391 Canal Street
391 Canal Street is a small-format retail asset in the SoHo/Canal Street corridor of Manhattan, transacting at $4.85M or approximately $2,197/SF, which is consistent with — and slightly above — prevailing retail sale comps in this submarket. The Canal Street corridor benefits from high foot traffic, proximity to SoHo and Chinatown, and strong tourist and local demand, though it carries some tenancy risk given the ongoing evolution of retail in lower Manhattan post-pandemic. No signs of distress, liens, litigation, or foreclosure are present in the listing, suggesting a clean, arms-length transaction. Both buyer and seller are private market participants with limited public track records, introducing moderate counterparty opacity, though the clean deal structure mitigates this concern. Overall, this is a solid but speculative retail acquisition in a high-demand NYC corridor with compressed yield potential given the premium price per square foot.
Deal Stats
Parties
Seller / Landlord
Tomer Hillel is a New York-based real estate investor with activity in Manhattan commercial assets, known for acquiring and disposing of retail and mixed-use properties in lower Manhattan submarkets. His sale of 391 Canal Street at $2,197/SF reflects a strong exit in a competitive retail corridor.
Buyer / Tenant
Phillip R. Patton appears to be a private investor or operator active in Manhattan retail acquisitions, with this Canal Street purchase suggesting a focus on prime SoHo-adjacent corridor assets. Limited public profile available, but the acquisition price and location indicate access to institutional-level capital.
Score Analysis
Why this score
Prime Location & Foot Traffic
SoHo/Canal Street corridor offers exceptional pedestrian volume and proximity to tourist destinations, supporting retail viability and rental growth potential.
Compressed Yield on Premium Price
Transaction at $2,197/SF reflects market-high valuation that limits cash-on-cash returns and leaves minimal margin for error in rent collection or market downturns.
Retail Sector Post-Pandemic Uncertainty
Ongoing structural shifts in retail demand and e-commerce competition create tenancy risk and potential lease renewal/rate pressure in the sector.
Clean Deal Structure
Absence of distress indicators, liens, or litigation signals a healthy asset transfer with no hidden liabilities or operational concerns.
Limited Buyer/Seller Track Records
Both parties are private operators with opaque public profiles, increasing counterparty risk and reducing confidence in execution capability.
How to improve
The following actions could meaningfully improve this deal's Homage score. Each suggestion is based on the deal's profile, asset type, and current rating — addressing them before approaching a lender can increase approval likelihood and lower borrowing costs.
Secure Long-Term Master Lease
Locking in a 10+ year lease with an anchor tenant (flagship retail, dining, or experiential use) at or above market rates would eliminate tenancy risk and justify the premium entry price.
Develop Buyer Institutional Credibility
Publicizing Phillip R. Patton's investor backing, development track record, or past successful NYC retail acquisitions would reduce counterparty opacity concerns.
Execute Value-Add Repositioning
Investing in capital improvements (facade, interior finishes, TI allowances) to attract premium tenants at $200+/SF rents would offset the high acquisition basis and improve returns.
Raw Deal Textclick to expand
traded + Submit Growing Financial Partnerships For Over 30 Years. Get Started Home Deals New York Retail Sale 391 Canal Street Share SOLD Phillip R. Patton Acquires Retail Property At 391 Canal Street From Tomer Hillel For $4.85M $4,850,000 $2,196/SF BUILDING SIZE 2,208 SF ASSET TYPE CLOSING Jun 11, 2026 Overview Market Deal Summary Caption AI 391 Canal Street is a retail property located in the Soho neighborhood of Manhattan, featuring a total area of 2,208 square feet. The transaction was completed at a price of $4,850,000, which corresponds to a price per square foot of $2,197. Summary of transaction details: Property Type: Retail Transaction Amount: $4,850,000 Square Footage: 2,208 SF Price per Square Foot: $2,197 Address: 391 Canal Street Market: Soho, Manhattan Buyer: Phillip R. Patton Seller: Tomer Hillel Phillip R. Patton has successfully acquired the retail property from Tomer Hillel. This sale highlights the ongoing demand for retail assets in the competitive Soho market, showcasing the interests of buyers in prime locations. PLAYERS Downtown West Commercial District Retail Market Snapshot Neighborhood boundary · Retail · Sale transactions Full Market → Comps 10 Listings Investors Top Brokers Lenders Shigeji Nakatsuka Of Cafec & Sanyo Sangyo Inc Acquires Retail Condos In Soho For $4.9M 3,122 SF · Mar 2025 New York, New York $4,900,000 $1,569/SF <0.1 mi Damien Smith Acquires Retail Property In Tribeca, Manhattan For $5.25M 5,028 SF · Feb 2024 $5,250,000 $1,044/SF 0.2 mi Bobby Carrozzo, Robert Burton & Michael Gembecki Of Cushman & Wakefield Facilitate $4M Sale Of Retail Property In Soho 3,367 SF · May 2024 $4,000,000 $1,188/SF Silverstar Properties Acquires Retail Property In Tribeca For $5.75M 5,500 SF · Jul 2022 $5,750,000 $1,045/SF Michael Alvandi Of City Urban Realty Purchases Retail Space From Steven Elghanayan For $5.9M 3,659 SF · Sep 2025 $5,900,000 $1,612/SF Thor Equities Acquires Retail Space At 440 Broadway In Soho Manhattan For $6.6M 5,771 SF · Apr 2026 $6,500,000 $1,126/SF Jane McVerry & Jian Chun Zheng Close $5.27M Retail Sale In Tribeca, Manhattan 6,558 SF · Jun 2024 $5,270,000 $803/SF Clay Sussman Acquires Retail Condo On 391 Broadway In Tribeca 20,400 SF · Jan 2020 $3,350,000 $164/SF 0.3 mi Michael Alvandi Of City Urban Realty Purchases Retail Space At 182 Spring Street For $5.6M 3,300 SF · Sep 2025 $5,600,000 $1,697/SF Blue Broadway South LLC Acquires Retail Property In Soho Manhattan From Amarjit S. Bhalla For $5,375,000 2,980 SF · Apr 2026 $5,375,000 $1,803/SF Live MORE DEALS $4.9M $5.3M $4M $5.8M $5.9M $6.5M $3.4M $5.6M $5.4M NEARBY MARKETS NEIGHBORHOODS Williamsburg Commercial District Greenpoint Williamsburg Fort Greene Clinton Hill Red Hook Downtown Brooklyn Submarket Brooklyn Heights-Cobble Hill Financial District Chinatown Lower East Side East Village BOROUGHS Staten Island Bronx Queens Manhattan Brooklyn CITIES Paterson Hackensack Bayonne Paramus East Orange Hoboken Newark Clifton Jersey City West New York Linden Fort Lee STATES North Carolina Virginia West Virginia Michigan Massachusetts Pennsylvania Vermont South Carolina New Hampshire District of Columbia New Jersey We are telling CRE's story Traded is the #1 source for cutting-edge CRE transactions & insights. 1M+ DEALS 100K+ USERS 47 MARKETS 1.2M+ FOLLOWERS Browse Closings by State National Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Minnesota Mississippi Missouri Montana Nebraska Nevada New Mexico North Dakota Ohio Oklahoma Oregon Rhode Island South Dakota Tennessee Texas Utah Washington Wisconsin Wyoming Search News Agents Agencies About About Us FAQ Testimonials Help Help Center Pricing Return Policy Follow a feed Nat @traded NY @tradedny MIA @tradedmiami LA @tradedla CHI @tradedchicago BOS @tradedboston DAL @tradeddallas NJ @tradednj 300K+ The Traded Weekly Every major deal & ranking update — Friday mornings. Email © 2026 Traded Media LLC · All rights reserved. Terms & Conditions Privacy Disclaimer Cookie Policy Do Not Sell My Info Acceptable Use