Group Hospitality Acquired West Village Site for $7.3M

The restaurant operator purchased a 4,000-square-foot storefront after the property sat vacant for several years.

Updated on Sept. 29, 2026 in Hospitality

Isometric editorial illustration of a historic brick commercial building facade with a wide, empty ground-floor storefront. — Group Hospitality purchased the property at 87 Seventh Avenue South in New York City for $7.3 million, marking a new phase for the vacant site. AI Illustration. Upload story photo >

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Group Hospitality has acquired the property at 87 Seventh Avenue South for $7.3 million. The transaction marks a new chapter for the 4,000-square-foot site, which has remained vacant since 2018.

Why it matters

The purchase price represents a significant markdown from the $13.3 million paid in 2018, reflecting the challenges of activating long-vacant commercial real estate in the West Village. For operators, the site's history of failed leases highlights the complexities of managing historic, high-visibility storefronts.

Group Hospitality paid $7.3 million for the 4,000-square-foot property, significantly below the $13.3 million it last traded for in 2018. The operator, which currently manages nine locations in New York City, secured the site featuring 170 feet of wraparound frontage.

The players

Group Hospitality

A restaurant operator managing nine locations throughout New York City.

Zach Redding

An agent at Colliers who managed the exclusive marketing for the property.

Dylan Kane

A Colliers agent who served as part of the exclusive sales team for the transaction.

Sarah Short

A Colliers agent who represented the interests of the seller in this deal.

The details

The property includes a second floor with private outdoor space, a key asset for restaurant operators looking to maximize service capacity. Despite a 15-year lease signed by a Japanese restaurant in 2023, the space remained unused, underscoring the difficulty of tenanting large, prominent West Village assets. Colliers agents Zach Redding, Dylan Kane, and Sarah Short marketed the property exclusively.

2017: Sushisamba closed its location at the site.
2018: The property was sold in a deal valued at $13.3 million.
2023: A tenant signed a 15-year lease but failed to occupy the space.
2026-09-29
Group Hospitality finalized the purchase of the property.

Market Landscape

The transaction follows a sharp valuation adjustment relative to the 2018 acquisition of 87 Seventh Avenue South. The deal reflects broader challenges in stabilizing West Village hospitality assets that have struggled with multi-year vacancies.

Operators looking at similar assets should note the high carrying costs and regulatory hurdles associated with historic West Village properties. Before acquiring vacant space, ensure your due diligence accounts for any lingering liens or historical preservation requirements.

The takeaway

Large, historic restaurant sites in the West Village require aggressive capital planning due to their history of extended vacancy periods. Monitor the site's progress to see if the new owner implements a strategy that finally overcomes the challenges that sidelined previous tenants.