Beck Street Capital, a private real estate investment firm, has sold its Bleecker Street luxury retail portfolio in New York for $34 million, or roughly $6,700 per sq. ft. The sale marks the third highest-priced retail transaction in the country since at least 2003, according to New York-based research firm Reis.
“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,” says Kevin Comer, senior managing director of Beck Street Capital.
“When the purchase of the first asset, 367-369 Bleecker, was initially contemplated in 2003, Bleecker Street looked nothing like it does today,” adds Comer.
The company’s ability to buy the properties and adapt them to the current retail market signifies a value creation strategy for investors, he notes. “Since acquisition, these value creation initiatives have resulted in an increase in net operating income across this portfolio of 9.2 times.”
Improving the neighborhood
“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,” says Beck Street Capital partner Rick Distel.
The retail portfolio consists of six retail condominiums located at 367-369, 382-384 and 387 Bleecker Street in a luxury shopping district in New York City’s West Village. The portfolio is 100% leased to established tenants including Burberry, Marc Jacobs, Michael Kors, Mulberry and A.P.C., according to Beck Street.
Formed in 2000, Beck Street Capital invests in high value-added, mixed-use investment properties in urban locations with high barriers to entry. Besides retail properties, the company has invested in office space, condos and other property types.