A Second Smoke Shop Closes in Hell’s Kitchen
The smoke shop that was located at 346 West 52nd Street in Hell’s Kitchen recently closed. The store is now vacant.
Unlicensed Smoke Shop Evicted in Hell’s Kitchen
From W42ST.NYC:
There were signs of change at 606 9th Avenue (between W43rd/W44th Street) this week, where a smoke shop vanished this week after a court case between landlords and Citi Deli Corp — more recently known as Milky Way Exotics — was decided in favor of the landlords this January. The building’s owners filed suit against the tenants for defaulting on their lease terms in December 2022, alleging that Citi Deli Corp “had impermissibly altered the use of the premises by ‘including the sale of smoking supplies,’ thereby ‘changing the nature of the retail sales’ from a grocery/convenience store into a ‘smoke shop.’”
The owners of Citi Deli Corp argued that while they were selling unlicensed smoking-related products, they had continued ‘to stock and sell grocery store items and lightly prepared foodstuffs’… in compliance with the lease.” Photos of the store renamed as Milky Way Exotics convinced officials otherwise, and the “deli” was ordered to vacate. According to local sources, the sheriff’s office raided the establishment on April 10, although the shop reopened April 11 and remained in business until this week. W42ST has reached out to the plaintiffs for further comment on the case and will update if we hear back.
LIDL Supermarket to Open a 23,000 sq. ft. Store in Chelsea
The brand-new ground-floor LIDL grocery store plans to work with Hire NYC to hire locals when it opens in the early months of 2026. Numerous employment opportunities will be generated by the store for the neighborhood. Lidl, which has its headquarters in Arlington, Virginia, has now signed a second lease in Manhattan. The community responded favorably to its February 2022 debut in Harlem. The store will provide value, a straightforward and effective shopping experience, as well as sections for meats, seafood, fresh produce, flowers, and other daily grocery essentials. On the east coast, Lidl runs more than 170 stores, including 25 in New York State. At the moment, Lidl has locations in Astoria, Queens, Staten Island, and Harlem in New York City.
“MAG Partners and Lidl U.S. announced a lease for an approximately 23,000-square-foot grocery store at 335 Eighth Avenue, a mixed-income apartment building being developed within the Penn South campus, an affordable housing cooperative located in the Chelsea community of Manhattan, N.Y.
30% of the 188 apartments in the residential building are designated for low- and middle-income New Yorkers as part of the Affordable NY Program. Construction is anticipated to start in the third quarter of 2023, with on-site demolition set to start in May.
From Supermarketnews.com (Lidl Will Open Second Grocery Store in Manhattan, 2023)
Parking Garage Collapses in Downtown Manhattan
From Foxnews.com:
The New York City street where a parking garage collapsed, killing one person and forcing five others to be rescued from the building, remained closed a day later on Wednesday because investigators have not yet revealed the suspected cause of the building’s sudden collapse by Lower Manhattan’s Financial District, which reportedly had four active violations.
He stated that the building had an ongoing violation since 2003. The buildings commissioner claimed that a request had been made in 2010, but she made no mention of whether the infraction had been fixed. Vilenchik continued, promising further information later on, “There are some active permits on the building, one related to electrical work on the premises.”
In order to determine a potential cause for the collapse, “our engineers deployed and are currently inspecting neighboring buildings and reviewing footage from drone pictures,” the man stated. “We are going to continuously review and research property profiles to understand the history of the building, certificate of occupancy, and all other records, and I will update this information.”
According to the records of the NYC Department of Buildings, the parking garage at 57 Ann Street had 19 violations that were resolved or defaulted on, and another four that were still active and required a certificate of correction. According to WABC, the identical parking structure owned by the Great Neck, New York-based 57 Ann Street Realty Association has 64 infractions with the Department of Buildings dating back to 1976. On Wednesday, Fox News Digital contacted the buildings division to get more information.
Six employees were in the building when the garage collapsed at 4 p.m., a few streets from City Hall and the Brooklyn Bridge and around half a mile from the New York Stock Exchange, according to FDNY Chief of Operations John Esposito. Four of them were taken to the hospital and were in good health. One individual passed away, and another declined medical help. He described how a few of the concrete slab floors gave way, crushing some of the automobiles inside and delaying operations. The FDNY proceeded to search the cars even after they thought everyone had been located.
From Foxnews.com
Highest Bidder Appears to Have Backed Out of Sale of the Flatiron Building
At least for a few days, it appeared that the Flatiron Building had sold on Wednesday. With an offer of $190 million, Jacob Garlick, the auction’s highest bidder, won. Jeffrey Gural was taken aback by this as his family company was thought to be the most likely buyer for the remaining 25% of the building, which is currently owned by a four-owner consortium. The long-running impasse between Gural’s group and the final fifth proprietor, Nathan Silverstein, was resolved with the court-ordered sale.
According to auctioneer Matthew Mannion, there were 11 registered bidders when the auction started, but only “four or five actually placed any bids.” Once the bids reached about $160 million, Gural, a well-known New York real estate professional, and Garlick, a Virginia investor who owns a few buildings nearby but is largely unknown in the public, engaged in a two-person bid-’em-up race. When Garlick won, he cried out in joy and told NY1 that experiencing it had been a “lifelong dream of mine since I’m 14 years old. I’ve worked every day of my lift to be in this position. He then left without saying anything further in public or, it appears, to any of the other parties involved. “We are honored to be a steward of this historic building, and it will be our life’s mission to preserve its integrity forever,” he said before leaving. He failed to deliver the required 10% down payment on Friday, according to The Real Deal. He appears to have received an extension of one or two days after that, but he also missed that date. The building’s conflicting parties’ mediator, attorney Peter Axelrod, told the Times, “I suspect he didn’t have the money, or that he realized he overbid and decided not to proceed.”
According to Mannion, the auction was unique. For a property this scale, prospective buyers typically need to put up a few million dollars up front to prove their legitimacy. This time, buyers had to register ahead of time but weren’t needed to make a payment. It’s unclear whether, per the terms of sale, Garlick will be liable for a portion of his bid anyhow, to cover the costs of the auction and lawyering and generally causing a headache. Mannion says, sounding a little surprised, “I’ve done thousands of auctions and you can count the amount that didn’t require a down payment up front on one hand.”
Since he withdrew, Gural, the underbidder, is being given the property for $189.5 million. Given that his offer was increased by about $30 million in the dying seconds, he is almost certain to decline. It appears likely that the building will be put back up for auction and that, when it does, he will get a second, somewhat less costly bite of the apple.
Why enter an offer in an auction if you lack the funds? Garlick may have been covertly working for his soon-to-be-former partner Silverstein, who stands to gain from a higher final price, Gural hypothesized to the Times. That is known as shill bidding, and it is prohibited.) Alternatively, it’s possible that Garlick was simply swept up in the excitement of the situation. According to study on the subject, the possibility of losing to a rival can trigger a type of fight-or-flight response depending on a number of physical factors, such as blood oxygen levels. In essence, people simply keep moving forward against all logic when they become engrossed in the present. When it’s time to write the check, the smoke clears, and they stealthily return to their corners or their workplaces in Virginia.
From Curbed.
Roark Capital in Talks to Buy Subway
From Bloomberg.com:
One of the prospective buyers vying for a sandwich company is Roark Capital Group. People with knowledge of the situation say Subway. According to the individuals, who requested anonymity because the situation is private, other private equity firms are also thinking about making a bid for the Milford, Connecticut-based business.
One of the individuals claimed that Subway is aiming for a valuation of more than $10 billion. According to another source, some potential buyers may place a $8 billion valuation on the company. No definitive choice has been made, and Roark may decide not to pursue a deal for Subway, the sources continued. A Roark Capital representative declined to respond. Requests for feedback from a Subway spokesperson were not answered. One of the biggest restaurant chains in the world, Subway, which has about 37,000 franchised locations across more than 100 nations, announced in February that it was considering a sale and was collaborating with JPMorgan Chase & Co.
The Atlanta-based Roark Capital, which is run by President Paul Ginsberg and Managing Partner Neal Aronson, has supported a number of food chains, including the parent companies of Arby’s, Dunkin’ Donuts, Carvel, and Carl’s Jr.
Iconic Flatiron Building Sells for $190 Million
On Wednesday, the Flatiron Building brought in $190 million at a live auction.
In Lower Manhattan, the public auction took place in front of the state supreme court. A group of real estate firms controlled the Flatiron Building prior to the auction, but they couldn’t agree on refurbishment plans or potential tenants. They were compelled by a judge to put the building up for sale.
Tom Brady, a real estate broker with Douglas Elliman Real Estate, stated, “I didn’t want to miss this iconic event. The final offer, according to Brady, was reasonable but higher than he had anticipated. You’re talking about one of the most iconic and well-known structures in the world, he remarked. One of the most photographed man-made structures in the world, and I think the new owner deserves praise for it.
A group of real estate firms controlled the Flatiron Building prior to the auction, but they couldn’t agree on refurbishment plans or potential tenants. They were compelled by a judge to put the structure up for sale. The final company to occupy all 21 office floors of the building, MacMillian Publishers, left in 2019. In order to modernize the outdated building and lower its carbon footprint, the owners removed the ground-floor stores and spent $100 million on the renovation. Garlick’s toughest rival was Jeffrey Gural of GFP Real Estate, one of the building’s previous owners. He said, “I wish you hadn’t shown up,” in response when asked if he had any words for the winner.
However, the bids became excessive. Gural called for a break and, after speaking with a person, declared: “It’s not worth it.” If I’m being completely honest, I was somewhat astonished. I never imagined that the building would receive such a high bid. Although it’s a gorgeous structure, it requires $100 million in improvements. It’s essentially empty, he declared. The winning bid of $190 million was almost four times greater than the initial $50 million offer.
From NY1.
New York Governor to Increase Fines on Illegal Cannabis Stores…
From CBS News:
New initiatives are being made to shut down the illicit marijuana businesses that have proliferated like weeds across the state, particularly in the five boroughs. Gov. Kathy Hochul is putting out a new enforcement strategy that would give state agencies increased enforcement authority as well as hefty fines. She wants tough new sanctions to crack down on illegal shops where lengthy rows of various marijuana strains are arranged in clear Plexigas boxes so connoisseurs can smell them before choosing. The governor issued a statement saying that it was intolerable that illicit dispensaries continued to operate.
Having illegal cannabis plants or goods could result in fines of $200,000, and selling without a license might result in daily fines of up to $10,000. In his Manhattan district, Senate Judiciary Chairman Brad Hoylman-Sigal has a large number of unlawful businesses.
“I’m supportive of any efforts to shut these illegal cannabis shops down. They are a nuisance, an eyesore,” according to Hoylman-Sigal. In order to pursue illicit dispensaries that are dodging state cannabis sales taxes, the measure would grant investigators with the state Department of Taxation and Finance the status of peace officers. “These cannabis shops don’t pay taxes. They’re operating way outside the law, but, most importantly, they are dangerous, dangerous to young people, to tourists, and to others who may think that just because a cannabis shop is open on a block — many in my district — that they’re selling a product that has been sanctioned,”, according to Hoylman-Sigal.
The latest suggestion excited Mayor Eric Adams, who has complained that city sanctions are too modest to be a deterrent.”Gov. Hochul clearly recognizes the need for action to strengthen the city’s ability to hold these illicit businesses accountable,” Press Secretary Fabien Levy said. “This enforcement is critical for the health and safety of our families and young people.” The budget is due at the end of the month, so officials hope it will be included.
Little Italy Pizza Opens Near Port Authority
The local pizza chain Little Italy has opened a new location at 671 8th Avenue next to the Port Authority bus terminal. They join Mc Donald’s, 7-11, Smashburger and Chick-fil-A in the landmarked building that formerly included Duane Reade and Show World.
Flatiron Building up for Auction on March 22, 2023
A landmark Manhattan building’s current owners are at odds, and the property will shortly be put up for auction to the highest bidder.
On March 22, the 121-year-old Flatiron Building, which is now vacant, will be put up for auction in a partition sale as a result of a decision in the ongoing legal dispute between its many landowners. Following a 2021 lawsuit by Sorgente Group, Jeffrey Gural’s GFP Real Estate, and ABS Real Estate Partners, who collectively own 75% of the property, a New York state judge in January issued an order permitting the auction to proceed, the Real Deal was the first to announce.
The steel-framed 175 Fifth Avenue skyscraper, which was finished in 1902 and serves as the namesake for the area, was the subject of a lawsuit by the co-owners following a deadlock with Nathan Silverstein, who owns 25% of the structure.
The parties were stuck in a very expensive standoff over the future of a very expensive piece of real estate because of the shared ownership of the building, which gives every owner veto power on every significant building decision.
After MacMillan Publishers, who at the time had all 21 floors of the triangular building, declared in 2017 that it would be leaving within two years, the situation became intolerable.
After that, Silverstein made a number of “preposterous” suggestions, according to Gural, including not upgrading the property between the time MacMillan left and when a new tenant moved in. This was despite the fact that upgrades were legally required to re-rent the building and for fire safety, Gural claimed in an affidavit.
The Real Deal said that Gural wrote that Silverstein had the idea to divide the property into separate ones despite the building being a landmark. This was impossible because of the property’s historic status.
Gural stated in the statement that it “boggles the mind” to suggest that we could nonetheless agree on a plan to physically divide this structure into five smaller, independent properties, none of which would be marketable — and then agree on a plan as to how that work would be financed. We have been attempting to resolve these issues with Mr. Silverstein for years, but he has put off, fought, and ultimately refused to accept the plaintiffs’ suggested business plan.
Meanwhile, Silverstein alleges that Gural attempted to rent the space to Knotel, which Newmark’s Barry Gossin had a large stake in, for a “exceptionally low cost per square foot” and an exceptionally long term after Newmark neglected to advertise the property when MacMillan announced it was departing.
According to Silverstein’s affidavit, the “proposed rental agreement” would have committed the property to an unproductive lease for an extended length of time.
According to a prior filing made by Gural, the Sorgente-GFP-ABS consortium would probably make a bid during the auction later this month, according to the Real Deal.
From the NY Post.