19-23 St. Marks Place is a 40-unit multi-family rental development in the East Village neighborhood of Manhattan.  In addition to the residential rental units, the property contains 6 retail units and a single penthouse condominium unit owned and occupied by the project’s primary equity partner.  Retail tenants include Chipotle, Supercuts, Quizno’s, Grand Sichuan Restaurant, and a Gourmet market.  Prior to acquisition, the property was severely dilapidated and had been in use as a commercial club.  In the 1960’s, the property had been home to The Electric Circus nightclub, where Andy Warhol’s Velvet Underground debuted in 1966.

The Sponsor acquired the site by entering into a 49-year ground lease and executing a purchase option included in the contract.  The project entailed the addition of 3 stories and a complete rehabilitation of the existing structure.  The decision to preserve and rebuild the existing structure was made to maintain the grandfathered retail space on the first and second floors of the building.