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It was a busy month with an active Manhattan leasing market, New York building sales and the Jets getting the nod for the Hudson Yard’s site:
There were several notable deals completed; 200 Park Avenue sold for $1.72 billion, the third largest deal in the New York City's history. The Jets won the development rights for the Hudson Rail Yards on the West Side for $720 million.
J-E-T-S JETS JETS JETS! The New York Jets won the development rights to the Hudson Yards:
The Metropolitan Transportation Authority (MTA) sold the development rights for the Hudson Rail Yards on the West Side to the Jets for $720 million. The site bid includes $440 million from a group of developers whose bids are dependent on rezoning and the ability to transfer air rights to neighboring properties. The city and state are responsible for $600 million for a retractable roof, and a platform over the rail yards. The Jets beat out Cablevision Systems Corp., who submitted an offer for $760 million with $400 million in cash up front while the rest would go for a platform over the yards. TransGas Energy Systems offered $1 billion but the contract had depended on many complicated requirements. The final approval will come from the Empire State Development Corp., who is expected to accept the proposal.
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New Manhattan Construction: |
- Victoria Tower Development plans a $125 million restoration of the the old Loews Victoria Theater on 125th Street in Harlem. The plan is to erect a 25 floor tower with 100 condos, 162 hotel rooms, and a large ballroom.
- Deal is signed for New Nets Arena in Brooklyn. Developer Bruce Ratner and the city and state of New York have reached an agreement for the $2.5 billion dollar mixed-use development.
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New York City Buildings for Sale: |
- 800 Avenue of the Americas, a luxury residential building is expected to reach a sale price of over $210 million.
- The Duane Reade building on 8th avenue and the corner of 42nd is under contract to be sold at over $30 million for the 80 x 75 plot.
- 340 West St., a 4.2 acres site, is on the market for development and could fetch prices upwards of $600 million.
- 575 Fifth Ave., a Class A office building, is for sale and is expected to sell for more than $375 million or $650 a sq. ft.
- 25-01 Jackson Ave., known as the Court Square One in Long Island City is being shopped around by Citibank as a sale and leaseback.
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New York City Buildings Sold: |
- Tishman Speyer Properties bought 200 Park Avenue, “Met Life Building” for $1.72 billion, the third largest deal in New York City's history. The building contains 2,800,0000 square feet.
- One Madison Avenue sold for $918 million to SL Green Realty Trust. The building contains 1.4 million square feet. The acquisition includes 470,000 square feet of additional air rights.
- 1095 Sixth Avenue, the Verizon headquarters, was sold to Equity Office Properties for $500 million for the 1.2 million square feet office building.
- Vornado Realty Trust acquired the 17,000-sf retail condominium portion of the former Westbury Hotel for $113 million. The building contains luxury retailers: Chloe, Cartier, and Gucci. Rents on the avenue are going for $850 to $900 per square foot.
- AT&T headquarters in Basking Ridge, N.J. was sold to Verizon Communications Inc. for over $100 million.
- Rockrose bought the corner of 37th Street and 10th Avenue. Rockrose will now own both the east and west side of 10th Avenue between 37th and 38th Streets.
- 1414 Avenue of the Americas was sold for $60 million or $500 per square feet.
- 83 Maiden Lane was sold to the Association for the Help of Retarded Children for about $30 Million for the 13 story, 150,000 square feet building.
- 53 - 65 Hope Street in Williamsburg, a three-building industrial complex at section was sold for $14 million by Richfield Properties.
- CGS Developers of Brooklyn bought in Long Island City the Smoke Stacks Building for $12 million.
- 110 East 31st Street, a walk-up commercial building, was sold for $3 million.
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New York City Office Rental: |
- Total Manhattan Office Class A vacancies increased from 20.35 million RSF to 20.65 million RSF, and Total Market vacancies increased from 34.72 million RSF to 35.08 million RSF.
- Total Manhattan Office Market Vacancies increased as Total Direct availability increased from 27.60 million RSF to 27.75 million RSF and Total Sublease Lease availability increased from 7.12 million RSF to 7.33 million RSF.
- Total Manhattan Office Direct Lease availability increased from 27.60 million RSF to 27.75 million RSF, while Total Sublease vacancies increased from 7.12 million RSF to 7.33 million RSF.
- Total Manhattan Office Market vacancy increased as Midtown South availability rose from 5.48 to 5.51 million RSF and Midtown availability increased from 18.45 million to 18.72 million RSF. However, Total Downtown Vacancy rates continued to increase from 10.79 million RSF to 10.85 million RSF.
- Total Vacant Office space in Midtown increased despite a decrease in Total Direct availability from 14.19 to 14.16 million RSF. However, Total Sublease space availability increased from 4.26 to 4.56 million RSF.
Midtown South Office Direct Lease availability increased from 4.74 million RSF to 4.77 million RSF, while Sublease vacancies stayed constant at 0.74 million RSF.
- Total Downtown Manhattan office vacancies increased due to an increase in Direct space from 8.67 million RSF to 8.82 million RSF, despite Sublease availability decreasing from 2.13 million RSF to 2.03 million RSF.
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New York City Retail Rental: |
- Total Manhattan Retail availability increased significantly from 0.32 million RSF to 0.49 million RSF, led by an increase in Midtown availability from 0.11 to 0.26 million RSF while in Midtown South availability increased from 0.16 to 0.18 million RSF. In Downtown, availability remained constant at 0.05 million RSF.
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New York City Industrial Rental : |
- Total Manhattan Industrial Vacant space decreased from 0.66 to 0.62 million RSF. Midtown vacancy increased slightly from 0.30 to 0.31 million RSF. Midtown South vacancy rates dropped from 0.33 to 0.28 million RSF while Downtown vacancy rates continued to remain unchanged at 0.03 million RSF.
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Noteworthy Manhattan Leases: |
- The Securities and Exchange Commission rented 235,000 square feet at 3 World Financial Center. The SEC is leaving 150,000 square feet at the Woolworth building.
- Penn Mutual Life Insurance is pulling its operations out of 260 and 261 Madison Avenue and moving to 2 Park Avenue.
- Bowne & Co. leased 200,000 square feet at 55 Water Street.
- Mayer, Brown, Rose & Maw leased 200,000 square feet at 1675 Broadway.
- Fulbright & Jaworski renewed its lease at 666 Fifth Avenue for 107,000 square feet two years early and added 29,000 square feet.
- GE Capital Corp subleased 105,500 square feet at 299 Park Avenue South until April, 2018.
DnB Nor Bank renewed and expanded its lease at 200 Park Avenue for a total of 42,000 square feet.
- Moses & Singer signed a 15-year lease for 90,000 square feet at 405 Lexington Avenue.
- Turner Construction renewed and expanded its lease to 81,000 square feet at 375 Hudson Street.
The Preschool of America Avenue has agreed to terms for 27,500 square feet at 1190 Park Avenue.
- Laurus Funds is expanding to 20,700 square feet in 825 Third Avenue Avenue.
- The French Culinary Institute expanded its existing 20,000 square feet lease to a total of 50,000 square feet at 462 Broadway.
- The Permanent Mission of Ireland leased for 12 years for 15,895 square feet at One Dag Hammarskjold Plaza.
- BMG Music Publishing has agreed to lease 12,746 square feet at 245 Fifth Avenue.
- Sarabeth’s restaurant leased 6,208 square feet at 40 Central Park South.
- Home Depot has found a spot for their distribution and warehouse center on East 132nd St. in the Bronx.
- The restaurant En Japonais is taking over a three story space in 225 Park Avenue.
- Greschel & Co signed a 10-year lease for 7,123 square feet at 600 Madison Avenue.
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