Every few weeks, Eater Nightlife Real Estate Guru-in-Residence Steven Kamali serves up a tour of one of his fine properties. As you know, he is the broker of record on many a fine NY nightlife establishment, many of which change hands like clockwork every 36 months. Should you want to buy one of these gems, please be in touch with The Grim Reaper directly; we're not here to make money off of your failed nightlife ventures. Also, take a look at this photo: Kamali says hi.
Venue: Uovo, 175 Avenue B (at 11th Street), café/wine bar
Kamali: "A classic East Village location—but it's no longer about smelly cigarettes and designer drugs in Tompkins Square Park. Think star chefs and mixologists."
Rent: $9,750 per month
Kamali: "You'd better hope that you're selling more than just pasta to pay this rate, although it's ideal for an up-and-coming manager or chef. Bear in mind that running a small business has all the relative costs of a large venue. On second thought, don't."
Escalations: 5% per annum
Kamali: "It's a gentrifying neighborhood and the landlord knows that—that's why the annual escalations are aggressive. The standard annual lease escalation in restaurant leases today are anywhere between 3-4%."
Size: 2,000sqft ground floor and basement
Kamali: "Small and manageable—the way a venue should be, especially if you're a first-time restaurateur. If you need more room, call me and we'll find you another restaurant."
Term: Long-term
Kamali: "When brokers say that in their listing sheets, you can interpret it to mean that the landlord will give you at least 10 years and possibly even more for the right amount of rent."
Fixture Fee: $275,000
Kamali: "I know, you don't like the idea of key money—too bad! I would get used to it if I were you—with the way the Community Boards and SLA have been turning down requests for new liquor licenses recently, especially in this neighborhood, I wouldn't spend much time pursuing venues without an existing license. It's my feeling (and that of most liquor license attorneys) that being granted the transfer of an existing license is the best chance you've got in the market today. You can thank me later."
Comments: full-service kitchen, beer & wine license
Kamali: "It is fully vented and equipped—clean and cook! About the liquor license, a B&W license allows the operator of the venue to carry beer, wine, champagne, sake and any other alcoholic products that are not classified as hard liquor.Typically, restaurants and bars that carry a B&W license are not given the opportunity to obtain a Full Liquor License due to there proximity to a school and/or place of worship."
The Hard Sell: "Yeah, I know, this Upper East Village neighborhood has been gentrifying for a decade. But these days the condo developers are really making it happen, and within a year, you won't recognize the place. So let's get you in here now—oh, and I know this great signmaker just down the block."
Previously in The Hard Sell.
