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The Hard Sell: Karma, 51 1st Avenue

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.

2007_01_thehardsell.jpgVenue: 51 1st Avenue (btw. 3rd & 4th Streets); Restaurant/Bar/Smoking Lounge
Kamali: "If you're familiar with the East Village, then you can appreciate this section of 1st Avenue as one of the most high-traffic drinking neighborhoods in NYC. Or have you blacked that part out?"

Rent: $13,000 per month, 5% per annum escalations, 10 year term
Kamali: "That is market rent for area. The increases are a tad aggressive, but so are the weekend drinkers. You'll be fine."

Fixture Fee: $475,000
Kamali: "We'll negotiate this down, of course, but not by much: the property comes with one of the last legal smoking permits in New York."

Key Features: Legal Smoking Permit, (2) Full Liquor Licenses
Kamali: "I don't have to explain the glory with which this comes, right? Smoking. Permit. Equals. Cash. Plus with 2 full SLA licenses makes you two permits richer than most of your neighbors. They'll hate you, but it's the price of doing business. The price to them, of course -- what do you care?!"

But Wait, There's More: Full Service Kitchen
Kamali: "Catering is an incredible source of income, especially for an operator that owns a small venue and wants to offset their rent. Having a Full Service Kitchen grants you the opportunity to either start a catering business yourself, and/or makes for income if you decide to rent the kitchen to a caterer/chef."

The Hard Sell: "The location, combined with the smoking permit, liquor licenses, and kitchen will have this place producing more cash that the U.S. Mint. If I wasn't such a nice guy, I'd insist on a cut. It's now or never, friend: this one's not going to last."

Previously, in the The Hard Sell.

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