Selling a Stake
Williamsburg’s real estate success story has mostly centered on its residential boom—until now. With a new speculative office tower planned for the Brooklyn neighborhood and high-profile retailers preparing to set up shop, the former industrial area and hipster haven is becoming a hotbed of major league commercial activity.
The neighborhood has been abuzz over, and not always happy about, its residential development, which, with many more projects on the horizon, continues to overshadow the commercial market. There are more than 6,100 residential units in the pipeline, according to data compiled by MNS in January.
Real estate private equity firm Madison International Realty has nabbed a nearly 49 percent stake in a West Village retail condominium from Ark Partners.
Madison International acquired the 48.95 percent non-controlling interest in a 55,565-square-foot retail condominium at 510 Avenue of the Americas, brokerage Prince Realty Advisors announced. David E. Ash, principal and founder of Prince Realty, negotiated the deal for both sides. The sale price, at the mixed-use building between 13th and 14th Streets, was just under $68 million.
Post-Tropical Storm Sandy
New York City-based mortgage risk-management firm Mortgage Industry Advisory Corp. has inked an eight-year, 20,897-square-foot sublease for the entire ninth floor at SL Green’s 521 Fifth Avenue, relocating from its two offices in the Financial District.
The firm has offices at 80 Maiden Lane and 30 Broad Street and eyed a space in Midtown South Read More
Ironically, it seems that Hurricane Sandy, while delivering a fierce blow to Lower Manhattan, has in fact helped the submarket to bounce back with something of a vengeance.
Overall new leasing increased 21 percent in the 12 months after Sandy compared to the previous 12 months, firms are migrating to Lower Manhattan (in many some Read More
Urban Outfitters officially expanded its empire of mass hipster apparel stores–and transitioned into the so-called “lifestyle center” business–when it finalized a lease at Malkin Holdings‘ 1333 Broadway.
The 15-year lease was for 56,730 square feet spread over three floors. Exactly what the lifestyle portion of this location will be remains unclear. But the space is twice as big as the typical large Urban Outfitters store, and reports from some real estate executives hint at “features never before seen from the brand” at the Herald Square outpost.
The blended asking rent was $6.5 million per year. Andrew Goldberg and Matt Chmielecki of CBRE represented the landlord. Stephen Plourde and Keith Fencl of McDevitt Co. repped the tenant.
Lower Manhattan 2013
In 2009 and 2010 “you could have rolled a bowling ball down the aisle” at the International Council of Shopping Centers’ RECon conference “and it wouldn’t have hit anybody,” Massey Knakal executive vice president of retail leasing Benjamin Fox told The Commercial Observer.
But when an estimated 33,000 real estate professionals converged upon one million Read More
When David Falk toured Pace University’s new dormitory at 180 Broadway in January, he was struck not only by the gleaming facilities but also by what they said about the 107-year-old school.
Mr. Falk, the New York tristate region president of Newmark Grubb Knight Frank, has worked with the university since 1999. The new building “is beautiful,” Mr. Falk said. “It’s the new Pace.”
The transformed school has helped alter the real estate landscape of lower Manhattan. In the past 15 months, Pace has inked deals for the entire 47,000 square feet at 140 William Street, renewed a 32,707-square-foot office lease at 156 William Street, and, with partner SL Green, announced plans for a 30-story dormitory at 33 Beekman Street.
The 220,000-square-foot 180 Broadway—also a joint project with SL Green—came to light in the darkest days of the recession. Pace wanted to bring about 600 beds back to its lower Manhattan campus from Brooklyn Heights.
It’s been a busy month for Urban Outfitters. The trendy apparel retailer is said to have inked a deal for 21,000 square feet at 180 Broadway in the Financial District.
Jeff Sutton, who with SL Green Realty Corp. and Harel Insurance owns the building, represented the landlords. Stephen Plourde and Wade McDevitt of the McDevitt Co. represented the tenant, reported the New York Post‘s Lois Weiss. Since its inception 42 years ago in Philadelphia, Urban Outfitters has grown to over 400 American locations.
For more than five years, an exodus of the young and hip from the aluminum-siding-studded homes of Williamsburg, Brooklyn, has been flowing southeast into neighboring Bushwick.
But now a nascent 80,000-square-foot retail and nightlife complex at 82 Bogart Street threatens to cement the neighborhood’s imminent transformation from underground hipness to mainstream retail success once and for all.
RECon: Las Vegas
With more than 50 million tourists running amok each year, consumers feeling recharged, and throngs of foreign retailers streaming in, Manhattan’s prime retail corridors are not only booming—they’re expanding.
High rents and low vacancies in prime corridors are changing the invisible boundary lines that once separated high- and low-end sections of Fifth Avenue, Madison Avenue, Greenwich Village and other retail corridors throughout the city, analysts and real estate brokers claim.
“When these big names and huge chains move into these areas, people just love to follow them,” said Jeffrey Roseman, an executive vice president and principal with Newmark Grubb Knight Frank’s retail division. “They become anchors and magnets to pull others.”
Just as the earlier success of Urban Outfitters and H&M sparked further expansion below 49th Street on Fifth Avenue, and Alfred Dunhill and watchmaker Panerai boosted retail appeal below 57th Street on Madison when they emerged in 2009, aspirational clothing retailers are now doing the same in Greenwich Village.
Jeffrey Roseman is an executive vice president and principal of Newmark Grubb Knight Frank’s retail business and is a top retail leasing executive in the city. Mr. Roseman, who has handled a number of prominent leases over his long career, spoke to The Commercial Observer about how ICSC remains important for top-tier dealmakers, how retail isn’t going away despite the growth of e-commerce and what recent departures from Newmark means both to him and as part an industrywide shake-up in brokerage. As usual, Mr. Roseman will be heading into ICSC with several interesting space availabilities he is marketing.
REIT bigwigs SL Green have reportedly hired Eastdil Secured to help them dump a stake —from about 49 percent to 80 percent — in 521 Fifth Avenue, a 39-story officer tower, the NY Post’s Lois Weiss reports.
When Urban Outfitters last year declared its intent to renovate a landmarked theater on the Upper West Side, the outcry was swift. Although the Metro Theater stood empty, its interior Deco flourishes gutted several years ago, news that the national retailer planned to set up shop there sparked a Read More