Massey Knakal Sells Three Lower East Side Buildings
Three buildings at 57, 59-63, and 65-67 Orchard Street, located between Grand and Broome Streets on Manhattan’s Lower East Side, were sold in an all-cash transaction valued at $27,000,000.
These contiguous properties comprise two block-through buildings from Orchard to Allen Streets plus the architecturally significant corner building on the southwest corner of Orchard and Grand Streets, which was recently designated a landmark by the New York City Landmarks Preservation Commission. 59-63 and 65-67 Orchard Street are five-story loft style buildings, while 57 Orchard Street is a two-story commercial building. This unique location benefits from 320 feet of frontage on three streets, which are Allen, Grand, and Orchard. The combined footprint of all three lots is approximately 12,083 square feet.
The two five-story buildings are in a C6-2G zone, and the two-story building is in a C6-2 zone. Residential conversion in a G designation requires a special permit. The two-story building is outside of the G designation. The Floor-To-Area Ratio is 6, which equates to maximum of approximately 72,500 buildable square feet. The buildings total approximately 54,985 square feet, which leaves roughly 17,515 square feet of air rights.
The buildings are fully occupied, however, the leases are either short term or carry six month cancellation clauses. The retail and commercial rents are below market and provide a significant amount of short-term upside potential.
“Loft buildings are incredibly rare in the Lower East Side, let alone ones with 320 feet of frontage in a transitioning retail location, such as the area surrounding 57, 59-63, and 65-67 Orchard Street,” said Michael DeCheser, who exclusively handled this transaction. The buildings were purchased by Waterbridge Capital and the Jangana family.
Massey Knakal specializes in the sale of investment and user properties in the New York Metropolitan area. Since 1988, our agents have closed over 4,500 transactions having a market value in excess of $17 billion.