On the Market
Property Markets Group and Madison Equities secured $95 million in construction financing for their luxury condominium development at 10 Sullivan Street from an undisclosed lender, according to executives at Mission Capital Advisors, which brokered the deal.
The five-year non-recourse loan was negotiated by Mission’s Managing Director Jason Cohen, Director Ari Hirt, Associate Director Steven Buchwald and Analyst Jamie Matheny. The loan will be used to build a 16-story luxury condominium and townhouse project in Soho.
On the Market
Faced with declining sales, the once-trendy teen fashion retailer Hollister is marketing its Soho flagship for sublease.
The surf-themed Abercrombie & Fitch subsidiary signed a 20-year, 42,000-square-foot lease at 600 Broadway in 2007. It attracted gawking passersby with young male door greeters clad in little more than lifeguard trunks and zinc oxide sunscreen. They did not save the store from a massive bedbug infestation in the summer of 2010.
THERE GOES THE NEIGHBORHOOD
Zar Property NY is marketing a prime 10,500-square-foot Soho basement space underneath 42-44 and 46-50 Greene Street as a retail space without retail rents.
At $67 per square foot, the price tag rings in at a fraction of what some retail space on the block commands, in some cases at upwards of several hundred dollars Read More
Stat of the Week
Descending into Lure Fishbar, one enters a world that is at once a fantasy of the moneyed life—the subterranean restaurant’s gleaming teak panels and white leather banquettes call to mind the interior of some billionaire’s yacht—and its embodiment.
A favorite of tech and media moguls, Lure is where the city’s sleek and prosperous come to sup on $46 steamed lobster tail, socialites slurp their weight in oysters and Gwyneth Paltrow goes for dinner with Beyoncé and Jay-Z.
When it opened in 2004, Lure was both the apotheosis and the seeming endpoint of Soho’s transformation from an enclave for scruffy artists into an upscale shopping and dining district. Nine years later, Lure seems, if anything, even more at one with its surroundings, a short walk from Chanel and Louis Vuitton.
So it came as something of a shock when rumors started circulating this spring that Lure was closing because of a massive rent hike. Mom-and-pops have been struggling for decades, of course, and Soho has had more than its share of casualties. But Lure doesn’t fit the profile of a beleaguered small business. Owned by John McDonald, a savvy veteran of New York’s restaurant scene, Lure caters to the kind of clientele that does not balk at paying a lot more for things they deem worthy. Moreover, it had washed into the neighborhood on the waves of gentrification in the first place.
Flash back to the year 2007: Manhattan real estate was red-hot, and asking rental rates were at all-time highs across all 19 submarkets tracked by Cassidy Turley.
But then the financial world collapsed, and real estate quickly followed. Instead of a long, drawn-out down cycle, the market showed resilience and began to bounce back in 2010. Since that time, though, only three out of the 19 submarkets’ current overall average asking rents have surpassed those historical highs from 2007, with nine of the submarkets still 10 to 25 percent off those numbers.
A 2.1 percent increase in tourist visitors to New York City in 2012 generated growth in retail sales and expansion, according to the fourth quarter Manhattan Retail MarketView from CBRE Global Research and Consulting.
“It has been a good year for retail, New York is coming off its best year for tourism, which translates to better retail sales and hotels at higher occupancies,” Andrew Goldberg, executive vice president at CBRE told The Commercial Observer.
Tourism has driven business to New York’s primary retail corridors, Mr. Goldberg noted. “Retailers are expanding in their current space, growing store counts, doing new flagships and seeing growth,” he said.
The International Council of Shopping Centers’ (ICSC) New York conference is over. Meetings were held, retailers were courted, flirtations between players crackled with possibilities. The Commercial Observer asked three experienced New York brokers what they learned at the conference and where the city’s retail hotspots are. This is what they said…
West Side Story
“With Read More
Real estate investment and brokerage firm Highcap Group has arranged the $33 million sale of 69 and 71-73 Greene Street, two adjacent mixed-use properties in the SoHo Cast Iron Historic District.
The properties feature 76 feet of frontage along Greene Street, and the 5-story buildings make up a combined 33,000 square feet, split evenly between the two.
Two retail tenants, furniture store Bo Concept and clothing retailer Onassis, occupy 3,300 square feet at each address; and there are eight residential lofts above.
Late last year, when the education publishing company Scholastic offered up about 60,000 square feet of sublease space at the top of the Soho office building 568 Broadway, the firm quickly found it wouldn’t be difficult to fill.
Within weeks, a host of tenants were competing for it, including several tech firms, one of the most active sectors of the leasing market in Manhattan right now. Tumblr, foursquare and AppNexus, all well-known names in the industry, moved to the front of the pack.
On the face of it, such a decision would seem easy. Of the three, only AppNexus, a firm that specializes in online advertising and is backed by the software giant Microsoft, is known to be profitable. But in a tech boom in which riches don’t always flow from the most likely sources, the deal for the space took a different turn.
The competition soon boiled down not to AppNexus but to Tumblr and foursquare, two companies that have become top brands in the new internet boom and have raised tens of millions of dollars in venture capital between them, but have yet to find income-producing platforms for their services.
Hello Monday is packing up to move their New York office into a loft in Tribeca.
The Danish design firm that specializes in digital and analogue media will move from its office at 441 Broadway in Soho to Nur Ashki Jerrahi Community‘s 5 White Street. The new office is a bit larger spanning 2,250 square Read More
In what has become a familiar story lately, Bloomingdale Properties’ 1385 Broadway—a 435,000 square foot office property in what has until recently been best known as the Garment District—has grabbed a non-apparel tenant away from Soho.
Amorepacific, a luxury makeup and skincare line, has signed a ten-year lease for part of the tenth floor in the building and will move from space further downtown on Spring Street. The company was represented in the 6,200-square-foot lease by Ed Wartels from Cresa New York. Diana Gaines and David Malawer from Cushman & Wakefield represented the landlord.
C. Wonder, the preppy apparel and accessories retailer launched last year by designer Tory Burch’s ex husband, Christopher Burch, has signed on for a space at Time Warner Center, according to sources familiar with the deal.
The store, which opened another Manhattan store last October in Soho, will take about half of the roughly 15,000 square feet formerly occupied by the now-defunct bookstore chain Borders on the retail complex’s second floor.
The corner of Lafayette and Houston, long-time home of the iconic red-blue-and-white Gaseteria, was sexy long before Soho was.
“Gaseteria is very real, very raw, it’s sexy and hip,” Marcello Porcelli, whose father built the chain, told the New Yorker in 2003. “It just represents everything that’s beautiful and wonderful and real about New York. I gave Read More
Yet another diminuitive newcomer is coming to Hudson Square. Trinity Church is selling the ground lease to another piece of its prized Hudson Square puzzle for a commercial development site.
Trinity, quietly one of the wealthiest private landlords in the city, is marketing a 99-year ground lease at 92 Sixth Avenue, on the northeast corner of Read More
Italy is flying coach to Soho.
Piero Guidi, “the Italian answer to Coach,” as Prudential Douglas Elliman retail queen Faith Hope Consolo said, is coming to 430 West Broadway. The pursemaker will open next-door to Dolce & Gabbana in a 3,600-square-foot space between Prince and Spring streets.
“It’s really like Italian row,” Ms. Consolo said. “It’s Read More