighborhood, is scheduled for completion between 2018 and 2020.