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January 2014

January 2014 » Market Analysis » NY New Developments

January 2014: New York New Developments


NYC New Developments

Brookfield Property Partners has increased its cash offer to buy Brookfield Office Properties to roughly $5.1 billion. Brookfield Office's board plans to recommend to shareholders to accept this new offer. In place of cash, shareholders can receive one limited partnership unit under the offer. In September, Brookfield Property's offer was valued at $5 billion.

Hotel developer Zelig Weiss is planning a new 183-room hotel to Wythe Avenue in Williamsburg. The 150,000-square-foot building will be located at 55 Wythe Avenue.

Citibank signed a lease worth more than $1 billion to renew its 2.7 million-square-foot lease in a two-building complex at 388 and 390 Greenwich Street. The deal pulls Citi's headquarters away from 399 Park Avenue. Citi secured an option to extend the lease by 15 years when it expires in 2020, as well as a right to repurchase the two buildings outright for roughly $2 billion. Citi owned the complex until SL Green and Ivanhoe Cambridge bought it for nearly $1.6 billion in 2007.

Cornell University has renderings on its website for its 2.1 million-square-foot technology campus planned for Roosevelt Island. The first residential building which is to be developed by the Hudson Companies and the Related Companies. Campus construction is expected to start early next year.

Forest City Ratner is developing the first academic building and the corporate co-location building, a property with offices for multiple companies and lodging for tech tenants from the private sector. The building will hold 2,000 full-time graduate students. The residential building will hold about 350 housing units for students, faculty and staff. Apartments will range from micro-units to three-bedrooms.

The Proton Center, a research facility that develops proton therapies for cancer patients, is looking at renting 120,000 square feet in a planned 1.7 million-square-foot complex in East Harlem. The protron center is a joint effort of hospitals, including Memorial Sloan Kettering and Mount Sinai.

The Landmarks Preservation Commission approved the Greenwich Village historic status ending a 10-year battle to protect the so-called South Village Historic District from the encroachment of New York University and other developers.

The 701 Seventh Avenue project will contain 270,000 square feet, including air rights transferred from at 222 West 45th Street and 236 West 45th Street. The new building will have a Marriott Edition hotel reach 39 stories. The hotel portion will have roughly 203,532 square feet, with 66,360 square feet of retail scattered among the five lower floors. On the front of the building, more than 12,700 square feet of lighted signs will be installed.

The Metropolitan Transportation Authority's has approved Westfield Group to be the Fulton Center's master leaseholder and will place about 180,000 square feet, or the majority of the complex's non-station areas, in the developer's hands. Of the 63,000 square feet of commercial space, two-thirds will be retail and the remaining third will be office space. Westfield will manage the subletting of commercial space, digital advertising sales and maintenance. The term begins when the Fulton Center's public circulation areas will open in June.

Stanford Hotels is developing a 26-story hotel in Midtown West. The site at 120 West 41st Street will hold 130 rooms and rise 257 feet and is expected to open in 2015.

Madison Equities and Property Markets Group got approval from the city Board of Standards & Appeals for a planned residential condominium project in Soho. The decision permits the partners to start construction at the site, at 10 Sullivan Street aka 120 Sixth Avenue. The new development, 16-story flatiron-shaped tower with four adjoining townhouses, will l be completed by the second quarter of 2015. The partnership required the variance in order to build a residential building since the area is zoned for commercial and industrial uses.

Ziel Feldman's HFZ Capital Group has filed a proposal to convert a Nomad rental building into condominiums, featuring a top floor of five studio penthouses. HFZ has submitted an application with the New York State Attorney General's to convert the 177-unit rental building at 88 Lexington Avenue into a condo tower with the same number of units.

New York Methodist Hospital is changing its plan to expand the 506 6th Street location to a total of nearly 500,000 square feet.

Wells Fargo Bank and Criterion Real Estate Capital may provide $525 million in acquisition financing to the Witkoff Group and Jynwel Capital to purchase Manhattan's Helmsley Park Lane Hotel. The financing, enabled Witkoff's to purchase the $660 million purchase of the 605-room property at 36 Central Park South.

A plan to rezone the area around the former Rheingold Brewery in Bushwick, Brooklyn, got approved from the City Council, permitting conversion of the industrial property to residential rental

The Fulton Street Transit Center is near completion. The $1.4 billion Lower Manhattan megaproject will ultimately link 11 different subway lines at 6 stations. By 2016, the center will also connect with the Port Authority's World Trade Center Transportation Hub. Costly delays have been a source of ongoing frustration.

The Brooklyn Public Library received seven proposals to convert the Brooklyn Heights Branch into a residential or mixed-use tower with a library on the ground floor. The designs, by different developer and architect teams, were required to include at least 20,000 square feet of library space and affordable housing at the 280 Cadman Plaza West site. They ranged in height from 285 feet to 551 feet, with five including retail space.

The Meatpacking District Improvement Association is behind the BID push for the district. The association functions like a BID, but isn't funded by a special tax assessment on property owners. If approved the BID's boundaries would be from Horatio Street, Eighth Avenue to the east, 17th Street to the north and the West Side Highway to the west.

The city's Economic Development Corporation and Department of Mental Health and Hygiene are looking for developers to turn part of a Kips Bay building into a center for bioscience research. The two agencies jointly issued a request for proposals, seeking a developer to turn the 455 First Avenue space into a facility that would house private research labs.

Tribeca homeowners and businesses are upset about a potential relocation of a probation office to their neighborhood and are taking New York City to court for making the decision without them. The Department of Probation, currently at 346 Broadway is set to move to 66 John Street, which has already been leased. Peebles Corporation, which bought 346 Broadway from the City plans to convert the space into luxury condominiums.

Developer Zhang Xin's family, along with Brazilian banking magnate Moise Safra, picked up a 40 percent stake in the General Motors Building at 767 Fifth Avenue, valuing the building at about $3.4 billion.

The saga of the Empire State Building's ipo continues with investors filing a new lawsuit alleging that they lost out on up to $400 million. The investors claim Malkin did not seriously consider a sell to private investors. The building and about 18 others officially transferred over to the Empire State Realty Trust for $1.89 billion which is far less than the $2.2 billion that investors such as Joseph Sitt and Rubin Schron had offered for the empire state building alone.

New York University is set to expand into Downtown Brooklyn. The university will soon open the NYU Polytechnic School of Engineering at 6 MetroTech Center.

PFNY, the New York-based franchisee of the rapidly expanding Planet Fitness, will rent 21,900 square feet at 213 West 34th Street.

The outgoing Bloomberg administration has announced plans for a five-building, 985-unit mixed-income development for the Melrose section of the Bronx.

GroupM committed to anchoring the Silverstein Properties office tower at 3 World Trade Center.
The 20-year lease covers 516,000 square feet over the lower nine floors of the 80-story building.

At 795 feet, Ian Bruce Eichner's new $100 million condominium tower in NoMad is on pace to become the tallest residential building in Manhattan south of Midtown. The building will have 80-units and be a 60-story tower. The building will have a 17-foot cantilever over 33 West 22nd Street.

Brookfield Office Properties is trying to use its high end retail space at Brookfield Place as a lure to attract office tenants. After a $250 million overhaul of the 250,000-square-foot retail space, the hope is that high-end tenants/ retailers such as Hermes and Burberry will appeal to potential office clients and convince them to rent the 8.5 million-square-foot office space.

A luxury theater chain is coming to Howard Hughes Corporation's South Street Seaport redevelopment. Ipic. Movie-goers can expect to pay up to $28 for extreme pampering, will take 40,000 square feet at 11 Fulton Street. The theater will have 505 seats and eight auditoriums. The complex is set to open in mid-2015. Howard Hughes Corporation is also partnering with Crown Acquisitions on a three-story glass retail building to be developed at the seaport's Pier 17. They are also looking at developing a 50-story hotel and apartment tower at the seaport.

The council approved 77 Commercial Street. The project is to include one 30-foot and one 40-foot tower, which will include 200 units of affordable housing.

Two luxury residential buildings are going to be built at 411-421 West 35th Street and 445 West 35th Street. Construction is to begin shortly. Residential space will total 92,469 square feet and there will be 4,920 square feet of commercial space.

Extell Development's, filed with the city to demolish the one-story grocery store, and is planning to build a luxury development as-of-right on the 227 Cherry Street site, which is zoned to allow nearly 1 million square feet. The site could include a tower that rises more than 70 stories.

Related Companies received approval for a combined $120 million in tax exemptions for two of its largest projects, Hudson Yards and Willets Point. The Industrial Development Agency voted 12-1 in favor of granting Related's request.

General Growth Properties listed 30,000 square feet of retail space at 200 Lafayette Street in Soho with an asking rent of $6 million. GGP purchased 200 Lafayette from Kushner Companies and CIM Group for $148.75 million.
Swedish clothing retailer H&M's rumored lease in Union Square has stalled and may be abandoned. The deal was on several floors in a 32,000-square-foot retail space at 853 Broadway,
The Art Institute of New York City is moving from Soho to Midtown. The institution for education in art, fashion, filmmaking and relocate 62,539-square-foot at 30 Varick Street for a 45,000-square-foot sublease at 218 West 40th Street.
Grocon is looking for $500 million to finance its acquisition of a 95 percent majority stake at the Park Avenue Tower in Midtown East. Shorenstein Properties currently owns the majority stake at the tower, at 65 East 55th Street. The firm bought the building, along with 850 Third Avenue,for $930 million from Macklowe Properties.

A 31-story Fairfield Inn hotel should open next year at 161 Front Street. Peter Poon Architects is behind the 230-foot-tall property and is separate from SHoP Architects' design for a 50-story hotel-condominium tower and boat marina in the area.

Australian mall giant the Westfield Group will pay the Port Authority of New York and New Jersey $800 million for the remaining 50 percent interest in the forthcoming World Trade Center retail complex. Westfield had paid $600 million for a 50 percent stake in the 365,000-square-foot space two years ago, and the new deal values the total space at north of $4,000 per square foot.
Dairy Queen has signed a lease for 2,500 square feet at 54 West 14th Street. Dairy Queen will take both ground and mezzanine space, which came with an asking rent of $165 per square foot.
Colonnade Group wants to convert the landmarked 42-46 Lispenard Street into a mixed use building. The developer paid $9.2 million for the five-story building at, between Church Street and Broadway,
Nike is looking to vacate its "Niketown" digs at East 57th Street and is likely to jump ship to H&M's 40,756-square-foot space at 640 Fifth Avenue.
The new glass pyramid residential tower at 625 West 57th Street is now available. The retail space will have ceilings up to 27 feet tall, and the one of the commercial units, located on the corner of West 57th Street and Twelfth Avenue, will contain about 27,000 square feet of space.
Soho's last empty parcel of land will become a glassy Minimalist box with two soaring stories of retail rising. The proposal is from a company controlled by Ralph Bartel, an investor in fashion retailers.
Silverstein Properties started construction on an 82-story hotel and condominium tower at 30 Park Place in Tribeca, which is slated to be Lower Manhattan's tallest residential tower and its first five-star hotel.
Midtown-based Teach for America is close to signing a 170,000-square-foot lease in Lower Manhattan. If closed this year, it would likely be among the 10 largest relocation deals to Downtown.
Howard Hughes Corporation is looking for a food market to occupy a nearly 40,000-square-foot at their South Street Seaport redevelopment project. The developer is in talks with celebrity chefs to curate the offerings, which will focus on specialty foods, in the same concept as Eataly. The plan to replace the abandoned Fulton Fish Market warehouses with a 50-story condo-hotel tower is not popular. The city has yet to approve the hotel, which is slated to hold 130,000 square feet of retail.
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