New York Mayor Michael Bloomberg was on hand Tuesday as Related Companies broke ground on the first of what will be a string of buildings in the Hudson Yards development on Manhattan’s midtown west.
Related founder – and Miami Dolphins owner – Stephen Ross, called the project the “most ambitious construction project in the history Read More
Nearly three years after Tavern on the Green went dark, restaurateurs Jim Caiola and David Salama are opening up to Crain’s about the controversy swirling around their lease on the landmark Central Park venue.
The Philadelphia-based partners and their company, Emerald Green Group, won the lease this summer over hometown favorites including the caterer Great Performances. The Bloomberg administration’s selection of Mr. Caiola and Mr. Salama raised eyebrows in part because Mr. Caiola’s sister is married to Kevin Sheekey, Mayor Bloomberg’s former deputy mayor who currently serves as a top executive at Bloomberg LP. Some New York restaurant industry insiders doubted the credentials of the pair, who run Philadelphia’s Crêperie Beau Monde and L’Etage 624.
If you are a frequent reader of Concrete Thoughts, you know that I often attempt to connect the dots between economics, politics and real estate. And since the so-called Great Recession began, the relationships among the three have never been more pronounced.
The health of our commercial real estate market can be greatly influenced by policy changes that legislators enact. The implications for our market on the political climate can be significant and, in 2012 and 2013, two elections could have profound ramifications for us.
Through most of the 1990s and 2000s, nonprofits could count on low-cost financing issued through the state’s industrial development agencies to develop buildings, facilities and other infrastructure and construction projects. The bonds didn’t expose the state to any credit risk; rather the vehicle allowed lenders to avoid being taxed on the proceeds in the investment, which in turn incentivized them to accept lower interest rates on the debt. But in 2007, the State Legislature failed to renew the vehicle, cutting off NFPs from an important pipeline of funds. Now, in December, the city’s Economic Development Corporation is planning to roll out a new financing vehicle that will allow lenders to issue low-interest rate tax-free debt to NFPs. The city estimates that at least $700 million worth of projects that had been backlogged could now have access to funds. The Commercial Observer spoke with Steven Polivy, an attorney with law firm Akerman Senterfitt LLP about the upcoming vehicle as well as the impasse that has prevented the IDAs from providing tax free financing in recent years. Mr. Polivy specializes in arranging real estate financing and development transactions that utilize government incentive and financing programs.
Luxury handbag stalwart Coach will relocate its offices to the Hudson Yards, scooping up approximately one-third of the planned south office tower as a commercial condo in a deal that will give the New York City-based company approximately 600,000 square feet.
Coach will move its corporate headquarters and consolidate three New York City offices into the building by 2015. The 1.8 million-square-foot tower, at the northwest corner of West 30th Street and Tenth Avenue, is one of 14 residential, commercial and retail assets envisioned by the Related Companies at its far West Side development site.
Lease of the Week
Right from the gate, the Invesco Real Estate-Kaufman Organization partnership behind 100-104 Fifth Avenue followed a simple motto: Go big on tech or go home.
Since acquiring the building in January 2011, the Kaufman Organization has leased 100,000 square feet to new tech tenants, including 45,000 square feet to Apple’s iAd mobile advertising unit.
“We’ve been on a tear,” said Grant Greenspan, a principal at the Kaufman Organization.
Mayor Michael Bloomberg visited Harlem today to unveil a “clean heat” campaign and other green initiatives that will become part of the PlaNYC plan, which is aimed at building “a greener, greater New York.”
The event, at Harlem Stage, gave away free reusable water bottles to the media, and distributed press releases on individual Read More
Wells Fargo has learned a lesson from the last time it tarried. Just days after rumors surfaced the bank was mulling 150 East 42nd Street, it has sealed the deal.
We’ve learned that the San Francisco-based firm has signed a 16-year lease for 275,000 square feet at Hiro‘s imposing 42-story silver tower between Lexington and Third avenues. Its new home Read More
When Bloomberg sailed into Wells Fargo’s chosen space at 120 Park Avenue, industry insiders were shaken by the switch. Now Crain’s reports that even Wells Fargo thought they had the space nailed:
“A few weeks ago, [senior vice president John] Saclarides got a call from the landlord telling him that the bank was being bumped Read More