Design and development duo Bob and Cortney Novogratz are set to transform a corner of Manhattan’s trendy “Dimes Square” with their latest project. The couple purchased the historic Grand Dairy Building for $3.9 million in an all-cash deal last month and plan to construct a new six-story luxury condominium, topped with a penthouse they will call home.
Located at 341 Grand St., on the corner of Ludlow Street, the property is situated in the micro-neighborhood nestled between the Lower East Side and Chinatown. The new building’s residences will be marketed under the address 58 Ludlow, while a ground-floor retail space will retain the original Grand Street address.
The Novogratzes, who became household names through their reality shows "9 by Design" on Bravo and "Home by Novogratz" on HGTV, are entering a new phase of life. "We are empty nesters now,” said Bob, 63. The couple, who raised seven children now aged 17 to 28, recently became grandparents to a 2-month-old grandchild. This personal shift seems to be influencing their professional focus, moving from sprawling family homes to a more intimate, boutique-style project.
A new chapter for the design duo
The purchase marks a new venture for the prolific designers after a series of high-profile sales. Last year, the Novogratzes renovated and sold a striking pink townhouse at 114 Waverly Place in the West Village for $20.8 million. In 2023, they also sold a refurbished 1931 Spanish villa in the Bird Streets neighborhood of Los Angeles for approximately $12 million. Having rented in Union Square while searching for their next passion project, the Dimes Square building presented a unique challenge they were eager to accept.
“After we sold [Waverly Place], we were itching to buy something,” Bob said. “An opportunity like this doesn’t come around that often. It’s a unique place.” He noted that the project occupies a sweet spot in the development landscape. “It’s too small for big developers, and too big for small guys to find financing. But it is exactly right for us,” Novogratz explained.
The couple has a long history of breathing new life into dilapidated properties, a philosophy they have applied to projects for over two decades. Their work often involves bold color and a mix of high-end art with accessible decor, creating vibrant, lived-in spaces. The Dimes Square venture continues their tradition of transforming overlooked buildings and, in doing so, influencing the character of a neighborhood.
Bringing new life to a historic corner
The existing three-story structure, which dates to 1910, has been vacant for about two decades. It was once home to the Grand Dairy Restaurant, one of the last kosher dairy lunch counters that served the Lower East Side’s once-thriving Jewish community. The restaurant, which opened in the 1940s, was a neighborhood staple before it closed in the 1990s, marking the end of an era. More information on the area's rich history can be explored through organizations like the Lower East Side Tenement Museum.
Bob Novogratz said they hoped to preserve the original building, but its current state makes that unlikely. “We want to save the building but it doesn’t look salvageable,” he said. The seller was described as an "old school, Lower East Side guy" who was reluctant to part with the property. The Novogratzes assured him they would honor its legacy by naming the new development the Grand Dairy Building.
The couple’s connection to the neighborhood goes back nearly two decades. “I almost bought a bunch of buildings here around 18 years ago. I knew it would happen, like Soho,” Bob said, reflecting on the area’s transformation. He reminisced about a time when there was only one local restaurant, Zucco, which is now the popular Le French Diner. The area, with its distinctive light and open feel, reminded him of early SoHo and the Meatpacking District, inspiring an "epiphany" about its potential long before it became a popular destination.
A boutique living experience
The new six-story building, designed by Norbert Figueroa of Studio Afar Architecture, will feature five full-floor residences with high ceilings and private elevator landings. The design is described as modern industrial, with a classic red brick facade and black steel curved windows intended to complement the architectural heritage of the neighborhood.
The Novogratzes aim to create a curated, community-focused atmosphere inspired by the intimacy of boutique hotels like the Crosby Street Hotel. Similar small-scale luxury redevelopments, like a new condo on the site of a South Yunderup canal home, point to a growing trend of bespoke residential projects in downtown Manhattan.
We really want to make it a boutique hotel-style experience. It’s fun to be able to do something this small and create a community.
Interest in the project is already high, according to Bob, who said they plan to curate the residents to foster a specific community feel. For the developers, this project is more than just another investment. They are building their own future home in the penthouse, a space they have no intention of leaving. “This is the one we’ll never sell,” he said.
If construction proceeds as planned, the residences at 58 Ludlow are expected to be ready for move-in within 20 months.
