ESRT Completes $195M Williamsburg Retail Acquisition on North Sixth Street
By Isabelle Durso November 15, 2024 2:28 pm
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Empire State Realty Trust has completed its $195 million in recent acquisitions of prime retail space along one of the most popular shopping corridors in Williamsburg, Brooklyn.
ESRT closed on the purchases of a retail property at 92-94 North Sixth Street for $17 million and another one at 111-115 North Sixth Street for $35 million, according to city records made public this week. Both properties were purchased from L3 Capital, records show.
These two most recent deals followed ESRT’s previous purchases on North Sixth Street in October — four properties purchased for a total of $143 million — and allowed the real estate investment trust to reach its stated $195 million total for Sixth Street acquisitions, a spokesperson for ESRT told Commercial Observer.
The two-story building at 111-115 North Sixth Street will be a future flagship of luxury brand Hermès, while 92-94 North Sixth Street is fully occupied by fashion retailer COS, according to ESRT’s website.
ESRT’s Thomas Durels signed both deals for the buyer, while L3 Capital’s Domenic Lanni signed for the seller, records show.
“We have a lot to work with, and we feel very good about this very prime retail portfolio, especially in a market where there hasn’t been a ton available in the marketplace,” ESRT President Christina Chiu said during an earnings call last month.
A spokesperson for L3 Capital did not immediately respond to a request for comment.
ESRT also announced in its third-quarter earnings report that it plans to acquire yet another retail asset along North Sixth Street next year for approximately $30 million, as CO previously reported. That deal is expected to close in mid-2025, according to the report.
It was a good third quarter in general for ESRT, even without the Williamsburg purchases. The firm reported its overall commercial portfolio was 93 percent leased and 88.8 percent occupied in the third quarter, and it saw 304,210 square feet of new, renewed or expanded leases during the period as well.
Isabelle Durso can be reached at idurso@commercialobserver.com.
