Footlong on the house? How about *in* the house?

Attention holiday shoppers: Who wants to buy a building?

To the investors among the More For LES readership, I have not presented you with a wealth of opportunities just yet, but something crossed my desk and I want to share it.

334 Grand Street, at the corner of Ludlow, is on the market for $11.5M.

Let’s take a look. (Today, we’ll browse. Tomorrow, we’ll assess.)

334 Grand Street

List Price: $11,500,000
Size: 8,500 ft² ($1,352/sq ft)
Bedrooms: 5
Bathrooms: 5+
Bonus: Includes ground floor retail

Here’s some detail on the building itself, as per the listing agent(s):

334 Grand is a 7-story mixed-use corner building offering retail plus full-floor lofts and a penthouse triplex. It’s described as being “at the Nexus of Art, Fashion, and Innovation,” and as a “strikingly handsome,” newly constructed “corner masterpiece.”

This property offers a “rare opportunity” to shape your own program. Recently rebuilt, it’s presented as a “trophy asset” offering flexibility, while already being home to “discreet leaders in fashion and titans of industry.”

Unit Overview:

Penthouse Triplex (Floors 5–7): A 2BR/2.5BA with approx. 2,500 interior sq ft plus 900+ sq ft of terraces, 26 windows, full-floor layouts, a gourmet kitchen, a spa-style bath, private outdoor space on three levels, and central air/heat.

4th Floor Loft: A 1BR/1BA (convertible 2BR) with approx. 1,465 sq ft, a key-locked elevator, oversized windows, open kitchen, and a double-shower bath.

3rd Floor Loft: A 1BR/1BA (convertible 2BR) with approx. 1,465 sq ft — similar to the 4th floor — with a key-locked elevator, oversized windows, open kitchen, and a double-shower bath.

2nd Floor Loft: A 1BR/1BA (convertible 2BR) with approx. 1,465 sq ft — similar to the 4th and 3rd floors — with a key-locked elevator, oversized windows, open kitchen, and a double-shower bath, as well as built-in closets in the bedroom.

Ground Retail: A retail storefront, currently a Subway — as showcased in this More For LES short — with approx. 900 sq ft and 700 sq ft of cellar storage.

Cellar: Housing the communal garbage room, the building’s mechanicals and meters, as well as 1,465 sq ft of storage.

Here’s a snapshot of the floor plans (in thumbnail form, sorry):

In our next transmission, we’ll come back and make a Go or No-Go decision on this building. However, in truth, we don’t have nearly enough information to make a truly informed decision. We’d want to engage, see the property , request financials , conduct due diligence , and evaluate what we know against our investment strategy (which I have not explicitly outlined).

Below, though, are some of the questions that we will want to answer as we go through our process, irrespective of whether we buy:

• What is the true rentable square footage of the building, excluding cellar, circulation, and non-revenue-generating areas? Accordingly, what is the actual price per rentable square foot, based on verified usable area?

• Is there a current rent roll or income/expense statement available?

• What is Subway paying, and what are the current residential tenants—if any—paying? What is the absorption risk, i.e., the likelihood that, if the building is un/under-occupied, I can fill it with tenants?

• What type of buyer is the listing actually targeting—investor, owner-user, or emotional/end-user? Which one are we?

• What are realistic market rents for LES retail and residential units in this location? What is the projected net operating income (NOI) based on those market rents?

• What cap rate does the building deliver based on this NOI, and how does that compare to current market expectations? (Also, for a primer on capitalization rate, feel free to check out this post, which includes a definition and formula.)

• Are property taxes likely to increase, given the building’s location, construction, or valuation? What are the estimated operating costs, including elevator and HVAC maintenance, insurance, and management?

• What is the building’s legal and regulatory status (CO, DOB history, permitted uses)?

• Are the various potential use-cases (e.g., corporate HQ, single-family, live/work) actually legally permissible? By the way, let’s dismiss corporate HQ. Not happening.

And, finally: Is the current $11.5M price tag worth it?