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Sandro Rosell
FC Barcelona President
Saturday, October 21, 2017

A 92,000-square-foot mixed retail residential building on Manhattan’s Upper East Side has been sold by Brodsky Organization to a subsidiary of Israeli real estate investment firm Gazit-Globe for $73.3 million, according to information The Real Deal.

The condominium is located at 401 East 60th Street on the corner of First Avenue. There are two retail tenants, Starbucks and Bed, Bath & Beyond, that currently occupy the entire corner space. In addition to the retail space, the property, which was developed in 1999 by Brodsky, also has a garage and apartment building. 

The sale, which when broken down cost approximately $800 per square foot, was brokered by Darcy Stacom, Bill Shanahan, Ryan Spector and Carl Shorett of CBRE.

TRD reports, “Gazit-Globe is a major owner of shopping centers around the globe and owns the Barneys store at 161 West 16th Street in Chelsea. In May, the company formed the subsidiary Gazit Horizons to invest in U.S. real estate. The retail condo is its second U.S. acquisition, following a $29.45 million deal in Miami in July.”

Large mixed-use properties in major cities are what Gazit Horizons plans to focus on. Jeffrey Mooallem, a 19-year veteran of the commercial real estate industry, was chosen to head Gazit-Globe’s new U.S. investment subsidiary, Gazit Horizons Inc.

In May, in a prepared statement, Mooallem said, “With our collective experience and relationships in the industry, we are well positioned to acquire assets in some of the strongest and fastest growing markets in the country. We will utilize our experience and capital structure to acquire larger and more complicated assets across multiple product types, and create additional value through asset management, redevelopment and repurposing.” 

“The chance to work with a company of Gazit’s stature and build a new investment platform in the United States is a special and unique opportunity,” Mooallem said, adding he looked “forward to building the best team and best portfolio possible to execute our strategic objectives.”

In August, Gazit-Globe chair Chaim Katzman told the Wall Street Journal, “Brick-and-mortar [retail], where 80% to 90% of the sales take place, is still a powerful environment for brand building, cultivating loyalty and experiential retail.”

By Charles Bernstein