Mortgage Observer

Square Mile Provides $25M Senior Loan on D.C. Office

Georgetown Plaza

New York-based JOSS Realty Partners received a $24.5 million senior mortgage loan from Square Mile Capital Management to revamp a recently purchased Washington, D.C. office asset, Mortgage Observer has first learned.

The three-year financing, with two one-year extension options, is backed by the five-story, 150,097-square-foot boutique office building Georgetown Plaza. Read More

Lease Beat

Designer Leads 10 New Deals in ESRT Portfolio

501 Seventh Avenue.

Empire State Realty Trust has leased over 40,000 square feet of space in three of its Manhattan office buildings to 10 new tenants, the real estate investment trust announced this week.

In the largest of the new deals, P. Devos Designs Inc. signed a 7,628-square-foot lease at 501 Seventh Avenue. The tenant, better known as fashion designer Pamella Roland, was represented by Steven Pressler of Coldwell Banker. The term of the deal was not disclosed. Read More

Sales Beat

SL Green to Sell Three Manhattan Assets

180 Broadway. (PropertyShark)

SL Green Realty Corp. has agreed to sell three of its Manhattan assets, the real estate investment trust announced today. The deals, for 2 Herald Square, 180 Broadway and 985-987 Third Avenue, will generate net cash proceeds of $240 million, according to a press release.

The REIT will sell the leased fee interest in 2 Herald Square for $365 million. SL Green acquired the interest in joint partnership in 2007 before consolidating its position in 2010, the landlord said. Read More

Power Broker

Down to a Science: John Cahill of Colliers International

John Cahill of Colliers. (Aaron Adler)

As the son of a doctor and a nurse, broker John Cahill may have been predestined to work in the medical field in one form or another. Fresh out of Syracuse University, the New York native first chose pharmaceutical sales as his field of choice.

Initially lacking the required experience, Mr. Cahill spent one year at ADP learning the ropes of a sales role and in the process picking up both his employer’s Rookie of the Year award and an expense-paid trip to Hawaii. Read More

Lease Beat

Urban Compass Signs Lease at RFR’s 90 Fifth Avenue

90 Fifth Avenue.

Tech-driven real estate brokerage Urban Compass has signed a new 25,000-square-foot lease at RFR Realty’s 90 Fifth Avenue, the landlord announced today.

The tenant will occupy space on the third and fourth floors of the building beginning late this year, RFR said in a press release. Urban Compass is currently headquartered at nearby 19 Union Square West and the company is expected to retain its 9,000-square-foot space there, according to The New York Post, which first reported the lease. Read More

Mortgage Observer

L&L, Prudential Score $98M to Reposition Chelsea Offices

511 West 25th Street

A joint venture of commercial landlord L&L Holding Co. and insurer Prudential received $98 million from the Aareal Bank Group, a German bank that specializes in real estate, to buy three Manhattan office and showroom buildings, Mortgage Observer has learned.

The J.V. paid $160 million for 511-514 West 25th Street, buildings with class-A office, retail and gallery property, according to records filed with the city. The west Chelsea buildings were on offer by the Related Companies, part of a group of properties that the company has been unloading as it liquidates a distressed property fund, as reported. 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

Lease Beat

Tech Firm Renews, Expands at Jamestown’s 1250 Broadway

1250 Broadway. (PropertyShark)

Varonis Systems has renewed its existing 15,356-square-foot lease at 1250 Broadway, according to landlord Jamestown. Concurrently, the business technology firm expanded its footprint in the building, signing a 10-year lease for 30,712 square feet on the 28th and 29th floors.

“Broadway between the Nomad District and Flatiron is quickly becoming a burgeoning and dynamic area for many tech, media and creative companies,” said Michael Phillips, the chief operating officer of Jamestown, in a prepared statement. “Varonis Systems expanding within 1250 Broadway further indicates that the NYC tech corridor is beginning to stretch north into Midtown.” Read More

New Developments

Nets to Build Training Center in Brooklyn

148 39th Street. (PropertyShark)

The Brooklyn Nets franchise has announced plans to build a 70,000-square-foot training center at 148 39th Street in Industry City.

The franchise plans to relocate its training center to the eighth floor of the building from East Rutherford, N.J. in time for the start of the 2015-16 NBA season. Located one subway stop from the Barclay’s Center, the MANICA Architecture-designed facility will include two basketball courts, a weight room, a training pool and two hydro pools, a rooftop entertainment space, an 18-seat multimedia theater and more. Read More

Lease Beat

Brandy Melville Snags Soho Sublease

499 Broadway. (PropertyShark)

The Italian fashion brand Brandy Melville has signed a four-year sublease at 499 Broadway. The 8,000 square-foot space lies in the heart of one of Manhattan’s most sought-after shopping corridors.

“It’s a phenomenal space with lots of foot traffic,” said Alan Napack, a senior director of retail services for Cushman & Wakefield, who represented the sublessee. “This bigger space will be great for them,” said Mr. Napack, who pointed out that Brandy Melville’s new storefront will be “about 50 percent” larger than their previous digs at 518 Broadway. Read More

Leasing Report

C&W Report: Downtown and Midtown South Rising

Cushman & Wakefield

New leases for 16.7 million square feet of space in the first two quarters of 2014 jumped 35 percent over this time last year and big deals downtown illustrate the movement of the market, according to the latest commercial lease data released today by Cushman & Wakefield.

With 25 leases of 100,000 square feet or more already signed this year over 18 last year at this time, officials from the company expressed continued optimism at a breakfast in Midtown Manhattan for staff and the media. Read More

Lease Beat

Human Rights First Inks FiDi Lease

75 Broad Street.

Human Rights First will be moving its New York office to the Financial District in late August, The Wall Street Journal first reported.

The nonprofit, nonpartisan group, lured by incentives as part of the city’s Commercial Revitalization Program, will occupy 17,900 square feet on the 31st and 32nd floors of the 33-story building at 75 Broad Street. The program is intended to lure firms to lease and renovate space in older-vintage downtown commercial buildings. Read More

Lease Beat

Orthodox Union Renews and Expands at 11 Broadway

11 Broadway

The Orthodox Union of Jewish Congregations has renewed its lease for 10 years and expanded its footprint to 75,000 square feet at 11 Broadway in Lower Manhattan, Crain’s New York Business reported Tuesday.

The nonprofit Jewish advocacy group, youth program and kosher food certifier will keep its 62,500 square feet on the 12th and 14th floors of the 22-floor, 420,000-square-foot property near Battery Park and add the 13th floor. 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