We are pleased to highlight the sale of 246-248 West 125th Street. This represents a unique investment/re-development opportunity. The property comprises approximately 5,000 SF of prime retail space with 50’ of frontage along the busiest block in Upper Manhattan, the 125th Street retail corridor. Commencing in February 2016, it will generate an in-place annual income of approximately $681,000(or ~$136/SF)—well below current ground floor retail rents approaching $200/SF—but offers immediate upside. Specifically, the Children’s Place (4,000 SF) can be delivered vacant, and there is a “demo” clause with respect to Gold of Harlem (1,000 SF), exercisable as early as February 1, 2016. Accordingly, new ownership will have the ability to either position the asset as a premiere commercial building or develop a ground up mixed use asset. The C6-3/125 zoning designation allows for a total of 27,248 buildable sq. ft. as of right (or 36,331 sq. ft. with inclusionary housing). With retail along this stretch of 125th Street approaching $200/SF, condominium sellout values exceeding $1,300/SF and rentals at the $55/SF level, developers are presented with a variety of attractive options. The property is situated across the street from the famous Apollo Theater and is surrounded increasingly by national tenants, such as The Gap, Red Lobster, Banana Republic, Duane Reade, Designer Shoe Warehouse and Joe’s Crab Shack. In addition, there are several new developments on the horizon that will further transform the area, including Whole Foods, the Taystee Project, the Corn Exchange Site, the Pathmark Supermarket and the legendary Victoria Theater. The property is within close proximity to Columbia University’s seven million sq. ft. expansion project, and is within walking distance to the A, B, C and D subway lines on 125th Street and St. Nicholas Avenue.
