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

Lease Beat

Leases Signed at 110 East 42nd for Full Occupancy

110 East 42nd Street.

Four leases totaling 48,482 square feet have been signed at 110 East 42nd Street between Park and Lexington Avenues, according to a release issued by the building’s landlord, SL Green Realty Corp. The building is now 100 percent occupied.

Asking rent for the spaces was $55 per square foot, according to Gary Rosen, senior managing director at SL Green, who represented building ownership in the transactions along with Howard Tenenbaum. Read More

Midtown East Rezoning

City Officials, SL Green Respond to Grand Central Landlord

Vanderbilt Corridor

A week after a contentious Department of City Planning hearing on the Vanderbilt Corridor proposal to rezone five blocks in Midtown East, City Planning officials and attorneys for SL Green Realty Corp. doubled down on their view that the proposal won’t block Grand Central Terminal landlord Argent Ventures from selling the historic property’s unused air rights.

With Argent and preservation advocates raising tough questions about whether a go-ahead to build the One Vanderbilt office tower adjacent to Grand Central without buying any transferable development rights from Argent would hinder needed aid to a city landmark, SL Green lawyers and city officials responded with a full-throated defense of the plan. Read More

Sales Beat

SL Green to Sell Three Manhattan Assets

180 Broadway. (PropertyShark)

SL Green Realty Corp. has agreed to sell three of its Manhattan assets, the real estate investment trust announced today. The deals, for 2 Herald Square, 180 Broadway and 985-987 Third Avenue, will generate net cash proceeds of $240 million, according to a press release.

The REIT will sell the leased fee interest in 2 Herald Square for $365 million. SL Green acquired the interest in joint partnership in 2007 before consolidating its position in 2010, the landlord said. Read More

Midtown East Rezoning

One Vanderbilt Gets Advisory Nod from LPC

One Vanderbilt

The city’s Landmarks Preservation Commission lent their advisory support to the design of SL Green Realty Corp.’s potential 1,350-foot One Vanderbilt tower during a public hearing yesterday on whether the company’s schemes will form a harmonious addition to the site adjacent to Grand Central Terminal.

After a presentation on the building’s look, its planned public space and the company’s vision of how the glass base of the building would fit into the historic area, officials with the city agency who examined the company’s schemes as part of a 2010 Bowery Savings Bank building development rights purchase by SL Green gave their backing to the proposed Kohn Pedersen Fox Associates skyscraper as a welcome addition to the landscape. Read More

Lease Beat

First Nationwide Expands in Midtown East

220 East 42nd Street

Commercial real estate insurance company First Nationwide Title Agency will double its space to 6,465 square feet by the end of the year at SL Green Realty Corp.’s 220 East 42nd Street in Midtown East, SL Green announced yesterday.

The build-out on the 31st floor of the 37-story News Building for the company that has expanded from 12 staff members to 34 since its founding in August 2012 will be coupled with an expansion in the firm’s Uniondale office in Nassau County, said the firm’s CEO, Steve Napolitano. Read More

Mortgage Observer

CREFC: It’s a Borrower’s Market!

CREFC Conference 2014.

It was a lenders party, technically, though borrowers may have more reason to celebrate.

This year’s CRE Finance Council powwow at the New York Marriott Marquis hotel in Times Square drew an audience of about 1,200—mostly members of lending institutions ranging from large banks, life insurance companies and CMBS shops to alternative lenders, private equity firms and the GSEs. Read More

Sales Beat

Purchase of Thor Equities’ 530 Bway Closes at $326M [Updated]

530 Broadway

A joint venture led by Jeff Sutton’s Wharton Properties has nabbed a three-building site at 530 Broadway from Joseph Sitt‘s Thor Equities for $326 million. The sale closed on March 6 and appeared in public records today.

The retail mogul bought the 11-story property to extend his dominance in Soho. It hit the market in February 2013 and Mr. Sitt agreed to sell it to the new owners that September.  Read More

Sales Beat

SL Green Acquires Ivanhoe Cambridge Stake in Citigroup Headquarters

388-390 Greenwich Street.

SL Green Realty Corp. has agreed to acquire Ivanhoe Cambridge’s stake in the Citigroup headquarters at 388-390 Greenwich Street and will assume full ownership of the building, the real estate investment trust announced today. 

The REIT will pay approximately $783 million for a 49.4 percent stake in the 2.6 million-square-foot property, according to Commercial Real Estate Direct. The transaction values the consolidated investment at $1.585 billion.  Read More

MO's Top 50

Jonathan Pollack Takes Top Spot On This Year’s 50 Most Important People in CREF

Jonathan Pollack

Deutsche Bank’s CMBS guru and real estate financing head honcho, Jonathan Pollack, took the No. 1 spot on this year’s 50 Most Important People list due to several colossal deals and his team’s top ranking in the global and U.S. securitized debt markets.

While the German global banking and financial services company reported an unexpected overall loss of 965 million euros, or $1.3 billion, for the fourth quarter of 2013, its real estate debt operations have continued to show clear gains. Read More

Lease Beat

Charter Brokerage Moves Around in SL Green’s Portfolio

125 Park Avenue.

Charter Brokerage will be relocating its offices in New York.

The global trade company that helps clients with import, export, and drawback services has outgrown its office at SL Green Realty Corp.’s 317 Madison Avenue. The firm will relocate to another property in the landlord’s portfolio, trading in its 15,000-square-foot space at the older building for 26,000-square-feet at 125 Park Avenue

Steven Durels and David Kaufman of SL Green represented the landlord and are responsible for leasing across the portfolio. Charter Brokerage enlisted the help of CBRE‘s Michael Liss to represent them in the transaction. Neither party could be reached in time for publication.

Read More