A Long Island landlord has scooped up a piece of Soho real estate.
Soheil Khayyam has purchased the multifamily building at 68-74 Thompson Street for $58 million at a 4.7 percent capitalization rate, The Real Deal has learned. Centurion Realty sold the building through an affiliate.
Joe Koicim of the New York Multifamily Team at Marcus and Millichap brought both the buyer and the seller in the off-market deal.
The deal underscores the hot demand in the neighborhood, even as retail rents lag their pre-pandemic peak.
“We paid top price because we believe in the product,” Khayyam said. “We love West Village and Soho, that’s where our concentration is.”
The Centurion affiliate purchased the multifamily and retail building for $62 million in 2017, according to public records.
The building, which spans two lots, was constructed in 1910 between Spring and Broome streets. It contains four total commercial units and 75 residential units, according to tax records, for a total of 35,751 square feet. Eleven of the residential units are rent-stabilized, according to publicly available tax bills.
Khayyam had a deadline to invest his capital gains into another investment property or suffer 1031 tax liability. The deal closed in under 30 days.
A Khayyam-connected company sold a 6-story commercial building in Chelsea at 461-467 10th Avenue to Related Cos. for $52 million in January, PincusCo previously reported.
The Thompson Street building’s four commercial units are occupied by Shoshin68, a sushi and omakase restaurant; The Barber, a Japanese barbershop; Castrads, a cast-iron radiator retail location; and 787 Coffee, a cafe.
There is one available residential unit in the buildings advertised on StreetEasy: a two-bedroom unit on the second floor asking $6,700.
Soho’s retail corridor has seen the highest median asking rents in the city south of Times Square, according to a recent retail report from the Real Estate Board of New York. That report looked specifically at Broadway, five blocks east of the building, between Houston and Broome. However, median asking retail rent on that corridor has still fallen 12 percent from its pre-pandemic high, dropping from $850 to $750 per square foot per year.
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