Lauren Elkies Schram

Sales Beat

Mitchell Holdings Buys Herald Square Hotel for $38.5M

Herald Square Hotel.

Abraham Puchal has sold his Herald Square Hotel at 19 West 31st Street between Fifth Avenue and Broadway to David Mitchell‘s Mitchell Holdings for $38.5 million, sources said.

Bob Skinner from Charles Rutenberg represented the seller in last Friday’s off-market deal and StarBridge Commercial’s Peter Kim represented Mitchell Holdings. Between 1894 to 1936, the building was home to Life magazine. Read More

Lease Beat

Engineering Consultant Expanding to Over 16K SF in NoMad

105 Madison Avenue (Photo: CoStar).

Bard, Rao + Athanas Consulting Engineers is growing its footprint to 16,600 square feet from 13,350 square feet at A&R Real Estate‘s 105 Madison Avenue at East 30th Street, Commercial Observer has learned.

BR+A renewed its existing lease on the entire 10th floor of 105 Madison Avenue and expanded into a portion of the ninth floor, according to Newmark Grubb Knight Frank, which represented both sides in the 10-year deal. The asking rent was $62 per square foot. Read More


Multimillion-Dollar SI Mall Expansion Plans Head to City Planning Commission for Vote

Rendering of the street view of the Staten Island Mall expansion.

Plans to enlarge the 42-year-old Staten Island Mall by over 400,000 square feet will go before the City Planning Commission tomorrow for a vote.

General Growth Properties is seeking a zoning resolution to allow “a group parking facility which is accessory to an existing commercial development and proposed enlargement in connection with a proposed approximately 418,071-square-foot enlargement of an existing retail development located at 2655 Richmond Avenue,” according to tomorrow’s public calendar. Read More

Lease Beat

Serafina Opening Eatery in Tribeca

113 Reade Street (Photo: CoStar).

Serafina Restaurant Group is opening a restaurant in Tribeca with plans to provide room service to hotel guests staying at the adjacent Cosmopolitan Hotel-Tribeca, Commercial Observer has learned.

The restaurant group, which specializes in Northern Italian cuisine, has signed a lease for the entire 5,400-square-foot building at 113 Reade Street between Reade and Chambers Streets, including the rooftop. The building offers 1,800 square feet each on the ground floor, second floor and basement, according to RKF, which represented the landlord, Triumph Hotels, in the deal. Triumph is also the owner of the Cosmo hotel which is next to 113 Reade Street on West Broadway.  Read More

Lease Beat

FAO Schwarz Wrapping Up Negotiations for Xmas 2016 Opening in Times Square

Rendering of 1633 Broadway (Image: marketing materials).

Iconic toy store FAO Schwarz is in serious negotiations to move its flagship from Fifth Avenue to a smaller, sleek space in the Crossroads of the World, Commercial Observer has learned.

On July 15, the oldest toy company in the country will be vacating the General Motors Building at 767 Fifth Avenue—its home for nearly 30 years—due to a significant rent increase, the company has said. Sources with intimate knowledge of the deal told CO that the new store is slated to open at the base of Paramount Group‘s 2.5-million-square-foot office tower at 1633 Broadway between West 50th and West 51st Streets, just in time for the 2016 Christmas season. Read More

Lease Beat

Gap and Old Navy Find Side-by-Side Homes in Times Square

1514 Broadway.

Gap Inc. inked two new retail leases on Thursday night for about half of the monster-sized space occupied by Toys ‘R’ Us in Times Square, the landlord’s broker told Commercial Observer, in a deal that includes building a third floor for Old Navy.

The Gap snagged 6,000 square feet on the ground floor, 25,000 square feet below grade plus the signage on the roof at the Bow Tie Building at 1514 Broadway between West 44th and West 45th Streets. Old Navy has taken 6,000 square feet on the ground floor to the north of the Gap, 17,500 square feet on the second floor—and also, the clothing company will be building a 17,500-square-foot third floor, C. Bradley Mendelson of Cushman & Wakefield exclusively told CO. Read More

Under Development

$340M Mixed-Use Development Coming to East 86th Street

Rendering of the new 147 East 86th Street.

A new $340 million, 230,000-square-foot HOK-designed mixed-use development is coming to the northeast corner of East 86th Street and Lexington Avenue.

The residential portion of the building, on floors five to 20, will be home to 50 luxury condominium units, developer Lou Ceruzzi of Ceruzzi Properties, a partner in the project primarily responsible for the retail component, told Commercial Observer. There will be about 30,000 square feet of retail space on the ground, second and lower levels of the building to be erected at 147 and 151 East 86th Street (it will use the address 147 East 86th Street). New York Sports Clubs will occupy 24,000 square feet on the third and fourth floors through a sale-leaseback. The asking rent for the commercial portion is $10 million net a year, said Ripco Real Estate’s Andrew Mandell, who is marketing the retail space. Read More

Lease Beat

Café Chain Stolle Signs First Brooklyn Deal

Stolle is taking the part of Tio Pio's space at 119 Court Street outlined in yellow.

Nearly three months after announcing it would be opening its first U.S. location in Long Island City, Russian pie-maker Stolle reveals it’s heading to Brooklyn, too.

Commercial Observer has learned that Stolle has signed a sublease for part of Tio Pio‘s space at 119 Court Street at the corner of State Street in Downtown Brooklyn. The pie company, which will open in September, took 500 square feet of ground-floor retail space in a 10-year deal. The asking rent was $250 per square foot, according to Winck Realty Group. Read More

Sales Beat

Ceruzzi, SMI USA Buying Midtown Site From Thor for $325M

Rendering of what's to come at 520 Fifth Avenue (Image: CoStar).

Ceruzzi Properties and Shanghai’s SMI USA are purchasing a demolished East Midtown site from Thor Equities in a $325 million deal for land and air rights, Ceruzzi head Lou Ceruzzi told Commercial Observer. The deal is under hard contract.

“We expect to build retail, hotel and residential,” Mr. Ceruzzi said about the site at 520 Fifth Avenue between West 43rd and West 44th Streets. The Handel Architects-designed 71-story building can be as big as 400,000 square feet, he noted. The buyers hope to break ground by the end of the year. Read More

Lease Beat

Frisco Flash Storage Firm Finds Flat for Itself at 655 Third Ave.

655 Third Avenue.

Nimble Storage, a San Francisco-based flash storage solutions firm that consolidates workloads and eliminates storage silos, is coming to New York City, Commercial Observer has learned.

The firm has signed a three-year lease for 6,609 square feet on the ninth floor at 655 Third Avenue between East 41st and East 42nd Streets, according to the building owner, The Durst Organization. The length of the lease is so short because “it’s a rapidly growing company and they want the option to expand,” said a spokesman for Durst. The asking rent was in the high-$50s per square foot. Read More

Lease Beat

Social Services Organization Relocating to Broad Street

75 Broad Street (Photo: CoStar).

The Committee for Hispanic Children & Families is moving to 75 Broad Street, Commercial Observer has learned, to 9,429 square feet on part of the sixth floor.

Asking rent in the 10.5-year deal was $43 per square foot, according to CoStar and a person with knowledge of the deal. The agency will be moving from a 14,000-square-foot sublet at 110 William Street to its new digs around October. Read More

Under Development

South Street Seaport Designated an Endangered Historic Place

South Street Seaport (Photo: Emily Assiran/Commercial Observer).

With development on the horizon, the South Street Seaport was named to the 2015 list of the 11 most endangered historic places in the country last night by the National Trust for Historic Preservation.

“While the seaport is a locally designated historic district, and is separately listed on the National Register of Historic Places, it is currently under threat due to a series of development proposals that would disrupt the look, feel and low-scale historic character of the seaport,” the privately funded non-profit organization says on its website. Read More

Lease Beat

Ad Tech Company Takes 12,083 SF at 44 West 28th Street

44 West 28th Street.

Yellowhammer Media Group, an advertising technology company, is moving to new digs in NoMad to accommodate the firm’s growth, brokers in the deal told Commercial Observer.

The firm took 12,083 square feet, or the entire fourth floor, at 44 West 28th Street between Broadway and Avenue of the Americas in a 10-year deal, according to a spokeswoman for Newmark Grubb Knight Frank. NGKF’s Bernard Weitzman and Jordan Brustein represented Yellowhammer in the deal. The asking rent was $54 per square foot. Read More

On the Market

Infinity Adding 60K Square Feet on Top of Kingswood Center

A rendering of 1630 East 15th Street with the additional two floors.

Nearly a year after buying two mixed-use Midwood, Brooklyn, properties for $79.1 million, the owners are hoping to tack on 60,000 square feet at one of the plazas for one or more tenants to occupy, Commercial Observer has learned.

A partnership led by Infinity Real Estate wants to add floors four and five to the 160,000-square-foot building that is 100 percent occupied with tenants including TJ Maxx and NY Sports Club on the ground floor and medical tenants like Visiting Nurse Service of New York and New York Eye and Ear Infirmary of Mount Sinai on the second and third floors. Hundreds of parking spaces are below grade. Read More

Lease Beat

Video Ad Software Company Heads to 114 Fifth Avenue

114 Fifth Avenue.

TubeMogul, a publicy traded enterprise software platform for digital branding, is relocating to 114 Fifth Avenue at the southwest corner of West 17th Street from the Union Building to accommodate the company’s anticipated growth, brokers in the deal told Commercial Observer.

Emeryville, Calif. based Tubemogul has subleased the entire ninth floor, totaling 19,326 square feet, at the L&L Holding Company building from online news venture First Look Media, which holds a 10-year lease for the floor (First Look Media has additional space in the building) expiring June 2024. CO first reported news of First Look Media’s lease in the building in March 2014.  Read More