Lease Beat

1 New York Plaza Scores Five New Retail Concourse Tenants [Updated]

1 New York Plaza.

Brookfield Office Properties has signed leases with five new retail tenants at its 1 New York Plaza within the past six weeks, bringing the 42,000-square-foot retail concourse to 65 percent leased, Commercial Observer has learned.

The new tenants are Starbucks (1,200 square feet), Chipotle (1,800 square feet), Chop’t Creative Salad Company (2,400 square feet), Cobbler Express (950 square feet) and Optometric Arts (950 square feet). Read More

Lease Beat

Jane Street Inks Brookfield Place Lease

250 Vesey Street.

Jane Street Capital has signed a 15-year lease for 114,000 square feet at 250 Vesey Street, sources confirmed with Commercial Observer.

The lease covers a portion of the fourth floor and the entire fifth and sixth floors of the building. The trading firm will relocate to Brookfield Place from One Liberty Plaza, another Brookfield property. Jane Street will pay rent in the mid-$50s per square foot, one source said. Read More

Downtown

Saks Plans Stores, Office Space Downtown

Brookfield Place.

Saks Fifth Avenue is planning two locations in Lower Manhattan, The Wall Street Journal reported. The expansion would include a department store and Saks Off Fifth outlet, along with a potential 400,000 square-foot office space for the department store’s parent company, Hudson’s Bay Co.

The possible site of the department store is Brookfield Place, while the outlet and office-space headquarters may be located at Brookfield’s One Liberty Plaza building, according to the Journal. Read More

Lawsuits

Restaurant, Employees Taking on Giant Brookfield

PJ Clarke's

Employees of P.J. Clarke’s, the steaks and chops chain whose owners slapped Brookfield Office Properties subsidiary WFP Retail Co. with a $40 million lawsuit last month, are digging their heels in against a landlord they say is ruining their business at 4 World Financial Center.

The Battery Park City restaurant’s more than 75 employees are raging about the constant jackhammer noise in the bar, the rotating temporary entrance in front of the eatery and the scaffolding that’s blocked off parts of the patio adjacent to the Hudson River, and with primary owners Phil Scotti and Arnold Penner alleging business has fallen by 50 percent since construction started at Brookfield Place two years ago, the workers expressed solidarity during a rally for employees of the seven-location chain Wednesday night. Read More

Lease Beat

BNY Mellon Signs for 350K at Brookfield Place

225 Liberty Street

Bank of New York Mellon Corp. signed a 20-year, 350,000-square-foot lease to move its sought-after headquarters to 225 Liberty Street at Brookfield Place in Lower Manhattan, the bank and its new landlord, Brookfield Office Properties, announced today.

The news of the seven-floor lease ends a bidding fight between New York and New Jersey to attract the bank that lists $27.9 trillion in assets under custody, as bank officials said the attraction of staying in its longtime home and launching a sunlight-enhanced collaborative working space proved irresistible. Read More

Lawsuits

P.J. Clarke’s Files $40M Lawsuit Against Brookfield

World Financial Center

The owners of upscale restaurant chain P.J. Clarke’s have slapped Brookfield Office Properties subsidiary WFP Retail Co. with a $40 million suit alleging the Brookfield Place developer has driven down its business by 50 percent and tried to force the eatery out of its location at 4 World Financial Center.

Restaurateurs Phil Scotti and Arnold Penner, who, along with a group of investors, own the seven-location steaks and chops chain that started at East 55th Street and Third Avenue in 1884, allege their landlord has purposefully erected sidewalk sheds that block views of the Hudson River and the Statue of Liberty, closed off escalators leading to the restaurant to prevent foot traffic and made life miserable for customers and staff with leaks and noises stemming from constant construction at the site. Read More

Power Broker

Ed Hogan’s Making Manhattan’s Newest Shopping District

Ed Hogan. (Will O'Hare Photography)

It would seem that Ed Hogan’s job at Brookfield Place is nearly complete, but the national director of retail leasing for Brookfield Office Properties told Commercial Observer last week that a new phase is just beginning.

The 35,000-square-foot, 600-seat food hall Hudson Eats is open and nearly leased up, with counters taken by Blue Ribbon Sushi, Sprinkles cupcakes and others. The 25,000-square-foot (plus 10,000-square-foot outdoor area) Le District marketplace is fully leased by HPH restaurant group partners Peter Poulakakos and Paul Lamas. And the 250,000-square-foot retail center is 90 percent spoken for. Read More

The Lobby

Mitch Rudin to Leave Brookfield

Mitch Rudin.

Mitch Rudin will leave Brookfield Office Properties at the end of the month, according to a statement made by the company today.

Mr. Rudin has served as the president and chief executive of Brookfield’s U.S. commercial operations but was faced with a diminished role following the consolidation of Brookfield Office Properties into Brookfield Property Partners, the company said in a statement. The Brookfield executive had played a key role in the development Brookfield Place in Lower Manhattan. Read More

Lease Beat

Brookfield Secures Retro Fitness as 1 New York Plaza Tenant

1 New York Plaza.

New Jersey-based Retro Fitness signed a lease with Brookfield Office Properties for a 17,000 square-foot space at 1 New York Plaza, The Real Deal reported last week. The gym will be located in a post-Superstorm Sandy renovated, 40,000 square-foot concourse of the Lower Manhattan building.

Retro’s lease marks its first location in Manhattan. The gym employs a franchise business model and offers economical fitness memberships from $19.99 a month, according to the company’s website. Read More

Power Broker

Staying Power: Bruce Mosler of Cushman & Wakefield

Bruce Mosler. (Lea Rubin)

The list of chief executives who have stayed involved with a company for a significant period of time after leaving the CEO role is a short one. According to consulting firm RHR International, just 50 percent of departing CEOs stay involved with a company as a member of the board, and even then only for an average period of eight months.

Cushman & Wakefield’s Bruce Mosler has defied those statistics. The real estate firm’s chairman of global brokerage is still at C&W four years after stepping down as chief executive. Read More

Lease Beat

Time Inc. to Move to Brookfield Place

Brookfield Place. (Brookfield Properties)

Time Inc. will relocate its headquarters to 225 Liberty Street at Brookfield Place in Lower Manhattan, the company announced today. The media conglomerate has signed a long-term lease for 700,000 square feet across six floors at the property and will move to the Brookfield Office Properties‘ development from the Time & Life Building in late 2015.

The media company evaluated relocation options in New York City and New Jersey but was persuaded by both the location of Brookfield Place and an incentive package offered by Empire State Development, according a statement by Joe Ripp, the chairman and chief executive of Time Inc. Read More

In the Market

Google Eyes More NYC Space

Renderings of 450 West 33rd Street

Internet giant Google is in the market for up to 600,000 square feet of office space in Manhattan—enough to hold more than 3,000 employees, The Wall Street Journal reported.

Google could potentially expand to 450 West 33rd Street or St. John’s Terminal at 550 Washington Street, according to sources cited by the Journal. Brookfield’s 450 West 33rd Street boasts floor plates of 100,000 square feet and is being renovated to the tune of $200 million. Read More

Power Broker

Ready to Launch: Jerry Larkin’s Vision for Manhattan West

LR_Larkin_030

Earlier this year, a machine known as The Launcher got to work on the foundation upon which Brookfield Office Properties’ 7.2-million-square-foot mixed-use Manhattan West project will rise.

So far, the metallic-yellow workhorse has methodically placed three of 16 concrete bridge spans atop a set of uncovered Amtrak tracks that lead to Penn Station, the rest of which are expected to be in place by year’s end.

As The Launcher continues to work ahead of schedule at the task, the “neighborhood of the future” is becoming more and more of a reality, as marketing efforts to land an anchor tenant for the development’s first commercial tower intensify. Read More