Spear Street Capital acquires mixed-use Soho property for $40M

NEW YORK, Mar. 13, 2025 – JLL Capital Markets announced today it has completed the $40 million sale and $24 million financing of 165 Mercer St., a six-story luxury office and retail property in Manhattan’s vibrant Soho neighborhood.

JLL represented the seller, a longtime owner, and the buyer, San Francisco-based Spear Street Capital. The real estate services firm also arranged the financing.

An original 19th century cast iron building that once housed furrier factories, 165 Mercer St. was used as a parking garage for many years before being transformed into a modern, boutique commercial property by architecture and design firm Flank in 2018.

Today, the property is fully occupied by a roster of venture capital tenants and the offices of ON Running, an athletic shoe and performance sportswear company. Additionally, the luxury New York-based women’s fashion brand Khaite occupies the entire 7,220-square-foot ground floor and basement retail floors.

Situated on the corner of Mercer and W. Houston Streets, 165 Mercer was gut-renovated to incorporate sophisticated, modern design while preserving the character of the structure, which is located in New York’s Soho Cast Iron Historic District. The exterior retains fluted Corinthian columns and cornices, and oversized chain wood windows, while the 23,745 square feet of interior office loft space features designer bathrooms and kitchenettes, high ceilings and polished concrete floors. Office tenants have 24-hour access through an exclusive, high-design lobby.

A JLL Capital Markets team led by Senior Managing Directors David Giancola, Aaron Niedermayer and Andrew Scandalios and Director Jennifer Zelko arranged the sale and financing.

“Occupier, and by extension, investor interest in SoHo remains exceptionally strong,” said Giancola. “Reimagined and redeveloped by the Batt Family and Tidal Real Estate Partners, 165 Mercer represents one of the finest boutique buildings in SoHo and a fantastic addition to Spear Street’s recently aggregated SoHo office portfolio.”

"This prime asset, combining top-tier office space with upscale retail, sparked considerable interest among lenders," Niedermayer added. "It's a testament to the enduring appeal of premium office and mixed-use properties in key New York City areas.”

Comprising just two million square feet of Class A office space, Soho remains a top destination for tenants seeking space in diverse, urban environments with accessible transit and vibrant retail and restaurant offerings. 165 Mercer St. is proximate to 10 subway lines at Broadway-Lafayette Street Station, Spring Street Station and the Second Avenue Station.

JLL is a leader in the New York tri-state commercial real estate market, with more than 4,800 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services.

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