Beck Street Capital Announces $34 Million Sale of Trophy Bleecker Street Luxury Retail Portfolio
NEW YORK, Dec. 1, 2010 /PRNewswire/ -- Beck Street Capital, a private real estate investment firm, today announced that it has sold its New York City Bleecker Street Luxury Retail Portfolio for $34 million, or roughly $6,700 per foot. According to REIS - one of the nation's leading providers of impartial commercial real estate performance information and analysis - the sale marks the third highest priced per square foot retail transaction in the United States on record since it began tracking such data in 2003.
"We are pleased to announce today's sale of the Bleecker Retail Portfolio," said Kevin Comer, Senior Managing Director of Beck Street Capital. "This cornerstone transaction culminates a six-year re-positioning that epitomizes Beck Street Capital's investment strategy of identifying properties in dense urban markets with high barriers to entry that offer value creation opportunities. When the purchase of the first asset, 367-369 Bleecker, was initially contemplated in 2003, Bleecker Street looked nothing like it does today. Our ability to acquire these key properties and to have adapted them to today's retail market highlights our value creation strategy that affords our investors tremendous returns. Since acquisition, these value creation initiatives have resulted in an increase in net operating income across this portfolio of 9.2 times."
"In addition to maximizing returns to our investment partners, we also believe our repositioning initiatives have maximized a social return to the neighborhood by restoring these buildings and giving them identities to carry forward through the next phase of New York's life," said Beck Street Capital partner Rick Distel. "Somewhat unusually, this transaction had equal benefits for both seller and buyer. Not only were we able as seller to earn an extraordinary return for our partners, but the buyer is also obtaining a trophy portfolio of core assets at an attractive entry point that should deliver strong stabilized returns for years to come."
The retail portfolio consists of six retail condominiums located at 367-369, 382-384 and 387 Bleecker Street situated in a prime luxury shopping district in New York City's West Village. The portfolio is 100% leased to established, high quality tenants including Burberry, Marc Jacobs, Michael Kors, Mulberry and A.P.C.
Robert Knakal and James Nelson of Massey Knakal represented Beck Street Capital in the transaction.
About Beck Street Capital
Beck Street Capital is a private real estate investment firm headquartered in New York City. Formed in 2000, Beck Street Capital invests in high value-added, mixed-use investment properties in dense urban locations with high barriers to entry. Beck Street invests in a number of asset classes, including retail, residential, and office, and has successfully completed value creation strategies that include retail repositioning, residential condominium conversion, and asset redevelopment. For more about Beck Street, visit www.beckstreetcapital.com.
SOURCE Beck Street Capital
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