A few years ago, even in Manhattan, building or converting an office property on spec was unheard of.
That is no longer the case, according to data from JLL, whose debt experts say the arrival of name-brand tenants has made office conversion deals in the boroughs increasingly appealing.
A major advertising agency is consolidating some of its office space by inking a sublease at 909 Third Avenue between East 54th and East 55th Streets.
The Interpublic Group, one of the world’s largest advertising and marketing companies, inked a deal for 112,300 square feet, according to The Real Deal. It gives the advertising powerhouse more than 300,000 square feet in the 32-story building.
AMC Networks and Vornado Realty Trust have signed a deal so large that even Don Draper would be impressed.
The cable television and movie programmer behind shows like “Mad Men” and “Breaking Bad” and seven TV channels has agreed to a renewal and expansion lease for 330,000 square feet at 11 Penn Plaza, Crain’s New York Business reported last week. The deal will grow AMC’s footprint by 40,000 square feet at the 1.1-million-square-foot building on the east side of Seventh Avenue between West 31st and 32nd Streets.
Financial information and media giant Bloomberg L.P. renewed the massive lease at 731 Lexington Avenue that accounts for 45 percent of the revenues of its landlord, Vornado Realty Trust partner Alexander’s, Inc., the company announced in a third-quarter U.S. Securities and Exchange Commission filing this week.
Bloomberg officials signed a five-year renewal covering 188,608 square feet of office space in October to extend agreements previously slated to expire in 2015, the document notes. Commercial real estate blog “Jay Rickey” first reported the renewal.
Vornado Realty Trust has reached an agreement to sell its 601,000-square-foot office building at 1740 Broadway for roughly $605 million and finalized the joint $700 million purchase of the retail condominium on the ground floor of the St. Regis hotel and an adjacent retail townhouse on Fifth Avenue, the company announced this morning.
Company officials will spin off the approximately $483 million in tax gains by reinvesting them in a tax-deferred exchange towards the acquisition of the retail space on the southeast corner of 55th Street, where Vornado closed as the 75 percent partner in the joint buy of the property with Crown Acquisitions.
The John Simon Guggenheim Memorial Foundation, a nonprofit that provides research grants to scholars and artists, signed a 16-year, 13,878-square-foot lease in space it has occupied as a subtenant for nearly 50 years in Midtown East, EVO Real Estate Group announced earlier this week.
The nonprofit inked the direct lease with Vornado Realty Trust for the entire 33rd floor of the building at 90 Park Avenue where asking rents run for $85 per square foot, EVO officials said. The organization will relocate temporarily for new renovations and occupy the revamped space between East 39th and East 40th Streets in April 2015, Arnold Gamberg, an executive vice president at EVO, told Crain’s New York Business, which first reported the deal.
Cushman & Wakefield Executive Vice Chairman Josh Kuriloff’s office at the company’s Midtown headquarters features several models of Chicago’s Willis Tower; pictures of the 28-year veteran C&W broker with Bill Clinton, George Pataki, Colin Powell and Magic Johnson; and a desk covered in piles of research reports and client files. Mr. Kuriloff, a 55-year-old married father of two, invited Commercial Observer to visit last week for a frank discussion of his work representing clients like the Metropolitan Transportation Authority and Verizon and his thoroughly researched thoughts on the city’s future.
Meridian Capital Group secured a $210 million CMBS loan on behalf of New York-based Ashkenazy Acquisition Corporation to help fund its purchase of the Beverly Connection shopping center in Los Angeles, Mortgage Observer has first learned.
Meridian Senior Managing Director Ronnie Levine and Managing Director Jeffrey Berkes, both based in the company’s New York City headquarters, led the negotiations. Messrs. Levine and Berkes declined to name the lender.
Post-Tropical Storm Sandy
Waterbridge Capital is in contract to purchase three contiguous properties located at the southeast corner of 125th Street and Park Avenue in East Harlem for $36.8 million – across the street from Bruce Eichner’s planned 80/20 residential project at 1800 Park Avenue.
The properties, at 1815 Park Avenue, 1801 Park Avenue, and 110 East 125th Street, Read More
More than one year after Hurricane Sandy, the amazing recovery from the storm and rebirth of Downtown has some people viewing its touchdown in New York City almost as a blessing in disguise.
Perhaps no one more than Adam Goldberg, director of New York Operations at AquaFence, who moved into his current role at the Read More
Food For Thought
In an effort to diversify the real estate investment trust sector and bring shares of individual real estate assets to the market, ETRE Financial has launched the first real estate-specific trading platform. The platform combines capital markets, asset management, trading, and analysis services into a single system.
“Everyone is familiar with portfolio REITs, but the genesis here was to bring single asset REITs to the marketplace,” Paul Frischer, co-founder and chief executive of ETRE, told The Commercial Observer.
Design & Spec
Summer is coming to a close, and the air has become cool and crisp. While fall harvest and menu changes begin to unfold, there have been two recent events that I can’t help but talk about.
This last week’s Harvest in the Square and Diner en Blanc events were certainly ones to remember! While each venue Read More
Last week, in this very column, we talked about the top architectural trends among social media and tech tenants. This week, we’ll revisit the idea, but from the landlord and building owner’s perspective. Now that we know what the top requests are, the question becomes: What can we do to attract and retain social media Read More
Mezzanine financing, filling the gap between first mortgage lending and the equity that investors have to finance, has returned with a vengeance. As Joshua Stein reported in the April 2013 issue of this magazine, “Today, first mortgage lenders want to lend again, but it’s very much not like 2007 all over again. Proceeds are down, conservatism is up, and many borrowers find themselves with a gap between the equity they’re willing to risk in a deal and the first mortgage financing they’re able to find.”
A-list starchitect Frank Gehry will team up with Facebook on the design of the social media kingpin’s “big,” “open” and “cozy” new offices at 770 Broadway in New York.
Mr. Gehry is currently working with Facebook on the expansion of its Menlo Park, California headquarters. The 100,000-square-foot Village office will share certain elements–collaborative spaces, an uncluttered floor plan, an abundance of white boards and videoconferencing rooms–with the West Coast mothership but, per an announcement by Facebook’s New York engineering team site director Serkan Piantino, also “be distinctly Big Apple in design.”