East End Capital doubles its money with Mercer Street sale
06.24.2013 | The Real Deal

East End Capital doubles its money with Mercer Street sale

East End Capital, a Manhattan-based real estate investment firm, has inked a deal to sell 27,750 square feet of mixed-use retail and residential properties in Soho for twice what it paid for them last year, The Real Deal has learned.

The buildings, at 21 and 25-27 Mercer Street, sold for $18 million; East End is now in contract to sell them for $34 million, according to sources with knowledge of the deal.

At 25 Mercer Street, the five-story mixed-use loft building counts sports retailers Nike and Surface to Air among its tenants; the three-story building at 27 Mercer Street has combined 10 residential units.

David Schechtman, the executive managing director at Eastern Consolidated who brokered the transaction, confirmed that he had arranged a second deal but would not comment further. The buyer is a foreign group with “tremendous retail presence,” sources said.

When East End purchased the properties, Nike’s lease was set to expire in a matter of months. However, the sports brand opted in December to extend its lease for five years. Surface to Air’s lease continues through 2022. Another tenant, Toto’s, a plumbing products manufacturer, has a lease that expires next year.

Sources said all of the retail spaces are leased at below market-level rates, which are in excess of $150 a foot on the block.

Jonathan Yormak and David Peretz, principals of East End, were not immediately available for comment.