Sitt Asset Management and Ashkenazy Acquisition have purchased a mixed-use, five-story property at 711 Madison Avenue for $48 million.
The property is anchored by international women’s retailer Roberto Cavalli, which is in the midst of capital improvement program that is nearing completion and will double its space across the ground and second floors to 3,200 square feet, with a new elevator system that will ease traffic between the two.
“The retail portion of a well-located asset is unto itself a trophy acquisition,” said Adelaide Polsinelli, a senior director at Eastern Consolidated, who arranged the transaction on behalf of both the buyer and the seller, in a statement.
“Expanding horizontally is almost always preferred among retailers, but it is not always an available option,” Ms. Polsinelli said. “Retailers in New York City and across the United States are continuing to embrace the value in expanding vertically. If the retailer offers a well-run, well-located store with desirable products, the shoppers will come. Investors appreciate this, and value properties accordingly.”
French restaurant Le Bilboquet previously occupied part of the retail space, but closed at the end of 2012 after landlord Madison Immobilier NV declined to renew its lease, with plans to expand Roberto Cavalli’s space and raise the rent, Ms. Polsinelli told the Wall Street Journal.
Roberto Cavalli pays $2.2 million in rent each year, while the residential units include a rent-controlled unit that pays just $327 per month and six market-rate units paying between $1,408 to $2,575, the publication reported.