Controversies

Attorney General Reviewing Helmsley Estate Sale

Leona

The New York State Attorney General’s office is reportedly reviewing the Leona M. Helmsley estate’s liquidation of its stake in the properties launched as part of the Empire State Realty Trust REIT last month, which includes the Empire State Building.

The process will begin once the Helmsley estate files a final accounting of the sale Read More

Lease Beat

Law Firm Expands at W&H Properties’ 1350 Broadway

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Tarter Krinsky & Drogin LLP has signed an expansion at W&H Properties1350 Broadway, the landlord announced last week. The law firm, which moved to the building in 2007, increased its presence by 35 percent and will now occupy a total of 37,609 square feet across three floors.

“Tarter Krinsky & Drogin has been a tenant at 1350 Broadway during a period in which we have transformed the property in a $53-million, top-to-bottom upgrade program,” said Anthony Malkin, president of Malkin Holdings, which oversees the W&H portfolio, in a prepared statement. “This expansion demonstrates that we’ve delivered on our promises and ensured the highest levels of tenant satisfaction.” Read More

Lease Beat

Law Firm Signs Lease at One Grand Central Place

1 Grand Central Place

Law firm Hafetz Necheles & Rocco has signed a 10.5-year, 12,720-square-foot lease for the entire 36th floor at Malkin HoldingsOne Grand Central Place. Asking rent for the tower floor space was $59 per square foot.

“It’s a great location and very convenient, with in-building access to Grand Central Terminal,” Tom Durels, executive vice president at Malkin Holdings, told The Commercial Observer. Read More

Empire State Building

New Bid Could Complicate Empire State Building REIT

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(Update appended)

Malkin Holdings has received an unsolicited $710 million offer for One Grand Central Place—another surprise twist that could stifle plans to make the Empire State Building past of a real estate investment trust.

The 1.3-million-square-foot, 55-story building at 60 East 42nd Street is the second largest building in the proposed Empire State Realty Trust and follows a string of previous unsolicited offers made on the Empire State Building itself.

“All these offers make it difficult for the Malkins not to take them into consideration,” said Jason Meister, a vice president at Avison Young who is representing both Joe Sitt and Rubin Schron in two separate bids for the Empire State Building. “It’s a very compelling offer because its value is above what they’re offering it at in the IPO.” Read More

Lease Beat

Urban Outfitters Finalizes Mammoth Deal for “Lifestyle Center” at 1333 Broadway

1333 Broadway

Urban Outfitters officially expanded its empire of mass hipster apparel stores–and transitioned into the so-called “lifestyle center” business–when it finalized a lease at Malkin Holdings1333 Broadway.

The 15-year lease was for 56,730 square feet spread over three floors. Exactly what the lifestyle portion of this location will be remains unclear. But the space is twice as big as the typical large Urban Outfitters store, and reports from some real estate executives hint at “features never before seen from the brand” at the Herald Square outpost.

The blended asking rent was $6.5 million per year. Andrew Goldberg and Matt Chmielecki of CBRE represented the landlord. Stephen Plourde and Keith Fencl of McDevitt Co. repped the tenant. Read More

The Plan

Check Out Prebuilts and PIOs at W&H Properties’ 250 West 57th Street

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W&H Properties, a subsidiary of Malkin Holdings, has instituted two leasing programs at the repositioned 250 West 57th Street, whose operator has updated the lobby, added new elevator cabs, and renovated the public corridors, bathrooms and building systems.

The first offering is a prebuilt program, which Delta Dental has taken advantage of on the building’s sixth floor in a 2,348-square-foot space. The other is the PIO, or prepared for immediate occupancy program, which law firm Weinman Schnee Morais has opted for in a 1,862-square-foot suite on the 22nd floor.

Fred Posniak, senior vice president of Malkin Properties, spoke to The Commercial Observer about both leasing programs and spaces, offering details on the differences between them and how they appeal to individual tenants. Read More

Postings

Power 100 Heat Map

CO POSTINGS 4-30

From a Taconic Investment Partners project in Hunts Point to the World Trade Center site in Lower Manhattan, power in New York real estate circles has increasingly expanded from the comfortable confines of Midtown Manhattan to the fringes of all five boroughs. While large developments such as the Related Company’s Hudson Yards often dominate the conversation, Brooklyn, Queens and even the Bronx continue to grow in stature.

Long Island City is fast becoming a focal point for the real estate industry as Rockrose and other residential developers tap into the growing Queens neighborhood. In the Bronx, Taconic Investment Partners, formerly the owners of 111 Eighth Avenue, is in the process of a significant capital improvement plan at the BankNote Building on Lafayette Avenue in Hunt’s Point.

Below, a sampling of where power thrives in New York City in 2013. Read More

Lease Beat

AT&T Wireless to Open “World Store” at 250 West 57th Street

250west57

AT&T Wireless has signed a 10-year lease for 3,797 square feet on the ground floor of W&H Properties250 West 57th Street. The space has been earmarked for the wireless telecommunications company’s “World Store.” Starting rent for the lease is $350 per square foot.

“There aren’t very many boxes like this, it’s a terrific configuration for [AT&T Wireless],” Anthony Malkin, president of Malkin Holdings LLC, which supervises W&H Properties, told The Commercial Observer. Read More

Lease Beat

Interpublic Group Signs Lease at 1400 Broadway

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The Interpublic Group of Companies (IPG) has signed a lease for 87,000 square feet at 1400 Broadway, a spokesperson confirmed with The Commercial Observer. Three New York-based subsidiaries of the advertising conglomerate will relocate to 1400 Broadway by the end of the year from their current offices in Flatiron and Soho.

IPG, considered a “big four” advertising agency, is headquartered at 1114 Avenue of the Americas and also operates a U.S. regional office in Omaha, Neb.

The building at 1400 Broadway is owned by Malkin Holdings via W&H Properties. Currently, the building boasts 10,627 square feet of available space on the 10th floor, available immediately, according to the W&H Properties’ website. Read More

Cover Story

Midtown Madness: Leasing Still Sluggish in Manhattan’s Priciest Market

TO GO WITH AFP STORY: US-economy-propert

Midtown Manhattan, the biggest and most expensive U.S. office market, is still adapting to New York’s post-financial-crisis economy, as technology and new media companies flood into the more affordable areas and banks remain wary of expanding in higher-priced real estate.

With construction getting under way on millions of square feet of planned Class A offices on the West Side, much of the leasing action for the year to date has centered on neighborhoods like Murray Hill, the Penn Station area and the Garment District, which are attracting companies that have been priced—or crowded—out of the technology hub in Midtown South, brokers said. Financial companies, traditionally the biggest occupiers of Midtown real estate, remained conservative, pursuing greater efficiency in their use of real estate rather than growth.

“The days of bigger is better are gone,” said Eric Thomas, senior vice president of Cresa, a specialist in tenant representation. “Capital preservation is still key. That’s why renewals still reign in many cases.” Read More

REIT Beat

Malkins Reportedly Gain Broad Support for Empire State Building IPO

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The owners of the Empire State Building are reportedly edging closer to obtaining the number of shareholder approvals needed to support the once-controversial $1 billion launch of a public REIT that would include the storied building as an asset.

Owners Peter Malkin and Anthony Malkin of Malkin Holdings wrote in a letter to shareholders that, of those who have voted, 90 percent of the tower’s unit-holders have approved the plan; as well as 95 percent at 1 Grand Central Place; and 97 percent at 250 West 57th Street, Bloomberg reported.

“This remarkable level of participation in such a short period has exceeded our hopes,” the Malkins said in the letter, according to Bloomberg. “We encourage the very small percentage of participants who have voted against any proposal to consider now changing their votes to be for all the proposals.” Read More