Following RXR Realty’s $700 million acquisition of 450 Lexington Avenue last year, six of the firm’s top executives met with sellers Daniel Saliba and Mark Troy of Istithmar World Capital for a closing dinner at Lavo, the Italian restaurant on Manhattan’s East Side.
A round of toasts that evening, most agreed, was in stark contrast Read More
By Design has signed a 21,711-square-foot lease at 1441 Broadway, a building owned by real estate tycoon Leon Charney.
The company takes a full floor in the building, in a space formerly occupied by Fifth and Pacific Companies (formerly Liz Claiborne Inc.), which will double as an office space and showroom.
“We’re glad to have them and we’ve almost backfilled all the space in the building – they’re a welcome addition,” said Bruce Block, Mr. Charney’s right hand man at L.H. Charney & Associates, the building ownership. “They’re in the apparel and fashion industry and our building is predominately fashion. They will be able to use some of the existing build-out space on the floor.”
Lease of the Week
It’s not uncommon to hear Manhattan’s real estate market characterized as sophisticated or complex.
Not every day, however, does a requirement as straightforward as Dentsu McGarryBowen’s uncork such an elaborate and interconnected series of transactions as it did at the Starrett-Lehigh Building.
A longtime tenant in the 2.3-million-square-foot building and one of the property’s largest users, the advertising firm needed to expand. But there was a small problem: Despite its size, the building—an artsy, far West Side location popular among creative tenants—had virtually no available space.
A year into owning the Starrett-Lehigh Building, RXR Realty is making what at first appeared a dicey gamble into an investment that looks closer to a sure thing.
RXR, led by its chief executive Scott Rechler, acquired the 2.3 million-square-foot far West Side office building last year for a whopping $900 million, a purchase price that equated to almost $400 per square foot. Though buildings in Midtown have traded for double that or more on a per square foot basis in recent months, the sheer magnitude of the investment turned heads as a jumbo-sized commitment in a neighborhood that many brokers and tenants still consider off the beaten path.
the lead indicator
No one transaction can fully capture a market’s dominant trends. But even one transaction, however idiosyncratic, can serve as a cautionary note when the market’s investment and lending trends calls for temperance. Last week’s widely reported announcement of the sale of the North Building—or Clock Tower—at 5 Madison is a case in point. In mid-2007, SL Green, RFR Holdings and Ian Schrager sold the landmark structure to Africa Israel USA for the hefty sum of $200 million. Earlier that same year, Mr. Schrager indicated that he might forgo a planned hotel redevelopment given the unsolicited bids that had recently arrived for the property.
Africa Israel USA, the controversial owner and operator of commercial properties across the United States, has entered into a contract to sell 5 Madison Avenue to an undisclosed investor for $165 million.
The preppy lifestyle may look like a relaxing one, but Tommy Hilfiger has been a busy, busy man. Last year, he sold his eponymous company, where he is still the lead designer, for $3 billion. Since then, he has been casting about Manhattan for somewhere to build his very own hotel, according to The Read More