With Long Island City quickly becoming a popular alternative to Manhattan, both for work and play, Jamestown Properties last year acquired the Falchi Building, a 640,000-square-foot office and manufacturing facility at 31-00 47th Avenue.
Envisioned by Jamestown as a mixed-use property with retail, office and light manufacturing components, Mitch Arkin, executive director
at Cushman & Wakefield, is preparing to market space in the building as existing tenants move out and space becomes vacant.
Though Jamestown has employed similar formats elsewhere, the developer is at pains to stress that the Falchi Building is not Chelsea Market and is, in fact, its own unique opportunity. “We think we can develop this into something that is aligned with the Jamestown brand,” Mr. Arkin told The Commercial Observer.
LPCiminelli Inc., a Buffalo-based construction company, has signed a 5-year lease for 5,836 square feet on the 35th floor of 1250 Broadway. Asking rents were in the mid-$50s per square foot.
The deal with brokered on the tenant side by Kyle Ciminelli, managing director at Newmark Grubb Knight Frank and nephew of the LPCiminelli’s owner, Louis Ciminelli.
“Representing a family member is always fun,” Mr. Ciminelli told The Commercial Observer.
As chief operating officer of Jamestown Properties, Michael Phillips has helped create and oversee a portfolio of more than 80 properties across nine states, totaling over 25 million square feet. But the jewel in his and Jamestown’s crown may well be Chelsea Market, the wildly popular foodie mecca in the Meatpacking District. Jamestown is currently working on a contentious expansion of that Ninth Avenue destination that will result in an additional 330,000 square feet of office space (an earlier plan for a 90,000-square-foot hotel was scrapped).
The Commercial Observer grabbed a few minutes with Mr. Phillips inside Jamestown’s swank, canopied, free-crepe-dispensing booth at ICSC’s RECon global retail real estate summit in Las Vegas. There, the James Beard Foundation vice chair and Real Estate Board of New York governor shared some morsels about Jamestown’s unannounced plans for a second sit-down restaurant at Chelsea Market, its imminent foray into the Brooklyn culinary world, and marquee projects in Georgia and California.
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.
Las Vegas is the desert, and RECon is a tent city.
As 35,000 registered attendees at the annual global retail real estate summit flooded the Las Vegas Convention Center last week, a few of the roughly 1,000 exhibitor booths stood out.
After the jump, a sampling of the booths that had guests reeling, as well as photos from the
convention floor and the event last week in sunny Las Vegas.
One day in the late 1980s, three Brooklyn brothers in their teens—Isaac, Haim and Richard Chera—followed their grandfather, Isaac, and their father, Stanley, on a trip to Manhattan. While not in school, the brothers would spend much of their spare time in the Fulton Street children’s clothing store that their grandfather had opened in 1948, in a space formerly occupied by a hat store, Suzette Millinery Shop. At the time, lacking the money to replace the previous banner, Isaac Chera simply tweaked it, naming his business Suzette Kiddie Store. Only later, after having expanded to several other stores, did the family change the name to Young World. Soon, the elder Isaac Chera started to invest in real estate. The best advice he gave to his family, according to his grandson, Haim, was to always buy the building where they had a store.
Chick-fil-A, the controversial fast food franchise, may be expanding in the Big Apple some time soon if retail brokers get their way.
From high-end luxury brands to regional food concepts, and, yes, Chick-fil-A, real estate professionals yesterday offered The Commercial Observer hints of deals they hope to seal before next year’s journey to Sin City.
Food & Drink
Jamestown Properties has purchased the Milk Studios building at 450 West 15th Street from Stellar Management for more than $284 million, city records show.
The 325,000-square-foot, eight-story office building, home to photography studio Milk Studios and an eclectic mix of tech, fashion and creative tenants, borders the High Line.
It’s a symbolic and strategic move for Jamestown, which owns the Chelsea Market across the street and looks to expand its footprint in the heavily-traveled Meatpacking District.
Ironically, city records show that Stellar provided a $150 million loan to Jamestown, which suggests that the move was perhaps more than a kind gesture, but also a play to complete the deal before the end of 2012, as imminent capital gains taxes loomed (the city record was filed on Friday, but shows the deed was finalized December 21).
Shortly after the City Council approved developer Jamestown Property‘s 300,000-square-foot expansion of the gourmet destination Chelsea Market last September, council speaker Christine Quinn ensured that 75 percent of the current ground floor retail space would stay devoted to food vendors.
Locals are wary. The council’s Land Use Committee almost simultaneously signed a legal agreement with vaguer specifications, DNAInfo reports today. That document protected just 60 percent of ground floor space as retail-oriented, with no reference to the allotment for food shops.
Ownership at the Chelsea Market is reportedly renovating 5,700 square feet of space to make way for eight new vendor kiosks, where cooking and food preparation will be on display for its 120,000 weekly visitors.
Most of the space was created when Amy’s Bread moved part of its operations off-site, and the rest will come from the renovation of a loading dock and an office, the New York Times reports.
Leases are currently being negotiated and rates will run in the $200 to $400 per square foot range, and the stores, to be delivered in plug-and-play condition and geared towards start-ups and “less-established” businesses, will be operational as soon as mid-February, said Michael Phillips, COO of Jamestown Properties, according to the Times.
CVS Pharmacy has leased a 14,274-square-foot retail condominium space below Alchemy Properties’ Griffin Court Condominium development at 454 West 54th Street, which was also sold to Heskel Group earlier this month, The Commercial Observer has learned.
The 25-year lease includes 9,000 square feet of street level frontage, set below the eight–story residential towers, where 95 condo units that hit the market in 2010 are roughly 85 percent occupied.
The property is located in the Hell’s Kitchen neighborhood, a first for CVS, and in close proximity to the theatre district.
It was a transaction literally a decade in the making. Earlier this year, a deal between Jamestown Properties and Andy Sung, proprietor of the Korean barbecue restaurant Gaonnuri, came to fruition on the top floor of 1250 Broadway.
Once an otherwise abandoned mechanical room under the ownership of SL Green
, the 39th floor space in a building near the edge of Manhattan’s Koreatown was widely coveted by not only Mr. Sung, but also other restaurateurs who saw the space as ideal for an eatery with a view. When Jamestown Properties acquired the building in a venture with Murray Hill Properties
, Mr. Sung reiterated his case for leasing the room, although as chief operating officer Michael Phillips insists, he didn’t have to work hard to convince anyone.
“We believe that creating the best sense of place and community is what drives tenant retention,” said Mr. Phillips. “There isn’t one size that fits all, and I think being able to make the most of the assets that you have is what makes for good real estate.”
After the jump, Mr. Phillips reviews the floor plans for 1250Broadway’s 39th floor with The Commercial Observer
and explained what drew Gaonnuri to the building.
Cushman & Wakefield has been tapped as the exclusive leasing agents for 1250 Broadway, a 773,887-square-foot, Class A office building that is jointly owned by Jamestown Properties and Murray Hill Properties, The Commercial Observer has learned.
A leasing team headed by Mitch Arkin, Peter Alden and Michael Blanchard will be joined by Courtney Adham and Lauren Hayes from Cushman & Wakefield’s Strategic Agency Services Group.
The Mortgage Observer has learned exclusively that Capital One Bank has provided a $60 million loan to Jamestown Properties to finance its recent acquisition of 325 Hudson Street, bought in April for $110 million from a joint venture of Young Woo & Associates and San Francisco’s Bristol Group.
Capital One Bank has grown steadily since it was founded by current chairman, CEO and president Richard Fairbank in 1993. Along the way it grew from a mono-line credit card company funded through the capital markets into a more diversified entity with commercial and consumer banking. It managed to make Visigoths funny and capitalize on Alec Baldwin’s Words With Friends meltdown, while simultaneously deepening its reach into lines of business like commercial real estate.
The bank as a whole had $294.5 billion in loans outstanding and $216.5 billion in deposits as of March 31, 2012, according to its first quarter 2012 results. The commercial and multifamily real estate portion of this increased when comparing year-end results recently as well—rising to $15.4 billion for the period ended Dec. 31, 2011 from $13.4 billion the previous year.