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White
Papers > The
Hammacher Schlemmer
Building
Case Study:
145 East 57th Street, Manhattan, NYC
400% increase in net operating income
We formed a view of
the market
When The Pentucket Company sensed a convergence
of market factors, we repositioned the historic
landmark, The Hammacher Schlemmer Building, to take
advantage of the potential for higher rental rates.
As exclusive leasing agent, we directed our efforts
toward becoming a Class- A provider of office space
in the Decoration & Design District of Midtown
East, New York City.
Most prominent Decoration & Design tenants are
billeted in enormous “industry” buildings
with multiple tenants on huge floors with long corridors.
We provided a unique and compelling small floor,
single tenant alternative to these behemoths.
The building had a fine existing assortment of service
company tenants representing the legal, public accounting
and real estate investment professions but we were
smack dab in the middle of the D & D District
and space therein has always rented at a premium.
We leveraged the cost
differential
If we were to diversify, there was an average leasing
cost differential of approximately $15.00 - $20.00
per rentable square foot between our building and
the upper end of the D & D market so we had
ample room to negotiate in order to capture the
tenancies we wanted.
We identified appropriate
tenants
We canvassed the market, identified creditworthy
prospects, engaged in negotiations and began to
populate The Hammacher Schlemmer Building with Furniture
and Fabric Showrooms, Architects, Designers and
Galleries who leapt at the concept of having a single
floor to themselves. Our 4,400 rentable square foot
floors offered high-ceiling, column-free space with
120 lb. live floor loads and window exposures on
three to four sides, permitting maximum floor planning
flexibility, an enhanced image and on-floor security.
We achieved a huge
NOI increase
Over the three years that ensued, the Net Operating
Income of the asset increased approximately 400%!
We can improve your
situation, too
Perhaps we might review your holdings and make some
suggestions?
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eMail cgoldberg@pentucketcompany.com
Mobile (917) 974-9736
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photo
by Chuck Goldberg
photo by Chuck Goldberg |
