Lease Beat

CVS Inks on Lower East Side

Courtesy of CVSCVS Pharmacy is the latest tenant to move to the Lower East Side, inking a deal at 42-56 East Houston Street.

The pharmacy chain, whose presence is limited and overshadowed by Walgreens and Duane Reade in the city, will be taking a 10,365-square-foot space that spans the entire block between Mulberry and Mott streets.

Signed for 15 years, CVS will open this summer.

“We had many different types of groups interested in the space,” said Michael Kadosh of CBRE. “Our marketing efforts were directed to residential, fashion, service-related uses, boutique fitness, markets, pharmacies and furniture tenants.”

Mr. Kadosh was joined by his colleague Jedd Nero in representing the landlord. Newmark Grubb Knight Frank’s Jason Pruger represented the tenant in the transaction.

“I [have] lived on Houston Street for 10 years. We went from local tenants, cafes and grocery stores to today,” recalled Mr. Kadosh. “It started with Whole Foods. They truly brought exposure to the type of density that exists in the market and the surrounding areas. Then, on behalf of ownership, I secured Rag N Bone on the corner of Elizabeth and Houston Street.  24 Hour Fitness, REI and now CVS are some of the tenants that followed.”

“The tenant mix in the area is a direct correlation to the density of the marketplace and its ability to draw customers from the surrounding neighborhoods: Soho, Nolita, Noho, the Lower East Side and the East Village,” continued Mr. Kadosh.

Mr. Kadosh and CBRE will shift their focus to 41 East Houston Street, directly across the street from CVS, where a space remains vacant. Mr. Kadosh noted that the boutique space has attracted coffee, tea, and dessert shops, fashion and accessories boutiques, and even small health and beauty retailers.

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