Café Hestia, known for its Asian-American cuisine and as a family-run delicatessen, has signed a 20-year lease for 8,000 square feet on the ground floor of the building at 570 Lexington Avenue. The property belongs to the Feil Organization. It is expected that the new premises will also be used as a catering facility, as announced by tenant broker Kassin of Kassin Sabbagh Realty.
The property, located on the corner of 51st Street, is an Art Deco tower originally known as the RCA Victor Building. The building comprises 50 floors and is in the immediate vicinity of Rockefeller Center. Kassin mentioned that Café Hestia found the location particularly attractive due to the high footfall it ensures. The area is known for its bustling activity and the presence of reputable companies.
Strategic Expansion in Midtown East
Café Hestia's decision to open a fourth branch in Manhattan underscores the company's expansion strategy. The new premises are expected to meet the growing demand for high-quality catering services in Midtown East. The owner, John Kim, is expected to open additional branches in New York City over the next two years. This indicates a long-term growth intention for the company, banking on robust demand in the metropolis.
The rent for the space amounted to $85 per square foot. Café Hestia's signing of this lease sends a positive signal to the retail market in Manhattan. Despite general challenges in the retail sector, this transaction shows that premium locations and proven concepts can continue to secure attractive terms.
Significance for the Retail Sector
570 Lexington Avenue is a prominent office building utilised by various tenants. The expansion of culinary offerings through Café Hestia can further enhance the attractiveness of the location for the businesses located there and their employees. Combining restaurant and catering services is a proven strategy to appeal to a broad target audience and optimise space utilisation.
- —Lease term: 20 years
- —Lease area: 8,000 square feet
- —Location: 570 Lexington Avenue, Midtown East
- —Rent: $85 per square foot
