February 2008: Manhattan Retail, Office and Industrial Market Report

New York Market Overview:

Manhattan office rents have peaked at $225/RSF, making New York the 3rd most expensive office market in the world and highest in the United States. The recent bad news for Wall Street may mean reduced office and retail rents in Manhattan as the banks and investment banks sublease or vacate space.

New Developments

New York City's office market has gained on the world's two most expensive cities, London and Hong Kong. London vaulted over Hong Kong to become the world's priciest office market with rent for Class A hitting $265 per square foot. The peak rate in New York City's Midtown reached $225 per square foot. The next most expensive U.S. office markets were San Francisco, with a rate of $110 per square foot; Boston, with a rate of $90 per square foot; and Manhattan's Downtown, with a rate of $65 per square foot.

Steven Witkoff, Developer, pulled bid to develop Pier 57, planning to spend an estimated $400 million on building a bridge to the High Line, a marina, a museum, and a gourmet banquet hall. Witkoff got caught in the Manhattan district attorney's investigation of a former chairman of the Hudson River Park Trust, James Ortenzio, who a former chairman of the New York Republican County Committee pleaded guilty to a felony tax violation and failure to make a financial disclosure.

Bad news for Wall Street may mean good news for Manhattan's congested office markets. By late December, the major financial houses had lost more than $40 billion related to the sub prime mortgage crisis, which may force tens of thousands of people out of work in Midtown and Lower Manhattan. The possible resulting layoffs have led brokers to believe that Wall Street firms will try to sublease some of their unused trading floors. New office inventory couldn't come at a better time for the Manhattan market. Asking rents in Manhattan hit $62.91 in the third quarter, representing a new record. The jump of 37.2 percent from the year-ago quarter was the biggest annual increase ever recorded.

February 2008 Manhattan Office Market Vacancies

New York City Class A Office vacancies increased from 5.1 % to 5.8 % vacant.
New York City Office vacancy rose from 5.1 % vacant to 5.7 % vacant.

February 2008 New York Retail Market Vacancies

Total available New York City Retail Space decreased from 1.06 million RSF to 1.05 million RSF.

Citigroup and Merrill Lynch announced plans to counter enormous losses tied to sub prime mortgage investments. Citigroup, just posted the biggest loss in its history, it received $12.5 billion from outside investors to help recover from an $18 billion write-down. The bank is expected to cut 4,000 positions, following 17,000 job cuts announced last spring. Merrill Lynch will raise $6.6 billion from three foreign investment funds.

Morgan Stanley, Lehman Brothers Holdings Inc. and Credit Suisse Group are eliminating about 1,640 jobs as the worst U.S. housing market in 26 years slows economic growth and their profit outlook.

The New York State Appellate Division denied an appeal against the state's use of eminent domain for Forest City Ratner's Atlantic Yards project.

The state commission studying the city's proposed congestion pricing plan is most likely to approve an $8 charge on vehicles entering Manhattan below 60th Street on weekdays. The commission also opposes Bloomberg's proposal to charge vehicles for trips within the congestion zone. The estimated $500 million in annual revenue would be given to mass transit.

Hudson Yards. There are five proposals for Hudson Yards, two from the Extell Development Company and Brookfield Properties. These two bids have been looked upon favorably by the public and/or architectural critics. It is the other three that are reportedly the favorites. All three of them have in common high-profile tenants. Reportedly, the Metropolitan Transportation Authority, which owns the Hudson Yards site, has already narrowed down to three bids from the Related Companies, Tishman Speyer and Durst/Vornado, and that the authority may try to merge them. More importantly, New York needs to find an anchor tenant before the shovels are in the ground.

Financial District Hotel developments. Mr. Chang's is building a 350-room Holiday Inn at 99 Washington Street to open in mid 2009 opening.

The hotel business in New York City continues to boom, as a market niche is widening for select-service hotels in mid-block locations. These properties think of brand offshoots such as Hilton Garden Inn or Holiday Inn Express fall between the budget and luxury categories, offering mid-priced beds, decent coffee and Wi-Fi access. Hotel developers such as the McSam Hotel Group, the Lam Group and Hersha Hospitality are piling on to build them, encouraged by a real estate market that is favorable to smaller, hotel buildings tucked away on side streets, especially in areas like Midtown South, Midtown West and Chelsea. Gary Wisinski, chief operating officer of McSam Hotel Group, said that his company has plans for several new select-service mid-block hotels.

With an influx of young people, Korea town has changed the character of the 32nd Street neighborhood, driving rents up and creating demand for trendy new hangouts. In 2000, rents at the Korea town residential building Herald Towers were around the mid-$30s per square foot; now they've reached the mid-$50s. Developer of the Herald Towers said retail rents in the towers had increased by 30 to 40 percent since last year.

Median sale prices in Queens fell 5.2 percent to $460,000 in the fourth quarter, down from $485,000 in last year's fourth quarter. A decline in median sales prices across the overall Long Island-Queens market. Prices dropped by 3.2 percent to $425,000 this quarter, compared to $439,000 in the fourth quarter last year. The numbers have fluctuated between stable and weak for the last few quarters.

City Point tower is being built at a site in Downtown Brooklyn. It could become Brooklyn's tallest building if it reaches its planned 65 stories. The 1.9 million square-foot tower will include about 500,000 square feet of retail space, 280 hotel rooms, along with 800 residential rental units and 360,000 square feet of office space.

The Federal Reserve made an emergency interest rate cut of .75 percent, the biggest single cut since October 1984 as a fear of a recession looms. Along with cutting the key overnight interest rate to 3.5 percent, the Fed also cut the discount rate 75 basis points to 4 percent.

United Nations is negotiating a lease at 380 Madison Avenue for 600,000 square feet to relocate up to 1,700 employees from the Secretariat Building while the tower and other buildings on the UN's East Side campus undergo a renovation to begin next year. The deal, which is huge by Manhattan leasing standards and will be the biggest transaction to be completed in the city so far this year, constitutes more than what the United Nations initially planned in order to house staff that will be displaced by the work.

Over the summer, the United Nations reached an agreement to occupy the Albano Building, a 187,000 square foot fully vacant office property near its East Side campus in which it plans to move 700 employees.

International law firm Crowell & Moring signed a lease for 100,000 square feet at Minskoff Equities' 590 Madison Avenue. Rents on some floors are reportedly $135-$165 per square foot. The firm is moving from its 60,000-square foot offices at Boston Properties' 153 East 53rd Street, the Citigroup Building.

Foreclosures in New York City fell by 13 percent in the fourth quarter. The total of 605 foreclosures, however, was still 71 percent higher than the final quarter of 2006. On Staten Island, new foreclosure auctions jumped 53 percent; the other boroughs saw drops of 10 to 30 percent. The neighborhood with the most foreclosures was in Queens: Jamaica, South Jamaica, Hollis and St. Albans had 23. Foreclosures in the city were up 71 percent.

A weakening of the U.S. dollar brought a record number of visitors to New York City last year. An estimated 46 million people visited the city in 2007, an increase of 5 percent. Foreign visitors increased by an estimated 8.5 million, a jump of 17 percent.

A feud between the state redevelopment corporation and its contractor, Bovis Lend Lease, has been resolved. The demolition of the former Deutsche Bank building at 130 Liberty Street is set to resume. The Lower Manhattan Development Corporation announced that it hired a new subcontractor, LVI Services Inc., to remove asbestos and other hazardous materials and demolish the structure.

At the City Council's finance committee hearing, members questioned the need for Madison Square Garden's $11.5 million annual tax break. The tax break was created in 1982 after the arena's then-owners threatened to move the Knicks and Rangers to New Jersey. Barry Watkins, Garden president, said talks of ending the tax break are premature, while plans are drawn for a new arena at Moynihan Station.

The Port Authority has completed excavations at the site of Larry Silverstein's planned Tower 4 at the World Trade Center, designed by architect Fumihiko Maki. The agency said the adjacent Tower 3 site will be ready by the middle of next month.

Mayor Michael Bloomberg prepares for next week's State of the City address. He is considering ending a 7 percent property tax cut and a $400 property tax rebate for homeowners, to help close the city's budget gap. The mayor has always billed that as something we will do when we can afford it, but it's not permanent.

Due to credit drying up and Wall Street banks lending less to real estate investors, recent deals have been financed by balance sheet lenders, including insurance companies, savings banks and commercial banks. Many high-profile lenders involved in Manhattan deals are foreign; including Irish, Scottish, and German banks. For the purchase of 1177 Sixth Avenue, $700 million was provided in financing. Deals continue to happen, the shift to on-balance sheet lenders might result in lower leverage and higher cost of capital.

After years of delays, developer Edward Minskoff is moving forward with plans for a 110,000-square-foot parcel in Long Island City that was once a strip club. Minskoff has completed plans for both an office building and a college dorm at 30-30 Northern Boulevard, which is near Queens Plaza at the intersection of 40th Avenue and 31st Street. His development company, Edward J. Minskoff Equities, first planned an office building after acquiring the property about three years ago. After no anchor tenant was found, Minskoff switched gears and planned for a college dorm at the parcel. Now, Minskoff has completed one plan for an 18-story, 650,000-square-foot Class A office building and another for a 1,600-room college dormitory with classrooms and administrative offices that could be 18 stories or taller.

Ogilvy & Mather, the international advertising and public relations agency, says it will move its headquarters to 636 11th Avenue, at 47th Street. The WPP Group-owned company leased the entire 11-story building, which will undergo an interior redesign. Ogilvy will vacate 600,000 square feet of noncontiguous at the Harry Macklowe-owned Worldwide Plaza, on Eighth Avenue and 50th Street, next year. Hakimian Organization and its partners Peykar Brothers Realty and Gorjian Properties leased the building.

Developer Mort Zuckerman's Boston Properties has signed its first tenant at a planned tower at Eighth Avenue and West 55th Street. Law firm Gibson, Dunn & Crutcher has reportedly taken over 200,000 square feet. Law firm, Proskauer Rose, is expected to take about 400,000 square feet.

After selling its stake in the World Trade Center in 2003, the Westfield Group is now a big driver behind Ground Zero's redevelopment, with a $1.45 billion partnership with the Port Authority to develop and operate about 500,000 square feet of stores and restaurants.

Manhattan Buildings sold

Vornado Realty Trust has purchased a stake in loans tied to four buildings, owned by developer Harry Macklowe, who has a $6.4 billion debt payment for seven Midtown Manhattan office buildings purchased a year ago due next month.

A third of commercial deals in the first three weeks of January were done by international buyers.

Philips International Holding Corp. sold a seven-story office building at 155 Fifth Avenue for $38 million to the Eretz Group, a New York-based real estate investment firm. Philips International bought the 32,500-square foot building at 21st Street from the United Synagogue of Conservative Judaism.

Northbrook Partners paid more than $300 million for nine Upper West Side and West Village buildings, including at least two rentals. The firm is owned by the Racolin family, which bought and built several city buildings throughout the 1930s and 1940s. The buildings include 98 Riverside Drive; 48-60 Seventh Avenue and shares of a recently converted condominium at 172 West 79th Street. Northbrook was founded by Maurice Mann, president of Mann Realty Associates.

The Moinian Group purchased a vacant lot at 553 11th Avenue for $24.5 million, next door to its 46-story, 478-unit Atelier condominium at 627 West 42nd Street.

The Glad Tidings Tabernacle Church at 325 West 33rd Street sold for $31 million. A 95,000-square-foot, 250-room hotel will replace the church. The buyer, PLC Partners, is building the 300-room Cambria Suites Brooklyn Bridge hotel. Demolition has reportedly begun at the church.

The Lam Group purchased a vacant building for $13.1 million at 49-53 Ann Street, and is planning a hotel. The four-story loft building is 15,500 square feet, but has a maximum build able area of 45,800 square feet. The Lam Group is owned by developer, a former partner of hotelier Sam Chang. Lam is building a 660-room Sheraton under at and the 150-room Four Points by Sheraton Soho Village, at 66 Charlton Street between Varick and Hudson Streets.

The sale of the Hotel Riverview at 113 Jane Street, on the Hudson River, closed for $27 million. Hoteliers Sean MacPherson and Eric Goode, the team behind the Bowery Hotel and the Maritime Hotel on West 16th Street, have submitted plans to restore and revamp the landmark Hotel Riverview to Community Board 2's business committee.

The Related Companies' partners, Twining Properties and Macfarlane Partners, at a stalled development site that takes up an entire block at 42nd Street and Tenth Avenue, have cashed out their shares in the project. Meanwhile, Goldman Sachs and MSD Capital, which became the firm's first outside investors, last month, are now equity partners on the project at 440 West 42nd Street. A 60-story high rise residential tower with over 600 luxury apartments was planned after the former Houseman and Fairbanks theaters were cleared in 2005. The project failed to receive a zoning bonus and tax breaks for a proposed Cirque du Soleil complex in the tower's base.

New York Buildings For Sale

GM building Sale. The sale for the GM building could be in doubt as buyers are scared away by the pending lawsuit from Sheldon Solow. Developer Harry Macklowe is trying to sell the General Motors Building to pay off massive debts that are soon due. People wait to see who might try to buy the 50-story tower. Sheldon Solow, Larry Silverstein, Vornado CEO Steven Roth, and Tishman Speyer CEO Jerry Speyer. Bidding is expected to begin at $3.5 billion, and the property might not even sell. A recapitalization could be all that happens in the end. A lawsuit by developer Sheldon Solow, which alleges that 2003 purchase of the General Motors Building was fraudulent, could complicate Macklowe's attempts to sell the building. A judge ruled earlier this month the case could move forward, surprising observers. "The judge's decision could put the brakes on any sale, or at a minimum change the economics," said Ross Moskowitz, a real estate partner at Stroock & Stroock & Lavan. "Unless there is a comfort level on the merits of the litigation with a meaningful indemnification, any prospective buyer and lender would have to think long and hard about moving forward with this purchase.

RFR Realty is planning to sell 17 State Street, the 42-story, 570,000 square foot office tower. The building is hoping to attract to hedge funds, money management firms and Internet companies. There is little available. A high floor suite has an asking rent of $45 per square foot.

SL Green wants to sell 39-story Herald Square at 1250 Broadway for $350 million.

A 275,000-square foot office building at 180 Madison Avenue will sell for $150 million, or $540 per square foot, to Ronnie Hackett's Claret Group. Four years ago, Sitt Asset Management paid $91.5 million to buy the building from SL Green Realty Corp.

New York Office Leases:

Total Manhattan Office Class A vacancies decreased from 11.86 million RSF to 11.36 million RSF.
Total Manhattan Office Market vacancies decreased from 22.35 million RSF to 20.94 million RSF.
Total Manhattan Office direct lease vacancy decreased from 19.17 million RSF to 17.92 million RSF.
Manhattan Office Sublease vacancy decreased from 3.19 million RSF to 3.01 million RSF.
Total Manhattan Office Market vacancies decreased from 22.35 million RSF to 20.94 million RSF.
Total Midtown South Office vacancy decreased from 4.38 million RSF to 4.15 million RSF.
Total Midtown Office vacancy decreased from 12.49 million RSF to 11.57 million RSF.
Total Downtown Office vacancy decreased from 5.48 million RSF to 5.22 million RSF.
Total vacant Office Sublease Space in Midtown Manhattan decreased from 2.11 million RSF to 1.93 million RSF.
Total vacant Office Direct Space in Midtown Manhattan decreased from 10.38 million RSF to 9.64 million RSF.
Total vacant Office Direct Space in Midtown South Manhattan increased from 4.11 million RSF to 3.85 million RSF.
Midtown South Manhattan Sublease vacancies decreased from 0.27 million RSF to 0.3 million RSF.
Total Downtown Manhattan Office Direct Lease Space decreased from 4.68 million RSF to 4.44 million RSF.
Total Downtown Manhattan Office Sublease Vacancies decreased from 0.8 million RSF to 0.79 million RSF.

Manhattan Retail Leases:

Total Available Manhattan Retail Space decreased from 1.06 million RSF to 1.05 million RSF.
Midtown South Retail vacancies decreased from 0.77 million RSF to 0.73 million RSF.
Midtown vacancy increased from 0.21 million RSF to 0.23 million RSF.
In Downtown, Retail vacancy increased from 0.08 million RSF to 0.09 million RSF

Manhattan Industrial Leases:

Total Vacant Manhattan Industrial Space increased from 0.2 million RSF to 0.22 million RSF.
Midtown South Industrial vacancies increased from 0.1 million RSF to 0.12 million RSF.
Midtown vacancy stayed at 0.1 million RSF.

Manhattan Office Leases:

Omnicom Group leases 183,768 RSF at 195 Broadway.
The advertising group inked a nine-year lease renewal.
Lord & Taylor leases 109,000 RSF at 601 West 26th Street.
The luxury department store signed a lease for new space. The deal comes on the heels of a planned $100 million renovation of its flagship store at Fifth Avenue and 38th Street. The asking rents in the building reportedly run from $20 to $30 per square foot.
Sedgwick Detert Moran & Arnold LLP leases 75,446 RSF at 125 Broad Street.
The law firm signed an expansion lease and renewal.
Latham & Watkins leases 70,000 RSF at 885 Third Avenue.
The law firm signed an expansion lease for floors 14 through 16 and 20. The attorneys currently occupy floors three through 13, 21 through 33 and a portion of 25. The firm?s total occupancy in the building is now 400,000 square feet. The reported asking rent was between $100 and $125 per square foot.
Lester Schwab Katz & Dwyer LLP leases 60,000 RSF at 120 Broadway.
The law firm signed a 12-year lease renewal for the 38th and 39th floors. The reported asking rent was between $40 and $45 per square foot.
American Eagle Outfitters leases 56,324 RSF at 417 Fifth Avenue.
The apparel retailer inked an expansion lease for the entire eighth and parts of the ninth and 10th floors. The reported asking rent was in the low $60s per square foot. The company also signed a lease at 1551 Broadway (see below).
Venable LLP leases 52,000 RSF at 1270 Sixth Avenue.
The law firm signed a five-year sublease. It is relocating and expanding from its current 27,000-square-foot space in the Chrysler Building.
NYU Hospitals Center leases 44,995 RSF at 673 First Avenue.
The hospital signed a 13-year expansion lease for the entire sixth floor and ground-floor storage space. The reported asking rent in the building was $48 per square foot. NYU?s total occupancy at the building is now 159,631 square feet.
Hanesbrands Inc. leases 37,678 RSF at 16 East 34th Street.
The underwear company took space.
Leucadia National Corp. leases 32,000 RSF at 315 Park Ave South.
The holding company signed a 10-year lease valued at $25 million. The reported asking rent was in the high $50s per square foot.
Concept One Accessories leases 31,000 RSF at 119 West 40th Street.
The accessories licensing company signed a 10-year lease. The reported asking rent was in the $50-per-square-foot range. The firm is consolidating three offices in the move.
Iconix Brand Group leases 30,556 RSF at 1450 Broadway.
The owner of a diverse portfolio of fashion brands signed an expansion lease for new space. The reported asking rent in the building was $62 per square foot. The company is moving from the fourth floor to the second and third floors.
Aeropostale Inc. leases 30,000 RSF at 112 West 34th Street.
The apparel and accessories retailer inked an expansion lease for an additional full floor. The firm now occupies six full floors in the building totaling almost 90,000 square feet.
The Audubon Society leases 28,000 RSF at 225 Varick Street.
The conservation organization signed a relocation lease. The reported asking rent in the building was in the mid-$40s per square foot.
Delco Apparel leases 26,000 RSF at 500 Seventh Avenue.
The apparel manufacturing company signed a 10-year lease for space. The reported asking rent was $55 per square foot.
Tory Burch leases 25,324 RSF at 11 West 19th Street.
The sportswear and accessories company inked a 10-year lease for showroom and office space. The reported asking rent was $49 per square foot.
Kevin Ryan leases 21,500 RSF at 40 West 20th Street.
The Internet technology entrepreneur inked a five-year lease for space on the sixth and seventh floors. The reported asking rent was $43 per square foot. Four of the company?s five affiliates will be consolidated in the new space.
Kohlberg Kravis Roberts leases 20,700 RSF at 730 Fifth Avenue.
The private equity firm signed a 10-year lease for the entire eighth floor.
Enterprise Community Partners leases 20,200 RSF at One Whitehall Street.
The nonprofit inked a 10-year lease for the 11th floor. The company is relocating from a 16,000-square-foot space at 80 Fifth Avenue. The reported asking rent was $38 per square foot.
Staples leases 16,980 RSF at 16 East 34th Street.
The office supplies company signed a 10-year lease for office space.
Phoenix Partners Group leases 16,400 RSF at 315 Park Ave South.
The credit derivatives broker inked a 10-year lease valued at approximately $13 million. The reported asking rent was in the high $50s per square foot.
Buro Happold leases 16,103 RSF at 100 Broadway.
The engineering consultancy inked an expansion lease.
Sun Capital Advisors leases 10,750 RSF at 100 Park Avenue.
The financial services firm signed a 10-year lease for the entire 33rd floor.
BST Advisory Network leases 9,813 RSF at 28 West 44th Street.
The accounting firm signed a 10-year lease.
Olivet University leases 9,255 RSF at 6 Barclay Street.
The Jubilee School of Music inked a 15-year lease for floors three and five.
Exec/Comm leases 8,930 RSF at 28 West 44th Street.
The communications skills and training firm inked a five-year lease for one unit and a two-year, five-month lease on another.
Cyruli Shanks Hart & Zizmor LLP leases 8,013 RSF at 420 Lexington Avenue.
The law offices signed a 10-year relocation lease.
Visiting Nurse Service of New York leases 7,678 RSF at 1250 Broadway.
The health care provider inked a 10-year lease renewal.
Rosetti Handbags & Accessories Ltd. leases 7,117 RSF at 10 West 33rd Street.
The accessories company inked an eight-year lease for showroom space with a reported asking rent of $44 per square foot.
The Damon Runyon-Walter Winchell Foundation leases 7,000 RSF at 55 Broadway.
The nonprofit inked a lease for space on the third floor.
Create-A-Marker leases 7,000 RSF at 254 West 35th Street.
The custom computer programming company inked a 10-year lease. The reported asking rent was $25 per square foot.
National Hockey League leases 6,781 RSF at 1185 Sixth Avenue.
The professional hockey league signed a 15-year lease.

New York City Retail Leases:

American Eagle Outfitters leases 25,000 SF at 1551 Broadway.
The apparel retailer signed a 15-year lease for a four-level space. The reported asking rent was in the $900-per-square-foot range. The new store could also support a 250-foot-high signage tower and 14,500 square feet of display space.
Gracious Home leases 24,300 SF at 55 West 25th Street.
The custom home furnishings store signed a 20-year lease for ground-floor retail space. The lease encompasses 17,000 square feet of street-level retail and 7,300 square feet of below-grade space.
Prime 112 Steakhouse leases 12,000 SF at East 29th Street.
The Miami-based steakhouse signed a lease. The hotel is slated to break ground in December 2008.
JP Morgan Chase leases 5,482 SF at 2195 Frederick Douglass Blvd.
The bank inked a 20-year lease for space at Columbus Village.
JP Morgan Chase leases 5,024 SF at 775 Columbus Avenue.
The bank inked a 20-year lease for space at Columbus Village.
North Fork Bank leases 3,500 SF at 830 Ninth Avenue.
The bank inked a long-term lease with options for another branch.
North Fork Bank leases 3,000 SF at 144 Eighth Avenue.
The bank inked a long-term lease with options for another branch.
North Fork Bank leases 3,000 SF at 502 Park Avenue.
The bank inked a long-term lease with options for another branch.
Gotham Martial Arts leases 2,850 SF at 328 East 61st Street.
The Tae Kwon Do school inked a 10-year lease with a five-year option.
AT&T leases 2,500 SF at 16 East Fordham Road.
The mobile phone company signed a 10-year lease for a Bronx location.
Detny Footwear leases 2,200 SF at 238 Mulberry Street.
The shoe company inked a 10-year lease for its first retail location. The reported asking rent was $175 per square foot.
Five Guys Famous Burgers and Fries leases 2,200 SF at 496 LaGuardia Place.
The burger chain signed a 15-year lease. The reported asking rent was $125 per square foot.
Cafe Blossom leases 2,000 SF at 466 Columbus Avenue.
The gourmet vegan restaurant signed a 10-year lease with a 10-year option for its second Manhattan location.
Starbucks leases 1,500 SF at 220 East 42nd Street.
The coffee chain signed a sublease for a new branch. The sublessor, North Fork Bank, had initially signed for 5,300 square feet of space but decided to sublease a portion of it.
Dunkin Donuts leases 1,378 SF at 730 Columbus Avenue.
Archstone Smith','J. Termini, G. Trock, CBRE','The chain inked a 10-year lease for another location.
Dunkin Donuts leases 1,201 SF at 606 10th Avenue.
The chain inked a 15-year lease for another location.
David's Bagels leases 1,000 SF at 1034 Third Avenue.
The baked goods chain took space.
Dunkin Donuts leases 887 SF at 666 Fifth Avenue.
The chain inked a 10-year lease for another location.
Cohen's Fashion Optical leases 550 SF at 1369 Third Avenue.
The reported asking rent was $325 per square foot.

New York City Buildings Sold:

301 Park Avenue 2 hotels 2 adjacent lots was sold to BH Hotels LLC for $1.400 billion.
The package of hotels and lots sold for $1.4 billion. The properties included the Waldorf-Astoria Hotel at 301 Park Avenue, which sold for $572.34 million; the Hilton New York at 1334 Sixth Avenue, which sold for $757.80 million; and two contiguous lots at 102-108 West 57th Street, which sold for $68.99 million. The deal was part of the Blackstone Group?s $26 billion buyout of Hilton in October.
120 Park Avenue a 643000 RSF office building was sold to Global Holdings Inc. for $525 million.
The property sold for $525 million, or $816 per square foot. Altria, the Phillip Morris parent, is relocating 80 percent of its workforce to Richmond, Va. The building?s branch of the Whitney Museum is also departing.
31 West 52nd Street a 30-story 700000 RSF office building was sold to Paramount Group for $500 million.
The tower went into contract for more than $500 million. The building was previously expected to draw bids of about $1 billion. The property is more than 95 percent leased.
250 West Street a 11-story 300,000 RSF office building was sold to Coalco for $201 million.
The property sold for $201 million. The Russian developer, led by Vassily Anisimov, could convert the building to residential use. Elad paid $142 million to Citigroup for the property in June 2006.
2139 Broadway a 212-unit apartment building was sold to VII West 75th Street LLC for $109 million.
The residential building sold for $109 million. The seller purchased the prewar building in 1980.
130 East 57th Street a 17-story hotel 200 room total was sold to Eight Hospitality Ownership Inc. for $99 million.
The hotel went into contract for $99 million.
915 Broadway a 20-story 207304 RSF office building was sold to Normandy Real Estate Partners.
The property sold for an undisclosed price.
641 Sixth Avenue an 8-story 149885 mixed-use building was sold to Atlas Capital Group for $85 million.
The commercial building closed for $85 million, or $540 per square foot, after a seven-month delay. The price represented a capitalization rate of 4.8 percent.
743 Fifth Avenue a 10-story office building was sold to Louis Vuitton for $60 million.
The building sold for $60 million. The property is next door to the luxury handbag retailer?s flagship store at 1 East 57th Street.
169 Columbia Heights a 12 story 74393 SF residential building was sold to Taurus Investment Holdings for $50 million.
The Standish Arms Hotel building sold for $50 million. The prewar property?s 128 apartments were most recently used as living quarters for the Jehovah Witnesses. The new owner plans to convert the building into 100 rental units. Two-bedrooms will start at $3,600, one-bedrooms will rent for $2,800, and studios will go for $2,000.
1186 Broadway a 12-story hotel was sold to GFI Development Co.; Dune Real Estate Funds for $40 million.
The joint venture acquired the long-term leasehold interest in the hotel for $40 million. The lessee plans to renovate the property.
548 West 22nd Street a 4-story 38,000 RSF commercial building was sold to The Dia Art Foundation for $38 million.
4-story, 38,000 sf comm. bldg','The Dia Art Foundation','n/a','n/a','n/a','$38M','The museum sold for $38.56 million.
27 Grand Street a Development site was sold to Extell Development for $33 million.
The former site of the Moondance Diner sold for $33.3 million. The 11,300-square-foot property is a collection of three lots bordered by Sixth Avenue and Thompson Street. The buyer plans a 114-room boutique hotel for the site, which can support 55,000 square feet of floor space as of right. It had previously been reported that the site would be used for a luxury apartment building.
112 Ninth Avenue a 4-story 57,000 RSF apartment building 65 units total was sold to Fortuna Realty Group for $31 million.
The rental building sold for $31.4 million. The buyer plans to renovate and upgrade the prewar property and hopes to attract high-end retailers for the building?s ground-floor storefronts.
415 Eighth Avenue a Development site was sold to Savanna Real Estate Fund for $27 million.
The corner development site sold for $27.85 million. The buyer plans to build a 100,000-square-foot mixed-use building.
313 West 37th Street an 8-story 70,000 RSF office building was sold to Charles Yassky for $26 million.
The commercial property sold for $26.5 million. The buyer plans to continue operating the prewar property as an office building until the leases expire.
165 West 57th Street a 5-story 22,000 RSF commercial building was sold to The Clover Foundation for $25 million.
The building sold for $25 million. The seller first purchased the property in 1972.
138 William Street a 7-story 35,674 RSF commercial building was sold to Swig Equities for $23 million.
The coin museum sold for $23.9 million.
204 West 14th Street a 34,344 SF mixed-use building was sold to a Westchester management company for $20 million.
The elevator building sold for $20.5 million, or $597 per square foot. The price represented a capitalization rate of 3.3 percent and a gross rent multiple of 21.3. The property contains 52 rent-stabilized units, of which 14 are one-bedrooms; the remaining units are studios.
1600 Sheepshead Bay Road a Development site was sold to Acadia Realty Trust for $20 million.
The two neighboring properties sold for $20.35 million, the largest transaction in the neighborhood in 20 years. The parcels together comprise 95,832 square feet of space. 1600 Sheepshead Bay Road has a one-story, 8,400-square-foot building on the property; 1501 Voorhies Avenue has a two-story, 11,870-square-foot mixed-use building. The properties have a combined 330,000 commercial buildable square feet.
344 West 14th Street a 6-story 20334 RSF apartment building 25 units total was sold to RE Equities Corp. for $14 million.
The walk-up building sold for $14.05 million, or $691 per square foot. The price represents a capitalization rate of 1.8 percent and a gross rent multiple of 32.9. The units are a mix of two- and three-bedrooms; eight are free market, 12 are rent-stabilized and four are rent-controlled. The property has an additional 10,759 square feet of air rights.
19-48 Hazen Street a 2-story 80000 RSF industrial building was sold to Safe Art Storage and Transport for $10 million.
The industrial property sold for $10.8 million.