NEW YORK CITY—JLL is bringing 115 Seventh Ave. to market, most likely as a potential residential and retail condominium development opportunity, supporting up to 71,036 square feet as of right. EVPs Glenn Tolchin and Yoav Oelsner, along with vice chairman Scott Latham, will lead the firm’s capital markets team on this offering.
The site, located at the southeast corner of 17th street, was the original location of the Barneys flagship department store. Last December, Barneys announced it would return to the Chelsea area next year with a 57,000-square foot store; taking over space that had been occupied by Loehmann’s. Now owned by the neighboring Rubin Museum of Art, the building has several possibilities, Tolchin tells GlobeSt.com.
“We believe that the highest and best use for the property is a residential and retail condominium project but it is possible that the property could become a commercial/user redevelopment opportunity, whereby a technology or media company may want to occupy its own office building, particularly because this location sits in a tech hub.”
He continues, “The building is surrounded by the offices of Google, eBay, Twitter, doubleclick and WebMD. There is about 2.6 million square feet of space being used by major tech companies that’s all within a five to 10 minute walk of 115 7th Ave. There also is 1.6 million square feet of office space in the area being used by major advertising and media firms.”
“That’s a major component of what’s driving not only the office market,” Tolchin says of the creative class’ use of office space in the area,” but there also are well-heeled professionals living in the area, which is part of the reason the residential market there is doing well.”
A number of highly successful condo projects are nearby, JLL notes, including Walker Tower, which set record-high pricing exceeding $3,600 per square foot, as well as the Rudin Family’s Greenwich Lane, located on the former site of St. Vincent’s Hospital, with units selling north of $3,200 per square foot.