Cadwalader, Wickersham & Taft Co-Chair of the Capital Markets Department
Cadwalader has provided lead counsel services in several of the largest single-borrower CMBS transactions ever. What kinds of challenges have those deals presented?
Professional information firm Reed Elsevier has signed a 10-year, 71,083-square-foot lease for the entire seventh floor at 230 Park Avenue, The Commercial Observer has learned.
“By its size and the tenant on its own, [the deal] means a lot,” Brian Robin, president of Monday Properties, said. “The tenant has exceptional credit and is a very stable organization, which is our sweet spot.”
Lee Hecht Harrison, a subsidiary of Adecco USA, has signed a 10.5-year, 23,000-square-foot lease for a portion of the sixth floor at 230 Park Avenue. The global mobility talent firm will relocate from nearby 200 Park Avenue.
“230 Park Avenue continues to earn the trust of leading organizations such as ING, Clarion Partners and Novartis,” said Brian Robin, president of Monday Properties, in a statement. “We are proud to add Lee Hecht Harrison to the tenant community of our landmark building, where we provide leasing solutions for small and large firms alike.”
Hudson’s Bay Company will explore the creation of a real estate investment trust as the company’s proposed acquisition of Saks Inc. stands to add a number of flagship retail locations to the company’s portfolio. HBC agreed to acquire Saks for $16.00 per share in an all-cash transaction valued at $2.9 billion.
The merger will create a large real estate portfolio that will include the Saks Fifth Avenue locations on Fifth Avenue in New York and Wilshire Boulevard in Beverly Hills, as well as Lord & Taylor’s Fifth Avenue location.
Financial services tenants have been flocking to Boston Properties’ 510 Madison Avenue and three recent deals indicate interest remains high, despite triple-digit rents. The Canada Pension Plan Investment Board, 400 Capital Management and Prosiris Capital Management have all signed 10-year, 11,500-square-foot full floor deals in the building, a source familiar with the transactions confirmed with The Commercial Observer.
Gary Barnett, founder of Extell Development, is seeking approximately $1 billion in financing from Export-Import Bank of China for the planned condominium development at 225 West 57th Street, The Wall Street Journal reported earlier today.
If the deal is closed, it would likely be the largest loan for a U.S. real estate construction project since the market downturn, according to the Journal report. The project, as designed, would be the largest residential building in the United States, rising just a block away from Extell’s soon to be completed One57 residential tower. Last year, Nordstrom agreed to anchor the development with its first New York flagship location.
In an unprecedented deal that reached upwards of $200 per square foot, Itaú BBA USA Securities Inc., a branch of the Brazilian Banco Itaú, will increase its operation from 25,000 square feet to 35,000 square feet on the prized 50th floor of 767 Fifth Avenue.
With outstanding views of the Central Park and Midtown, the floor plates at the 50-story tower, otherwise known as the General Motors Building, span 40,000 square feet, leaving a mere 5,000-square-foot office to share the view, brokers said.
As the economy continues to build steam, a new Brooklyn finds itself craving a new retail culture—and developers and financers are keeping close watch. While New York’s most populous borough has seen a large number of residential buildings take shape in the past year, financing for retail construction projects and acquisitions are just now beginning to catch up.
When asked, the developers behind several of the latest big retail projects told The Mortgage Observer that many of those properties would have a more chic look and feel and a more versatile use than traditional shopping outlets and malls. One common point of comparison has been Jamestown’s Chelsea Market, the high-end urban food court and shopping center with galleries and production studios mixed in.
CME Group, the world’s largest futures exchange company with exchanges in Chicago and New York, is exploring the possible sale of the NYMEX Building, the headquarters of the New York Mercantile Exchange, at One North End Avenue.
In the event of a sale, CME Group will lease back a portion of the building and will continue the operation of the NYMEX trading floor.
“CME Group remains committed to our floor based membership and open outcry trading services in New York, which continue to be a profitable part of our business and serve our customers well,” said Jamie Parisi, chief financial officer of CME Group, in a prepared statement. “Going forward, whether we decide to retain occupancy at One North End or relocate within Lower Manhattan, we are committed to updating our New York offices to reflect the innovation and quality of our CME Group offices around the world.”
In another whopping example of large real estate owners seeking to capitalize on current market conditions by unloading top-shelf inventory, Boston Properties has reportedly sold its 23-story office building at 125 West 55th Street for $470 million to J.P. Morgan Asset Management.
The deal follows a string of other Class A building sales this year – 550 Madison Avenue, 30 Rockefeller Plaza, 237 Park Avenue and 75 Rockefeller Plaza – which accounted for $3.8 billion of the city’s first quarter dollar volume and created a 46% year-over-year jump, according to data from Avison Young.
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.
As forecasters became more and more certain that a monster storm named Sandy was barreling toward Manhattan in the 48 hours leading up to its landfall on Monday, October 29, Real Estate Board of New York President Steven Spinola lay in a hospital bed recovering from a sudden medical emergency.
But the hospital stay didn’t Read More
Manhattan Market Report
An unprecedented sevenfold increase in retail property sales fueled the Manhattan commercial real estate sales market’s epic comeback in the fourth quarter – its strongest performance since 2007, according to preliminary data from Eastern Consolidated.
The hallmark quarter, with nearly $13 billion in sales volume – the strongest since record-breaking performances in 2007 (peaking at $19 billion in Q2 of 2007) – was triggered by fears of impending capital gains taxes, which had owners scrambling to unload properties before year’s end.
“This was definitely fiscal-driven growth,” said Barbara Byrne Denham, Eastern Consolidated’s chief economist. “Sellers wanted to cash out and buyers knew it, so they were eager to come to the table as well.”
Year in Real Estate
The city’s aging population, a drive for state-of-the-art facilities and strong hiring across the health care industry prompted unprecedented growth in leasing activity in the health care sector across the five boroughs in 2012.
Memorial Sloan-Kettering, Mt. Sinai, Montefiore Hospital and Inventa Health were among the dozens of hospitals and medical companies to announce bold new initiatives to expand their footprints in the city in 2012, and those developments are only a sign of what’s to come, brokers and analysts predict.
On Thursday, Nov. 1, Virgo Business Centers made 27,321 square feet of temporary, furnished office space available at 14 Penn Plaza. Companies displaced by Hurricane Sandy filed in one by one, and by the following Thursday, the space was full.
“Typically, that process takes about a year,” said Pasha Erkin, director of sales at the company. “It’s all about readiness. You could literally bring me 40 people today, and I could have the space ready tomorrow. All you have to do is walk in, flip on a switch, plug in and start working.”
In that building alone, the company took on 177 employees from displaced companies like Coronet, amfAR, Linda Decorato, Ambrose and others located on the eastern tip of Downtown and other areas hit hard by the hurricane.