“Pink Building,” Adjacent Properties Changing Hands

We have another big real estate transaction to report on the Lower East Side this morning.  pink building

The former Ridley Department Store building and two adjacent properties on Orchard Street are now under contract.  The news comes from Michael DeCheser of Massey Knakal.  While the owner was seeking $27 million for the buildings, DeCheser said the sale price, as well as the prospective owner, are being kept confidential.  It will be some time before the terms of the deal surfaces in the city Finance Department’s database.

Last fall, the Landmarks Preservation Commission (LPC) protected 319-321 Grand St., known in the neighborhood as the “Pink building.”  Ridley, once the largest department store in New York, closed in 1901.  When it was designated, the commission praised the 1886 building as a rare example of cast iron construction and a monument to the LES’s mercantile past.  The LPC chose not to landmark two adjacent buildings just to the south of the original structure.

The sale includes 57, 59-63 and 65-67 Orchard Street (also known as 319-321 Grand).  The property is currently about 55,000 square feet and includes retail on three streets – Allen, Grand and Orchard.  There are a variety of commercial tenants, including the Jodamo clothing store, New Goldstar #1 Printing and JFK Restaurant Equipment Supply.

The five-story landmarked building and the neighboring property both carry garment district zoning, meaning a special permit would be required for residential development.  The third building, a two-story-structure, does not carry the restrictive garment district designation, so it would be easier to develop. The property could be built to 73,000 square feet, so there are significant air rights.

DeCheser noted that there’s a lot of potential to upgrade the retail offerings in the buildings, given the changes that have taken place on Orchard Street in recent years, as high-end residential buildings and art galleries have replaced old-school garment stores.  He pointed out that there is not a single restaurant or bar in the property, presenting an obvious opportunity for the new owner.

At one time, a principal of the company that owns the buildings, Alfred I Goldman, made it clear he was not thrilled about landmark designation, but he did not stand in the way of the application.

 

4 comments to “Pink Building,” Adjacent Properties Changing Hands

  • Sabina

    I had no idea there was “garment district zoning” anywhere! I just read some fascinating history about the Special Garment Center District in midtown
    http://fashionlawwiki.pbworks.com/w/page/11611235/New%20York%20Special%20Garment%20Center%20District%20and%20Zoning

    How can you determine where the garment district zoning is down here? I looked at a zoning map but that didn’t seem to indicate it (in a way that I can understand at least).

    I have always felt fortunate that we still have a few garment-related stores down here; maybe I have this zoning to thank. (Though maybe this zoning isn’t so strong since didn’t Lichtenstein & Co make way for a future cafe or something…)

  • From city planning/zoning documents:

    A C6-2G zone is mapped in the small area between Allen and Orchard Streets, up to 150 feet south of Grand Street. The FAR regulations for C6-2G Districts are identical to those of their respective C6 districts but contain special provisions governing the conversion of nonesidential space to residential use.

    See more here: http://www.nyc.gov/html/oec/downloads/pdf/dme_projects/11DME012M/FGEIS/11DME012M_FGEIS_02_Land_Use.pdf

  • Sabina

    Thanks for the link! I always learn such interesting stuff reading The Lo-Down.

  • L Mohr

    The zoning classification of two of the three buildings is C6-2G. The G suffix is for “Garment.” In a G zone, an existing commercial building cannot be converted to residential without a special permit. The permit process is essentially a hardhip aplication where the owner has to prove there is no market for garment tenants. In the case of 57-67 Orchard, there were only 2 garment tenants remaining. Im not an expert, but I think that would strenghten the owners case should they pursue a conversion.