Duane Reade-occupied Upper East Side retail co-op hits market for $ 23 million – Commercial Observer


A retail co-op along Lexington Avenue on the Upper East Side, currently occupied by a Duane Reade, hit the market for around $ 23.3 million, Commercial Observer has learned.

The 12,225 square foot retail space is located at 1235 Lexington Avenue, between East 83rd and East 84th streets, a few blocks from Central park and the Lexington Avenue-86th Street subway station which serves trains 4, 5 and 6.

JLL‘s Oster Room and Bob knakal, next to Jonathan hageman and Paul Smadbeck, are currently marketing the space, which includes 6,875 square feet of ground floor space and an additional 5,350 square feet in the basement, sources said. Kellogg Gaines, also from JLL, is the fundraiser.

“1235 Lexington represents an opportunity to acquire a stable, high cash flow trophy asset backed by a credit lease on a long term lease,” said Oster. “The property will appeal to passive investors and 1,031 stock buyers looking for a quality, fully leased asset with limited owner obligations and 189 feet of wraparound frontage on a prime Upper East Side commercial corridor.”

The property sports approximately 102 feet of frontage along Lexington Avenue, as well as 87 feet of frontage at the corner of East 84th Street. The commercial property sits at the base of an approximately 98,000 square foot residential cooperative building owned by 84th Street Tenants Company., records show.

Duane Reade’s lease runs until February 2029 and includes a 10-year extension option, according to JLL. Alliance of Walgreens boots (WBA) – the publicly traded holding company of pharmaceutical chains, wholesalers and clinics such as Duane Reade, Walgreens, Boots, Health Alliance and Pay attention to health systems – is the guarantor of the lease.

WBA bought Duane Reade in a cash deal for $ 620 million in early 2010 in what was then the company’s largest retail acquisition. Duane Reade provided Walgreens with a very solid position in New York City, where Duane Reade started in the early 1960s as a local pharmacy located on Broadway in Tribeca, between Duane and Reade streets.

In the years since Walgreens bought Duane Reade, the company began to reduce its national footprint, which included reduce part of its outposts from Duane Reade. The store at 1235 Lexington is the only one on Lexington Avenue between 77th and 125th Streets, although there are a number of other locations scattered across the Upper East Side.

Mack Burke can be contacted at [email protected].


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