A huge change of course for the proposed L train shutdown. Even though traffic on the northernmost block of University Place has been reversed, and even though the 13th St. bike lane is in full effect–and constantly blocked by trucks, of course–it now appears that none of this may have been necessary, and the upcoming 14th St. busway may not be implemented at all. Very very confusing. The MTA is ridiculous.
NYC’s zoning for businesses has recently changed, allowing for a wider range of retail and experiential offerings. In Union Square, this means new opportunities to lease to unique amusement and recreation facilities, live entertainment establishments and clean production and maker spaces. This bolsters the emerging trends in Union Square, where new nightlife hotspots like Midnight Blue and Upright Citizens Bridge have established
roots alongside a cluster of experiential retail arcades like Boba Box, Sweet Cats Cafe, and Partea. And with the much anticipated 2025 opening of the darts-centric bar Flight Club at 31 Union Square West, Union Square is poised to be at the center of this new wave of ground-floor leasing enabled by the modernized zoning code.
Because the rent is to damned high….here are the details, courtesy of Eater.com:
After over 20 years in Union Square, noodle shop Republic and seafood restaurant Blue Water Grill will both close by the end of the year. The culprit is outrageously high rent, with Blue Water Grill facing $2 million-plus annually, Bloomberg reports.
It’s part of a larger issue that Bloomberg breaks down in greater detail: Restaurants, like Union Square Cafe, which faced this same issue in 2014, open in less desirable neighborhoods with affordable 10- to 25-year leases. Then, in that time period, those restaurants contribute to the neighborhood increasing in value, which in turn causes landlords to raise rents to unsustainable highs once a lease is up.
Specifically, at Republic, the 3,800-square-foot restaurant went for $220,000 a year in 1995. Now, owner Jonathan Morr will vacate the space three-and-a-half years early so he can split the difference between what [the landlord] gets from us and what he’ll get from the next tenant, and call it a day, Morr tells Bloomberg. Marty Feinberg, of Winner Communications, which owns Republic’s building, says that taxes on it have gone up from $90,000 to $476,000 since the mid-’90s. (It’s not clear in the wording whether the landlord pays the taxes or it’s the responsibility of Republic as part of the lease agreement.)
Even restaurants with a lot of firepower behind them feel the squeeze. Tilman Fertitta, the tycoon behind Landry’s restaurant group, now owns Blue Water Grill, but still the rent increase to over $2 million a year is an amount at which can’t be successful,according to a Landry’s spokesperson. (This is also the group that just closed Isabella’s after 30 years on the Upper West Side.) The restaurant is currently searching for a new space. Uber-successful restaurateur Danny Meyer’s flagship Union Square Café” named after the very area it can no longer afford” vacated in 2015 after its rent increased fivefold over a 30-year period.
“That area is going to have to become a food desert” says realtor Leslie Siben of LB Realty Services LLC, because] no normal restaurateur with any experience would touch that as it is now.
This doom and gloom is met with a depressing solution: more food halls. Optimal Spaces broker Stephen Sunderland tells Bloomberg that it’s an appealing scenario for restaurants for its limited risk and lower costs to open” or close if needed. On the landlord and developer side, Smorgasburg co-founder Jonathan Butler recently commented on an unrelated panel that every developer wants a food hall at the bottom of their building or to anchor their big project.
There is no set date yet for the closures of Republic and Blue Water Grill. Stay tuned for more.
The retail retreat continues, with the departure of Bolton’s from the corner of Union Square and University. This is a high-traffic area. It’ll be interesting to see what comes next.
Sebco Laundry will no longer be accepting pre-paid cards to use the machines in our buildings. They are switching to an app which is called My Magic Pass. Residents will need to download the app and use the site code 7–11 EAST 13TH STREET.
You will be able to pay for use of the machines by using the app. Directions on how to use the app are posted in each laundry room.
If residents have money on their current cards Damian will provide an envelope to mail to Sebco to get refunded. Please let us know if you need an envelope. THere are also envelopes available in the laundry rooms.
