223 East 59th Street

Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of a 4 story, approximately 7,100 GSF mixed-use property located at 223 East 59th Street, on the north side of East 59th Street between Second and Third Avenues. Situated on the border between the Upper East Side and Midtown, 223 East 59th Street presents an incredible opportunity for an investor and / or user seeking a high quality mixed-use property featuring significant in-place income with additional development potential in one of Manhattan’s most desirable retail and residential enclaves. The base of the building contains an approximately 3,885 GSF retail unit: which features approximately 2,035 GSF on the ground floor and approximately 1,850 GSF on the mezzanine. The retail space is currently leased to Savoir Beds until 2026. The ultra-high-end bed and mattress company currently pays approximately $360,000 in rent annually and 75% of real estate tax increases over the 15’ / 16’ base year, providing significant cash flow for potential purchasers. The top three floors of the building are residential and currently consist of two full floor residential units, one of which has an extension on the fourth floor. The two fair market units will be delivered vacant, allowing for either immediate occupancy by the purchaser or for immediate leasing upon renovation. Furthermore, the property benefits from approximately 1,468 square feet of additional development rights, providing the opportunity for potential purchasers to create additional residential units and/or an expansive owner’s unit that could feature almost 4,700 GSF. Coupled with the considerable income from the retail unit a user would thus be able to cover all of the operating costs of the asset in addition to a substantial portion of their debt. The subject property features expansive street presence due to the retail glass façade and benefits from the considerable foot traffic in a neighborhood celebrated for its world-class shopping. The immediate area is known as the Designer & Decorator distrct and as such is populated with boutiques, art galleries, and stores, with the world-renowned Bloomingdale’s flagship store situated less than one block away. The asset is easily accessible from all corners of the city due to its close proximity to a wide range of subway lines including the M,F,N,Q,R,4,5,6 and E trains, as well as through the bus system and the nearby Queensboro Bridge. Moreover, the property will benefit immensely from the opening of the 55th Street Station of the Second Avenue Subway, a phenomenon that will undoubtedly enhance the value of both retail and residential assets in the vicinity.