Wharton Properties has obtained a construction loan from Natixis Real Estate Capital to develop a 33,000 square foot retail property along 125th Street, Harlem’s busiest commercial thoroughfare, Mortgage Observer has first learned.
A person with knowledge of the loan confirmed the amount as $95 million and added that it was a three-year, interest-only loan with two 12-month extension options. The interest rate, that person said, is roughly 300 to 399 basis points over one-month Libor. The loan closed on July 11.
On the Market
National and international retailers until recently may have been commitment-phobes when it came to opening stores in Brooklyn, but that fear has been nearly quelled as mainstream chains like Whole Foods, J.Crew and H&M establish presences in the borough. And now that the big boys of retail are joining creative entrepreneurs, international and national brands have grown increasingly comfortable bypassing Manhattan and breaking into the New York City market via Brooklyn, especially Williamsburg.
Take the London-based record store Rough Trade, which since November has sold albums, served food and drinks and hosted concerts and exhibitions to crowds at Rough Trade NYC, at 64 North Ninth Street in Williamsburg. And then there’s European luxury kitchen goods company Cucina & Tavola, which recently opened its first New York City store at Williamsburg’s 235 Grand Street. In addition, Urban Outfitters’ concept store, Space Ninety 8, debuted in April at 98 North Sixth Street in the same neighborhood.
Eastern Consolidated is marketing a 7,500-square-foot ground-floor retail space at 225 East 57th Street, Commercial Observer has learned. Located between Second and Third Avenues, the commercial condo unit also sits directly across from Whole Foods.
“There have been a lot of big-name national brands opening up here,” said James Famularo of Eastern Consolidated, who is marketing the space. “This corridor was great and it’s getting a lot better.”
Retail pro Chase Welles is a man with a mission. The executive vice president of SCG Retail represents some of the biggest tenants—Whole Foods, Kohl’s, LA Fitness—and is always looking for new locations for them. He and David Firestein owned Northwest Atlantic until a couple of years ago when the company merged with the Atlanta-based Shopping Center Group. Today, the duo owns 90 percent of what became SCG Retail, the Shopping Center Group’s New York division. On the week of the International Council of Shopping Centers’ RECon in Las Vegas, Commercial Observer sat down with Mr. Welles in his Columbus Circle office to chat about his Williamsburg Whole Foods deal, Tinder and boating.
WeWork has sealed a deal for a 40,000-square-foot space above the planned Whole Foods in Williamsburg, in what amounts to the shared office provider’s first Brooklyn location, sources with intimate knowledge of the deal told Commercial Observer.
WeWork signed the dotted line within the last month in a direct deal for the entire second floor at Aurora Capital Associates’ 242 Bedford Avenue, the sources said. The price was rumored to be in the ballpark of the $50s-per-foot prevailing price in that submarket, the sources said.
Marking its seventh Manhattan studio, Exhale has signed a lease for 3,027 square feet at 19 West 21st Street.
Exhale’s Mind-Body Studio will be on the ground floor of the Flatiron area building, between Fifth and Sixth Avenues, when it opens for business in May. This marks the yoga studio’s seventh Manhattan location.
there goes the neighborhood
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.
From a bar serving local beers to a collaboration with a local community of artists, Whole Foods is trying its best to fit in at its new Gowanus location, but longtime residents are still skeptical.
Set to open next week, the 214 3rd Street spot is seen by many as just another step in the neighborhood’s steady gentrification and a harbinger of further change to come.
As jackhammers pound away at the future Whole Foods on Bedford Avenue, word is spreading that Apple is eying a building (once reportedly scoped out by J. Crew) just across Williamsburg’s main drag for one of the company’s attention-getting stores.
After securing a $45 million loan from Meridian Capital Group to finance the development of Williamsburg’s first Whole Foods, the healthful grocery Goliath is targeting a mid-2014 debut.
The 35,000-square-foot store at 240-242 Bedford Avenue is part of a 150,000-square-foot development that will take up a full block of North 4th Street between Bedford Avenue and Berry Street. The project will also include a New York Sports Club and luxury rental apartments.
No more $1 coffee (for a limited time only) and chicken nuggets on the corner of First and First in Park Slope.
A joint venture between Silverstone Property Group and Adam America Real Estate has purchased the lot at 275 Fourth Avenue, currently home to a McDonald’s, for $14.8 million, with plans to develop a Read More
CVS Pharmacy is the latest tenant to move to the Lower East Side, inking a deal at 42-56 East Houston Street.
The pharmacy chain, whose presence is limited and overshadowed by Walgreens and Duane Reade in the city, will be taking a 10,365-square-foot space that spans the entire block between Mulberry and Mott streets.
About 200 retail real estate specialists gathered at 101 Park Avenue’s 101 Club last Tuesday for the Real Estate Board of New York’s 15th annual Retail Deal of the Year Awards cocktail party.
Brokers flocked to a bountiful buffet and an open bar with generous pours. In a lonely corner, an ignored PowerPoint presentation summarized the nominees. Here’s what went down as the assembled waited to hear which of the nine submitted transactions would take home the evening’s two big honors.
Brokers who brought big name chain retailers to a pair of Jeff Sutton properties won big last night at the Real Estate Board of New York‘s Retail Deal of the Year Awards at 101 Park Avenue.
David LaPierre of CBRE nabbed the prize for “most ingenious and creative retail deal that demonstrates exceptional broker acumen” for a transaction that brought Express to 1552-1560 Broadway. Jacqueline Klinger and Chase Welles of SCG Retail‘s success in landing Whole Foods in Harlem (at 100 West 125th Street) were deemed the brokers behind “the retail deal which is most significant in its overall characteristics and importance to the New York City Retail Market”
LA Boxing will be opening a new location in Park Slope, Brooklyn.
Located on the corner of 3rd Street and Fourth Avenue, LA Boxing will take the entire 6,000-square-foot second floor of the three-story commercial property at 340 Fourth Avenue.