HFF Closes $25M Upper East Side Retail Deal

A Madison Capital joint venture sold the 86th Street property, which is currently leased to Citibank.

By Ioana Neamt

123 E. 86th St., New York
123 E. 86th St., New York

New YorkHFF has recently facilitated the $24.5 million sale of a 7,018-square-foot retail property in Manhattan’s Upper East Side. The company marketed the single-tenant, triple-net-leased asset on behalf of the seller—a partnership between Madison Capital and a global real estate investment management firm.

The property is located at 123 E. 86th St., and is currently leased to Citibank through 2022 at rents significantly below market. Completed in 1927 and renovated in 1998, the building comprises three above-grade levels with an additional 2,234 square feet of lower-level space, not included in the rentable square footage. Nestled in the heart of the 86th Street retail corridor, the asset is in close proximity to a variety of popular retailers, including Whole Foods, H&M, SoulCycle and Sephora.

An HFF investment sales team led by managing directors Rob Rizzi, Jeff Julien and Amy Sands, senior managing directors Eric Anton and Danny Finkle, and Associate Director Steven Rutman represented the seller in the transaction. PD Properties’ Elad Dror and Tony Park represented the buyer.

“We received a tremendous response from a wide range of private and institutional investors, highlighting New York City’s appeal for high-street properties, as well as the continuing demand for cash flowing retail,” said Rizzi in a statement.

Image courtesy of HFF