Lease Beat

TED Moves Within Trendy Hudson Square

330 Hudson Street

TED Conferences, the company behind the viral videos that tout “ideas worth sharing,” is relocating to 330 Hudson Street, a fifth of a mile from its old office at 250 Hudson Street, according to The New York Post.

The Post reported TED will occupy 47,000 square feet on the entire 11th and 12th floors of its new home. Asking rents were $77 per square foot. The 13-year deal is a sublease from media and learning company Pearson. Richard Berzine represented Pearson, as he is the company’s exclusive real estate broker. Mr. Berzine did not immediately respond to a request for comment. Read More

Lease Beat

Manhattan Beachwear Doubles Space in Garment District

1411 Broadway

Manhattan Beachwear renewed its lease and took additional space at 1411 Broadway, according to a representative for Callahan Capital Properties, asset manager of the property for the ownership venture: The Swig Company and Ivanhoé Cambridge.

Manhattan Beachwear will move from the 32nd to the 31st floor to occupy 12,768 square feet in the next month, according to a spokeswoman for Newmark Grubb Knight Frank. Through predecessor companies it acquired, the company has been a tenant since 1985, having grown from about 3,000 square feet, said Bernard Weitzman of NGKF. Mr. Weitzman represented Manhattan Beachwear in the deal. Read More

Sales Beat

B&B Global Development Snaps Up Greenpoint Property for Record $4.8M

977 Manhattan Avenue.

B&B Global Development has purchased a three-story, 14,300-square-foot, mixed-use building in the Greenpoint section of Brooklyn, for $4.8 million. Despite 977 Manhattan Avenue selling for less than its latest $4.995 million asking price, Jeffrey Schleider of Miron Properties said it is a record price for a mixed-use building in that neighborhood. Mr. Schleider brokered the sale along with colleague Bram Lefevere.

B&B plans to build a 17,500-square-foot mixed-use building with 3,000 square feet of retail on the ground floor and residential condominiums above, according to Victor Baranes, the president of B&B. He said the building will be eight stories with 14 apartments. Mr. Baranes has tapped Gerald J. Caliendo Architect as the architect for the project. Read More

Lease Beat

Mudrick Capital Moves on Madison Avenue

527 Madison Avenue.

Mudrick Capital, an SEC-registered investment advisory firm, has signed an 11-year lease for 12,400 square feet on the sixth floor of Mitsui Fudosan America’s 527 Madison Avenue between East 53rd and East 54th Streets, Commercial Observer has learned.

Built in 1986, the Class A commercial property at 527 Madison Avenue is 26 stories and is comprised of 236,000 square feet. Mitsui Fudosan America acquired the building in 2008 from Deutsche Bank for $225 million, according to CoStar. Read More

Lease Beat

Swatch Signs Lease for Balance of 1515 Broadway Retail Space

1515 Broadway.

Swatch last Friday signed a 15-year lease for 2,113 square feet in SL Green Realty Corp. and SITQ’s 1515 Broadway with an asking rent of $2,400 per square foot, said Jeffrey Roseman at Newmark Grubb Knight Frank, who acted on behalf of the owners in the deal. Marc Leber of NGKF also worked on the transaction.

The multinational watch and jewelry company joins footwear company Skechers USA in the ground-floor space. In December, Skechers signed a 10-year lease with a five-year option for approximately 3,700 square feet, according to a press release from SL Green and Mr. Roseman. Read More

Lease Beat

Coworking Space Signs New Lease in Flatiron District

119-125 West 24th Street

AlleyNYC, which has tagged itself as “the most badass coworking space on the planet,” has secured 36,000 square feet at 119-125 West 24th Street between Avenue of the Americas and Seventh Avenue, according to The Wall Street Journal.

The company, which is riding the wave of co-working spaces infiltrating New York City, signed a 10-year lease for the third, fourth and fifth floors at the 12-story, 146,000-square-foot building, the Journal reported. The Kaufman Organization acquired the property from Extell Development Company through a 99-lease deal in April 2014. Asking rents at the property are in the mid-$60s per square foot. The building had been in disrepair for many years, and the Kaufman Organization invested tens of millions of dollars to revamp the entire building. Read More

Mortgage Observer

Helaba Finances 1035 Third Avenue Condo Buy

1035 Third Avenue.

The German bank Helaba provided a $42 million loan to Acadia Realty Trust for the purchase of retail, office and parking condominium space on Manhattan’s Upper East Side, Mortgage Observer has learned.

Acadia, based in White Plains, N.Y., acquired the mixed-use property at 1035 Third Avenue for $51 million through its Strategic Opportunity Fund IV platform, according to the REIT’s latest earnings report. The seller is listed as O’Connor Capital Partners led by the former Cushman & Wakefield CEO Glenn Rufrano. Read More

Lease Beat

The Pegasus Group to Move to 115 Broadway

115 Broadway.

The Pegasus Group, a company that owns and develops multi-tenant properties, primarily in neglected or underdeveloped urban areas, has finalized a 10-year lease for 2,767 square feet at 115 Broadway between Cedar and Thames Streets, according to The New York Times.

Pegasus will use the 17th floor space at 115 Broadway, previously occupied by W&W Steel Erectors, as executive offices. The firm plans to take occupancy in March. Read More

Lease Beat

AKOO Clothing Signs 12-Year Lease at 231 West 39th Street

231 West 39th Street.

AKOO Clothing signed a 12-year lease at 231 West 39th Street for 9,355 square feet previously occupied by Genevieve Anderson, according to The New York Post which first reported the story.

AKOO (which stands for A King of Oneself) is a menswear brand founded by Grammy-winning artist T.I. The firm will be joined by its owner RP55 Group, a manufacturing and distribution company, in the space. Read More

Market Report

Tech Sector Gains Ground on Financial Services in NYC Real Estate: Report

Google is one tech company that is eating up New York City real estate. Its Chelsea property at 111 Eighth Avenue is 2.9 million square feet.

In 2014, the tech sector and new media companies leased more than five million square feet of office space and was responsible for 16.2 percent of leasing activity in Manhattan, a 4.9 percent increase since 2013, according to a new report on the industry released by JLL. The report highlighted that the tech sector was second only to the financial services industry in terms of leasing activity; however, while the financial services industry was responsible for 24.7 percent of all activity in 2014, it represented a 3.2 percent decrease from the year before.

“Each year, the gap in activity between tech and financial services has steadily narrowed,” the report highlighted. Read More

Sales Beat

Savanna Sells 576 Fifth Avenue to Real Estate Equities

576 Fifth Avenue.

Real estate private equity and asset management firm Savanna has sold its leasehold on its 72,000-square-foot office building at 576 Fifth Avenue to Michael Miller, Brandon Miller and Mark Seigel of Real Estate Equities Corp, Commercial Observer has learned.

The property, which was sold for an undisclosed amount, sits on the corner of Fifth Avenue and East 47th Street in Midtown’s Diamond District. Today, there is a jewelry exchange on the ground floor and office space on the upper floors of the 11-story building, constructed in 1907. Read More

Architecture & Design

High Line Architect Designs Oasis on West 23rd Street

Rendering of rooftop at 50 West 23rd Street (credit: H5 Property).

Landscape architect James Corner of James Corner Field Operations, whose design turned an abandoned elevated train track on the Far West Side into a popular public park, is now hoping to provide a similar transformation—this time 11 stories above ground.

Two Trees Management Company hired the High Line‘s lead designer to create a new 10,600-square-foot rooftop garden and outdoor work space on the 11th floor of the 14-story building at 50 West 23rd Street between Fifth Avenue and Avenue of the Americas. It will be a place for meetings, parties, presentations and eating lunch, said Jed Walentas, a principal at Two Trees, when it opens in the third quarter of the year. Read More

Lease Beat

Charles Schwab Moving to 1133 Avenue of the Americas

1133 Avenue of the Americas

Charles Schwab & Co. will move to the 22,915 square foot 37th floor of 1133 Avenue of the Americas, following a build-out expected to be complete by the third quarter of 2015, as was first reported by

The financial services company, who has been subletting at another Durst Organization property—114 West 47th Street—signed an 11-year lease in January. The asking rent was in the mid-$80s per square foot. Read More

Buildings and Construction

DOB Overwhelmed by Construction Demand

Department of Buildings Commissioner Rick D. Chandler (Photo: Michael Nagle/for Commercial Observer).

The Department of Buildings‘ review of new building plans has slowed to a crawl because the city agency is getting buried under an avalanche of permit applications.

According to the most recent agency performance report from the Mayor’s Office of Operations, when it comes to new buildings it is taking the city’s DOB nearly twice as long to complete the first plan review, which is the period from the complete submission of the application to the date the plan examiner is able to issue a decision upon the submitted plans. That process has risen to an average of 15.7 days in the fiscal year to date compared with 8.5 in the previous FYTD, the data indicate. Read More