Blackstone Makes $200M Soho Retail Play in NYC

According to The Real Deal, Blackstone (BX) is acquiring a $200M portfolio of Soho retail properties—and the entire sector is paying attention.

Deal Details

The acquisition is the largest investor-led retail transaction in the city in over three years, and signals renewed confidence in a market that has slowly recovered from years of stagnation following the retail bubble burst in 2016.

The properties—located at 61 Crosby Street, 72-76 Greene Street, 465 Broadway, and 415 West Broadway—house prominent tenants like Patagonia and Amiri. With some leases currently below market rates, Blackstone is betting on repositioning the assets to maximize revenue.

Bigger Picture

This purchase represents a significant return to form for investor-driven retail transactions in Manhattan. 

The Soho retail market has shown marked improvement, with leasing activity driving availability down and rents rising to levels not seen since 2017. Along the Broadway corridor, rents have surged 35% YoY to an average of $679 PSF, according to CBRE.

Blackstone’s strategy reflects confidence in Soho’s revitalization. As retail rebounds, the firm plans to capitalize on below-market leases by adjusting rents upward. Elena Clarfield, a senior associate at Blackstone Real Estate, noted that the deal highlights Blackstone’s ability to “identify terrific opportunities for our investors in prime locations.”

The properties also feature office space, which accounts for more than half of the total square footage.

Seller Strategy

The seller, Maryland-based ASB Real Estate Investments, is offloading the portfolio as part of a larger pivot away from office and urban retail assets. 

ASB CEO Robert Bellinger stated the sale aligns with the firm’s strategy to concentrate on industrial, multifamily, and self-storage investments, which promise stronger risk-adjusted returns.

ASB has sold $870M worth of office properties since 2021, with this transaction contributing to its plan to recast its Allegiance Fund portfolio. Despite these divestments, the fund has reported a roughly -15% YTD return.

Why It Matters

Blackstone’s acquisition not only underscores renewed confidence in Manhattan’s retail sector but also highlights broader market trends. Investor appetite for urban retail assets is growing as leasing and rent performance improves in key corridors like Soho’s Broadway.

This deal sets a new benchmark for investor-led retail transactions in Manhattan and signals that prime retail locations are once again becoming sought-after investments.