Commercial Real Estate & Advisory

Meatpacking District gets Theory

By Lois Weiss | May 1, 2004

Between the BricksIf you want a Theory, you can soon head to the Meatpacking District. The fashion-forward young womenswear retailer has leased what will become a 61,500-square-foot five-story building for offices, showrooms and a retail store. It will be reconstructd at 36-40 Ganesvoort St. beginning this summer. The former two-story Plymouth Beef/Woolco building is opposite Pastis and the new Hotel Ganesvoort. The Georgetown Company was the advisor and consultant to Theory, while Richard Hodos of Madison HGCD is its retail representative. Bruce Sinder and Christopher Owles of Sinvin, along with independent broker Susan B. Anthony, represented the lessor and redevelopers of the property, investor Charles Blaichman and partner, Abe Shnay. “A lot of people thought this was a risky deal, and we were very lucky to find a tenant of this quality and character to take the building,” said Owles. “Theory can run their business and establish their brand.”

The 15-year lease had an office asking rent of $45 a foot with a blended asking rent of under $3 million a year for the entire building. Theory was at first only seeking a store, but, when its President Andrew Rosen heard offices were available, they went for the larger deal. Theory is expected to move at the end of 2005 from offices at the Grace Building opposite Bryant Park where office rents are closer to $60 a foot. Theory’s stretch fabrics, sexy summer tops and multi-cropped pants can be found at its standalone store at 230 Columbus Ave., along with department stores and other locations in the U. S. and internationally. In January, Blaichman and Shnay structured a 40-year net lease of the former two-story Woolco builing – also known as PlymouthBeef – from the Sussman family for payments that equal nearly $100 million over the life of the lease.