While TF Cornerstone is working out the conversion of 135 East 57th Street on Billionaires’ Row, it will have Chelsea Piers Fitness to work out the customers below.
The gym operator signed a 47,000-square-foot lease for the ground-floor retail space at Charles Cohen’s former building in Midtown, the Commercial Observer reported. Details of the lease were not disclosed, but the average asking rent for retail space on Madison Avenue between 57th to 72nd Streets in the third quarter was $837 per square foot, according to CBRE.
The lease was first reported by the New York Post.
TFC signed a ground lease with the Wallace family over the summer to take control of the property; TFC paid $159 million for the 99-year lease.
The firm plans to redevelop the 32-story office building into a 350-unit residential complex, featuring market-rate and affordable housing; 25 percent of the units will be for those earning up to 80 percent of the area median income.
TFC plans to use the state’s 467m tax exemption program, which helps facilitate the conversion of office buildings to residential properties. The firm plans to launch the conversion early next year and complete it by 2028.
TFC and Chelsea Piers developed an ongoing partnership, which saw the fitness chain take space at 33 Bond Street in Manhattan and 595 Dean Street in Brooklyn; for the latter, the lobby of the property’s east connects to the gym.
Last month, Chelsea Piers signed a lease for more than 48,000 square feet at the base of GFP Real Estate’s 200 Varick Street, though specific plans for the space were not disclosed.
— Holden Walter-Warner
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