Lease Beat

Coffee Replacing Crumbs Cupcakes in Chelsea

A Crumbs Bake Shop.

A new coffee shop serving Italian-style coffee and in-house, hand-made baked goods, is building out the 950-square-foot space where Crumbs Bake Shop used to be in Chelsea. Seven Grams Caffe signed a 10-year lease in June and plans to open at 275 Seventh Avenue between 25th and 26th Streets in the second week of September.

The owners don’t anticipate any bad joo joo from Crumbs’ demise. Read More

The Rent is Too Damn High

Manhattan Rents are Too Damn High. What’s a Restaurateur to Do?

Union Square Cafe. (Peter Bond)

As rents become increasingly prohibitive in Manhattan, restaurants at all price points are struggling to stay open.

“The rent is so high because some tenants are willing and able to pay it,” said Faith Hope Consolo, the chairman of the retail leasing and sales division at Douglas Elliman. “Relocating—perhaps with a shorter-term deal than normally—allows either this storm to pass, or gives the restaurant a chance to build a new market and perhaps be able to afford to return!” Read More

Coming to Market

‘Last Call’ Nears at TGI Fridays Union Square

TGI Fridays at 34 Union Square East. (Lauren Elkies Schram)

Within the next few weeks, the building housing TGI Fridays in Union Square will be put on the market, marking the impending closure of that location of the global eatery known for its collection of bric-a-brac, Commercial Observer has learned.

The full-building Union Square Fridays, at 34 Union Square East at 16th Street, hasn’t fared very well and is just breaking even after four years in business, said proprietor Dennis Riese, the chairman of the board and chief executive officer of The Riese Organization, which owns the license for Fridays in Manhattan. Read More

Lease Beat

Broker Bets Merveilleux Will Become the New Cronut

Aux Merveilleux's merveilleux.

French pastry specialty shop Aux Merveilleux is bringing merveilleux, meringue treats covered with whipped cream, to the West Village, Commercial Observer has learned. It will be the high-end French boulangerie’s first location in the United States.

The bakery signed a 12-year lease for 450 square feet at 37-41 Eighth Avenue at Jane Street, said Bertand de Soultrait, the principal of Bertwood Realty, who represented the tenant and the landlord, RIG Realty, in the deal. The rent is about $400 per square foot. Read More

Lease Beat

Dos Toros Taqueria Heading to Park Avenue South

295 Park Avenue South

Upon completion of construction, Dos Toros Taqueria will open its sixth location in the Flatiron District, Commercial Observer has learned.

The taco and burrito counter-serve joint signed a lease for 1,175 square feet on the ground floor at 295 Park Avenue South between 22nd and 23rd Streets less than two months ago, according to Adam Langer of Zelnik & Company, who represented the eatery in the deal. Tossed salad, sandwich and soup restaurant previously occupied the space. Read More

Lease Beat

Boston Market Signs Lease at Bronx Triangle Plaza Hub

Rendering of Triangle Plaza Hub.

Boston Market chicken restaurant chain signed a lease this week for 2,600 square feet on the ground floor at the Triangle Plaza Hub in the Bronx, Lester Petracca, the president of Triangle Equities, told Commercial Observer.

The asking rent in the Triangle Equities project was $75 per square foot and the lease was for 10 years, with an option to extend, a spokesman for Triangle Equities indicated. Read More

The Vultures

Max Brenner, Others Zero In on Vacant Crumbs Shops

1379 Third Avenue. (Crumbs Bake Shop website)

In less than 24 hours since news broke about the closure of Crumbs Bake Shop‘s chain of stores, retail brokers and tenants have been jockeying to get in on the cupcake joint’s real estate. One such brand that is hoping to land some of Crumbs’ locations is chocolatier Max Brenner.

“Max Brenner is interested in a number of Crumbs locations within its current markets of Washington D.C., Philadelphia, New York City and Boston,” Sam Borgese, CEO of Max Brenner International, said in a statement provided to Commercial Observer. “We are specifically looking at location sizes that fit our pure chocolate bar concept.” Read More

Lease Beat

Egg Sandwich Shop Slated for Nolita

151 Elizabeth Street.

A restaurant serving up classic and creative versions of egg sandwiches will be opening in Nolita, Commercial Observer has learned.

Egg Shop signed a 10-year lease for a 600-square-foot ground-floor space at 151 Elizabeth Street, which abuts the Nolitan Hotel, at 30 Kenmare Street. The asking rent was $6,400 per month plus $300,000 in key money. Read More

Lease Beat

Patsy’s Pizzeria is Coming to Brooklyn

450 Dean Street.

Manhattan’s Patsy’s Pizzeria has signed a lease to open its first location in Brooklyn, and it’s across the street from the Barclays Center.

The pizzeria, known for its iconic “old world” style pizza, took 1,400 square feet at 450 Dean Street between Flatbush and Fifth Avenues, in Park Slope, TerraCRG announced. Read More

New Developments

MTA Plans Grand Central Food Hall with Noma Co-Founder

Grand Central Terminal.

The Metropolitan Transportation Authority will consider a proposal for a 16,000-square-foot food hall inside Grand Central Terminal operated by Claus Meyer, a co-founder of the renowned Noma restaurant in Copenhagen, Denmark.

The proposal calls for a food hall in the western half of Grand Central’s Vanderbilt Hall, as well as a 100-seat Nordic restaurant in an adjoining space, according to an announcement made earlier today.  Read More

Lease Beat

Coffee Purveyor From Greece Heading to Village

30 Carmine Street.

European-influenced café and coffee bar Maza Loukouma and Espresso Bar is planning to enter the U.S. market via the Greenwich Village.

Maza signed a 10-year lease for 500 square feet on the ground floor, plus a basement for storage, at 30 Carmine Street between Bleecker and Bedford Streets. The asking rent was $300 per square foot, Eastern Consolidated said. The firm’s James Famularo and Ravi Idnani represented the landlord, 30 Carmine St. LLC, in the deal. CORE‘s Leora Aimee Hasas and John Harrison represented Maza. Read More

Lease Beat

Sweetgreen Signs Lease at 100 Kenmare Street [Updated]

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SCG Retail has brokered a 10-year, 2,400-square-foot lease for health food chain Sweetgreen at 100 Kenmare Street, Commercial Observer has learned.

The Nolita quick-service eatery’s newest restaurant is scheduled to open this fall, and marks the chain’s fourth location in New York City. Sweetgreen’s New York entry strategy, in partnership with SCG, has been in the works since 2012, according to Taryn Brandes, a retail broker at SCG that is part of the team representing Sweetgreen. Read More

Lease Beat

Doughnut Plant Bringing Square-Filled Doughnuts to Prospect Heights [Updated]

245 Flatbush Avenue.

Doughnut Plant Brooklyn will be serving up crème brûlée and square-filled doughnuts in Prospect Heights come October. The company announced that it signed a deal last week with Noam Management for the 900-square-foot ground-floor space.

The new shop, which has about 60 feet of frontage on Flatbush Avenue, will take the space formerly occupied by Mexican restaurant Yummy Taco at 245 Flatbush Avenue between Bergen Street and Sixth Avenue. Read More