1683 3rd Ave
New York, NY 10128
1683 Third Avenue-Retail at The Kent · Multifamily Property For Sale · 83 Units

Cushman & Wakefield has been retained on an exclusive basis to arrange for the sale of the retail condominium at 1683 Third Avenue also known as the Kent. The subject property is a multi-level, newly built and constructed retail condominium ideally located on a heavily trafficked corner in Manhattan’s prestigious Upper East Side. Situated on the ground floor and lower level, on a prime corner on Third Avenue and East 95th Street, the retail units are located at the base of a luxury condominium tower, developed by Extell Development where residential units have sold between $3,000,000 and $9,000,000 (not including PH units). This asset presents top tier visibility in one of New York City’s most established residential neighborhoods. The condominium features approximately 12,796 SF at grade and approximately 9,767 SF of lower level selling space for a total of 22,563 SF. The retail features 212 feet of frontage (including 161 feet on Third Avenue and 51 feet on 95th Street) as well as 15 to 19-foot-high ceilings on grade and 15-foot-high ceilings on the lower level. The retail condominium is 100% occupied, currently leased to two tenants, both of which have long term leases. The NYC School Construction Authority, who have assigned the lease to the NYC Department of Education, have a lease that runs until 2034, and occupies approximately 11,492 SF on the ground floor, and Five Iron Golf whose lease runs until 2033 occupies approximately 1,304 SF on the ground floor and 9,767 SF on the lower level. The NYC School Construction Authority (NYC Department of Education) offers government credit while Five Iron Golf, who is the Nation’s largest indoor golf simulator destination with locations in 10 major U.S. cities and over 20 locations and counting, and international franchise locations in Singapore and India, will serve the dense surrounding residential neighborhoods as well as the owners who live in the building above. It is important to note that one of the investors in Five Iron Golf is Callaway Golf, who invested approximately $30,000,000 into the company. The space will feature 10 simulators as well as a state-of-the art bar and kitchen. Initially, zoning did not permit educational use for the school’s space, but the SCA and Department of Education loved the location and unit so much that they worked with the city to have the use granted. The school’s rent is set to escalate 10% in March of 2024 and escalates 10% every 5 years until expiration and Five Iron Golf’s rent escalates 2.5% every year until expiration along with a percentage rent of 8% over the breakpoint which is $3,000,000 for the first 2 calendar years after 01/01/2023 and $4,000,000 for all remaining calendar years in the lease term. They also have two (2) five-year renewal options. This opportunity provides a purchaser very stable cash flow, with significant increases in revenue that will be recognized in the very near term with a highly credited tenant and a neighborhood servicing destination tenant with substantial term left on their leases. The property also benefits from a 421-a tax abatement that is in year 5 of the 20-year abatement. 1683 Third Avenue is also an excellent 1031 investment opportunity as a passive investment in a high cash-flowing asset with limited landlord obligations with investment grade tenants in place. The exceptional daily foot traffic is driven by its proximity to major transportation hubs such as the 96th Street subway stations located on 2nd Avenue which is serviced by the Q train, and Lexington Avenue which is serviced by the 6 train, both a block away, as well as easy access to the FDR.