July 2008: Manhattan Office, Retail and Industrial Market Report

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New York City Market Overview:

Major blocks of office coming back onto the market as wall street firms and banks lay off workers.

Pfizer Inc. is seeking to sublease 750,000 square feet of space. Pfizer owns its company headquarters on East 42nd St. as well as 685 Third Avenue and 150 E. 42nd Street and 605 Third Avenue.
Royal Bank of Scotland is marketing about 140,000 square feet at 7 World Trade Center.
J.P. Morgan Chase & Co.'s purchase of Bear Stearns Cos. is also expected to put hundreds of thousands of square feet on the market.
Lehman Brothers is trying to unload 400,000 square feet of space.
Goldman Sachs is preparing to sublease about 500,000 square feet at 77 Water Street.
Bank of America expects to shed a significant portion of the roughly 500,000 square feet it has at 114 W. 47th St. once it's new tower opens.

Office Overview:

State lawmakers could set new condo rate hikes in taxes for owners.

A Community group has asked the state's Public Authorities Control Board to assess the financing of the Atlantic Yards project due to its increasing cost, and to see if there are sufficient funds to complete the project. In 2006, a report said the Arena alone would cost around $637 million, but the developer said the cost had risen to $950 million.

The outcome of Coney Island will be discussed at the project's first public hearing. Supporters of the amusement operators and private developers will meet to talk about the city's plans to buy land from private owners, including Thor Equities, and win over critics and to find out where the hundreds of millions of dollars for the project will come from.

The owner of the Upper East Side building that was struck by a crane when it collapsed on May 30 is suing the crane's owner, operator, and lessee for $100 million. The collapse of the crane killed two people and damaged 1749 First Avenue, a residential building.

July 2008 Manhattan Office Market Vacancies

Total Manhattan Class A Office vacancies increased from 5.6 % vacant to 5.7 % vacant.
Total Manhattan Office vacancy increased from 5.7 % vacant to 5.8 % vacant.

July 2008 New York Retail Market Vacancies

Total Available Manhattan Retail Space increased from 1.10 million RSF to 1.11 million RSF.

New York City is the second least foreclosed-city this quarter, just below Boston with 53 foreclosures for every 10,000 properties. Foreclosures were more frequent in neighborhoods with large minority populations.

Governor David Paterson and the state legislature have reached a deal that requires Lenders to contact borrowers at least 90 days before starting foreclosure proceedings and are legally obligated to determine whether an applicant can repay a loan. Another of the provision states that lenders must meet with the borrower facing foreclosure.

The Justice Department said more have been charged since March on mortgage fraud-related charges. The FBI said that the real estate agents, appraisers, developers and lenders cost homeowners and other borrowers over $1 billion. The FBI is investigating 19 companies, including investment banks and hedge funds that were linked to mortgage securities.

The city's rent-guidelines-board has approved the highest rent increase in years for rent-stabilized apartments. Rents on one-year leases can increase up to 4.5%, and on two-year leases can increase 8.5%. The board also authorized a supplemental rent increase for tenants who have lived in apartments for at least six years, allowing landlords to increase rents $45 a month on one-year leases and $85 on two-year leases.

The Port Authority has said that the Freedom-tower-could-be-sold to private developers and has already approached Brookfield Properties and Related Companies to take on the behind-schedule $3 billion project. The Port Authority has said the sale would be a partnership offering, although private development companies often seek control of a project in such deals.

Industry leaders expect the NYU Medical Center, New York-Presbyterian Healthcare System and Mount Sinai Medical Center to expand near their current locations, but available land is hard to come by. So the institutions may look at the former, Hunter-Bellevue School of Nursing, the Solow development site on First Avenue between 36th and 40th streets and the outer boroughs.

Retail Marketplace

East River Plaza, a former wire factory in East Harlem, will open as a retail complex in October 2009. The property is from 116th to 119th street along Franklin D. Roosevelt Drive, will cater to stores like Costco and Wal-Mart. Home Depot and Target have already signed on, though Home Depot might sublet it's as it trims its expansion.

Owners of the South Street Seaport plan to replace the existing buildings on Pier 17 with a mixed-use project, including a 42-story apartment building and hotel tower. Developers want to move the former Fulton Fish Market Tin Building to the end of the pier and put apartments in its place. The three-level mall will be swapped for a hotel and two-story retail building. The project still needs clearance from the government at the federal, state and city levels.

Ashkenazy Acquisitions paid West Land just under $70 million for the 44 years left on the ground lease at 635 Madison Avenue, acquiring a 144,000-square-foot tower across from the GM Building. L&L Holdings bought the ground under the building last year for $110 million. Ashkenazy's partners also just bought another building across the street, 650 Madison Avenue, for $680 million. They own 660 Madison Avenue, where Barneys occupies a nine-story retail condo.

Hotel Developments

The Garment District will soon be filled with budget hotels. The Lam Group plans to open five hotels this fall, including a Sheraton Four Points and a Marriott Fairfield Inn, adding more than 1,000 hotel rooms to the area.

Adding to the development along Eighth Avenue, two new hotels could spring up in the West 40s soon. A Tishman Realty Corp. led partnership has filed plans with the city for a 22-story hotel on the west side of Eighth Avenue between 43rd and 44th streets. TriBeach Holdings filed plans for a 38-story apartment and hotel tower on the west side of the avenue, between 46th and 47th streets.

New Developments

The city has reached a deal with a developer that will bring schools to a mixed-use development planned for Midtown East. With financing from New York City Educational Construction Fund, the World Wide Group will build a new elementary school and a new high school that would replace the High School for Art and Design. In exchange, the city will lease the developer a 1.5-acre site at East 57th Street and Second Avenue. World Wide plans to build 200,000 square feet of retail and 488,000 square feet of residential space.

Mayor Michael Bloomberg unveiled a plan to rejuvenate the south Bronx. The plan calls for adding 8,000 housing units, 80,000 square feet of commercial and retail and 160,000 square feet of hotel and conference centers. Although $3 billion has been spent since 2002 in building up the area, the Bronx remains the city's poorest borough.

Shorenstein Properties bought two towers from Macklowe Properties, the Park Avenue Tower and 850 Third Avenue for $930 million. Paramount Group may take 1301 Sixth Avenue for $1.45 billion. Deutsche Bank, which controls the towers, is selling them for 20 to 30 percent less than what Macklowe paid for them.

Paramount Group could pay $1.5 billion for Harry Macklowe's Credit Lyonnais building, which Deutsche Bank took control of earlier this year.

Rockrose Development plans to build an 800,000-square-foot office tower, at a Jackson Avenue spot called 10 Court Square, near the Citibank tower. The asking price for the tower is expected to be in the $40s to $60s per square foot range. Rockrose needs an anchor tenant to lease half the to launch the project.

The Port Authority may sell the Freedom Tower and might have approached both the Related Companies and Brookfield Properties about the project. The authority, which is being advised by Deutsche Bank, wants the $3 billion tower to be completed under its current design.

Brooklyn politicians and civic groups proposed legislation create a trust that would impose more public control over the construction of Forest City Ratner's Atlantic Yards project in Brooklyn. The Atlantic Yards development is a public project built on public land with public money; thius it is important to maximize the amount of public involvement.

Developers are looking at Manhattan's far West Side for new projects, as the area undergoes a re-zoning. The Department of City Planning has proposed making a majority of the east side of eleventh avenue a residential zone, and re-classifying the industrial zone on the west side for office space.

Proposed regulations for tax-exempt bonds could jeopardize plans for the $950 million Barclays Center, the centerpiece of Forest City Ratner's Atlantic Yards project in Brooklyn. The Barclays Center's price will increase substantially without tax-exempt financing.

Deputy Mayor, Robert Lieber, is open to the idea of the Port Authority taking over the Monihayn Station project because the authority can invest $2 billion in it, but is concerned that it will be distracted from Ground Zero. The city will not fund a subway station on 42nd Street and Tenth Avenue, but is supporting a $2 billion expansion plan for a No. 7 subway station at 34th Street and Eleventh Avenue.

Infinity Capital Management purchased a 16-story office building at 247 West 30th Street for $15.85 million.

Foreigners have their sights on New York City towers, but seem content to operate in the background. The Abu Dhabi Investment Council could spend $800 million on a 75 percent stake in the Chrysler Building, but would remain a silent partner, leaving Tishman Speyer, which has a 25 percent stake, to control the building. The trend isn't new, a Dubai fund, bought the Helmsley tower at 230 Park Avenue in November 2005 for $705 million, and also bought 450 Lexington Avenue and the Knickerbocker Hotel at 6 Times Square. The Israeli firm Elad Properties bought the Plaza for $675 million in 2004 and transformed much of it into a successful condo building.

Valter Mainetti bought the Flatiron Building. In 2006, Mainetti purchased a minority share in the landmark building, valued at $180 million today, and now he owns a 53 percent share.

The offering materials for potential buyers of Starrett City went online last week, but only for approved groups that have been given access to read the document. The Web site is private, however, and cannot be accessed by the general public.

Hunts Point Food Distribution, the largest wholesale market in the world, may be leaving its Bronx home. Hunts Point shareholders are looking for another location near a highway or rail system for easy distribution.

As the tight credit market crimps property deals in New York City, sellers are beginning to offer help to their potential buyers in the form of financing for up to 80 percent of the purchase price. According to the experts, the financing scheme, which sellers hope will spur sales, is a natural development in a down market as banks tighten lending requirements, demand more cash in deals or decline to offer loans altogether, leaving sellers few options. The blockbuster example of the seller financing formula is the reported offer by Deutsche Bank to bankroll part of the sale of seven buildings that were once in the Equity Office Properties portfolio, which Harry Macklowe bought for $7 billion in 2007

Manhattan Class A vacancy rate rose to 6.9 percent in May, up from 6.4 percent in April and 5.3 percent at the beginning of the year. Large blocks of Midtown's vacancy rate increased to 7.1 percent. Downtown, the vacancy rate increased to 6.3 percent from 5.9 percent in April.

London has again been ranked ahead of New York City as the world's most influential financial capital for the second year in a row.

While many developers have been racing to get started on projects before changes in the 421-a tax abatement take effect, another group has thrown in the towel, tripped up by the deadline and the faltering economy.

The insurance giant, AIG, has taken over Goldman Sachs' lease of 800,000 square feet at Moinian's 180 Maiden Lane, in one of the year's biggest leases so far. AIG will begin moving in this September and will take all 30 floors by 2011. The company will remain headquartered at 70 Pine Street and denied it will sell the art deco tower, which could be converted to residential use.

Goldman is exiting several Downtown properties as it prepares to move into its new Battery Park City headquarters.

Hunter College's Brookdale campus has gotten first-round bids of $200 million-plus from Edward Minskoff, LCOR, Extell and New York University. CUNY wants to sell or lease the 4.2-acre complex bounded by First Avenue and the FDR Drive and East 25th and 26th streets. Up to 1 million square feet of new residential or education facilities could be built on the property. The winning bidder must build a new high school to replace the city's Julia Richman Education Complex at 317 East 67th Street. CUNY plans to tear down the school and build a new science complex.

Under the city's new, the Gowanus Canal zone could become an area of housing, commerce and green open while the canal is cleaned up. Toll Brothers wants to build 447 units of luxury and below-market housing in the rezoning site, and outside the zone a developer has been chosen to build 774 units of housing, pending the clean up.

Gov. David A. Paterson named Buffalo banking executive as chairman of the state's economic development agency. Wilmers will remain chairman and chief executive of M&T Bank Corporation, but will serve the state for no salary and will not need approval from the Commission on Public Integrity for his business interests.

Extell Development has purchased a property at 30 West 47th Street for $50.1 million. The building is near Extell's 40-story Diamond Tower, being built at 44 West 47th Street, with a second address at 55 West 46th Street.

The weak dollar is bringing more foreign visitors to the hotel industry. Tourism will play an increasingly important roll as Wall Street slows down.

Despite a slowdown in leasing and an increase in vacancy in Manhattan's office market, asking rents continued to increase in April. A quick look at the deals around town reveals that net effective taking rents are on their way down. The average asking rent in Manhattan continues to rise, up over $1 to $66.42 per square foot, from $65.38 per square foot in March, and $56.63 per square foot one year earlier.

The World Trade Center's construction could see more delays as the Paterson administration studies the budgets and timelines set by the Pataki administration. Delays are expected for the National September 11 Memorial and Museum, the Calatrava-designed PATH station and maybe even the. The tower is seen as closer to its target date, 2012, than the other projects, but it might not be completed until 2013 at the earliest.

40 Mercer Street in Soho will be taking bids on the retail portion of the 13-story luxury apartment building. The unit for sale has a street address of 465 Broadway, with 9,400 square feet on the ground floor. Bose, Dermalogica, Wachovia and Vivienne Tam currently lease the space.

The Freedom Tower got its first private-sector tenant, a Chinese real estate company. The Beijing Vantone Real Estate Company signed a lease and plans to build the China Center, a commerce and cultural center, on floors 64 to 69. Federal and state governments have agreed to lease 1 million square feet at the tower. The Partnership for New York City will invest up to $5 million in the $90 million project, which will create a 189,000-square-foot space. Vantone's annual rent will start at about $80 per square foot.

Mort Zuckerman's Boston Properties has gotten the go-ahead to enter and begin shoring up a Joseph Moinian-owned building on West 54th Street, as part of Boston's 1 million-square-foot Eighth Avenue office tower, called 250 West 55th Street. Moinian had blocked access to 241 West 54th Street, which it needs to reinforce so it can finish demolishing the building next door, No. 247.

NYC Buildings For Sale

The four Macklowe Properties buildings has received nearly 100 bids from around the globe for them. The buildings are Worldwide Plaza, 1540 Broadway in Times Square, Tower 56 at 126 East 56th Street and 527 Madison Avenue. Meanwhile, a San Francisco-based real estate investment firm is reportedly buying the Park Avenue Tower and 850 Third Avenue for $930 million and may take 1301 Sixth Avenue for $1.45 billion.

New York Office Leases:

Total Manhattan Office Class A vacancies decreased from 12.49 million RSF to 12.46 million RSF.
Total Manhattan Office Market vacancies increased from 22.68 million RSF to 23.06 million RSF.
Total Manhattan Office direct lease vacancy increased from 18.99 million RSF to 19.13 million RSF.
Manhattan Office Sublease vacancy increased from 3.69 million RSF to 3.94 million RSF.
Total Manhattan Office Market vacancies increased from 22.68 million RSF to 23.06 million RSF.
Total Midtown Office vacancy increased from 12.15 million RSF to 12.19 million RSF.
Total Midtown South Office vacancy increased from 4.22 million RSF to 4.4 million RSF.
Total Downtown Office vacancy increased from 6.31 million RSF to 6.46 million RSF.
Total vacant Office Sublease Space in Midtown Manhattan increased from 1.87 million RSF to 2.08 million RSF.
Total vacant Office Direct Space in Midtown Manhattan decreased from 10.29 million RSF to 10.12 million RSF.
Total vacant Office Direct Space in Midtown South Manhattan increased from 3.95 million RSF to 4.07 million RSF.
Midtown South Manhattan Sublease vacancies increased from 0.27 million RSF to 0.33 million RSF.
Total Downtown Manhattan Office Direct Lease Space increased from 4.76 million RSF to 4.94 million RSF.
Total Downtown Manhattan Office Sublease Vacancies decreased from 1.55 million RSF to 1.53 million RSF.

NYC Retail Leases:

Total Available Manhattan Retail Space increased from 1.1 million RSF to 1.11 million RSF.
Midtown Retail vacancy increased from 0.24 million RSF to 0.26 million RSF.
Midtown South Retail vacancies increased from 0.74 million RSF to 0.76 million RSF.
In Downtown, Retail vacancy decreased from 0.11 million RSF to 0.09 million RSF.

New York Industrial Leases:

Total Vacant Manhattan Industrial Space increased from 0.32 million RSF to 0.55 million RSF.
Midtown vacancy stayed at 0.18 million RSF.
Midtown South Industrial vacancies increased from 0.14 million RSF to 0.37 million RSF.

Manhattan Office Rentals:

Saatchi & Saatchi leases 819,000 RSF at 375 Hudson Street.
The advertising agency signed a long-term lease renewal. Asking rents for Class A office space in the Hudson Square area are reportedly around $60 per square foot.
Newsweek leases 165,000 RSF at 395 Hudson Street.
The magazine signed a lease. It is relocating from 1775 Broadway, which is undergoing a gut renovation.
Media edge leases 160,335 RSF at 825 Seventh Avenue.
The media buying and planning company signed a lease renewal for its 129,620-square-foot space on floors two through seven and a sublease to expand by an additional 30,715 square feet on the eighth and ninth floors. The tenant now occupies the entire office portion of the mixed-use building.
Laboratory Institute of Merchandising leases 100,000 RSF at 12 East 53rd Street.
The college signed a 15-year sublease for dormitory space. It is consolidating three dormitories in the city to provide rooms for 500 Streetudents.
News America Incorporated leases 83,822 RSF at 1185 Sixth Avenue.
The global media company signed a new 12-year lease for floors 25 through 27. The building is now 99 percent occupied.
K&L Gates leases 44,067 RSF at 599 Lexington Avenue.
The law firm inked an expansion lease.
Littler Mendelson PC leases 35,000 RSF at 900 Third Avenue.
The law firm inked a lease to relocate its offices.
Kirkland & Ellis LLP leases 30,000 RSF at 153 East 53rd Street.
The law firm inked an expansion lease.
Dish Network leases 28,954 RSF at 185 Varick Street.
The television broadcasting network inked a six-year lease for the fifth and sixth floors. The reported asking rent was $46 per square foot. The tenant also secured naming rights to the building, which will be dubbed the ?Dish Building.?
GT Systems leases 26,102 RSF at 295 Madison Avenue.
The information technology provider inked a lease renewal and expansion.
Triumph Apparel leases 25,200 RSF at 530 Seventh Avenue.
The apparel company inked a lease renewal.
Bain Capital leases 25,125 RSF at 590 Madison Avenue.
The private equity firm inked a 10-year lease for the top floor of the 42-story tower. The company is relocating from 745 Fifth Avenue, where it leases 8,000 square feet.
Viking Global Investors leases 20,200 RSF at 280 Park Avenue.
The hedge fund inked a 10-year expansion lease for the entire 33rd floor. The company currently occupies a 14,000-square-foot space on the 35th floor. The reported asking rent at the building is $135 to $145 per square foot.
Studio Ray leases 17,431 RSF at 512 Seventh Avenue.
The wholesaler of sporting and other recreational goods signed a renewal lease and expansion.
Cogent Communications leases 16,564 RSF at 33 Whitehall Street (Broad Financial Center).
The online technology company inked a lease. The reported asking rent was around $50 per square foot.
HealthSTAR Public Relations leases 16,500 RSF at 902 Broadway.
The public relations firm signed a 10-year expansion lease for the entire 11th floor. The reported asking rent was $47 per square foot. The company is keeping its 10,000-square-foot space at 90 Fifth Avenue.
Catholic Health Care System of the Archdiocese of New York leases 16,300 RSF at 205 Lexington Avenue.
The long-term care facilities operator inked a 10-year lease for the entire second and third floors. The reported asking rent was $45 per square foot.
Mitchell Silberberg & Knupp leases 15,500 RSF at 12 East 49th Street.
The law firm inked a sublease for the entire 30th floor. This is the Los Angeles-based firm?s first foray into New York City.
Planet Sox leases 13,500 RSF at 20 West 33rd Street.
The accessories company signed a five-year lease. The reported asking rent was $42 per square foot. The firm is relocating from the Empire Streetate Building.
Affinity Solutions leases 12,500 RSF at 333 Seventh Avenue.
The marketing firm inked a four-year sublease.
Fencers Club leases 12,500 RSF at 229 West 28th Street (The Caxton Building).
The fencing organization signed a 10-year lease for Streetudio space. The reported asking rent was $42 per square foot. The group is relocating from 119 West 25th Streetreet.
Jones Day leases 11,972 RSF at 222 East 41st Street.
The law firm inked a lease.
Victoria Hagan Inc. leases 11,500 RSF at 1790 Broadway.
The interior design company inked a 10-year lease for the entire 19th floor. The firm is relocating from 654 Madison Avenue.
McDermott Will & Emery leases 10,000 RSF at 340 Madison Avenue.
The law firm signed an expansion lease.
Tumi leases 9,861 RSF at 261 Fifth Avenue.
The travel accessories company renewed its lease and signed for an expansion.
Quizz Sportswear leases 9,600 RSF at 1410 Broadway.
The apparel company signed a 10-year lease for an entire floor. The reported asking rent was $50 per square foot. The firm is relocating from 1385 Broadway because it was unable to secure a long-term lease there; an ongoing management dispute at the building is reportedly preventing leasing agent Helmsley Spear from offering anything beyond a month-to-month lease.
Bluefly leases 9,585 RSF at 42 West 39th Street.
The online fashion retailer inked a four-year lease renewal for office space. The reported asking rent was $38 per square foot.

New York Retail Leases:

China Grill Management EMP LLC leases 23,500 SF at 1889 Broadway.
The tenant signed a 20-year lease to open a restaurant space including 7,500 square feet on the ground level and a 14,500-square-foot rooftop lounge.
City Winery leases 21,000 SF at 143 Varick Street.
The tenant signed a lease for a winery, restaurant and event space.
Aldo leases 10,500 SF at 470 Broadway.
The shoe retailer signed a 15-year lease to open its biggest New York City branch. The reported asking rent for the 3,500-square-foot ground-level portion of the space was $485 per square foot. The company also signed a lease for a 3,500-square-foot space
Greenstick Corporation leases 8,681 SF at 10 West 33rd Street.
The restaurant company signed a 15-year lease to open a sports bar and eatery. The multi-level space includes 3,222 square feet on the ground floor, 1,136 square feet on the mezzanine level and 3,865 square feet in the basement. The reported asking rent f
Zipcar leases 7,500 SF at 1265 Broadway.
The car sharing services provider signed a five-year expansion lease. The company is relocating from a 1,500-square-foot space at 127 West 24th Streetreet.
Cutler Hair Salon leases 5,000 SF at 45-47 West 57th Street.
The hair salon signed a lease for second-floor space. The reported asking rent was $450,000 per year. This location is replacing a shop at 115 East 57th Streetreet; the salon has another branch at 465 West Broadway. The space was most recently occupied by
DK Foods Corp. leases 5,000 SF at 2033 Third Avenue.
The tenant signed a lease to open a supermarket in summer 2008.
Autobahn Service Center leases 4,500 SF at 1765-1767 Park Avenue.
The auto repair shop signed a 10-year lease with a five-year option. The lease also includes an option to purchase the space as a commercial condo during the first three years of the term.
Belenky Brothers leases 4,000 SF at 91 Grand Street.
The jeweler signed a 10-year lease for 2,000 square feet on the ground floor and another 2,000 square feet in the basement. It is relocating from 151 Wooster Streetreet, where it has been a tenant for 12 years. The reported asking rent for the ground-leve
Hakan Swahn leases 4,000 SF at 1800 Broadway.
The restaurateur inked a 15-year lease to open a casual eatery, AQ Kafe. The space includes 2,000 square feet each on the ground floor and basement. The reported asking rent for the ground-level space was $275 per square foot.
CTSH LLC Deli leases 3,800 SF at 633 Third Avenue.
The deli signed a 15-year lease.
Aldo leases 3,500 SF at 1125 Third Avenue.
The shoe retailer signed a 15-year lease to open its biggest New York City branch. The reported asking rent for the 3,500-square-foot ground-level portion of the space was $485 per square foot. The company also signed a lease for a 3,500-square-foot space
Danku leases 3,500 SF at 45-47 West 57th Street.
The European-style caf? inked a lease for ground-level and basement space. The reported asking rent for the 60-seat location was $600,000 a year. The eatery is replacing a McDonald?s branch, which occupied the space for nearly 10 years.
Boqueria leases 2,500 SF at 171 Spring Street.
The tenant signed a lease to open its second tapas bar in New York City.
Kustom New York leases 2,500 SF at South Street Seaport.
The tenant signed a lease to open a Streetore selling custom-built motorcycles, clothes and accessories.
Financier Patisserie leases 2,160 SF at 983 First Avenue.
The pastry shop signed a 15-year lease for its fourth Manhattan location. The space includes 1,160 square feet on the ground floor and 1,000 square feet in the basement. The reported asking rent was $100 per square foot.
Texmex Streeteak House leases 2,000 SF at 5060 Broadway.
The restaurant signed a lease.
16 Handles leases 1,800 SF at 151 Second Avenue.
The frozen yogurt shop signed a 12-year lease for 1,200 square feet on the ground level and a 600-square-foot basement. The reported asking rent for the ground-floor space was $170 per square foot.
Le Petit Paradis leases 1,750 SF at 1656 Third Avenue.
The daycare center signed a lease.
Starbucks leases 1,600 SF at 301 West 118th Street (SOHA 118).
The coffee chain inked a 15-year lease for ground-level space at the new condo building. The reported retail asking rent in the area was $70 per square foot.
La Maison du Chocolat leases 1,500 SF at 63 Wall Street (The Crest).
The Parisian chocolate shop signed a 10-year lease for its third Manhattan location.
Jeffrey Streetein leases 1,300 SF at 1498 Second Avenue.
The salon signed a 10-year lease.
Kushi Q leases 877 SF at 153 East 53rd Street.
The Japanese restaurant inked a 10-year lease.
Yoshihide Yonezawa leases 500 SF at 225 East 5th Street.
The beauty salon inked a lease.

New York City Buildings Sold:

666 Fifth Avenue a 90000 RSF retail space was sold to The Carlyle Group; Crown Acquisitions for $525 million.
A 49 percent Streetake in the building?s retail space sold for $525 million. Kushner will continue to own 100 percent of the office portion of the tower, which was acquired last year for a record $1.8 billion.
49-55 West 47th Street a 13-story mixed-use building was sold to Wo Yee Hing Realty Corp.; Real Evergreen International for $85 million.
The property sold for $85 million. The first three floors of the building house 115 jewelers. The building, built in 1963, also has about 49,500 square feet of office space and 10 residential units.
125 West 45th Street (Hotel QT) a 16-story 57520 RSF hotel was sold to Room Mate Hotels for $82 million.
The hotel building sold for $82 million.
Upper Manhattan portfolio 10 apartment buildings 471 units total was sold to Vantage Properties; Apollo Real Estate Advisors for $57.5 million.
The package of five- and six-story rent-regulated buildings sold for $57.5 million. The apartments sold for an Avenuerage of $122,000 each, or $142 per square foot. The buildings are located at 38-48 Sickles Streetreet, 9-23 Thayer Streetreet, 90 Ellwood Streetreet, 961 Street. Nicholas Avenue, 552 & 556 West 188th Streetreet, 566 West 190th Streetreet, 570 West 190th Streetreet, 72 Vermilyea Avenue and 248 Sherman Avenue.
42 East 57th Street a 5-story 23,100 RSF office building was sold to T&A Holdings for $31.5 million.
The commercial property sold for $31.5 million.
55 and 61 Delancey Street 2 mixed-use buildings was sold to a Madison Capital affiliate for $19.6 million.
The two properties sold for $19.6 million. The buildings contain 45 rental apartments and seven commercial units.
A New York City portfolio of 6 retail buildings was sold to Markland Holdings Limited for $12.33 million.
The six bank locations sold for $12.33 million. Citibank sold 4249 Broadway for $4.3 million; 38-18 Queens Boulevard in Sunnyside for $2.1 million; 133-07 Rockaway Boulevard in South Ozone Park for $1.98 million; 51-10 Metropolitan Avenue in Ridgewood for $1.12 million; 5324 Fifth Avenue in Brooklyn for $1.8 million; and 550 Hunt?s Point Avenue in the Bronx for $1.03 million. The bank signed a 15-year lease at each location, with options to extend for another 30 years. Citibank also entered into a $5.4 million sale-leaseback agreement with John Catsimatidis? Red Apple Real Estate for a property at 1512 First Avenue.
208 West 82nd Street a 20-unit apartment building was sold to Jack Lebewohl and partners for $7.3 million.
The elevator building sold for $7.3 million. The price represents a capitalization rate of 4.6 percent and a gross rent multiple of 15.
31-33 West 8th Street a Two 5-story mixed-use building was sold to Jack Lebewohl and partners for $8.65 million.
The contiguous properties sold for $8.65 million. The price represents a capitalization rate of 5.8 percent and a gross rent multiple of 12.5. The package comprises 16 apartments and five Streetores.
1512 First Avenue a 2-story retail building was sold to Red Apple Real Estate for $5.4 million.
The bank location sold for $5.4 million to John Catsimatidis? real estate group. Citibank leased back the space for a 15-year term.
516 East 81st Street a 5-story 9,460 RSF apartment building 15 unit's total was sold for $5.2 million.
The residential property sold for $5.2 million, or $550 per square foot. The price represents a capitalization rate of 6 percent and a gross rent multiple of 12.3.
85 Pitt Street a 6-story apartment building 21 unit's total was sold to a Manhattan investor for $5.11 million.
The property sold for $5.11 million, or $419 per square foot. The price represents a gross rent multiple of 13.5. The Avenuerage rent per apartment is $1,228.
318 East 62nd Street a 6,100 RSF mixed-use building was sold to a Manhattan investor for $3.9 million.
The property sold for $3.9 million, or $633 per square foot. The building has an additional 1,872 square feet of air rights.
878-886 Westchester Avenue (The Bronx) a 62,400 buildable RSF development site was sold for $2.28 million.
The two adjacent lots were sold for $2.28 million. The lot at 878 Westchester Avenue was delivered vacant while 886 Westchester Avenue contains a one-story building. The buyer plans a mixed-use development consisting of retail and rental units.
232 East 50th Street a 4-story 4,666 RSF mixed-use building was sold for $2.7 million.
The property sold for $2.7 million, or $579 per square foot. The price represents a capitalization rate of 5.4 percent and a gross rent multiple of 12.9. The site has 8,367 buildable square feet and 3,701 square feet of air rights.
118 West 114th Street a 5-story apartment building 10 unit's total was sold to an International investor for $2.35 million.
The residential property sold for $2.35 million. The price represented a capitalization rate of 5.3 percent and a gross rent multiple of 13.3.
2871 Grand Concourse (The Bronx) a 5-story 20250 RSF apartment building 21 unit's total was sold to a Bronx investor for $2.15 million.
The residential property sold for $2.15 million, or $106 per square foot. The price represents a capitalization rate of 7.7 percent and a gross rent multiple of 7.9. The building contains 12 two-bedrooms and nine three-bedrooms.
508-510 West 29th Street 5478 RSF of air rights was sold to Ekstein Development for $1.7 million.
The air rights were purchased for $1.7 million, or $310 per square foot, and transferred over to another development site at 537-545 West 27th Streetreet. With the additional air rights, a 128,913-square-foot rental and condo apartment building is being built there.