It all started innocently enough: a single building with a fancy design, a couple of apartments in the $90-plus million range, a few billionaires looking to park their money in New York luxury real estate…
But several buildings (and tens of millions of dollars worth of apartments) later, one has to wonder whether the strip of über-luxury condominium development on 57th Street—nicknamed “Billionaire’s Row”—has finally run its course.
Confidence among New York real estate brokers dipped in the third quarter thanks to political disarray in Washington and a relentless push toward super-luxury residential development that has dimmed the prospect of middle-class housing creation.
Seattle-based luxury retailer Nordstrom has reportedly paid $102.5 million for the site of its future Midtown flagship store at 225 West 57th Street.
The seven floor store will anchor a massive 88-story, 1,550-foot residential condo tower that Extell Development is building at the site.
The retailer said its store will encompass 285,000 square feet when it Read More
A 41,000-square-foot Nordstrom Rack is slated to open at United American Land’s 505 Fulton Street in spring 2014.
“We want to be in the top locations across the country, so this spot at the heart of downtown Brooklyn is big for us,” said Geevy Thomas, president of Nordstrom Rack, in a prepared statement. “We are thrilled to become back of this exciting community at a historic location, and we intend to make the most of the opportunity to serve customers and give them a reason to shop the Rack.”
Gary Barnett, founder of Extell Development, is seeking approximately $1 billion in financing from Export-Import Bank of China for the planned condominium development at 225 West 57th Street, The Wall Street Journal reported earlier today.
If the deal is closed, it would likely be the largest loan for a U.S. real estate construction project since the market downturn, according to the Journal report. The project, as designed, would be the largest residential building in the United States, rising just a block away from Extell’s soon to be completed One57 residential tower. Last year, Nordstrom agreed to anchor the development with its first New York flagship location.
New York retail comes in sizes large and small, from spaces of only a few hundred feet in Soho
to the city’s massive department stores. As developers continue to find new parcels of land to build upon, new opportunities for retail take shape.
Downtown continues to be repositioned as a retail destination with Brookfield Place, One World Trade Center and the redeveloped South Street Seaport expected to house hundreds of thousands of square feet of shopping space. Not to be outdone, Herald Square is looking at a repositioning, aimed not at discount stores but full-priced international retailers.
After the jump, The Commercial Observer pinpoints 10 retail trends impacting New York City.
The Real Estate Board of New York has opened the submission process for the Retail Deal of the Year Awards, it was announced yesterday. The awards recognize the most creative and significant retail deals in New York City.
Submissions for the awards are due April 25. Winners will be announced at the REBNY Retail Committee’s Deal of the Year cocktail party on June 11.
“It’s certainly the most prestigious award given in our business,” Peter Braus, retail committee chair at REBNY, told The Commercial Observer. “As retail has gotten to be more of a factor in New York real estate, it has gotten to be quite the market prestige to win the award.”
It didn’t take long for Jeff Rosenblatt to sense something awry in the house of Kent Swig.
It was 2009 and Mr. Swig, at the time a large landlord in the city, had purchased the real estate services company Helmsley-Spear a year earlier. In the months after his big acquisition of the legendary brokerage firm, Mr. Swig had offered Mr. Rosenblatt a senior position managing its leasing operations.
Andrew Goldberg is a retail executive at CBRE, where he is one of the firm’s top brokers, representing both landlords and tenants. With Nordstrom’s deal on 57th Street, retail leasing has been the talk of the town. Of course, Mr. Goldberg is no stranger to big-time leasing deals, having brokered Gucci’s 50,000-square-foot flagship at Trump Tower in 2006, one of the most valuable retail deals ever done in Manhattan. Mr. Goldberg spoke with The Commercial Observer recently about last month’s huge Nordstrom deal, the Drake development site, Gucci and Westfield’s plans for the World Trade Center.
It turns out that patience is virtue for both Nordstrom and Extell Development. When the retailer announced Thursday that it would be opening a 285,000-square-foot, 7-story store at 225 West 57th Street some time in 2018, it represented the culmination of ten to 15 years of searching. Meanwhile, developer Gary Barnett had been quietly assembling the parcel where the store will open for almost a decade.
In the end, the deal was pulled off thanks to a team from Jones Lang LaSalle, the firm’s Derek Trulson telling The Commercial Observer that real estate expertise, not retail expertise, paved the way.
On the heels of The Commercial Observer’s report yesterday about all signs pointing to Nordtrom taking space at Extell Development’s project at 225 West 57th Street, the company said today that it has now finalized those plans. The store is projected to open in 2018 and excavation work could begin by the first quarter of 2013. When it opens, it will be the retailer’s New York flagship, and its first full-line store in the city.
Sources say Nordstrom is in talks to anchor a development project that Gary Barnett would build at 225 West 57th Street.
Rumors have swirled for months that Mr. Barnett, one of the city’s most prolific and successful builders of residential and commercial real estate, is trying to arrange a transaction with the department store, which has been cruising around Manhattan for a site for years.
Gary Barnett continues to bulldoze his way across the city. Just last week, his Extell Development unveiled plans for a new tower at Riverside South; found a partner for a stalled 50-story hotel near Times Square; and secured $700 million in financing from Abu Dhabi toward One57, the condo-hotel tower on West 57th Street that will be the tallest, and likely most expensive, when it is completed. As if that were not enough, the developer has begun work just down the block on another of its long-simmering projects.