Lease Beat, ICSC 2015

Saks Making Foray Into Outer Boroughs With Off 5th Outlet Store in Brooklyn


Saks is poised to enter the outer boroughs with an Off Fifth discount store in the Sunset Park neighborhood of Brooklyn, Commercial Observer has learned.

The department store has signed a letter of intent to bring the discount shopping concept to Liberty View Industrial Plaza at 850 Third Avenue, Marvin Schein of Salmar Properties, the project’s developer, confirmed. Saks plans to take roughly 30,000 square feet on the ground level of the eight-story building, a source with knowledge of the deal said. Read More

Finance, ICSC 2015

Eastern Union Adds Equity Division, Hires Nine

Eastern Union Funding has launched a synergistic new business: an equity division, with a focus on smaller investments. The firm’s president, Ira Zlotowitz, confirmed the creation of the new equity-sourcing arm, which he said he had been mulling for over a year, at the RECon conference yesterday.

Chaim Fishof will lead the equity division with Marc Belsky and Josh Novoseller. Read More


Aareal Capital Funds Olmstead’s Latest Garment District Buy

240 West 40th Street.

Aareal Capital Corporation provided a $60 million loan to New York-based Olmstead Properties and the green real estate firm Jonathan Rose Companies to help fund their purchase of a 12-story office and retail building at 240 West 40th Street, Commercial Observer has learned.

The new owners bought the roughly 160,000-square-foot Garment District building from a partnership between AEW Capital Management and the rapidly growing real estate services firm DTZ for $85 million on May 5. Read More

Lease Beat

R.A. Cohen Moving to 250 Park Avenue

250 Park Avenue.

Real Estate investment and management firm R.A. Cohen & Associates has inked a deal for 8,100 square feet at 250 Park Avenue between East 46th and East 47th Streets, Commercial Observer has learned.

The company will move to the 19th floor of the 21-story building at the end of this year, according to brokers in the deal. Asking rents were in the $60s per square foot in the 15-year lease, which closed last week. Read More

Sales Beat

SL Green To Buy Eleven Madison Avenue

Eleven Madison Avenue.

In one of the largest real estate transactions in New York City history, SL Green Realty Corp. will acquire Eleven Madison Avenue for $2.285 billion, according to a press release issued by the company.

First reported by Bloomberg Business, the company will buy the 29-story, 2.3 million square-foot trophy property from The Sapir Organization and CIM Group. The building sits between East 24th and East 25th Streets and serves as Credit Suisse Group’s U.S. headquarters. Read More

Lease Beat

Core Takes Space for Fourth Office in Manhattan

149 Fifth Avenue.

Core has leased 5,500 square feet at 149 Fifth Avenue in the Flatiron District, marking the Manhattan residential real estate firm’s fourth office, Commercial Observer has learned.

The new 11th-floor digs between East 21st and East 22nd Streets will accommodate 40 to 50 agents, who will commence working there this fall, Core indicated. The firm’s director of sales, Douglas Heddings, is meeting with prospective agents to populate the new office.  Read More

The Lobby

Lori Shabtai Joins Town Commercial

Lori Shabtai.

Lori Shabtai, who left Winick Realty Group in February 2014 and two months later launched Lori Shabtai and Associates, has joined Town Commercial as a broker, Commercial Observer has learned.

“I am comfortable in a boutique venue, especially one that will allow me to still interact globally and regionally with tenants and landlords as their broker,” Ms. Shabtai emailed CO. “I also love the opportunity of working with a smaller team of diversified talent. I so admire the vision and synergy of Town. The DNA of the brand is compelling, modern and elegant.” Read More

Lease Beat

Drybar Will Be Offering Blowouts at Brookfield Place

Brookfield Place (Photo: Emily Assiran/Commercial Observer).

Drybar has inked a 10-year lease next to Babesta, the trendy baby boutique, at Brookfield Place, Brookfield Office Properties told Commercial Observer. The salon, with its $40 blowouts, is slated to open in the fall.

The California-based blowout specialist has taken 1,498 square feet on the second floor at the Lower Manhattan complex, Brookfield said. The rent was around $120 per square foot, according to a source with knowledge of the deal. Drybar has 42 locations open nationwide with eight of them in New York City and more on the way. Read More

Lease Beat

Mah Jongg League Captures Space Near Penn Station

450 Seventh Avenue.

The National Mah Jongg League, the regulatory body for the popular tile game, has inked a seven-year deal for office space in Midtown, Commercial Observer has learned.

The league is taking 2,600 square feet at 450 Seventh Avenue between West 34th and West 35th Streets in its new lease, according to the Kaufman Organization, the building’s landlord. The deal closed at the end of April, and asking rent was $55 per square foot. Read More

Lease Beat

Foot Locker Runs Into 330 West 34th Street

330 West 34th Street.

Foot Locker has been running leases all over the city.

After inking a deal for a mega store at the recently-renovated 8 Times Square, the athletic wear giant is moving its corporate headquarters to 145,000 square feet at 330 West 34th Street. The national retailer is believed to have signed a 15-year lease at the Vornado Realty Trust building between Eighth and Ninth Avenues, according to JLL, which represented Foot Locker.   Read More

Under Construction

Under Construction: The ARK at John F. Kennedy International Airport

The ARK at JFK will give an equine space to the world's sixth-busiest airport (Courtesy Gralla Equine Architects).

In 2013, more than 50 million passengers passed through John F. Kennedy International Airport, the transit hub that sits on Jamaica Bay 15 miles from Midtown Manhattan. There are also far more exotic passengers—including horses, birds, zoo animals and livestock—transported through the airport. Recognizing a need for amenities ensuring the safe and efficient movement of these creatures, ARK Development is in the process of creating a multi-purpose animal handling and air cargo facility at the sixth busiest airport in the country.

On its website, Racebrook Capital calls the ARK at JFK “the world’s only animal terminal and the first USDA-approved, full-service, 24-hour, privately owned airport quarantine facility.” Read More