City Urban Plans Retail Project on SoHo’s Last Vacant Corner

• City Urban Realty paid $14M for the vacant corner at Spring and Wooster in February, a 43% discount from the $24.7M Travelzoo founder Ralph Bartel paid in 2012
• Developer Michael Alvandi is planning a 3,661 SF, two-story retail building with a penthouse, designed by BKSK Architects, awaiting LPC and DOB approval
• Cerco Funding provided a $16.8M construction loan in April, bringing total capitalization to $30.8M
• The 1,600 SF corner lot sits directly across from Chanel's downtown flagship, on a block shared by Gucci and Celine

SoHo's Last Blank Corner, Off-Market

A fire destroyed whatever stood at 144 Spring Street more than a century ago. For decades after, the 1,600 SF corner lot at Spring and Wooster served as a neighborhood flea market. Then Ralph Bartel, founder of Travelzoo, paid $24.7 million for it in 2012 and filed plans for a glassy minimalist box, and nothing happened. The lot sat empty for another 14 years.

Michael Alvandi's City Urban Realty picked it up in February for $14 million, off-market, a $10.7 million haircut from what Bartel paid. Alvandi's director of acquisitions, Harry Hochman, negotiated directly with Bartel; Lantern Real Estate Advisor marketed the property on behalf of the seller. The deal closed on February 27 and was recorded in April.

At $1,750 per buildable square foot across the site's 8,000 SF of air rights, the price reflects where SoHo land values have settled after years of retail stress. For context, SoHo has moved $1.8 billion in commercial sales volume over the past two years, ranking seventh in turnover among all NYC neighborhoods, per PincusCo data.

The Build: 2 Stories, No Retail Wasted

City Urban filed plans with the DOB on March 25 for a 3,661 SF, two-story building with a penthouse, every square foot earmarked for retail. BKSK Architects, a firm with multiple SoHo projects on its resume, is handling design. The building requires Landmarks Preservation Commission sign-off, given SoHo's historic district designation; approval is pending.

To fund construction, City Urban signed a $16.8 million loan with Cerco Funding in April, through its entity 144 Spring Holdings LLC. Franz Cervinka signed for Cerco; Seth Niedermayer of Herbert Smith Freehills Kramer represented the lender. The prior debt holder, 2 Palms Capital, was retired with a $3 million original loan. At $4,588 per planned construction square foot, the financing reflects the premium SoHo commands even for a low-rise build.

The Address Sells Itself

The corner of Spring and Wooster is not a speculative bet. Chanel's flagship sits directly across the street. Gucci and Celine share the block. The surrounding tax block counts Macquarie Group, Reuben Brothers, and Christian Cigrang among its owners.

City Urban is not new to the zip code. Over the past six months, the firm has also acquired retail condos at 182 Spring Street for $5.6 million and 386 West Broadway for $5.9 million, a deliberate SoHo accumulation strategy. The firm's broader playbook reads similarly in Williamsburg, where it developed 95 and 97 North 6th Street and landed Abercrombie and Lululemon as tenants.

What's Next

Plans are filed; permits and LPC approval are the next gates. Once cleared, City Urban will break ground on what would be the first new building on the corner since the fire that left it empty in the first place.