Real Estate

Harlem’s 125th St. reenergized with new developments

From Columbia University on the west, to the FDR Drive on the east, Harlem’s 125th Street is once again being targeted for major redevelopment.

Jeffrey Roseman, executive vice president of Newmark Grubb Knight Frank, who was involved in the original groundbreaking Harlem USA project, said interest from his national retailers to look for locations has hit an upswing. “They now see and understand the importance of 125th Street as it is becoming a major shopping street.”

Roseman believes new development, including rental apartments proposed by Ian Bruce Eichner by the Metro North station at Park Avenue along with the Fairway by the West Side Highway and the upcoming Whole Foods planned at Lenox Avenue, are providing additional linchpins for the neighborhood. “Whole Foods added a different cache to the street,” Roseman said.

With each new lease announcement, more retailers are overcoming ongoing fears of being uptown pioneers. “With existing stores on the street ringing up strong retail sales volumes and the excitement created by new developments all along 125th Street, retailers without a presence are beginning to pounce on the available opportunities,” noted Jared Epstein, vice president of Aurora Capital.

Aurora and partners Bobby Cayre and the Adjmi family have already developed and rented up most of a 100,000-square-foot retail box at 301 W. 125th St. and are about to develop a similar 100,000 square feet that includes residential apartments at 5-10 W. 125th St.

The clearing of some of the 17 acres for the $7 billion Columbia University redevelopment has also generated excitement about the area. Holley Drakeford, associate broker with Giscombe Realty Group said, “The thing about the changes is you have the old with the new.”

That’s because many of the upcoming redevelopments require the restoration of neighborhood landmarks such as the Victoria Theater and the Corn Exchange Building.

There are over a dozen large- and small-scale projects now in either the planning or execution stages in Harlem — on 125th Street itself and in the immediate vicinity. Harlem Green, for instance, is the five-building historical complex that sits along Amsterdam Avenue as well as 126th, 127th and 128th Streets. It includes the brick Minx building and the former Tastee Bread facility where a new building is planned as part of the 1 million square feet of total space that is geared for commercial, retail and light manufacturing tenants.

Arthur Draznin, executive managing director of Newmark Grubb Knight Frank, who is representing the owners, said earlier this year, the medical company Fresenius leased 23,000 square feet for a kidney dialysis center. “They spent hundreds of dollars a square foot turning the floor into a medical facility,” Draznin said.

Another major project is the Victoria Theater renovation at 235-237 W. 125th St. that will eventually include the development of an attached residential and hotel building. According to the Empire State Development Corp., developer Danforth Development Partners still needs approvals from the Public Authorities Control Board. The restoration of the theater will include overhauling its historic lobby, the façade and marquee, as well as creating new 99-seat and 199-seat black box theaters. Twin 26-story towers will rise adjacent to the theater to its north. These are expected to include 230 apartments with half of them affordable; a 210-room hotel with a ballroom; and a four-story base with 27,000 square feet of retail and 25,000 square feet of cultural space to house the Classical Theater of Harlem Jazzmobile, the Apollo Theater Foundation and the Harlem Arts Alliance. Underground parking for 84 cars will be entered through 126th Street.

Meanwhile, at 121 W. 125th St., an eventual 400,000-square-foot development by the Hudson Companies and BRP will include a 71,000-square-foot headquarters and conference center for the National Urban League along with a civil rights museum, retail, residential rentals and parking.

Earlier this year, Ian Bruce Eichner paid Vornado Realty Trust $66 million for the land at 1800 Park Ave., at the southwest corner of East 125th St., where they were going to construct an office tower. It is now slated to be the tallest building in Harlem at 32 stories. The inclusionary housing residential project of 690,000 square feet will have roughly 600 apartments over a 70,000-square-foot retail podium with parking. Building permits are currently in process. ODA-Architecture has been hired for design while SLCE applied for the permits.


Shopper’s Delight

From west to east, Harlem’s historic retail heart has never beat stronger.

300 West 125th St., Harlem USA

This is the pioneering retail development by Grid properties that pumped up Harlem’s pride. The Disney store is gone by Old Navy, Modell’s, Chase, TD Bank and others live on.

261-267 West 125th St., One Two Five Live

Gotham and Grid Properties have developed two stories and a lower level. A 10,000-square-foot Red Lobster opened November 1st and two other spaces are still available.

301 West 125th St.

Aurora Capital, Bobby Cayre and the Adjmi family developed a 100,00-square-foot retail project that now includes a DSW, Party City, Blink Fitness and Joe’s Crab Shack with a couple of small spaces left to lease.

243-251 West 125th St.

This 30,000-square-foot four-story building and basement on a 75 x 100-foot lot is for sale for $29.5 million through Barbara Bucovetsky of Shawn Elliott Real Estate of Woodbury.

100 West 125th St.

Jeff Suttion is already getting permits for the new six-story and mezzanine retail project with an 8,500-square-foot American Eagle, a 39,000-square-foot Whole Foods and a 70,000-square-foot Burlington Coat Factory.

64-68 West 125th St.

Sold in 2011 for $7.1 million—over $938 per foot—through Massey Knakal for the one-story retail building.

55 West 125th St.

Former President Bill Clinton may be spotted at his penthouse offices here.

5-10 West 125th St.

Aurora Capital, Bobby Cayre and the Adjmi family’s plans now call for 100,000-square-feet. They expect to have four stories of retail, including the lower level. Another three stories above will have 30 residential rentals. They are now in discussions with a retail tenant for 50,000-square-feet. Asking rents for the retail are $100 to $150 on the ground, and $50 and $60 per foot on the other levels. This is  a long-stalled site they quietly purchased from RCV Longview for $15.5. million.

51 E. 125th St.

Each of three floors of the 1930’s-era former Raymond office building has roughly 5,000-square-feet and with air rights could grow up to 45,000-square-feet. A CBRE group is representing the owners.

81-85 East 125th St., Corn Exchange Building

The distinctive by unsafe seven-story, 31,000-square-foot landmarked 1883 building was demolished to its base in 2009. There are now permits for a gut renovation by Artimus Construction, an affiliate of designated developer 125th St. Equities. Corner Commercial Real Estate is the agent for 4,100-square-feet on the ground and second floor for retail use. There will be interior and facade restoration as required by the city EDC.

1800 Park Ave.

Ian Bruce Eichner rentals and retail.

159 East 125th St., Gotham Plaza

New rentals designed by Bjarke Ingels Group.

200-210 East 125th St.

The Richman Group has already developed 50 rental units on the corner of Third Ave., where a Perkins Restaurant and Bakery recently signed a 20-year, 5,500-square-foot lease.

220 East 125th St.

Purchased for the Church of Scientology and Community Center of Harlem, as were 228, 230 and 232 East 125th St., where they are building a four-story church with a sauna in the basement.

From Third to Second Aves. and north to 127th St., The East Harlem Media, Entertainment and Cultural Center

This 6-acre project calls for a total of 1.7 million-square-feet of mixed-use development on three mostly vacant parcels. Future plans call for a total of 350,000-square-feet of retail, along with a 98,000-square-feet hotel, a 250,000-square-feet office building, 30,000-square-feet of cultural uses and 24,000-square-feet of landscaped open space.