In late 1986, Himmel + Meringoff acquired 411 Lafayette Street, a six-story, 102,515-square-foot building in Manhattan's rapidly evolving NoHo neighborhood. The property had been owned by the same family since the early 1900's but no one in the family had the expertise or capital to renovate it. The building was used for manufacturing and distribution with a rental stream substantially below market. Himmel + Meringoff recognized the building's value as commercial office space.
Attracted by the potential of significant upside, Himmel + Meringoff:
Upon acquisition, Himmel + Meringoff instituted a two-year, $11 million gut renovation, reconstruction and repositioning of the property for office and retail space.
An aggressive leasing and marketing campaign was instituted. By early 1989, the renovation was complete and by mid-year the building achieved 100% occupancy. A second phase of improvements was undertaken in 2011, and the Ground Lease was extended for another 21 years, making it a new 49-year Ground Lease.
By gaining the seller's trust Himmel + Meringoff turned an operating problem into a tax effective guaranteed net income stream. The unique deal structure simultaneously satisfied the seller's requirements while maximizing the building's value in a burgeoning location.
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