Lease Beat

Children’s Aid Society Signs 29K-SF Sublease With Condé Nast

711 Third Avenue (Photo: CoStar).

Nonprofit Children’s Aid Society has signed a 29,240-square-foot deal with sublandlord Condé Nast at office building 711 Third Avenue, Commercial Observer has learned.

“The Children’s Aid Society sought new headquarters space following the sale of its long-term home at the United Charities Building on Charity Row in Manhattan,” said JLL‘s Ellen Herman in prepared remarks. “The nonprofit was able to achieve exceptional value from the sale of the property and is relocating to newer space at 711 Third Avenue. The transaction puts the organization one block away from Grand Central Terminal and down the street from another of its locations.” Read More

Midtown East Rezoning

Planning Commission Approves 1 Vanderbilt Application

A rendering of 1 Vanderbilt (image: Kohn Pedersen Fox Associates).

The City Planning Commission today unanimously approved the 1 Vanderbilt application for SL Green Realty Corp.’s proposed 64-story office tower and the rezoning of the Vanderbilt corridor in Midtown. This brings the high-profile property, which is setting out to reinvigorate the Grand Central Terminal area, one step closer to life.

The vote, which reportedly went fairly swiftly, was an opportunity for commissioners to stress this is the type of development that should be materializing in Midtown. Read More

Feature

Market Share: With Companies Looking to Cut Costs, Office Shares Are All the Rage

One of the shared space companies taking NYC is PivotDesk.

The powers that be in New York City have done a great job of attracting startups—keeping them, however, is another issue.

But an up-close view of the Empire State Building is increasingly becoming a viable option for young businesses. Why? Co-working companies—which offer cut-rate office space so long as tenants are willing to share—are rushing into the Midtown South market, and beyond. Read More

Lease Beat

Swatch Signs Lease for Balance of 1515 Broadway Retail Space

1515 Broadway.

Swatch last Friday signed a 15-year lease for 2,113 square feet in SL Green Realty Corp. and SITQ’s 1515 Broadway with an asking rent of $2,400 per square foot, said Jeffrey Roseman at Newmark Grubb Knight Frank, who acted on behalf of the owners in the deal. Marc Leber of NGKF also worked on the transaction.

The multinational watch and jewelry company joins footwear company Skechers USA in the ground-floor space. In December, Skechers signed a 10-year lease with a five-year option for approximately 3,700 square feet, according to a press release from SL Green and Mr. Roseman. Read More

Lease Beat

Bloomberg LP Inks Deal for 150K SF in Midtown

919 Third Avenue.

Bloomberg LP has signed a lease for 150,000 square feet at 919 Third Avenue between East 55th and East 56th Streets, close to its Lexington Avenue headquarters.

The company, founded by former New York City Mayor Michael Bloomberg in 1981, is paying rents in the mid-$50s per square foot, according to Crain’s New York Business, which reported the deal. Bloomberg LP declined to comment.  Read More

Lease Beat

Asset Manager Expands to 26K SF at 1350 Avenue of the Americas

1350 Avenue of the Americas.

A global alternative asset manager focused on event-driven investment opportunities has signed an early renewal and expansion at 1350 Avenue of the Americas, a source with intimate knowledge of the deal told Commercial Observer.

P. Schoenfeld Asset Management occupies 20,000 square feet on the 20th and 21st floors at SL Green Realty Corp.‘s building between West 54th and West 55th Streets, and signed a 10-year lease to grow its space to 25,854 square feet amassing those two floors in their entirety, the source said. Read More

Lease Beat

Biz Finance Lender Subleases 16K SF From DeVry in Midtown

120 West 45th Street (SL Green Realty Corp.'s website).

A business finance lender specializing in small businesses has sealed a deal to sublease nearly 16,000 square feet at a Midtown tower from DeVry University, a source with intimate knowledge of the deal told Commercial Observer.

Strategic Funding Source will move into 15,667 square feet on the entire second floor and a part of the sixth floor through a seven-year sublease at SL Green Realty Corp.‘s 120 West 45th Street, also called Tower 45, into space DeVry was using for classrooms and offices, the source said. The asking rent in the building, which is between Avenue of the Americas and Seventh Avenue, is $70 per square foot. Read More

Lease Beat

Crystal Designer Swarovski Takes 18,000 SF in Midtown East

10 East 53rd Street.

Austrian crystal maker Swarovski signed an 11-year-deal for 17,850 square feet at SL Greene Realty Corp.‘s 10 East 53rd Street, according to a press release from SL Greene. The lease is for the entire 26th and 27th floors of the 37-story tower between Fifth and Madison Avenues, according to the landlord. The 354,046-square-foot-building is currently undergoing a $64 million renovation.

Mark Mandell of Cushman & Wakefield represented Swarovski in the transaction, while JLL‘s Paul Glickman, Cynthia Wasserberger, Alexander Chudnoff, Frank Doyle, Mitti Liebersohn and Benjamin Bass represented the landlord. Representatives from Cushman & Wakefield and JLL were not immediately available for comment. Read More

Zoning

SL Green Gets OK to Build Atop Soho Structure

102 Greene Street

SL Green Realty Corp. received approval last week from the City Planning Commission to add two additional floors to the mixed-use building at 102 Greene Street in Soho. Under the approved plans, the developer would add residential space to the three-story building. The plans also call for a change in the designation for parts of the existing floors from Joint Living Work Quarters for Artists to residential.

The City Council has 20 days to act on the plan after it receives the planning commission’s report. Should the council take no action in that time, the commission’s action is final, according to a spokesperson for the planning commission. Read More

Lease Beat

Lowe’s Signs Deal for Chelsea Flagship

635-641 Avenue of the Americas

Lowe’s Home Improvement has signed a 15-year lease for a Chelsea flagship store comprised of 36,000 square feet on multi-levels at 635-641 Avenue of the Americas, SL Green Realty Corp. announced this week.

Commercial Observer reported in June that the home improvement and hardware chain was searching for locations around New York City, including at 635-641 Avenue of the Americas between West 19th and West 20th Streets, for an urban concept.  Read More

Lease Beat

SL Green Signs Equinox in Plaza District

10 East 53rd Street

Upscale fitness club Equinox Fitness will open a new four-level center in 2016 at SL Green Realty Corp.’s 10 East 53rd Street in the Plaza District, the landlord announced earlier this week.

The full-service fitness club, which operates 73 centers in major U.S. markets, London and Toronto, signed a 25-year, 32,000-square-foot lease, officials with SL Green said. Read More

Lease Beat

Two Finance Firms Nab Space in West Midtown [Updated]

810 Seventh Avenue.

Brightwood Capital Advisors and DH Capital LLC and DH Capital Securities together have taken 26,080 square feet at 810 Seventh Avenue between West 52nd and West 53rd Streets.

As first reported by The New York Post, Brightwood Capital Advisors took 17,320 square feet and DH Capital LLC and DH Capital Securities took 8,760 square feet. Brightwood’s lease is for 10-plus years and spans the entire 26th floor, according to a release from SL Green Realty Corp., the building’s owner. DH Capital’s lease is for seven-plus years and occupies a portion of the 20th floor.  Read More

The Plan

The Plan: 635-641 Avenue of the Americas

635-641 Avenue of the Americas

SL Green Realty Corp. is nearing completion of its 12-month, $15 million renovation and recombining of what used to be two separate buildings at 635-641 Avenue of the Americas between West 19th and West 20th Streets, Steven Durels, the company’s director of leasing and real property, told Commercial Observer. The company owns two of the three buildings that used to comprise one department store in the Ladies Mile Historic District after architect William Hume completed it in 1902. And shortly after purchasing the two buildings for $173 million in 2012, SL Green set about turning the building at 635 Avenue of the Americas, which had become an auto mechanic instruction school, into the second half of a repositioned office property. “When we bought the building, it was apparent to us that there was the opportunity to create something special,” Mr. Durels said. The building at 641 was already a complete office building. Read More

Midtown East Rezoning

Argent, SL Green Trade Barbs Over Grand Central Air Rights

Click to enlarge: rendering of 1 Vanderbilt public improvements. (Kohn Pedersen Fox Associates)

The dispute over Midtown East rezoning between Grand Central Terminal landlord Argent Ventures and 1 Vanderbilt developer SL Green Realty Corp. spilled over into the panel circuit this morning at the annual September conference of the Appraisal Institute.

Shortly after SL Green managing director Robert Schiffer detailed roughly $210 million in infrastructure improvements for the 1.6-million-square foot tower slated for Vanderbilt Avenue and East 42nd Street–upgrades like new stairways to the terminal and an enclosed public space, in addition to building setbacks on the 65-story tower allowing new open viewing lines for the terminal–Argent director of development Eric Anderson reiterated the company’s opposition to potential city bonuses giving SL Green the right to construct the new tower without buying any of Argent’s 1.3 million square feet of transferable development rights at Grand Central. Read More