$1.9MM Non-Performing Retail Condo Loan 195 Bowery

JLL, in conjunction with Ten-X, is pleased to present the opportunity to acquire a non-performing loan note collateralized by a ground-level retail condo in the premier mixed-use development in the Lower East Side Market of Manhattan. The retail condo is part of the over 100,000-square-foot development including 16 multifamily units. The condo totals 1,895 square feet and is currently leased to a prominent art gallery with a term running through February 2028, offering significant in-place cash flow.

The property is in a prime location to capitalize on surrounding retail synergies, immense access to public transportation and foot traffic, and superb demographics that set the stage for long-term retail success. A dense retail cluster surrounds the condo, ranging from other fine art galleries and smaller-scale performing arts venues to popular restaurants and designer stores. This area can be reached by the adjacent Bowery Subway Station, which services the J and Z lines. Demographics in this area highlight a two-mile population of over 605,000 people who earn $142,000 a year per household. Immense amounts are spent in the demographic area, with a total net expenditure expected to eclipse $9.2 billion by the end of 2024, setting a solid long-term foundation for retail assets.

The property resides near one of New York’s top retail submarkets, SoHo. SoHo remains one of New York City's most desirable retail locations. It is home to various major retailers, such as Bloomingdales, Zara, Uniqlo, and boutique luxury brands like Supreme, which operates its flagship store directly across the street from the condo. Many popular bars and restaurants also make this area a popular nightlife destination.

The performance of urban retail spaces defines New York's Retail Market, and retailers of all types across New York City are benefitting from rising foot traffic. According to city officials, about 62 million people visited the Big Apple in 2023, and 64.5 million visitors are anticipated by year-end 2024. With foot traffic improving, tenants in the apparel and food and beverage sectors have leased a bevy of retail spaces below 5,000 square feet across SoHo over the past 12 months. This heavy amount of foot traffic and visibility is what allows the SoHo submarket to have some of the most expensive rents of any submarket in the country. For flagship locations, tenants are willing to pay upward of $500 per square-foot, a notable premium compared to the submarket average of $127 per square foot. The uptick in storefront leasing and improvement in overall market conditions has given owners more leverage at the negotiating table, with some recent retail leases in SoHo commanding asking rents above $400 a square-foot. With this growing traction, now is the optimal time to invest in this sought-after New York Neighborhood.

Do not miss the opportunity to acquire a non-performing note part collateralized by a highly sought-after SoHo, New York, retail condo.