TF Cornerstone is moving forward with the conversion of 135 East 57th Street, a property on Billionaires’ Row in Midtown Manhattan. As part of this redevelopment, Chelsea Piers Fitness has signed a lease for 47,000 square feet of ground-floor retail space at the site, which was previously owned by Charles Cohen, according to the Commercial Observer.
The terms of the lease were not made public. However, CBRE reported that during the third quarter, average asking rents for retail spaces on Madison Avenue between 57th and 72nd Streets reached $837 per square foot.
The New York Post was first to report on Chelsea Piers Fitness’s new lease at the location.
Earlier this year, TF Cornerstone secured control of the building through a ground lease agreement with the Wallace family. The company paid $159 million for a 99-year leasehold interest in the property.
TF Cornerstone intends to redevelop the existing 32-story office tower into a residential complex containing approximately 350 units. Of these units, 25 percent will be designated as affordable housing for individuals earning up to 80 percent of the area median income. The company plans to utilize New York State’s 467m tax exemption program to support this office-to-residential conversion project. Construction is expected to begin early next year and finish by 2028.
This deal continues an ongoing partnership between TF Cornerstone and Chelsea Piers Fitness. Previously, Chelsea Piers opened locations at TF Cornerstone properties including 33 Bond Street in Manhattan and 595 Dean Street in Brooklyn; at the latter address, there is direct lobby access from the east side of the building into the gym.
In addition to its new Midtown lease, last month Chelsea Piers signed another agreement for more than 48,000 square feet at GFP Real Estate’s 200 Varick Street. Plans for that location have not yet been announced.
