Blackstone has struck a deal to acquire a retail portfolio in the SoHo submarket of Manhattan for $197.5 million.
The collection of properties includes four assets, taking up 131,000 square feet in total. The names of the properties were not clear but they are leased to office boutique and retail brands including ECCO, Ganni, Comcast Ventures, and Amiri.
Blackstone highlighted some key fundamentals of the SoHo market. According to the alternative investment giant, the region averages more than two million visitors per month now, sitting above pre-pandemic levels. Rents for retail are up by more than 50 percent in SoHo over the past few years. Plus, thanks to strong leasing activity, there are less than five availabilities in the prime SoHo corridors.
The seller was ASB Real Estate Investment.
“We are thrilled to acquire this attractive retail portfolio located in the heart of one of the city’s most dynamic neighborhoods," Elena Clarfield, senior associate at Blackstone, said in a statement.
"This transaction illustrates Blackstone’s ability to play offense in today’s market and identify terrific opportunities for our investors in prime locations.”
Also, the acquisition is a part of Blackstone's worldwide strategy, where it's targeting retail assets in urban areas. The company has followed that up with the Bond Street in London, and Rue Saint-Honore in Paris purchases earlier this year.
In Crexi's October CRE update, retail was a leading sector. For example, asking prices were down slightly to $276.37 per square foot month-over-month — but up 6.6% compared to October 2023. Also, cap rates are down six basis points to 5.34 percent.