Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Extell Development Co. is putting a retail co-op occupied by Duane Reade on the market for an asking price of $17.4 million. The store is located on East 84th Street on the Upper East Side and has a cap rate of 5.75.

Locally based Eastern Consolidated has been hired to market the property, which consists of a 6,886-sf ground floor store with a 5,375-sf basement situated at 1235 Lexington Ave. Executive managing directors Eric Anton and Ronald Solarz, senior director David Schechtman, with senior financial analyst Paul Nigido and financial analyst Benjamin Fishkind are marketing the retail co-op.

Solarz tells GlobeSt.com that Extell is selling simply “to make a profit,” adding that the store has already generated “a lot of interest.” He further notes that interest has come from investors and 1031 exchange buyers who are attracted to the “prime location,” the quality tenant, and the long-term lease.

Duane Reade is on a 20-year lease at the building also known as 144 E. 84th St., with 12% rent increases every five years. The retail co-op is situated on the ground floor of a 14-story luxury high-rise residential building. Solarz explains that the space was previously occupied by Lucida’s sales office, Extell’s building going up between 85th and 86th Street. No bid deadline has been set as of yet.

“The new owner would be acquiring ownership of 5,107 shares of the ground floor space, out of a total of 39,575 shares in the building,” adds Anton, who said that equates to 12.9% of the shares. “This opportunity would provide the buyer with secure cash flow for the long-term. Duane Reade is a stellar credit-worthy tenant, operating over twice as many stores as its next largest competitor in Manhattan.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.