Lease Beat

PVH Corp. Renews, Expands Lease for Warnaco Group at 501 Seventh Avenue

501 Seventh Avenue.

PVH Corp. has signed a long-term renewal and expansion deal for its Warnaco Group unit at the Empire State Realty Trust’s 501 Seventh Avenue. The renewal adds more than 37,000 square feet to the lease, upping Warnaco’s total occupancy to 223,616 square feet.

PVH, which owns brands including Tommy Hilfiger, Calvin Klein and IZOD, acquired Warnaco, which owns the licenses for Calvin Klein jeans and underwear, in February of this year. The $2.9 billion deal brought all Calvin Klein-branded apparel under a single entity and followed the company’s previous acquisition of Tommy Hilfiger for $3 billion in 2010.

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Lease Beat

By Design Signs 21,711 SF at Leon Charney’s 1411 Broadway

1441 Broadway

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.” Read More

Lease of the Week

“The Most Complicated Deal I Personally Have Handled.”

Starrett-Lehigh Building. (Courtesy Property Shark)

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. Read More

Lease Beat

Gamble Pays Off at Starrett-Lehigh

Starrett-Lehigh Building. (Courtesy Property Shark)

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. Read More

the lead indicator

Price Declines, Losses on Legacy C.R.E. Loans Remain Factor for Many Assets

Blitt - Chandan

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. Read More

Acquisitions

Clocktower Building Strikes Deal

The iconic Clocktower Building is changing hands

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. Read More