Perspectives - Chelsea Market,? New York City, USA

Making Inspiring Places of an Enduring Quality

game changers, a series

?Real, live, inspiring human energy exists when we coagulate together in crazy places like New York City???

Jerry Seinfeld

Few city districts experience transformations such as the Chelsea District. Once the home of Nabisco (National Biscuit Company) and birthplace of the Oreo cookie. At the beginning of the twentieth century Nabisco produced fifty percent of all USA’s biscuits, from the Chelsea District in New York City. The western edge of the Chelsea District and its neighboring Meatpacking District was at the heart of New York City’s food manufacturing. This all ended in the late1950’s as most factories moved from urban centers to suburban transportation hubs. What remained for decades was the forgotten remnants of the past, empty dilapidated factories and wholesale disregard for city manufacturing districts, such as west Chelsea.?

In 1993 Irwin Cohen bought the old Nabisco factory as foreclosed mortgage debt for under $9.0 million USD, $15 dollars per square foot. It consisted of two blocks and multiple buildings, totaling 1.2 million square feet of gross building area, and with the later entitlement expansion, a total of 1.5 million square feet (139,000 sqm).?Cohen’s vision was to create a 40,500 square feet (3,800 sqm) one-of-a-kind epicurean food market on the ground floor concourse in the old Nabisco factory, later expanded to 135,000 square feet (12,500 sqm). His intent was to focus on first-to-market family owned food venues with no chains or traditional anchors. It was said, that if you wanted Ruthies’s Cheesecakes, Lobster Place, or Amy’s Bread, and many more unique family food venues, then this was the only place in New York City to find them. Moreover, the crafting of the Chelsea Market is irrefutably New York City in character. It’s food manufacturing and products, art, cultural and unapologetic display of all its flaws, convincingly captures the energy, attitude and personality of New York City. Combined with its symbiotic relationship with the High Line, that connects directly to the Market, it has become the premier culinary place-to-be and core anchor for the Chelsea District.?

Fast forward and Chelsea Market’s success and capacity for growth is realized, first by Irwin Cohen’s pioneering vision, then by Jamestown Properties who purchased the property for $225.0 million USD, and finally, in 2018 by Google who paid $2.4 billion USD, $2,000 per square foot, making it one the highest purchase prices in New York City. Google, stated that ultimately, it wanted to locate where their employees wanted to be and the Chelsea Market was a critical part that decision.?

If this was just a story about the Chelsea Market, it alone demonstrates a fantastic economic achievement. But it’s not. With 9 million visitors per year, home of a newly established Google east coast headquarters and with a direct connection to the High Line, the Chelsea Market spectacularly achieves all conceivable financial benchmarks - return on investment, economic sustainability, visitor volume, occupancy, etc. But there is one more thing, its impact on the Chelsea District. Few New York City neighborhoods have changed so much in so little time.?New neighbors brought world-class architects to the District, such as: Frank Gehry, Jean Nouvel, Robert A.M. Stern, and Zaha-Hadid to express their brand and their sense of permanence in the community. It has become the preferred location for tech and media companies, including giants such as: Google, Food Network, CBS Sports Network, Discovery Network and start-ups like Playbuzz and Splash, plus the District attracted the Whitney Museum and over 200 art galleries. The Chelsea District now serves as the hub of New York City’s “Silicon Alley.”?

The Chelsea Market was the engine for change. It skillfully captures the?Whole Living??principles of story, connection, authenticity, social, discovery, synergy and many others. It is the cornerstone for the Chelsea District and a one-of-a-kind place where people want to be. In this way the Chelsea Market’s transformational attributes serve as a catalyst for change well beyond its property lines. Its urban regeneration captures the imagination and reminds us that city-making begins with people. The Chelsea Market represents an enduring world hallmark for living in our ever changing cities.

Perspectives - game changers, a series

These hallmark districts, represented in the Perspective series, demonstrate that their vision goes beyond best practices and local market considerations, typically formed by: supply and demand models, capture areas, customer segmentation and absorption rates. Consistently, these districts set new global standards for livability and reset economics, previously unimagined. They are nothing less than global game changers. They shift planning paradigms and are the vanguard in city-making. They illustrate how livability, focused on people-first places and synergy of uses can become integrated destination hubs and catalyst for urban transformation. They are dramatically changing use patterns, transforming regional economics and enhancing cultural identity.?

In our rapidly transforming cities,?Whole Living???principles are becoming increasing vital for urban livability and economic vitality. As the lines between home, work, education, retail and entertainment are blurred, new user expectations and urban transformation is taking place world-wide in unprecedented ways.?Now more then ever global city-makers must rethink traditional models to accommodate changing patterns. We utilize this principles in our own efforts and remain committed to do one thing: to create inspiring places of an enduring quality.?We are pleased to share these insights with you, so that together, we can make our communities and cities world-wide more economically viable, sustainable and meaningful to those who experience them.?

It is our sincere hope that the?Perspectives?series, combined with our recent presentation of the?Whole Living??principles will offer you insight and guidance for your own endeavors. In this series we will explore hallmark examples of inspiring places that represent exemplary illustrations of?Whole Living???principles and highlight the extraordinary value of integrated-use districts world-wide.?They all share characteristics that significantly impact their communities and demonstrate compelling economics. To be sure, they are global benchmarks for excellence in their asset class and represent true pioneering insights for city-making and are reshaping global trends in urban living.?

The Chelsea Market in New York City is one game changing example.Whole Living??Series

Whole Living??Series

Boulevard Properties LLC invites you to explore its guiding principles as part of the?Whole Living??series. These principles have been formulated from years of practice and global observation of urban trends worldwide. You can receive the complete?Whole Living??series copy by making a request, via email at:[email protected].?

Who We Are

We are thinkers, makers and doers.?For over three decades we have endeavored to make a difference by creating meaningful places world-wide. As a real estate development company with a global perspective, we are committed to building teams, leading real estate development ventures, and implementing mega-scale projects throughout the world, as partners, alliances, or as advisors. It is our aim to positively impact the lives of people and create sustainable investments for shareholders. To better understand how to achieve this we have been careful observers and makers of highly complex, multi-purposed places, crafting our understanding of what makes meaningful places for people and sustainable economics throughout the world.

What sets us apart is the innovation, leadership and years of practice that we bring to our collaborations. We continue to explore trends globally and evolve our thinking to make our work more meaningful to the user, and thoroughly understand, that by taking care of our customer, you also take care of the investors.

Globally, we have witnessed tremendous change, due to technology, urban migration and shifting demographics. Today as a result, the way we live, work, learn, entertain and trade must be reimagined. Beginning with Santana Row, we have carefully deconstructed and evolved our thinking about city-making, in rapidly changing times and how best to provide sustainable returns to the investor. They are inseparable. We now know, more vividly today, that the right direction for change is by integrating uses that successfully achieve synergy.?We call this?Whole Living?.

Anthony Flanagan,?CEO & Chairman

www.boulevardpropertiesllc.com

Boulevard Properties LLC?Winner of the 2020 BUILD Award - Most Innovative Urban Real Estate Development Company