Sunshine Cinema on the Lower East Side will soon be demolished to make room for a nine-story office building. Developers East End Capital and K Property Group have secured some $90 million in financing to fulfill their proposal at 141 East Houston Street. According to Crain’s Business, the development partners obtained a $67 million construction loan from CapitalSource and $19 million of mezzanine financing from Canyon Partners.
East End plans to re-develop the building into a 68,000-square-foot office building with mixed-use retail on the ground floor and two lower levels. With Roger Ferris Architecture handling design, the structure will have a glass frame and a courtyard running the length of its eastern exterior. Other architectural elements include floor-to-ceiling windows, column-free open floor plans ranging from 5,000 to 6,900 square feet, 12-foot-high ceilings, a shared executive conference center, rooftop amenity access for all tenants, and private outdoor terraces.
Groundbreaking will commence in the second quarter of 2019, and the project is expected to be completed in two years. Marketing has already begun for the property, which is touting rents greater than $100 per square foot, and is geared toward tenants looking for boutique office space in a neighborhood known more for its nightlife, restaurants, and bars.
Facing an imminent rent hike, art-house theater Sunshine Cinema closed last year after failing to obtain a liquor license from the neighborhood in efforts to compete with the wave of full-service theaters. The 100-year-old building sold for $31.5 million to East End Capital and K Property Group.