Soho remains a king of the trophy retail sector, leading the nation in sales in the first quarter, according to one report.
The Manhattan neighborhood accounted for six of the 14 trophy sales tracked by Adirondack Capital Partners from January to March, the Commercial Observer reported. The dozen-plus transactions in top shopping corridors across the country totaled more than $700 million combined.
Nearly half of those deals unfolded in the famed Manhattan retail corridor. ACP managing partner Michael Hunter Coghill predicted that when the year ends, Soho will still be the top market for trophy sales, calling it “the belle of the ball as it pertains to high street retail locations.”
More than $195 million in deal volume transacted among the six property deals in Soho during the first quarter. That includes Fukuru Co., Ltd’s $18.5 million acquisition of 120 Spring Street from Icon Realty Management for Birkenstock’s flagship store. The $8,043 per square foot trade was the highest for the period and the highest in New York City this year, according to ACP.
Big deals in Soho included the $44 million deal for the Alo Yoga base at 90 Wooster Street. The median asking rent on Soho’s Broadway corridor was $750 per square foot during the second half of last year, according to the Real Estate Board of New York.
Other corridors tracked by ACP include Madison Avenue in Manhattan, Union Square in San Francisco and the Design District in Miami.
More activity could be forthcoming in Soho’s retail market.
J. Safra Real Estate is seeking $125 million for a six-property retail portfolio across New York and Chicago, spanning more than 53,000 square feet and leased to luxury brands like Omega, Prada and Aime Leon Dore. The properties are located in prime retail areas, including Manhattan’s Soho neighborhood and Chicago’s Gold Coast.
Safra acquired the New York portion of the portfolio between 2012 and 2015 for approximately $113 million.
And last month, Flagg Family Capital — the firm owned by Josh Flagg’s family — started looking to sell its recently renovated retail property at 170 Mercer Street in Soho for just under $12 million. The property, which was renovated into a two-story space with high ceilings, is fully leased to the fashion house Magda Butrym under a 10-year agreement with built-in 3 percent annual rent escalations.
