A portion of a Manhattan mixed-used property that hosts high-profile Italian restaurant and gourmet market Eataly’s new store in the SoHo neighborhood has been put up for sale.
The listing is for a 100% fee simple condominium interest in a roughly 30,000-square-foot retail property across the ground floor, second floor and lower level at 200 Lafayette St., according to a marketing brochure from the brokerage Newmark. The space is fully leased.
CoStar data shows Brookfield is the owner of the retail condo at the intersection of Broome Street. The rest of the nearly 128,000-square-foot property opened in 1914 and renovated in 2014 is owned by LaSalle Investment Management, according to CoStar data.
Brookfield had inherited the entire building as part of its 2018 purchase of former U.S. mall owner GGP, which previously sold the office portion to LaSalle in 2015, CoStar data shows. The offices house tenants such as private-equity firm Andreessen Horowitz, which is moving into 33,560 square feet in January 2025, according to CoStar data.
Newmark didn’t immediately respond to a CoStar News request seeking details including the asking price. A Brookfield spokesperson declined to comment.
Eataly leases 18,420 square feet of retail space on the ground and lower level through 2038, while Italian luxury outerwear label Moncler has 11,506 square feet of office space on the second floor through 2033, according to the brochure. Combined, the property has a weighted average lease term of over 12 years, Newmark said, adding that each lease includes contractual annual rent increases.
The mixed-used retail property generates about $47 million of contractual revenue, 68% of which comes from Eataly and the rest from Moncler through the remainder of the in-place lease terms, Newmark said.
Luxury expansion
Eataly’s “exceptional growth” in the United States, coupled with “recent private equity backing,” as well as Moncler landing a “recent investment” from French luxury giant LVMH, signals the property’s “in-place tenant credit profile is exceptional,” Newmark said, adding that the property offers “stable cash flow.”
Investindustrial, an independent European investment firm, has held a majority ownership stake of 52% in Eataly since last year, and it is looking to expand the concept outside cities such as New York and Chicago to the suburbs. Moncler, for its part, recently said it’s set to open its biggest global flagship in Manhattan as LVMH has made an investment in the firm that owns a stake in the upscale label.
A potential buyer also can convert the second floor space to retail space after Moncler’s lease expires, Newmark said.
The SoHo shopping district, where the property sits, counts over 3.5 million daily visitors, Newmark said. SoHo has led Manhattan shopping corridors in a retail rebound from the fallout of the pandemic. The average asking rent for retail in SoHo in the third quarter jumped 19% to $388 per square foot, the fastest growth rate among a dozen Manhattan shopping corridors, according to a Cushman & Wakefield study.
Princess Polly, an Australian-born fashion label popular with Gen Z shoppers, recently said it’s opening its first New York store in the neighborhood.