07/20/2021 | Press release | Distributed by Public on 07/20/2021 13:09
NEW YORK, July 20, 2021 - JLL Capital Markets announced today that it is exclusively marketing a retail co-op for sale occupied by Duane Reade at 1235 Lexington Ave. on New York City's Upper East Side for $23.25 million. The 12,225-square-foot space comprises 6,875 square feet on grade and an additional 5,350 square feet on the lower level on New York City's Upper East Side.
Positioned on the southeast corner of two highly trafficked streets, the offering features 102 feet of frontage on Lexington Avenue and 87 feet of frontage along East 84th Street. The space is currently leased to Duane Reade (BBB credit) through February of 2029 with an additional 10-year extension option through 2039. The lease is guaranteed by Walgreens Boots Alliance (WBA), which is Duane Reade's parent company. 1235 Lexington Ave. is now the only Duane Reade located on Lexington between 77th and 125th Street, positioning the store to benefit from the company's recent consolidation of its NYC footprint.
The property is in the heart of the Upper East Side's busy Lexington Avenue retail corridor surrounded by numerous restaurants, stores and neighborhood amenities, including the Metropolitan Museum of Art, which is two blocks to the west. The property also offers easy access to Central Park and is only a two-minute walk from the Lexington and 86th Street station for the 4 and 5 subway lines and a five-minute walk from the 86th Street station for the Q subway line.
The JLL Capital Markets team marketing the property on behalf of the seller is being led by Managing Director Hall Oster and Chairman Bob Knakal, along with Managing Directors Jonathan Hageman and Paul Smadbeck. Senior Managing Director Kellogg Gaines is the financing lead.
'1235 Lexington represents an opportunity to acquire a stable, high-cash-flowing trophy asset backed by credit tenancy on a long-term lease,' Oster said. 'The property will appeal to passive investors and 1031 exchange purchasers looking for a fully leased, investment-grade asset with limited landlord obligations and 189 feet of wraparound frontage on a premier Upper East Side retail corridor.'
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients - whether investment sales advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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