LOWER EAST SIDE — Katz’s Deli has cut a deal to ensure its own preservation, but most of its surrounding mom-and-pop shops won't be so lucky, according to the New York Times.
The famed restaurant, which has been serving pastrami since 1888, most recently out of its site at 205 East Houston St., sold its air rights and neighboring properties to developer Ben Shaoul of the Magnum Real Estate Group for $17 million, according to the Times.
The deal will pave the way for the planned demolition of 12 businesses along East Houston Street between Orchard and Ludlow streets and the development of an 11-story condo building next door to Katz's, the Times reported.
“So many people in the city have a story and a connection to this place,” Katz’s owner Jake Dell told the Times. “To me personally, preserving it was the most important thing.”
Dell did not immediately respond to DNAinfo New York's additional requests for comment.
Locals decried the move.
The luxury condo space will feature amenities including a 30,000-square-foot Equinox gym and spa, where 24-hour Turkish kabob place Bereket and Ray's Pizza once stood.
“A lot of people aren’t going to be able to afford an Equinox,” said James Rodriguez of affordable housing group Good Old Lower East Side to the Times.
The condo building that will soon supply the gym with clients is also targeting high earners — the cheapest studio at 196 Orchard St. is $1.075 million at 515 square feet, according to Eater.
