2 Rivington Street Properties Adjacent to Allen Street Mall on the Auction Block for $11M+

Posted on: April 22nd, 2016 at 5:14 am by

This image has been archived or removed.

When Tristan Eaton painted a mural at 77 Rivington

The bones of a stalled Lower East Side hotel development are being picked apart piecemeal. DAB Group’s dream is done.

As part of the overall failure of the Allen Street Hotel on its backside, two adjacent properties on Rivington Street are similarly up for auction. A U.S. Bankruptcy Court judge is soliciting bids, via Eastern Consolidated, for the 8,261-square-foot 79 Rivington Street and the neighboring 847-square-foot vacant lot at 77 Rivington Street. Bidding starts at $11 million. Both were owned by DAB Group (aka Ben Zhavian), but later defaulted on the properties.

This is the second time in four years the two parcels have been up for grabs. Back in 2012, 77-79 Rivington were going for $7 million alongside the $28 million ask for the hotel site.

At one point, the corner lot was earmarked as the entrance to the Allen Street Hotel. Now, the vacant lot is being pitched as a single-story retail space that connects to 79 Rivington, the month-to-month home of Chabad Lower East Side.

This image has been archived or removed.

Early rendering of the Allen Street Hotel

The idea would be combine both of those [two stores] together,” Eastern Consolidated’s Jonathan Schwartz told the Observer. “For that there is demand amongst retailers, restaurants, a whole variety.”

79 Rivington Street is a five-story mixed-use tenement with 16 one-bedroom rental apartments. All are rent-stabilized and currently leased. Until two years ago, these apartments were covered under the J-51 tax abatement, a break for landlords who do capital improvements to a building.

As for the eyesore skeleton tower, it too is on the auction block, albeit separate from this transaction.

Recent Stories

Avril Lavigne Marks 20th Album Anniversary on Canal Street

Avril Lavigne returned to SoHo this week to mark the twentieth anniversary of her pop-punk debut, Let Go. The “Sk8er Boi” artist took to TikTok in celebratory gush, posting a quick hit of her standing in the intersection of Broadway and Canal Street. An ode to the album cover, twenty years older and not blurry, […]

Long-Stalled Grand Street Lot Reactivates

Despite ongoing troubles with his East Broadway project, local owner-developer Daniel Wise is now proceeding with a new development planned for Grand Street. No longer an overgrown jungle of weeds, the zombie parcel spanning 330-332 Grand is, as of a couple weeks ago, fully reanimated. The Department of Buildings issued permits for foundation work last […]

From the Rooftops: The Hell Square Aural Assault

Articles about ear-shattering noise levels, from parties to cruising cars, as well as the general lack of regard for the residents of Hell Square, are rote at this point. Almost a cliche. But to residents living in the bullseye, the aural assault remains a weekly nightmare. And this past Saturday night, by several accounts, upped […]

Pitt Pool Opens for Summer Season

New York City public pools officially opened yesterday. For the Lower East Side, that means the Pitt Pool (aka Hamilton Fish) is ready to go. The launch happened with great fanfare. Parks Commissioner Sue Donoghue joined Manhattan Borough President Mark Levine, Assembly Member Harvey Epstein, Senator Brian Kavanagh, Council Member Carlina Rivera, and local kids […]

At Belse, the New Vegan Brewery on the Bowery

Belse, the Texas-based vegan brewery and restaurant, is now in business on the Bowery. The Lone Star State transplant – officially, Belse Plant Cuisine – takes 11,000 square-feet at 265-267 Bowery, in what was previously the fleeting home of the Paulaner Brauhaus brewery. The renovated space features three sections – a restaurant, bar, and Garden […]