World Trade Center

Port Authority Debates 3 World Trade Center Subsidies

A rendering of 3 World Trade Center

Members of the board of the Port Authority of New York and New Jersey are at odds over whether to double the amount of subsidies available for Silverstein Properties3 World Trade Center to $1.2 billion, according to The New York Times.

Scott Rechler, the vice chairman of the Port Authority and chief executive of RXR Realty, is spearheading the proposal, arguing that construction of the tower would mark the completion of the new World Trade Center site. Read More

Lease Beat

Bevmax Office Centers Signs Lease at 485 Madison


Office space provider Bevmax Office Centers has signed a 10-year, 15,736-square-foot lease at Jack Resnick & Sons485 Madison Avenue.

“The Resnick organization is one of the premier landlords and has a reputation for running extraordinarily well-managed and premier properties,” Rick Feld, the president of Bevmax, told Commercial Observer. “Not every landlord in New York meets that standard.” Read More

Mortgage Observer

HFF’s New York Office Still in Growth Mode as Michael Tepedino Begins His Seventh Year at the Helm

Mike Tepedino (Photo by Michael Nagle)

When HFF’s New York office negotiated its first major deal in 1998, Michael Tepedino, a recently hired broker at the time, and his colleagues called on Cigna, an “old-line relationship” that one of them knew on the life insurance side of the business.

The borrower, SL Green Realty Corp., was by no means desperate to find a lender. Read More

Lease Beat

Office of Comptroller of the Currency Stays at 340 Madison Avenue

Courtesy of Media Bistro

The Office of Comptroller of the Currency will be renewing its lease in Midtown.

The OOC will continue to operate out of its massive 110,000-square-foot space at the RXR Realty-owned 340 Madison Avenue for another 10 years. In-house director of leasing William Elder represented the landlord and Ken Rudeman of Studley represented the tenant. Neither party returned call for comment. Read More


Legal Wrangling Over Worldwide Plaza Deal Set to Continue

One Worldwide Plaza

RXR Realty’s legal representation plans to pursue its lawsuit against American Realty Capital and George Comfort & Sons over the sale of Worldwide Plaza, Stephen Meister, attorney for RXR, told The Commercial Observer.

The lawsuit, filed last month, alleges RXR had reached an agreement to buy the 48.9 percent stake in the 59-story, 1.8-million-square-foot tower with American Realty Capital as an investment partner, which included the right to purchase the entire property for a combined $1.35 billion. Read More

Sales Beat

American Realty Capital NYRR Takes Equity Interest in One Worldwide Plaza

One Worldwide Plaza

Continuing its prolific buying spree in New York, American Realty Capital New York Recovery has acquired a 48.9 percent equity interest in One Worldwide Plaza for $220.05 million, the real estate investment trust announced today.

“We are pleased to have acquired another high-quality asset and look forward to an important partnership with George Comfort & Sons, Inc., RCG Longview, and DRA Advisors LLC,” Michael Happel, chief investment officer for NYRR, said in a prepared statement. “Worldwide Plaza is located in the Midtown Manhattan office sub-market and features large credit tenants as well as potential additional leasing opportunities.   This acquisition increased our portfolio value to over $2.1 billion, including other recently announced acquisitions.” Read More

The Sit-Down

The Company Man: Seth Pinsky Reflects on EDC and Looks Ahead at RXR


In July, Seth Pinsky, then the president of the New York City Economic Development Corporation, announced he would soon shift from the public sector to the private sector. In his decade-long stint at the EDC, Mr. Pinsky boosted his reputation citywide by helping to secure a number of high-profile development projects, including Atlantic Yards, Hudson Yards and the Cornell Tech campus, and by initiating the response to areas of the city hit hardest by Hurricane Sandy. In his next chapter, Mr. Pinsky will spearhead RXR Realty’s Emerging Markets platform, which aims to identify growth opportunities in New York City and the surrounding metropolitan area. Mr. Pinsky, who joined RXR last month as executive vice president, spoke with The Commercial Observer last week at the developer’s Midtown offices and spent time discussing his tenure at the EDC and his new role. Read More


Pinsky to Spearhead RXR’s Emerging Market Strategy

RXR Realty has hired Seth Pinsky, president of the New York City Economic Development Corporation, as executive vice president and investment manager of the firm’s new Metropolitan Emerging Market Strategy, it was announced today.

“[Seth] has a very, very in-depth understanding of economic development in the New York Tri-State area,” Scott Rechler, chief executive officer at RXR, told The Commercial Observer. Read More

Lease Beat

Sportswear Label Under Armour Headed to Surging Starrett-Lehigh Building

The Starrett-Lehigh Building

Under Armour, maker of form-fitting sportswear, will squeeze into a new space after inking a 19,000-square-foot deal in the Starrett-Lehigh Building at 601 West 26th Street, an address primed to profit from the sizzling Midtown South market and massive Hudson Yards development.

The 10-year lease will bring the tenant to part of the 15th floor of the 20-story building occupying the entire block between 26th and 27th Streets and 11th and 12th Avenues. It’s Under Armour’s first NYC space. Read More

Lease Beat

Mediaocean Relocating to RXR Property


Mediaocean, a developer and provider of advertising software, is relocating to RXR Realty’s 620 Avenue of the Americas after signing a 14-year, 88,387-square-foot lease for a portion of the property’s sixth floor. Asking rent was in the low-$60s.

The tenant, which has 80,000 users and processes $130 billion annually, is relocating from 115 West 18th Street. Mediaocean, headquartered in New York, also operates offices in Atlanta, Chicago, New Jersey, Los Angeles and Louisville in the United States. International locations include Toronto, Paris and London. Read More

Sales Beat

Lehman to Sell Stake in 425 Park Avenue


Lehman Brothers Holdings Inc. is aiming to sell its 90 percent stake in 425 Park Avenue, a source familiar with the matter confirmed with The Commercial Observer. Eastdil Secured is marketing the property, according to the source.

A publicly available spreadsheet of Lehman’s commercial real estate holdings lists a building with a description similar to 425 Park Avenue: “Sandwich ground lease in an existing Class B building in New York City that is slated for demolition and redevelopment into a new office tower beginning 2015.” The list of holdings identifies Adam Spies of Easdtil Secured as the broker for the property. The source familiar confirmed Spies as the broker for 425 Park Avenue, but the listing could not be immediately verified.

The Wall Street Journal first reported the story earlier today. The Midtown East building is set to be demolished and replaced with a new office tower designed by Foster + Partners. Read More