Luxury sneaker and streetwear company Sneakerboy is taking 2,000 square feet at DelShah Capital‘s 170 Mercer Street, Commercial Observer has learned.
Sneakerboy’s lease is for the mezzanine level at the Soho building between Houston and Prince Streets and it will have a ground-floor entrance.
Matthew Seigel of Thor Retail Advisors represented DelShah in the deal, which was signed three weeks ago. In October 2013, DelShah selected Thor to market the 2,000-square-foot retail portion of the building, as Commercial Observer previously reported.
“I think their intention is to do something really unique in Soho,” Mr. Seigel said.
Sneakerboy, which sells high-fashion labels as well as sporting brands, has a futurist concept store where it does not house purchasable inventory in Melbourne, Australia. Customers use a Sneakerboy app on their personal phones or on in-store iPads to check out.
The asking rent in the 10-year Mercer Street deal was $600,000 a year and sources say the landlord achieved close to the asking rent.
“This lease validated our view on where rents could be for this location when we initially underwrote the acquisition in the midst of a landlord/tenant dispute with the former restaurant tenant,” Michael Shah, a principal and chief executive officer of Delshah Capital, said in a prepared statement. “This is a great outcome for everyone involved.”
The retail space’s previous occupant, Niko, closed its business a little over a year ago.
The Soho Sneakerboy store is slated to open in spring 2015. Dop Dop Salon, a hair salon and performance space, is in the 4,000 square feet below, and a residential condominium is above.
Sneakerboy was represented by Jason Greenstone and Michael O’Neill of Cushman & Wakefield in the deal. They declined to comment through a spokesman.