HFF has been retained to arrange the sale of 120 East 86th Street, a 7,043-rentable-square-foot retail condominium located in Manhattan’s Upper East Side. The commercial property for sale features 4,125 square feet on the ground floor and 2,918 sellable square feet on the lower level. The investment opportunity is fully leased to Panera Bread.
120 East 86th Street is located between Park and Lexington Avenues on the south side of the 86th Street Subway Station entrance within the 86th Street retail corridor, one of the most prominent in Upper Manhattan. Landlords are drawing top urban retailers, and rents in this area have experienced significant growth. Few properties in the Upper East Side can boast a location as superior as the East 86th Street corridor, which has attracted numerous national retailers, including Whole Foods, TD Bank, Victoria's Secret, Shake Shack, H&M, Sephora and Banana Republic.
Retail Property Investment Benefits
- Core Retail with Near-Term Rent Upside: Panera Bread is in the fifth year of its initial 10-year lease term, which began in October of 2011 and is substantially below market. Panera Bread has two, five-year renewal options with resets to 100 percent of fair market value. This renewal increase provides a potential investor with near-term upside and safe cash flow from a highly-desirable tenant over the investment horizon.
- Exceptional Fast Casual Dining Location: The property receives significant foot traffic from the densely-populated Upper East Side, East 86th Street retail corridor, 86th Street Subway station and the myriad of schools in the area. 120 East 86th Street is located right next to entrance of the 86th Street Subway station, the ninth most heavily trafficked in all of New York City with more than 20 million riders annually.
- Attractive Brand Name Tenancy: With 2,000 locations and growing (by the average of over six percent per annum), Panera Bread is a desirable and well-known brand across the U.S. that offers a wide range of dining options.
- Influx of Nearby Development: Developers have targeted the changing Upper East Side atmosphere, leading to an influx of capital spawning new retail and condominium developments.
120 East 86th Street is a retail property for sale in Manhattan’s Upper East Side. For more information on this or other commercial real estate listings in the New York City area, contact Rob Rizzi or Steven Rutman in HFF's New York City office.