Bank of America, Morgan Stanley, Goldman Sachs Mortgage Company and The Bank of Nova Scotia are providing a $1.25 billion mortgage to Toronto-based Hudson’s Bay Company to refinance the ground below its Saks Fifth Avenue building at 611 Fifth Avenue, according to a release from the borrower.
The lenders appraised the landmark building at about $3.7 billion, based on the assumption that the entire property is net leased at an estimated fair-market rent by the luxury retailer. HBC acquired the Saks retail chain, including its 650,000-square-foot flagship store in Midtown, last year for $2.9 billion.
Saks Fifth Avenue is planning two locations in Lower Manhattan, The Wall Street Journal reported. The expansion would include a department store and Saks Off Fifth outlet, along with a potential 400,000 square-foot office space for the department store’s parent company, Hudson’s Bay Co.
The possible site of the department store is Brookfield Place, while the outlet and office-space headquarters may be located at Brookfield’s One Liberty Plaza building, according to the Journal.
The Department of Motor Vehicles is trading Herald Square for 21 Penn Plaza, where the government agency will receive a complete build out—featuring a separate entrance and lobby–from landlord the Feil Organization.
The DMV has signed a 10-year lease for 27,500 square feet at the building. The deal includes the entire second floor and a 1,385-square-foot street-level space.
Average asking rent for the Fifth Avenue retail corridor has crossed over $3,000 per square foot, the highest in New York City, according to CBRE’s second quarter Manhattan retail report. The increase represents the first time a Manhattan retail corridor has registered average asking rent north of $3,000.
“There was a time when $600 per square foot was considered outrageous on Fifth Avenue,” Richard Hodos, executive vice president of the CBRE Retail Group, told The Commercial Observer. “Putting inflation aside, it speaks to the fact that New York is a world class city.”
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.
Vornado Realty Trust has reportedly taken control of the ground lease at the landmarked 11-story Swiss Center at 608 Fifth Avenue, where the REIT is marketing 44,440 square feet of retail space across four of its floors.
Vornado took over RFR Realty’s mortgage on the property last March with an $8.5 million payment that RFR owed to another lender and signed the ground lease on the property with the family of the late Sarah Korein, which owns the land under the building, according to the New York Post.
New York City. Land of opportunity. Safe haven for foreign investors. And home of the multi-million dollar parking garage — thanks to the highest parking rates in the country.
The latest parking lot to sell this month was scooped up by Imperial Parking Systems Inc. at 304 West 49th Street for $14 million, city records show.
The sale highlights the continued viability and high profitability of running and operating parking garages in the city, which the latest data shows is still the most expensive place to park.
A parking rate survey by Colliers International for 2012 comparing parking rates in locations throughout the United States shows New York City still has the highest rates by far after taking the crown during the previous year.
RECon: Las Vegas
Brokerage firms Cushman & Wakefield and Colliers International are said to be testing out a new technology that tracks the amount of foot traffic and automobile traffic around their buildings.
The technology, Motionloft, is backed by eccentric NBA owner and billionaire Mark Cuban and employs sensors to track the number of people entering a building, as was first reported by The Real Deal.
The San Francisco-based company has reportedly already put sensors along Broadway while also planning to add ones in Times Square and “another Midtown location.”
Jeffrey Roseman is an executive vice president and principal of Newmark Grubb Knight Frank’s retail business and is a top retail leasing executive in the city. Mr. Roseman, who has handled a number of prominent leases over his long career, spoke to The Commercial Observer about how ICSC remains important for top-tier dealmakers, how retail isn’t going away despite the growth of e-commerce and what recent departures from Newmark means both to him and as part an industrywide shake-up in brokerage. As usual, Mr. Roseman will be heading into ICSC with several interesting space availabilities he is marketing.
On an unseasonably warm winter afternoon, The Commercial Observer zoomed up Madison Avenue, packed into the back of a cab with members of a Cushman & Wakefield retail team that has been closing its fair share of the avenue’s luxury retail leases at a blistering pace.
Ted Baker, the high-end clothing retailer, will open a flagship store at 595 Fifth Avenue, it was announced today.
The U.K.-based company signed a long-term net lease for 12,000 square feet at the corner of 48th Street and Fifth Avenue, just down from retail icon Saks Fifth Avenue. Ted Baker will use three of the five floors of the building, which they will rent in its entirety, for retail, while the balance are for office and showroom uses. Just a block from high-profile tenants Michael Kors and LaCoste, the space could command up to $2000 per square foot, sources not affiliated with the deal speculated.