The Flagg family is looking to cash in on SoHo’s retail rebound, putting a newly renovated, two‑story retail condominium at 170 Mercer Street on the block for just under $12 million. The package: a polished, flagship‑style space fully leased to designer Magda Butrym on a 10‑year deal, pitched as a turnkey, single‑tenant investment with built‑in rent growth.
The lease with Magda Butrym runs for a decade, with rent scheduled to kick in on August 1, 2026 and 3 percent annual escalations baked into the agreement. Less than two years after the family acquired the lower floors and basement of the five‑story loft, Flagg Family Capital has now brought the condo to market, according to The Real Deal, which reports the ask is just under $12 million and that prior transfers were tied to developers Andrew Aryeh and David Elbaz. The quick spin underscores how move‑in‑ready, fashion‑friendly storefronts in downtown Manhattan still trade at a premium.
What's for sale
Avison Young is marketing a 5,399‑square‑foot retail condominium stretching across the ground floor, mezzanine and lower level, with roughly 25 feet of frontage on Mercer Street and 24‑foot ceilings after a renovation that removed the third floor to create a dramatic two‑story volume, per listing details on LoopNet. The space is presented as a flagship‑ready showpiece with designer‑grade finishes and a long‑dated, single‑tenant lease already in place.
Flagg's strategy
“We remain extremely bullish on Manhattan commercial real estate overall,” Josh Flagg told The Real Deal, which also notes the firm is under contract on three other New York properties as the family pivots toward trophy retail and prime markets. The Mercer Street sale serves as an early test of that playbook: convert the space, land an upscale fashion tenant, then sell the stabilized condo to a retail‑focused investor.
Price and precedent
Industry records show an Aryeh/Elbaz‑linked entity bought the retail condo in a late‑2024 foreclosure sale for roughly $2.4 million, according to filings reviewed by PincusCo. With the Flagg family’s current ask hovering near $12 million, the listing highlights how a renovation plus a signed long‑term lease can dramatically reset pricing in SoHo’s tight retail market.
The property is being marketed by Avison Young brokers including Brandon Polakoff, with public materials showing an asking price around $11.95 million, per the offering on CommercialSearch. Prospective buyers can request full offering documents and lease abstracts directly from the broker team.
