O’Connor Capital Partners Completes $86 Million Sale of 102,842-Square-Foot Upper East Side Retail Condominium at Manhattan House

NEW YORK–(BUSINESS WIRE)–O’Connor Capital Partners has completed the sale of the Upper East Side retail condominium at Manhattan House to Madison Capital for $86 million. The deal marks a major milestone for the $1.1 billion condominium conversion of Manhattan House, a modernist and architectural icon with grand residences that was designated a historic landmark in 2007 by the New York City Landmarks Preservation Commission.

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“The Manhattan House retail condominium is a strategic investment with considerable future growth potential,” said Brian Fallon, partner at O’Connor Capital Partners. “Its proximity to the luxury retail core of New York City and position at the base of the top luxury residential conversion development in the city make this the prime location for retail traffic.”

O’Connor Capital Partners successfully attracted new top-tier tenants, including Lululemon Athletica, a yoga-inspired athletic apparel company with over 80 locations in Canada, the United States and Australia; Staples Express, the United States’ largest office supply store and business resource center; ALDO, an international leather goods retailer; and Icon Parking Systems. Existing tenants include Club Monaco, a subsidiary of Polo Ralph Lauren Corp., and Madame Paulette.

Read the Full Story at Biz.Yahoo.com.

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From NYPost ‘Real’ Deal Section:

…In the latest breakthrough for the $1.1 billion Manhattan House condo conversion, O’Connor Capital Partners has sold the entire commercial portion of the landmark Upper East Side apartment building for $86 million.

The commercial unit – which includes 102,842 square feet of retail, office and garage space – was purchased by Madison Capital.

O’Connor Capital partner Brian Fallon said, “it was always part or our overall capital and development plan” to sell the commercial space in the luxury building between Second and Third avenues and 65th and 66th streets. The state attorney general’s office approved Manhattan House‘s offering plan in August.

Bill O’Connor, a company principal and the son of founder Jeremiah O’Connor, noted that they have rented much of the store space to new tenants, including Lululemon Athletica and Aldo shoes.

Prudential Douglas Elliman Vice-Chairman Dolly Lenz, who’s marketing the 472 apartments, said, “The fact that the commercial space sold for such a high price shows that the whole building is a seller.”

Read more ‘Real’ Deal Coverage from NYPost here.

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RE BusinessOnline Reports: Manhattan House Retail Condo Space

O’CONNOR CAPITAL SELLS RETAIL CONDO FOR $86 MILLION
NEW YORK CITY — New York City-based O’Connor Capital Partners has disposed of the retail condominium at Manhattan House, a five-building, 22-story building located at 200 E. 66th St. that is currently undergoing a residential conversion, in an $86 million transaction. The condo offers 102,842 square feet of space that includes seven street-level stores located on Second and Third avenues between 65th and 66th street; four professional office spaces on 65th and 66th streets; and a parking garage located on 65th Street. Current retail tenants include Club Monaco, Madame Paulette, Lululemon Athletica, Staples Express, ALDO and Icon Parking Systems. O’Connor was represented by Eastdil Secured in the transaction; the property was acquired by locally based Madison Capital.

See the original article from 10/10/08, at http://www.rebusinessonline.com/news_archive/2008/October/10-10-08.shtml

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$86M Gets Madison Capital Upper East Side Retail/Office/Parking Condominium

“O’Connor Capital Partners recently completed the sale of a 102,842-square-foot retail/office/parking condominium property to Madison Capital for $86 million, or approximately $836.23 per square foot. The property is attached to Manhattan House, a historic, 1.1-million-square-foot, 22-story tower on the Upper East Side that is currently undergoing a $1.1 billion conversion into luxury residential condominiums.

The transaction included seven street-level stores totaling 25,000 square feet on Second and Third Avenues between 65th Street and 66th Street, four professional office spaces totaling 7,350 square feet on 65th and 66th Streets, and a 225-car parking garage on 65th Street. New tenants include Lululemon Athletica, Staples Express, and Madame Paulette while existing tenants include Club Monaco and Icon Parking Systems. Retail asking rents on Second and Third Avenue range from $200 to $350 per square foot.

Eastdil Secured represented O’Connor Capital Partners in the transaction…”

“New York City-based Madison Capital, a private development and investment firm, boasts a $1.25 billion portfolio of retail and residential properties in New York City.

For more information, see CoStar COMPS ID# 1594636.” For full article, see http://www.costar.com/News/Article.aspx?id=D874B37494474E84EDD7F7C0DE152E59

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Commercial Property News Reports: Manhattan House Retail Space

Madison Capital Takes NYC Retail Condo for $86M

O’Conner Capital Partners has announced the closing of the sale of the retail condominium portion of the Manhattan House to Madison Partners for $86 million. Eastdil Secured represented O’Conner in the deal. Manhattan House, at 200 East 66th St., is in New York City’s Upper East Side Manhattan neighborhood. Designed by Skidmore, Owings and Merrill and originally built in 1952, the property is currently undergoing a $1.1 billion condominium conversion. O’Conner Capital Partners has announced the closing of the sale of the retail condominium portion of the Manhattan House to Madison Partners for $86 million. Eastdil Secured represented O’Conner in the deal.

Manhattan House, at 200 East 66th St., is in New York City’s Upper East Side Manhattan neighborhood. Designed by Skidmore, Owings and Merrill and originally built in 1952, the property is currently undergoing a $1.1 billion condominium conversion.

Brian Fallon, a partner at O’Conner told CPN, “In anticipation of the condominium conversion offering plan being approved by the Attorney General in late summer 2008, O’Connor conducted a competition for sale of the commercial space at Manhattan House with Eastdil as our agent. We had a tremendous response and a great deal of competition for the opportunity.”

Manhattan House has 22 stories and five buildings. The property includes retail condominiums, as well as office and parking. It also includes seven street level stores on Second and Third Avenues, four professional offices on 65th and 66th Streets and a parking garage.

Fallon noted that, “the retail was repositioned on Second and Third Avenues with new leases to Lululemon Athletica, Staples Express and Madame Paulette.” The closing “without a missed step,” he added, was testimony to the quality of the property and location.

The residences have one to five bedrooms. Amenities include an in-house concierge, exclusive use of the Manhattan Club, Exhale Spa, a Roto-studio designed children’s playroom, and the second largest private park in the city with landscaping designed by Sasaki Associates.

O’Conner Capital Partners, headquartered in New York City , is a twenty-five year old privately held real estate and development and investment firm. Madison Capital is a private real estate organization that manages a $1.25 billion portfolio of retail and residential assets in New York City .

Judy Feldman, Contributing Correspondent for Commercial Property News: URL, http://www.commercialpropertynews.com/cpn/regions/new_york_city_display.jsp?vnu_content_id=1003872393

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Globe St. Coverage of $86M Retail Condo Sale

$86M Retail Condo Buy Furthers $1.1B Conversion, By Natalie Dolce

NEW YORK CITY-O’Connor Capital Partners has completed the sale of the Upper East Side retail condominium at Manhattan House to Madison Capital for $86 million. The deal marks a major milestone for the $1.1 billion condominium conversion of Manhattan House here. Brian Fallon, partner at O’Connor Capital Partners, tells GlobeSt.com that the business plan for the Manhattan House conversion always anticipated the sale of the commercial premises prior to year end 2008. “Given the capital markets, this is a significant milestone for both O’Connor Capital Partners and Madison Capital.”

Fallon tells GlobeSt.com that the commercial premises were offered to the market during the summer. He further notes that it was a very “spirited competition” with “many interested parties.

As GlobeSt.com previously reported, the Real Estate Finance Bureau of the State of New York Office of the Attorney General recently declared locally based O’Connor Capital Partners’ Manhattan House’s offering plan effective. The Attorney General had accepted for filing an amendment to the offering which authorizes formation of the condominium here at 200 E. 66th St.

Fallon tells GlobeSt.com that the conversion is “going extremely well with Phase I sales having just been completed and Phase II units just being offered to the marketplace consistent with our plan.” He notes that the retail condo here is a “strategic investment with considerable future growth potential. Its proximity to the luxury retail core of New York City and position at the base of the top luxury residential conversion development in the city make this the prime location for retail traffic.”

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“Madison Capital is extremely pleased to have been able to acquire a significant and exceptional retail asset in the heart of the Upper East Side,” says Richard Wagman, managing partner at Madison Capital, in a prepared statement. “The high caliber of tenancy, together with the prime location and high quality of this asset, were what attracted Madison to this premier core plus opportunity. We continue to actively pursue new acquisitions as our historically disciplined approach to underwriting allows us to acquire assets despite market volatility.”

For the full GlobeSt.com coverage, visit this site. Archive subscriber membership is required to view the full article.

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O’Connor Capital Partners Completes $86 Million Sale of 102,842-Square-Foot Upper East Side Retail Condominium at Manhattan House

NEW YORK, Oct 07, 2008 (BUSINESS WIRE) — O’Connor Capital Partners has completed the sale of the Upper East Side retail condominium at Manhattan House to Madison Capital for $86 million. The deal marks a major milestone for the $1.1 billion condominium conversion of Manhattan House, a modernist and architectural icon with grand residences that was designated a historic landmark in 2007 by the New York City Landmarks Preservation Commission.

The 102,842-square-foot retail, parking and office condominiums at Manhattan House, one of the Upper East Side’s largest retail offerings, includes seven street-level stores on Second and Third Avenues between 65th Street and 66th Street, four professional office spaces on 65th and 66th Streets, and a parking garage on 65th Street.

“The Manhattan House retail condominium is a strategic investment with considerable future growth potential,” said Brian Fallon, partner at O’Connor Capital Partners. “Its proximity to the luxury retail core of New York City and position at the base of the top luxury residential conversion development in the city make this the prime location for retail traffic.”

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