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Riese Organization gets a discount with Brother Jimmy's purchase.

Dennis Riese, chairman and CEO of The Riese Organization, has announced that the company has acquired the two-story corner building strategically located across the street from Madison Square Garden at 416 8th Avenue in Manhattan. The property, situated at the southeast corner of West 31st Street and 8th Avenue, currently houses Brother Jimmy's Restaurant.

The purchase price for the 2,500 square-foot building was $4 million. The property, which can be expanded under the present zoning code to nearly 21,000 s/f, was sold for a price of equal to $191 per buildable foot, significantly below the current fair market value.

Back in 2000, the Riese Organization leased the property from long-time restaurant owner, Penn Bar & Grill, Inc., for a term of ten years, with an option to buy after eight years for the fixed price of $4 million. The Riese Organization has now exercised that right to buy. While the price is substantially below current market value, it was considered high at the time of the agreement.

"We are pleased to increase our stake in this exciting neighborhood, on one of the truly great corners of the West Side, facing Madison Square Garden and Moynihan Train Station, and to be part of the development plans for the future of this great area," said Mr. Riese.

"This is a prime location; with excellent visibility, tremendous foot traffic, and terrific development opportunities."

The Riese Organization has developed a unique business formula by taking leases or ownership of property and using its own restaurants to pay rent or mortgage costs. The Riese family has been using this formula for many years, and now owns or controls properties located in some of the most highly trafficked locations in the city, including the TGIF Fridays building in Times Square at Broadway and 46 St., the TGIFridays building at 604 5th Ave., at 48 St. opposite Saks, and the Riese Organization's headquarters building, at 46 St. and 5th Ave. Riese also controls four of the most desirable comers in Times Square, more than any other single owner.
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Title Annotation:Retail
Comment:Riese Organization gets a discount with Brother Jimmy's purchase.(Retail)
Publication:Real Estate Weekly
Date:Dec 3, 2008
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