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Habitat Magazine June 2020 free digital issue

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CO-OP/CONDO BUYERS

WHAT CO-OP/CONDO BUYERS NEED TO KNOW

Soho Condo Residents Cash In on Their Commercial Space

SoHo

Commercial Condo

The space that once housed an American Apparel store in Soho has sold for $28 million (image via Google Maps)

March 31, 2017

There’s no right way or wrong way for co-op and condo boards to handle their commercial space. Some treat their commercial space like the family jewels, never considering a sale. Others view their commercial space as a jackpot waiting to be cashed in.

For years, one co-op on Crosby Street in Soho zealously fended off offers to buy its valuable ground floor space – until the numbers got so attractive that the shareholders agreed unanimously to sell the entire building, dissolve their co-op, and vacate the building. They pocketed a total of $42 million, and the building is now being turned into commercial space.

But there’s more than one way to dispose of a commercial space. The owners of the four residential condo apartments in a nearby building at the corner of Spring and Greene Streets have agreed to sell their ground floor commercial space – once home to an American Apparel outlet – for the princely sum of $28 million, the Real Deal reports.

The firm 60 Guilders, which held a lease on the retail space at 121 Spring Street, has bought the 3,200 square feet of commercial space.

American Apparel, which signed a 15-year lease at 121 Spring Street in 2004, announced in January that it was closing all of its U.S. stores and its main factory in Los Angeles. Once a popular fashion retailer that rapidly expanded during the first decade of the 21st century, the company filed for Chapter 11 bankruptcy for a second time in November.

As of 2016, 60 Guilders had a $750 million property portfolio. It has frequently partnered with private equity firm Carlyle Group, including on the acquisition of 106 Greene Street for close to $100 million last year.

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