Year in Real Estate

The House That L’Oreal Built

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Back in 2011, Coach agreed to pay a reported $750 million for its 740,000-square-foot global corporate headquarters in Related’s South Tower at Hudson Yards. 

That deal may have been the official stamp of approval for the massive project rising on the city’s west side, but the announcements in April that SAP America, Inc. and L’Oréal Read More

The Lobby

Related Hires CBRE’s Stephen Winter

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On the heels of his inclusion in The Commercial Observer’s30 Under 30” list last month, CBRE’s Stephen Winter is bouncing over to Related Companies as its new vice president of commercial leasing, overseeing leasing efforts at Hudson Yards.

Until now a rising star at CBRE – in 2012, the Real Estate Board of New Read More

Mortgage Observer

Lawyer’s View: Borrowers

Jonathan Mechanic.

Jonathan Mechanic

Fried Frank

Partner & Chairman of the Real Estate Department

In 2012 and the beginning of 2013, your firm, with partners Stephen Lefkowitz and Tal Galomb, represented Related Companies in its purchase of Hudson Yards from the MTA, and you represented Coach, which purchased 740,00 square feet of the first building to be constructed there. Was that a complicated deal with all of the parties that were involved? Read More

Lease Beat

Fairway Market Inks on Far West Side at Hudson Yards

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Fairway Market, the upscale grocer with more than a dozen locations across the tristate area, has inked a 46,000-square-foot deal at the center of the highly anticipated Hudson Yards complex.

The new location, Fairway’s 14th, will open at the corner of West 30th Street and 10th Avenue in what is being referred to as the South Tower of Hudson Yards. It’s slated to open in 2015, according to Crain’s New York, which first reported the news last week.

With annual revenues totaling $800 million, the grocer has been expanding rapidly in recent years. The company initially took space outside the city with markets opening in Paramus, New Jersey; Stamford, Connecticut; and Pelham Manor in Westchester.

Fairway also opened locations on the Upper East Side and Queens in 2011, Kips Bay in 2012, and most recently Chelsea on the Avenue of the Americas in July. Read More

Sammons Says

The Next Hot Submarket?

Human nature keeps us searching for the Next Big Thing. And when it comes to New York real estate, Lower Manhattan certainly comes to mind based on the dramatic changes underway. But there is another area farther north that has as much going on and then some – Penn Station. Of course the primary reason Read More

The Sit-Down

What About Bob: CBRE’s Robert Alexander on Hudson Yards

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In 2005, CBRE broker Mary Ann Tighe told The New York Times that there had never been a “phenomenon quite like Bob Alexander.” What’s more phenomenal is that the 58-year-old chairman of the firm’s tristate region still ranks among its top brokers, having landed some of the city’s highest-profile deals this year as a lead broker representing Read More

Mortgage Observer

Development Projects Abound, But Boroughs Still Under-Retailed

Throggs Neck Shopping Center.

New York City is the number one retail location in the world. Retailers from around the world flock to open flagship stores throughout the Big Apple. Apple’s store on Fifth Avenue, with its familiar cube, has the highest revenue of all Apple stores. Then there are the flagships of Uniqlo, Zara, Tiffany & Co., Bergdorf Goodman and a cast of others. Nevertheless, when you ask prominent owners of commercial real estate as well as local and national retailers, the general consensus is that the outer boroughs of New York City are severely under-retailed.

Eastern Consolidated’s Barbara Byrne Denham reported in May 2012 that retail sales per capita ratios for the outer boroughs were far below the national average. Brooklyn was 39 percent below, Queens was 40 percent below and the Bronx came in a whopping 60 percent below. Read More

Lease Beat

SAP Inks 115,000 SF Lease at Hudson Yards

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SAP has inked a lease for 115,000 square feet of space at the South Tower of Hudson Yards, the developers of the 15-million-square-foot project on the far west side of Manhattan announced yesterday.

The announcement came along with news that L’Oréal leased 402,000 square feet for their U.S. corporate headquarters at the building, bringing the LEED Gold South Tower to more than 80 percent occupancy. Sources said the deals are for 15 years.

The companies join Coach, which agreed to pay a reported $750 million for its 740,000-square-foot global corporate headquarters in the tower in late 2011, after what Related’s president on the project, Jay Cross, called a three-year negation process.

“We are thrilled that global beauty and software powerhouses L’Oréal and SAP, along with Coach, Inc., will be locating at Hudson Yards,” said Stephen Ross, Related Companies’ Chairman, in a prepared statement.  “With construction already underway, we look forward to continuing to implement our ambitious vision for the defining development of the 21st Century and the new heart of New York.” Read More

Lease Beat

L’Oréal USA Inks 402,000 SF Lease at Hudson Yards

(Credit: VISUALHOUSE)

L’Oréal USA has inked a 402,000-square-foot of space at the South Tower of Hudson Yards, the developers of the 15-million-square-foot project on the far west side of Manhattan announced yesterday.

Along with that announcement came news that SAP also leased 115,000 square feet on the top four floors of the building, bringing the LEED Gold South Tower to more than 80 percent occupancy.  Sources said the deals are for 15 years.

The companies join Coach, which agreed to pay a reported $750 million for its 740,000-square-foot global corporate headquarters in the tower in late 2011, after what Related’s president on the project, Jay Cross, called a three-year negotiation process.

“The confluence of three significant tenants committing to the building almost simultaneously is a testimonial to the belief in this project and its future,” said CBRE’s Stephen Siegel, who represented L’Oréal with Mike Geoghegan, Bill Hedman and Lauren Crowley Corrinet. Read More

The Sit-Down

King of the Yard: Related’s Jay Cross on Reimagining the Far West Side

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As president of the New York Jets, Jay Cross spent the first half of the 2000s immersed in the plans for the New York Sports and Convention Center on the Far West Side. The plan collapsed and the Jets’ focus shifted to the Meadowlands, but Mr. Cross kept eager watch on the Mass Transit Authority’s bid to find a new developer.

After Stephen Ross purchased the Miami Dolphins in 2008, Mr. Cross found himself fatefully reacquainted with Related’s founder and chairman through an assigned seating arrangement at an NFL owners’ meeting, setting the stage for Mr. Cross’s eventual role as president of Related Hudson Yards.

“The Jets always sat beside the Dolphins at these meetings, so I was sitting beside Stephen,” Mr. Cross said. “He asked me how I was getting home. He flew me home and said, ‘You should come and run this project for us.’”

Here’s what Mr. Cross had to say about the 26-acre, 15-million-square-foot mixed-use project that he began orchestrating on Manhattan’s Far West Side in the summer of 2008.  Read More

Groundbreaking

Hudson Yards Breaks Ground for South Tower

A rendering of the Hudson Yards complex towers.

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