California sub shop takes plunge into NYC market

Date Published: 
Aug 10, 2010

By James Comtois on August 10, 2010

A California-based submarine sandwich shop is planning to open its first outlet in New York City as it ramps up for a massive expansion in the tri-state area.

A franchisee for Submarina California Subs just signed a 10-year lease for 1,000 square feet at 62 W. 56th St., between Fifth and Sixth avenues. The shop will open its doors later this summer. The asking rent was $150 per square foot.

According to Dean Rosenzweig—the CB Richard Ellis broker represented the tenant in the transaction, along with his colleague Jayson Siano—although the sub shop opened a location on Steinway Street in Astoria, Queens, earlier this year, this will be its first Manhattan location.

"This is really the plunge into the New York waters," said Mr. Rosenzweig, adding that through Kaasi Associate, the franchisee that bought the rights to the brand in New York, New Jersey and Connecticut, the store is hoping to open 100 locations in the tri-state area over the next couple years.

Submarina California Subs was founded in San Marcos, Calif., in 1977. It began franchising in the late 1980s and currently has more than 70 units in five states.

"There's no cooking done on the premises, so our real estate opportunities for New York increase exponentially," Mr. Rosenzweig added. "We're going to be focusing on areas with strong daytime populations in all five boroughs and Long Island."

Zelnik & Associates negotiated terms of the deal on behalf of landlord Bldg Management Co.

Publisher: 
Crain’s New York Business