TRANSACTIONS
Hidrock Realty Secures Construction Loans Totaling $66 Million
Manhattan-based owner Hidrock Realty is pleased to announce that it recently secured two loans totaling $66 million for the $126 million development of two brand-new hotels in Midtown Manhattan. The hotels will be located at 960 Avenue of the Americas and 25 West 37th St., continuing the gentrification of the traditionally industrial Fashion District.
BBVA Compass Bank provided a $36 million construction loan for the $72 million development of the hotel located at 960 Avenue of the Americas. Hidrock acquired the property’s mortgage at a discount from Societe Generale in October 2009 after the previous owner did not meet expected income requirements. The company subsequently foreclosed on the building in August 2010 and began the redevelopment process slowly thereafter to convert the 100,000-square-foot office building into a hotel. The new hotel is slated for completion in October 2012, and will host 167 guestrooms, a rooftop bar and ground floor retail.
The Bank of Nova Scotia provided a $30 million construction loan for the $54 million hotel at 25 West 37th St. Hidrock acquired the property in 2009 and later determined that value lied in redeveloping the previous two low-rise buildings on the site into a hotel. The project will include 173 guestrooms when completed in October 2013.
“While lenders are still insecure about funding new construction projects, we were able to negotiate mortgages with fantastic terms to develop two hotels, which are among the most respected and successful in the industry,” said Abraham Hidary, president of Hidrock Realty. “The general consensus in the real estate industry is that financing is still hard to obtain—especially for new developments—yet we’ve found that it is available for experienced operators in stable markets.”
Investment Manager Signs Full Floor Lease At 110 East 59TH Street
RP Management, the investment manager for pharmaceutical royalties firm Royalty Pharma, has signed a long-term direct lease for the entire 13,284 square foot 33rd floor at Jack Resnick & Sons signature office tower at 110 East 59th Street. The firm was previously a subtenant in the building.
Considered one of the jewels of the Resnick commercial real estate portfolio, the 37-story block through office tower houses a host of financial services firms including Cantor Fitzgerald, Karsch Capital Management and Mason Capital Management. Asking rents for upper tower floors in the fully leased building top $100 a foot.
Michael L. Goldman, Executive Managing Director and Daniel Posy, Managing Director of Studley represented RP Management LLC in the 10-year leasing transaction. Dennis P. Brady of Jack Resnick & Sons represented the building owner.
Since 1996, Royalty Pharma has partnered with and invested in research institutions, inventors as well as biotechnology and pharmaceutical companies nationwide and now owns royalty interests in 17 biopharmaceutical products approved by the U.S. Food and Drug Administration (FDA). With five products currently in clinical trials, Royalty Pharma has become a global leader in acquiring royalty interests.
A full-service real estate organization, Jack Resnick & Sons has been an industry leader in development, construction, ownership and management since its founding in 1928. Its Manhattan portfolio currently includes approximately six million square feet of prime office and retail space, including 75 Park Place, 880 Third Avenue and 485 Madison Avenue. It also has developed thousands of luxury residences and continues to own, manage and lease approximately 1,000 rental apartments.
MedRite Urgent Care Opens First Location
MedRite Urgent Care, a state-of-the-art medical clinic, has opened its first location at 919 Second Avenue, is in Manhattan. Owner and administrator Samuel Fisch leased the space—which sits below a newly-built condominium and next to a recently-opened TD Bank—with the help of Winick Realty Group LLC’s Tatiana Jung-Voevodina and executive vice president Lori Shabtai, who represented both the tenant and the landlord in the transaction.
“There are no major hospitals or medical centers in the area, so this is something the community really needed,” explained Dr. Douglas Kaiden, one of the doctors at MedRite. “We’ll be able to serve all of the families, businesses and people working in the area on a day-to-day basis. Patients can get in and out fast with good care and less cost, in an environment that’s cleaner than an ER.”
MedRite accepts walk-in patients, as well as those who make appointments on their website, www.medriteurgentcare.com, on all major insurance plans. The 3,000-square-foot facility took six months to build out and includes on-site laboratory and x-ray services, as well as examination rooms manned by five board-certified emergency physicians.
“We are very happy with how it turned out,” said Fisch, who plans to eventually expand in Manhattan and make this a 24-hour location. “Our facility is spacious, state-of-the-art and there is a need for it.”One World Trade Center in NYC Is Leasing
Tara Stacom of Cushman & Wakefield is reinforcing the well publicized forthcoming completion and lease opportunities for One World Trade Center. The building, once complete will be 1,776-foot-tall building and will be the tallest in the Western Hemisphere. The building will also have 3M sq ft of Class-A office space.
The strucuture is slated to be completed in 2013. The construction is currently at the 58th floor – more than halfway top of 104-story tower. Cushman & Wakefield is the exclusive leasing/marketing agent for office space and already has a letter of intent signed with publisher Condé Nast for 1M sq ft.
The site will also include 450,000 sq ft of world-class shops/restaurants/services, with a two-floor observation deck. Setting itself apart from other skyscapers being constructed currently, One World Trade will be the world’s most environmentally sustainable project of its size and will meet LEED Gold standards.
Winick Realty Group LLC Brings 5 Napkin Burger to Union Square
5 Napkin Burger, the popular burger chain that’s opened three New York locations since 2003, has leased its fourth location at 150 East 14th Street, on the southwest corner of Third Avenue. The restaurant includes 3,570 square feet of ground-floor space, as well as a full basement. Winick Realty Group LLC’s Tatiana Jung-Voevodina, along with her associate Richard Smith, director, represented 5 Napkin Burger. Building owner Solil Management was represented in-house by Judy Brener.
“This prime corner has laid fallow for the past five years. 5 Napkin Burger will undertake a full reconstruction of the building and turn it into a wonderful gem,” said Jung-Voevodina.
5 Napkin Burger expects to open in April 2011. The location is in close proximity to bustling Union Square, as well as NYU, with its nearby dormitory buildings and the campus itself. 5 Napkin Burger will anchor the heavily-transversed block that includes next-door neighbor Trader Joe’s. The restaurant chain already operates units on Ninth Avenue in Hell’s Kitchen, Broadway and 84th Street on the Upper West Side, and in Astoria.
Steptoe & Johnson LLP Relocates with Long-term Lease
Steptoe & Johnson LLP, one of the world’s leading international law firms, is relocating its New York City office to the Grace Building at 1114 Avenue of the Americas. The law firm, which is currently spread across three floors at 750 Seventh Avenue, signed a long-term lease to occupy approximately 31,000 square feet comprising the entire 35th floor of the 49-story building located on the edge of Bryant Park.
International commercial real estate services firm Studley’s Daniel Horowitz, executive managing director, and Jeffrey Peck, senior managing director, represented the tenant in the transaction. The landlord, Brookfield Office Properties was represented in-house by Duncan M. McCuaig, vice president, leasing. Mr. Horowitz previously represented the tenant and negotiated the firm’s first lease in New York City in 2004 at 750 Seventh Avenue.
“The space, building, and location are a perfect fit,” said Mr. Horowitz. “We uncovered a space solution that not only satisfies Steptoe’s desire to accommodate its entire New York practice on one floor, but we also minimized the expected capital to prepare the space for Steptoe’s occupancy.”
“We are looking forward to moving to the Grace Building. Our new space places Steptoe in the heart of mid-town Manhattan, gives our New York office ample room to grow, and lies close to all transportation hubs,” explained Paul Kruse, the firm-wide chief operating officer of Steptoe & Johnson. “On a technical level, we took advantage of the high quality existing build-out on the floor and the full tenant improvement package to customize the layout as well as upgrade the IT, conference facilities, and public areas.”
Mr. Peck added that in addition to being attracted to the location and sweeping views from Bryant Park to Wall Street; Brookfield Office Properties is re-investing in the building by renovating the lobby, public plaza, and adding STK restaurant by the ground floor entrance on 43rd Street. Steptoe & Johnson is expected to move in the third quarter of 2011.Second Consecutive Record Leasing Year For W&H Properties’ One G.C.P.
One Grand Central Place, a W&H property at 60 East 42nd Street, has enjoyed a second consecutive year of record leasing, announces Fred C. Posniak, senior vice president of W&H.
The leasing total in 2010 amounted to an unprecedented 260,200 square feet. In 2009, the previous record was set with 255,430 square feet.
“We’re especially proud of this activity since it took place during challenging economic times,” says Mr. Posniak. “During this period, Midtown tenants were cautious about their leasing decisions, but they clearly recognized the outstanding quality and service available at One Grand Central Place.”
The property was renamed One Grand Central Place in June 2009, and it has become a sought-after address for prestigious tenants, including: American Bureau of Shipping, Fairfield Maxwell, Gibbs & Soell, Pine Brook Road Partners, Alès Group USA, Tourist Office of Spain, and Pipeline Financial Group, to name a few.
Rising 55 stories directly opposite Grand Central Terminal, One Grand Central Place provides a white-glove corporate environment with unparalleled convenience. It offers direct in-building access to Grand Central Terminal, including Metro North and the 4, 5, 6, 7 and Times Square shuttle subway lines, and unsurpassed on-site services and amenities, including a visitor center, messenger center, multi-media conference center and law library.
The state-of-the-art property has undergone $85 million of upgrades to its windows, elevators, air-conditioned public corridors and restrooms, and building-wide systems, including electrical, plumbing, HVAC and security.
Available office space at the property ranges from W&H portfolio standard high-end pre-built suites from 2,500 to 5,000 square feet, to a white-boxed full floor of 48,000 square feet.
Fashion Retailer Jay Kos Trades Midtown For Nolita in Sierra Realty Deal
In a move that can only be deemed fashion forward, menswear designer Jay Kos Corporation will relocate from Park Avenue in midtown Manhattan to Mott Street in Nolita. The transaction was brokered by Sierra Realty Corp.
The deal provides the trendy retailer with approximately 1,300 square feet at 293 Mott Street, between East Houston and Prince Street, for a term of 10 years. The move is slated for this spring.
“Jay Kos, who has enjoyed great success at his store at 475 Park Avenue since 2002, chose to relocate to an edgier downtown location to better service his customers, many of them celebrities who prefer to shop in lower Manhattan,” says Peter Levitan, managing director at Sierra Realty Corp., who represented the tenant. He adds: “This space, which was originally built as a restaurant – a fact that greatly appealed to Mr. Kos, a self-proclaimed ‘foodie’ – includes 30 feet of frontage, providing a terrific opportunity to showcase his clothing line.”
According to Mr. Levitan, Jay Kos is following a trend that is becoming increasingly popular – the fusion of fashion and food. “Many retailers are discovering that spaces that were originally designed as restaurants or bars can be repurposed as chic retail spaces,” he explains. “They have unique characteristics that can add a funky twist to what would otherwise be a more conventional store. And some of these properties even provide the opportunity for a retailer to offer beverages or food to their customers, a marketing tactic that has been known to augment sales.” Jason Pruger and Ross Kaplan of Newmark Knight Frank represented the landlord, 55 Houston Realty LLC.
CB2 Leases 13,265 SF Retail Store at Charles S. Cohen’s D&D Building
In what appears to be an ideal fit, CB2, Crate & Barrel’s contemporary furniture chain, has leased all of the retail space - - 13,265 square feet - - at the city’s premiere showroom center for the home furnishings trade, Charles S. Cohen’s Decoration & Design (D&D) Building at 979 Third Avenue.
The store, which will anchor the northeast corner of 58th Street and Third Avenue, plans to open in early October. CB2’s only other Manhattan store at present is at 451 Broadway in Soho. “I allowed this space to stand vacant for months until I found the right tenant who could set the proper tone for this building,” stated Mr. Cohen, “This deal is a bridging of retail and wholesale to the benefit of both the trade and the home owner.” The space soon to be filled by CB2 was formerly occupied by a Duane Reade outlet and a Chase branch. Asking rent for retail space at the D&D Building is $250 a foot.
Gene Spiegelman of Cushman & Wakefield represented CB2 in the 15 year leasing transaction while C. Bradley Mendelson, also of Cushman & Wakefield, represented the building ownership.
Mr. Cohen, President and CEO of Manhattan-based Cohen Brothers Realty Corporation, heads a multi-faceted real estate development company that owns and manages over twelve million square feet of prime Manhattan, West Side Los
Angeles, Florida and Houston commercial office and design center space. The firm has been active for over 40 years in real estate investment, ownership, management, and development.Joint Redevelopment Venture Marks WMC’s First Acquisition since Firm was Formed
ING Clarion Partners, in a joint venture with the William Macklowe Company (WMC), has acquired 636 Avenue of the Americas, a distinctive six-story office building located in the historic “Ladies Mile” district of Manhattan, for $45.2 million.
For real estate developer/investor William S. (Billy) Macklowe, the purchase marks his first acquisition since forming WMC less than five months ago.
The Renaissance Revival-style building, featuring a limestone and cast iron façade, is situated at the northeast corner of 19th Street and Sixth Avenue. With approximately 90,000 square feet of space, both retail and office, the property is distinguished by 13,000 square foot floor plates and 13 to 15 foot floor-to-ceiling heights. The partners plan substantial upgrades to the building’s interior and common areas as well as its mechanical systems.
“This is a very unique Midtown South property with great potential, given its boutique-sized floor plates, unusually high ceilings, vintage aesthetic details and superb corner location,” stated Mr. Macklowe, WMC’s CEO. “We believe we will be able to add significant value by redeveloping this asset using our proven skill sets to create a unique opportunity for discriminating office and retail tenants. Our vision is to reposition this property as the premier boutique office building along the ‘Ladies Mile’ corridor.”
Built around 1900 and boasting intricate façade ornamentation, 636 Avenue of the Americas has 20,000 square feet of prime ground level retail space currently occupied by the Sports Authority. It also features excess air rights that can be utilized to create a distinctive penthouse atop the property’s existing roof.
“We are excited to join forces with a real estate partner that brings an exceptional range of skills, talents and creativity to this redevelopment venture,” stated ING Clarion Partners’ Managing Director Edward Rotter. “With the improvements we have planned, we’re confident that we can realize the full potential of this asset and take advantage of the changing dynamics of this resurgent submarket.”
The Chelsea neighborhood that surrounds 636 Avenue of the Americas offers a vibrant mix of boutique shops and new residential buildings and condominiums. National retailers that have leased space along this portion of Sixth Avenue include Best Buy, Trader Joe’s and Bed Bath and Beyond. In addition, Mr. Rotter noted that Midtown South is now home to a growing number of major office tenants, including Google, which recently acquired 111 Eighth Avenue.
Darcy Stacom, Bill Shanahan and Paul Leibowitz of CBRE's Investment Properties Group, along with Robert Garrish, of the firm's Private Client Group, represented the seller, APF Properties.
According to Mr. Macklowe, his company is “proud to be partnering with ING Clarion Partners” and hopes to pursue additional acquisitions and development opportunities “where WMC’s creative approaches, extensive building experience and the diverse capabilities of our platform can help a project achieve its full potential.”620 Sixth Avenue Adds New Glass Retail Spaces
Two distinctive retail stores are now available at 620 Sixth Avenue, the
indoor-outdoor retail complex that encompasses the entire block between
18th and 19th Streets in Chelsea. These two new spaces offer small retailers
the chance to join co-tenants Bed
Bath & Beyond, TJ Maxx and Marshall’s for
the very first time.
Two interior retail spaces were constructed on either side of the escalators,
where there had previously been unused open space. Designed as glass cubes,
these stores measure approximately 1,100 square feet and can either house
separate retailers or be combined for one 2,200-square-foot leasing opportunity.
Ideal uses include opticians, cosmetics, cell phones, coffee shops, chocolatiers
and vitamin shops. All non-cooking uses are accepted and the cubes are
available for immediate occupancy.
“These incredible spaces give perspective retailers 30 feet of glass to display signage and product on either side of the escalators that go down to the new Marshall’s and up to TJ Maxx, and sit adjacent to Bed Bath & Beyond’s number one store in Manhattan,” said senior managing director Darrell Rubens. “They offer great visibility, along with built-in traffic and a captive audience.”
“The glass cubes are the first visual the shopper experiences when entering this mecca of national name-brand retailers at 620 Sixth Avenue,” said Lori Shabtai, executive vice president, who is also working on the project. “More than 100,000 people shop at the stores at 620 Sixth Avenue every week.”
Due to the tremendous success of its sister store, TJ Maxx, a long-time tenant in the building, Marshall’s leased the 40,000-square-foot former Filene’s Basement space on the lower level and officially opened in late October.
QC Nails Adds Chelsea Location
QQ Nails and Spa, the personal care salon and spa with three other New
York City locations, has signed a lease for a 2,500-square-foot space
at 249 Eighth Avenue, just off the corner of 23rd Street. Winick Realty
Group LLC associate director Michael Gleicher represented both the tenant
and the landlord in this long-term lease transaction.
“QQ Nails and Spa will bring a great amenity and service to the residents of Chelsea,” said Gleicher. The salon will occupy the space formerly leased by Jamba Juice and join neighboring retailers such as T-Mobile, Starbucks and Vitamin Shoppe.
Smart Fashion Leases First New York
Retail Location
Smart Fashion, the national importer and exporter of women’s apparel, has
leased its first retail location at 149B West 36th Street, between Broadway
and 7th Avenue in Manhattan’s Garment District. Winick Realty Group LLC
director Richard Smith and his associate Tatiana Jung-Voevodina represented
both the tenant and the landlord, Foremost Real Estate, in this long-term
lease transaction.
“Smart Fashion really liked the location for their first venture into retail,” said Smith, “because it’s right smack in the middle of the fashion industry.” Smart Fashion already operates a wholesale showroom nearby at 1407 Broadway.
The 2,000-square-foot store will focus on trendy junior sportswear, “catering to a cutting-edge market,” said Smith.Chipotle and GNC Opening Stores at
Jack Resnick & Sons’
1755 Broadway
Owner/manager Jack Resnick & Sons has
signed up two new retail tenants at its distinctive 43-story mixed-use
building at 1755 Broadway. The building, located at 56th Street, extends
from Broadway to Eighth Avenue.
In the larger lease, the fast growing restaurant chain, Chipotle Mexican Grill, will open a 3,300 square foot Eighth Avenue store in space formerly occupied by Washington Mutual bank. The availability of outdoor seating in the building’s adjacent urban plaza proved to be an especially attractive feature for the restaurant. On the building’s Broadway frontage, GNC, the global specialty retailer of nutritional products, will open a 1,050 square foot Nutrition Center in a location that formerly housed an Innovation Luggage store. Both stores are expected to open sometime in December.
Ariel Schuster and Greg Covey of Robert K. Futterman & Associates, LLC, represented GNC in its retail leasing transaction while Jeffrey Roseman and Kenneth Hochhauser of Newmark Knight Frank represented Chipotle Mexican Grill. Dennis P. Brady and Fran Delgorio served as owner reps on both of the long-term leases. According to Mr. Brady, asking rents for retail space at 1755 Broadway are in the $150 to $200 range.
Chipotle Mexican Grill currently has over 1000 locations, with restaurants in 37 states, the District of Columbia, Canada and England. GNC has over 4,800 retail locations throughout the United States.
A full service real estate organization, Jack Resnick & Sons has been an industry leader in development, construction, ownership and management since its founding in 1928. Its Manhattan portfolio currently includes approximately six million square feet of prime office and retail space, including its signature office tower at 110 East 59th Street. It also has developed thousands of luxury residences and continues to own, manage and lease approximately 1,000 rental apartments.Winick Realty Markets Unique Upper East Side Retail Space
Winick Realty Group LLC has been appointed
the exclusive leasing agent for a 4,400-square-foot retail space located
at 1491 Third Avenue, on the northeast corner of E. 84th Street. The
space was previously occupied for the past 20 years by a run-down restaurant.
Neighbors say it was an eyesore in the area and they are glad it finally
closed.
The corner space, which features 50 feet of frontage on Third Avenue and more than 90 feet of frontage on E. 84th Street, is now completely demolished and cleaned up. It offers a unique opportunity for a new tenant to utilize the exposed brick walls and column-free space. “Last month, the second, third and fourth floors of the building were leased, leaving the most desirable retail corner available in the area,” said Annie Shinn, who is representing the property along with senior managing director Darrell Rubens and executive vice president Lori Shabtai.
The Upper East Side has seen a flurry of leasing activity in the past year. Urban Outfitters recently leased 12,000 square feet at the nearby Brompton. Over the past month, Shake Shack opened their latest restaurant around the corner at 154 East 86th Street. In addition, Fairway Market announced they will be opening a 40,000-square-foot supermarket at 240 East 86th Street—their first on the Upper East Side— near the Chase Bank that Rubens relocated to 244 East 86th Street due to construction of the Second Avenue subway
Forest City Ratner Leases Over Half of Ridge Hill Office
Space
Forest
City Ratner Companies (FCRC) announced that WESTMED
Medical Group,
one of the largest multi-specialty group practices in Westchester County,
has signed a lease for 83,450 square feet in the office building of FCRC’s
mixed-use development, Ridge Hill. The project, located between the New
York State Thruway and Sprain Brook Parkway in Westchester County, New
York, is currently under construction and will open in 2011.
“The addition of WESTMED Medical Group to the already stellar list of tenants at Ridge Hill is a true testament to the successful mixed-use nature of this project,” said Bruce Ratner, Chairman and CEO of FCRC. “Ridge Hill will be a superb place to live, shop, work and now, be served by an amazing group of medical professionals.”
With 14 WESTMED locations already in Westchester, the Ridge Hill facility will be among the practice’s largest, comparable to its 210 Westchester Avenue, White Plains, location, and is expected to open in 2011. WESTMED has been serving Westchester County since 1996.
“This transaction represents an expansion of our medical practice and the consolidation of our two existing Yonkers offices, at 1915 Central Park Avenue and 1254 Central Park Avenue, to the new location at Ridge Hill,” said Simeon Schwartz, MD, president of the WESTMED Medical Group. “WESTMED Medical Group is looking forward to providing accessible, convenient, quality, and coordinated medical care to patients at this new, full-service facility in Yonkers.”
FCRC was represented in the negotiations by Mary Ann Tighe, Al Gutierrez and Ian Ceppos of CBRE. Frank Tomasulo, also of CBRE, represented WESTMED.
Heller Industrial Parks
Announces 103,752-Square-Foot Lease at Ridge Road Warehouse in Dayton,
N.J.
Heller Industrial Parks, one of the country’s largest and most highly respected
privately held owners and developers of industrial real estate, today announced
that Jacques Moret, Inc. has signed a multi-year lease for 103,752 square
feet at the company’s 381,828-square-foot warehouse building on Ridge Road
off of Route 130 in Dayton, N.J.
Jacques Moret, Inc. is an apparel design, sourcing and marketing company
headquartered in New York City. In August 2009, the company leased 28,000
square feet of space at another building owned by Heller in Dayton. Within
eight months of moving into that building, the company’s business operations
expanded, requiring additional space, which Heller was able to accommodate
by moving Jacques Moret into its Ridge Road warehouse in Dayton.
Jacques Moret will use this new space for national distribution — wholesale
and Internet fulfillment — of several exclusive apparel brands.
“This new lease agreement with Jacques Moret is an excellent example of
the lengths that our company will go to in order to accommodate the business
needs of our tenants,” stated Jeff Milanaik, president of Heller. “At Heller,
we pride ourselves on the strong, long-term relationships we have been
able to forge with our customers, and are extremely pleased to have been
able to meet the expansion requirements of Jacques Moret, while maintaining
the company’s strategic location in Dayton.”
Winick Leases First U.S. Showroom for Israeli Display Company
Udizine, the Israeli-based display company, signed a lease for 2,600 square
feet of retail space for its first U.S. showroom at 498 Seventh Avenue,
between 36th and 37th Streets in Manhattan. Tatiana Voevodina and Richard
Smith of Winick Realty Group represented both the tenant and the landlord,
George Comfort & Sons, in this long-term lease transaction.
