The Real Deal reports that developer Ben Shaoul and Real Estate Equities Corp. have agreed to purchase four properties along East Houston Street (at Orchard St.), plus air rights from Katz’s Deli, for $75 million. They plan to build a 12-story residential and retail building on the site.
The 113,000 sq. ft. project will include 83 apartments and ground floor commercial space. The architect is Ismael Leyva. Last summer, Katz’s Deli announced it had sold its development rights, in a deal that co-owner Jake Dell explained would assure the survival of the iconic Lower East Side business for years to come. Since that time, a handful of commercial tenants – including beloved cheap eats spot Bereket – closed their doors.
A demolition permit for 196 Orchard St. was approved in February.
Note: The Real Deal originally reported this deal was worth $108 million but corrected its story to indicate the developers actually paid $75 million.