Navigating a complex structure with four separate transactions including separate leasehold and fee interests, leasehold and fee mortgages and a triple-net tenant lease, Himmel + Meringoff purchased the 47,000-square-foot property one block from Macy's for $7.5 Million. There was considerable question as to the highest and best use of the unique, landmarked structure, including how to utilize a 12,000-square-foot interior oval-shaped six-story retail space with limited street-side windows.
Recognizing both the opportunities and limitations of the neighborhood and the location of the building within the Garment District with close proximity to Macy's and the Penn Station transit hub, Himmel + Meringoff:
Himmel + Meringoff collapsed the fee and leasehold interests and sold the building for double its acquisition cost while retaining 235,000 square feet of excess development rights through a ZLDA (Zoning Lot Development Agreement) that can be transferred and sold.
Through persistence and perseverance, and an understanding of the positive aspects of both the building's location and potential, Himmel + Meringoff recognized opportunity where others perceived obstacles thereby simultaneously creating short-term value and maintaining long-term interests.
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