Months ago, Zarin Fabrics gave up most of its ground floor space at 314 Grand St. to make way for a TD Bank branch. The transformation is still ongoing; plywood has covered the facades on Grand and Allen streets for several months. Today there’s news of another change in this historic building.
Public records show the Malachite Group has purchased the property for $25.6 million. Previously, the building was owned by Amster Family Investments. The transaction was first reported today by the Real Deal. The building was originally listed for more than $30 million in 2013. The listing noted:
314-320 Grand Street (Aka 72 Allen Street & 71 Orchard Street), is one of the most architecturally significant and prominent buildings in the Lower East Side. The building is a 4-story commercial building that stretches over 87’ across the entire northerly block-front of Grand Street between Allen and Orchard Streets. The property benefits from an incredible amount of both pedestrian and automobile traffic considering it is positioned at the corner of one of the neighborhood’s busiest streets. Rarely do block fronts become available, especially ones like 314-320 Grand which are in the most desirable downtown locations. The property is the best of both worlds in that it benefits from stable, long term retail income from TD Bank (Credit Rating of A1 by Moodys) and Bank of America (Credit Rating Baa2 by Moodys), while having loft office space having significant long term upside. The rents at 314 Grand Street are substantially below market. Although the TD Bank lease is new, it will only rise to $88/SF once its reduced rental period burns off in about two years.
It has always been assumed that a new owner would seek to convert the commercial building to a residential property. Zarin Fabrics has been in the location since 1936 and has a long-term lease. The longtime Lower East Side business opened a small showroom on the Orchard Street side of the building, while maintaining its large warehouse on the second floor. Local preservationists sought protection for the building from the Landmarks Preservation Commission, but the city determined the property was not eligible for designation.
We believe that this is an excellent long-term opportunity given the building’s unique architectural and location-related attributes, the quality of the existing tenants, and the continued improvement of the area. The addition of TD Bank will only contribute to this,and will give this excellent corner the face it deserves.
All the Zarin’s care about is being on a reality show which is all about themselves. Preservation, small business is so far removed from their brains, it’s truly disgusting and let’s hope Mrs. Zarin is never to be seen on another reality show again. This is a beautiful art-deco which will be ruined because the Lower East Side Business Improvement District does nothing to advocate historic preservation. Their members are just landlords who could care about the small business community.