Real Estate and Politics
Upgrading NYC, Wired City
With the Terrorism Risk Insurance Act now one week expired and still on the table, many in the real estate business say the financial impacts pose a growing threat to future commercial activity and the U.S. economy as a whole.
Even as the House moves toward a vote to reauthorize the federal program through Congress’ fast-track process, possibly today, the uncertainty of the law’s future has fueled anxiety in several fields tied to real estate. Among the potential setbacks are higher insurance costs and heavily reduced terrorism coverage, lost jobs, stalled real estate deals, widespread defaults and less available credit going forward, property owners and industry watchdogs told Commercial Observer.
“Upgrading NYC” is a new series sponsored by AT&T in which we interview owners of and tenants in Manhattan commercial buildings that have recently upgraded their wireless connectivity. First up is Rudin Management’s 32 Avenue of the Americas, which has just entered into a 20-year lease with data center provider Telx.
In 1999, Rudin Management purchased 32 Avenue of the Americas, formerly a critical telephone hub for AT&T that in 1956 had linked European and North American phone lines for the first time through wire. With the intention of continuing its legacy as a telecommunications center, Rudin hired the architecture firm FXFOWLE to redesign the 1.1-million-square-foot property’s interior to host new wireless technology.
The landlord spent about $100 million and 18 months on interior construction, said John Gilbert, the chief operating officer of Rudin Management. It also gained Landmarks Preservation Commission approval to install two radio towers atop the landmarked building, which was designed by architect Paul Walker.
Advertising technology firm The Trade Desk has signed a long-term lease for a relocation to the entire 13,121-square-foot 17th floor at William Macklowe Company’s 386 Park Avenue South.
The company expects to relocate from its current 12 West 27th Street offices to its new Manhattan headquarters at the 260,000-square-foot Class A building this fall.
Blackstone has reportedly renewed and expanded its lease at Rudin Management’s 345 Park Avenue for a combined 489,495 square feet.
Manhattan-based full-service real estate investment services firm Eastern Consolidated is augmenting its team and has taken an additional 4,000 square feet at 355 Lexington Avenue to accommodate the growth, Commercial Observer has learned.
The new offices in the 22-story Rudin Management building will be on the fifth floor and will house 30 brokers and support staff. The company’s current digs span 15,000 square feet on the 11th floor in the building, between 40th and 41st Streets. The new offices are in move-in ready condition and Eastern Consolidated will occupy the new space next month. Both leases expire in three years.
Post-Tropical Storm Sandy
Bill Rudin sits at the helm of one of the largest privately owned real estate companies in the city. Like much of the Real Estate Board of New York community, in addition to his firm’s undertakings, he often puts at the top of his agenda initiatives that might not always show immediate results but which are essential for the future success of the city. Mr. Rudin, a REBNY vice chairperson, spoke to The Commercial Observer about his current projects, REBNY, major real estate happenings over the last year and what needs to be done to keep New York City competitive. Read More
Masters of Real Estate
More than one year after Hurricane Sandy, the amazing recovery from the storm and rebirth of Downtown has some people viewing its touchdown in New York City almost as a blessing in disguise.
Perhaps no one more than Adam Goldberg, director of New York Operations at AquaFence, who moved into his current role at the Read More
The Commercial Observer will host its annual Masters of Real Estate conference on October 16 at The Metropolitan Club, located at 1 East 60th Street. Beginning at 8am, the event will feature three panel discussions on the State of New York City Real Estate, the State of Opportunistic Investments and the State of the Capital Markets.
Tech and the City
Mayor Michael Bloomberg has announced two new tech initiatives to expand the city’s access to wireless and broadband connectivity, one of which encourages the deployment of leading broadband technologies across its commercial real estate buildings.
The Wireless Corridor Challenge will establish free public WiFi corridors in each of the five boroughs, while WiredNYC, described as LEED Read More
The Downtown Alliance has announced LaunchLM, a city-backed initiative aimed at bringing together tech innovators below Chambers Street.
Mayor Michael Bloomberg introduced the endeavor, which will be advised by a group of leaders including Rudin Management’s Bill Rudin, during a speech last week on New York City’s post-9/11 renewal.
“This new initiative will advance the tech community in Read More
Samantha Rudin, a member of The Drama League Theater Center‘s board, helped the 98-year-old arts organization find a new home and stage.
The Drama League inked a 5-year, 4,000-square-foot deal at the Rudin family’s 32 Avenue of the Americas in Tribeca. The space will be a combination of offices and a “black box” theater.
Alexander Chudnoff, a commercial leasing broker who takes pride in strengthening relationships with clients through “impeccable service,” was especially busy in the aftermath of Hurricane Sandy.
The Jones Lang LaSalle executive managing director was dividing his time last week between volunteer efforts in the Rockaways, where he provided hot pizza and coffee to storm victims, and getting on the phone to make sure his Downtown Manhattan clients could stay open. Though it was a difficult time, the activity of making connections was just what attracted Mr. Chudnoff to the business in the first place.
“I love to make calls. I love to canvass,” he said. “I like to develop the relationship.”
In some cases, the storm required short-term arrangements, such as lining up space with other clients or in Jones Lang’s own offices, he said. In others, clients were able to proceed with minimal disruption, as when Dentsu Holdings USA returned to work at 32 Avenue of the Americas when Rudin Management opened the building the Monday after the storm.
Featuring an all-star line up of the city’s most formidable real estate professionals, this year’s annual Masters of Real Estate fetched a record 450 RSVPs, The Commercial Observer has learned.
Observer Media Group executives began preparing for the event, now in its third year, six months in advance with an eye toward creating an eclectic mix of speakers. Larry Silverstein of Silverstein Properties, Michael Fascitelli of Vornado, William Rudin of Rudin Management, Jeff Blau of Related Companies and Glenn Rufrano of Cushman & Wakefield are all scheduled to appear. Rob Speyer of Tishman Speyer bowed out.
Jared Kushner, the owner of The Commercial Observer and president of Kushner Companies, will lead the event with remarks.
An improved transportation hub at South Ferry and the overhaul of Battery Park have yet to translate into gains for the Financial West office market.
The area west of Broadway and South Street and south of Albany and Liberty Streets had the lowest average rent and highest vacancy rate among downtown submarkets in the third quarter, according to Cushman & Wakefield.
From Washington Heights to Lower Manhattan, nearly every neighborhood includes at least a little office space.
And while it can be difficult to discern on the ground, most neighborhoods and ZIP codes have a single, predominant landlord who rules the roost.
To determine who controls each of the borough’s nearly 50 ZIP codes, we combed the portfolios of Manhattan’s 20 largest owners and drafted a turf map of sorts. In cases where none of the 20 largest landlords owned office property, such as in the Lower East Side and parts of the West Village, no victor is listed.
Gathered from each company’s official website and media liaisons, as well as the United States Postal Service, the data after the jump includes ZIP codes for single buildings as well, numbered in inset maps.