Via Carota's Owners Just Bought Their First NYC Storefront for $6.5 Million. Should Your Business Own Its Space?

NEW YORK — Some of the West Village’s best-known restaurateurs have finally become landlords of their own block, or at least one storefront on it.

Rita Sodi and Jody Williams, the married chefs behind Via Carota, bought the ground-floor commercial unit at 312 Bleecker St., between Barrow and Grove streets, for $6.5 million, according to a deed recorded with the city on Oct. 22, Village Reader reported. PincusCo first reported the sale, and Crain’s New York Business and The Real Deal followed.

The space sits right next door to I Sodi, the Tuscan restaurant Sodi moved to 314 Bleecker in 2023 after years in a much smaller spot on Christopher Street. It is the first retail space the couple has owned in New York City, according to The Real Deal.

What They Bought

The unit measures roughly 1,500 square feet and sits at the base of a four-story building, Crain’s reported. Recent permit filings with the city’s Department of Buildings lay out plans for new light fixtures and other equipment connected to a new restaurant, according to Crain’s, as relayed by Village Reader.

What it will become is still unknown. The couple has not said whether they will expand I Sodi or open something new, and representatives did not respond to requests for comment, Village Reader reported.

A Tight Cluster

The purchase extends one of the most concentrated restaurant footprints in the city. Within a few blocks, Sodi and Williams already run Via Carota at 51 Grove St., Bar Pisellino at 52 Grove St., Buvette at 42 Grove St., The Commerce Inn at 50 Commerce St. and I Sodi, plus their food and supply shop, Officina 1397. They have also announced a second Bar Pisellino at the base of the Flatiron Building, set to open next year.

Clustering can let operators share staff, suppliers, storage and a loyal neighborhood following. Owning a piece of that cluster adds something rent can’t: control over a location for as long as they choose to keep it.

Own or Lease? Questions for New York Owners

Buying a $6.5 million storefront is out of reach for most small businesses. But retail condos like the one at 312 Bleecker show that owning just the commercial space, rather than a whole building, is one route operators use. If you’re weighing it, here are the questions to work through with your accountant, lawyer and broker:

• How long will you stay? Buying makes the most sense for a location you expect to operate for many years. A business still testing a neighborhood is usually better off leasing.
• What does the cash do elsewhere? A down payment is money not spent on staff, equipment or a new location. Compare that against the rent you would stop paying.
• What are the carrying costs? Owners pay property taxes, insurance and, in a condo, common charges, on top of any mortgage. Factor in repairs that a landlord would otherwise handle.
• Can the space do what you need? Restaurants in particular depend on venting, gas, electrical capacity and permits. Check the building’s records and condo rules before you sign.
• How should it be structured? Many owners hold real estate in a separate company and lease it to the operating business. Get professional advice on liability, financing and taxes.

A Tax Detail for Manhattan Businesses

One New York-specific cost is worth understanding. The city’s commercial rent tax applies to tenants in Manhattan south of 96th Street whose annual or annualized base rent is at least $250,000. The rate is 6% of base rent, reduced to an effective 3.9% after a standard 35% rent reduction, and a small business tax credit effectively exempts tenants with total income of $5 million or less and annual base rent under $500,000.

Owning your space doesn’t automatically take you out of the tax. According to the Department of Finance, tenants must still pay if they occupy space in a building owned by a spouse or parent, or in a building owned by a corporation where they are an officer or shareholder. If you buy through a separate company and lease the space to your business, ask your accountant how the rules apply to you.

The Bigger Picture

Sodi and Williams built a West Village restaurant group as renters before buying. For other operators, their move is a reminder that ownership can come after a concept has proved itself, not before. It’s a long-term bet on a location, and on staying in it.

Entrepreneurs Of New York is an independent publication and is not affiliated with Rita Sodi, Jody Williams or their restaurants.