The Chanel-filled storefront in Manhattan's 139 Spring Street has just been sold on Friday. The 4,500 square foot commercial space on the ground floor was sold for $112 million ($24,888 per square foot) - marking a record-breaking sale in the Soho area.
The retail space buyer, Invesco, bought an 80 percent stake for $222.2 million in the building occupied by Burberry and Diesel at 131 Spring Street back in July 2015. The remaining 20 percent is owned by SL Green Realty Corp.
The off-market deal was organized and executed entirely by the principals of Majestic Acquisitions, Ezra Saffati and Ross Menzo.
"Spring Street is one of the most expensive and coveted retail addresses in New York City," Saffati said. "The value of the property has been greatly enhanced by the prestigious fashion house of Chanel."
As it turns out, retail spaces in Soho come with a hefty price tag, which is good news for building owners. The New York Post reports:
"Chanel has occupied the space since 2000. 'Asking rents on Spring Street in Soho are north of $1,000 a [square] foot,' Saffati said. There are, however, empty storefronts around Soho that still reflect hopeful building owners facing a pricing backlash from retailers."
The retail condo on 139 Spring Street was previously sold by "loft conversion sponsor" Spring & Wooster Co. The top of the building on Wooster Street houses nine residential condo units.
The newly-sold building also has some unusual city property tax rules: the building owners pay less than $50,000 per year in real estate taxes, which is just half of the $100 million penthouse at One57 - an 11,000 square foot condo that pays almost $400,000 per year.
Apparently, the property tax discrepancy is due to the protection of Tax Class 2c on 139 Spring Street. The rule "restricts assessment bumps to no more than 8 percent per year," which includes retail spaces in co-ops and condominiums.