Real Estate | Amusing the Zillion

Archive for the ‘Real Estate’ Category

Subway Cafe to Replace Furniture Store on Coney Island’s Surf Ave

Posted in Food, Food & Drink, Real Estate, Redevelopment, tagged Chain restaurant, Coney Island, franchise, Joe Vitacco, north side of Surf, Subway Cafe, Subway Restaurant, Surf Avenue on September 11, 2013| 4 Comments »

1,700 sq foot Subway Cafe with Tuscany-style interior coming to this building at 1019 Surf Avenue. Photo © Tricia Vita

Last year ATZ asked “Will Coney Island’s Surf Ave Become a Mecca for Franchises?” (December 19, 2012). The latest in a slew of chains and franchisees betting on the new, year-round Coney Island is a Subway Cafe with a “Tuscany-style interior” featuring sofas and a fireplace. Broker Joe Vitacco signed a lease yesterday with the restaurant chain for the 1,700 square foot cafe at 1019 Surf Avenue across the street from Luna Park.

Just how pricey is Coney Island’s Surf Avenue? The building at 1019-1039 Surf was purchased for $3.1 million by 1019 Surf Ave Acquisition LLC in March for $3.1 million, according to Property Shark. Vitacco says the buyer was Russian multi-millionaire Yakov Yakubov, who also owns Loehmann’s Plaza in Brooklyn.

First introduced as a restaurant concept in 2008, the Subway Cafe’s decor and layout aim for a “coffeehouse ambiance” and is a little larger than an average Subway. The north side of Surf Avenue already has a Subway, located down the street in Stillwell Terminal, but it does not sell coffee. In addition to Subway sandwiches, the new cafe’s expanded menu includes baked goods, dessert items and coffee offerings. Part sandwich shop, part coffee bar, the Subway Cafe will be operated by franchisees with its lease held by the Subway Restaurant chain. They will take possession of a portion of the storefront occupied by the 11,000 square foot Lago Furniture. The furniture shop is on a month-to-month lease while tenants are sought for the rest of the space, Vitacco said.

Interior of one of the Subway Restaurant Chain’s Subway Cafes. The concept debuted in 2011

The furniture shops on the north side of Surf have long been in violation of the C-7 amusement zoning and are gradually being replaced by restaurants and bars. Dunkin’ Donuts (also in Stillwell Terminal), Coney Island Bar & Grill (formerly Bratva), Grimaldi’s Pizzeria, and Applebee’s will be joined next year on the north side of Surf by Johnny Rockets and Red Mango and Subway Cafe. As we noted last year, rides and amusement businesses aren’t about to make a comeback due to the skyrocketing rents since the rezoning. “I’m getting more inquiries than ever before,” said Vitacco, who would like to bring a seafood and steak restaurant to the neighborhood. “It means that people are thinking about it. But I call half the people I talk to tourists.”

Until the early 1980′s the north side of Surf Avenue was home to individually-owned penny arcades and a variety of rides including bumper cars, carousels and even a Jumbo Jet-style coaster. Philips Candy Store, now located in Staten Island, was the anchor of Stillwell Terminal from 1930 until 2000 when the terminal was rebuilt and they had to move out. By the time the last ride– Coney Island’s B & B Carousell —closed in 2005, the north side was known as the wrong side of Surf Avenue to locate a business because of the lack of foot traffic.

UPDATE January 29, 2015:

After post-Sandy construction delays, Subway Cafe finally has their sign up and is set to open a year-and-a-half after signing a lease

Sky Rapids Ride at 1223 Surf Avenue and Arcade at 1217 Surf Ave. Coney Island. January 1, 1979. Photo by Abe Feinstein via Coney Island History Project

The New Coney Island: A Tale of Two Jones Walks

Posted in Amusement Game, Real Estate, Redevelopment, tagged Central Amusement International, Coney Island Rezoning, Grashorn Building, Jones Walk, Luna Park, Mayor Michael Bloomberg, Thor Equities on September 2, 2013| 3 Comments »

Long-shuttered storefronts on Thor Equities side of Jones Walk. Luna Park games on City-owned land on the Walk’s east side. June 21, 2013. Photo © Tricia Vita

With Mayor Bloomberg, Councilman Domenic Recchia and other electeds responsible for the rezoning of Coney Island leaving office in 120 days, and their would-be successors campaigning for the September 10th Primary, it’s time to look at the City’s accomplishments in Coney Island and what has yet to be done. The New Coney Island. We’ll also take a look at some of the casualties as well as some of the survivors of the July 2009 rezoning. ATZ hopes to cover these topics in a series of posts over the next couple of months.

Let’s start with the Surf Avenue side of Jones Walk, the last of Coney Island’s historic walks. Before Thor, it used to be a vibrant and authentic place, a midway of midways. Now “the Walk” looks like a victim of a split personality disorder. The City-owned east side of Jones Walk, re-activated by Luna Park with cute carnival games and a few food stands, and Thor Equities-owned west side, vacant since 2009, offers a stark contrast between Coney’s largest property owners. While the City has brought in replacement amusements, Thor–whose slogan for a time was “Coney Island, Retail Ride of a Lifetime”— has gotten rid of amusements.

Luna Park’s Stinky Feet Water Race Game, Jones Walk. Coney Island. May 27, 2013. Photo © Tricia Vita/me-myself-i via flickr

You’d never know from looking at it, but the building on the west corner of the Walk is Coney Island’s oldest, the circa 1880s Grashorn Building. Originally Henry Grashorn’s hardware store, the building later housed shooting galleries, arcades, and cotton candy and taffy stands. Now it’s a victim of the continuing decimation of the amusement area by Thor CEO Joe Sitt. The Grashorn building fronts Surf Avenue and extends along the west side of the walk, yet this location has remained vacant and devoid of activity for five seasons. WHY? A business owner who had leased a small stand on the Walk from Thor in 2008 told us in 2009 that the rent had tripled from $8,000 to $24,000. He declined the space and left Coney Island, never to return.

Thor Equities Vacant & Shuttered Grashorn Building. August 15, 2009. Photo © Tricia Vita/me-myself-i via flickr

Since then, the Grashorn has fallen victim to squatters, blight and burst water pipes. A parade of sideshow operators and arcade owners tried but failed to lease the Jones Walk space from Thor. The only use that it has seen since we started blogging in 2009 was as a set for HBO’s Bored to Death (2011) and an office for the production company filming Men in Black 3 (2012).

Meanwhile, on the east side of the walk are carnival games, including the comical “Stinky Feet” water race, newly installed this year by Luna Park on property leased by the City to Zamperla in 2012. The city displaced independent operators with an RFP for a single operator to renovate and re-activate the property. The result was a few unsavory operators got the boot while the good guys relocated to City-owned or private property elsewhere in Coney.

We’re lucky the Grashorn Building is still standing. Unlike the Bank of Coney Island, the Surf Hotel and the Henderson Building, which Sitt demolished, the Grashorn parcel at Surf Ave and Jones Walk was not rezoned by the City for a 30-story high rise hotel. There’s also the fact that the building is just a few doors away from Luna Park’s entrance. And there’s also the fact the City owns the east side of Jones Walk. The demolition of the Grashorn would have created a desolate empty lot right next to the City’s showcase amusement park and completely killed business on the Walk.

Luna Park’s New Games on Jones Walk. Coney Island. May 27, 2013. Photo © Tricia Vita/me-myself-i via flickr

In Coney Island: Lost and Found, historian Charles Denson writes that the building at 1104 Surf dates back to the 1880’s and the Grashorn hardware store served Coney Island’s amusement businesses for more than 60 years: “The clapboard façade, dormers, cast iron resting, chimneys and fish-scale shingles were removed when the building was renovated in the 1980s but the mansard roof retains its shape.”

What will be the fate of Coney Island’s historic Jones Walk and its oldest building under the next administration? Will Thor Equities’ property remain vacant? Will it be sold? Will Joe Sitt seek a zoning variance from the next administration for this property or for any of his vacant lots? To be continued…

Grashorn Building in 1969. Photo © Charles Denson via Coney Island History Project

Thor’s Coney Island: Shoe Store Invades Amusement Area

Posted in Coney Island Redevelopment, Real Estate, Redevelopment, tagged arcade, Coney Island, Rainbow Shops, Retail, Retail Ride of a Lifetime, Shoes, Stillwell Avenue, Thor Equities, zoning on June 18, 2013| 6 Comments »

Shoes galore at Rainbow Shops in Thor Equities Retail Ride of a Lifetime building in the New Coney Island. June 15, 2013. Photo © Tricia Vita/me-myself-i via flickr

The latest chain store to invade Coney Island’s amusement district has opened and it is neither “hip” nor “glitzy,” words used by the mainstream media in recent weeks to describe the chainification of Coney’s Surf Avenue. Over the weekend, Rainbow Shops, which sells discount clothing and shoes, opened on the Stillwell Avenue side of Thor Equities’ “Retail Ride of a Lifetime” Building, across the street from Nathan’s Famous. Shoot Out the Star, Basketball, Balloon Dart and Water Racing as well as the Fascination Arcade were among the amusements in the Henderson Building, which was on this corner until Thor CEO Joe Sitt demolished it in 2010.

This is the new retail building flaunting two ARCADE signs but no arcades, despite the fact that 15% of amusement frontage was required by zoning regulations to obtain the Certificate of Occupancy from the City. We wrote about this sham last week. The “ARCADES” remain vacant. Apparently, having an ARCADE in name only is fine with the City. Anything goes as long as Thor’s Coney Island has shoes galore!

ARCADE sign on Thor Equities Retail Building with No Arcade on Stillwell Avenue, Coney Island. June 1, 2013. Photo © Tricia Vita/me-myself-i via flickr

The 2,500 square foot Rainbow Shop, the maximum size allowed by the Coney Island Rezoning of 2009, is filled with aisle after aisle of shoes in shoeboxes, just like a warehouse outlet. It’s as if the store owners expected the “PEDESTRIANS GALORE” (“4.7 million subway riders visit Coney Island every year, 13 million people visit the beach every season and over 100,000 people visit Coney Island’s Luna Park on the 4th of July!”) touted in Thor Equities property description to arrive shoeless.

Shoes Galore at Anchor Store # 7 at Joe Sitt’s Flea by the Sea. July 12, 2009. Photo © Tricia Vita/me-myself-i via flickr

In 2008, Thor Equities dismal flea market on the Coney lot where the Tornado Roller Coaster once thrilled had vendors selling clothing and shoes, both new and used. At the time, it was a reminder that Joe Sitt’s pitch book unsuccessfully used to lobby Borough President Marty Markowitz for 10,000 square foot retail touted flagship retailers such as Abercrombie & Fitch, Gap/Banana Republic, and DSW (“Thousands of shoes…prices you love”). Now it appears to have been a dress rehearsal for Rainbow Shops. The Brooklyn-headquartered retailer has 28 stores in Brooklyn and over 1,000 locations nationwide.