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May 2013

May 2013 » Market Analysis » NY New Developments

May 2013: NYC New Developments


NYC New Developments

Waterman Interests has signed a new 75-year deal with Benenson Capital Partners for the master lease at 400 Park Avenue. The Benenson family has owned the East 54th Street site since 1971. In 2010, Waterman along with some institutional investors paid $35 million to RFR Realty for the leasehold on the 270,000-square-foot property. At the time, the leasehold had 17 years remaining.

Manhattan hotels have been popping up especially in the area around 29th Street. . Now there are nearly a dozen hotels clustered on and around 29th Street, including the trendy Ace Hotel, which opened in 2009. It was followed in 2011 by a sister property, the NoMad Hotel. On 29th Street and Park Avenue, the 249-room Gansevoort Park Avenue opened in 2010. The Eventi hotel, at the corner of 29th and Sixth Avenue,.

RFR Realty appears to have arranged a roughly $1 billion loan for its 38-story Seagram Building at 375 Park Avenue. The financing appears to have come from Citibank and Deutsche Bank which will be split and sold to investors as CMBS.

A lawsuit brought by a parishioner against Wall Street's Trinity Church parish has brought to light the value of the church's assets, which are estimated to be worth more than $2 billion and include a major portfolio of office buildings and mixed-use residential developments. The church controls 14 acres of Manhattan property, the bulk of which is in the Hudson Square neighborhood, where Trinity's real estate division recently pushed for an upzoning.

Two different 280 Park Avenue tenants who have signed deals that more than double their footprints. Asset management firm Blue Mountain Capital and consulting firm Promontory Financial Group now each have a 49,541-square-foot floor.

A media outlet company known for quirky news is moving into a 57,691-square-foot space at 200 Fifth Avenue between West 23rd and West 24th streets. The company will sublease the entire eighth floor from jewelry giant Tiffany for two years.

Integrated pharmacy CVS Caremark has inked a 15-year lease for 21,159 square feet at 3 Columbus Circle. CVS will occupy a portion of the ground and second floors at the recently renovated building, which has an alternate address of 1775 Broadway.

And Partners, a digital design and marketing firm, has taken a cheaper lease at 121 East 24th Street. Previously stationed in pricey Chelsea, where the average asking rent is $61.77 per square foot, And Partners will now occupy a 5,200-square-foot space for $45 per square foot. They wanted to remain in the 20s, and this was a very good value for a 10-year deal.

The iconic Paramount Building situatedin Times Square is soon to get a $50 million makeover through a low-cost financing deal. Paramount Leasehold L.P. will spend the money on capital improvements such as new windows, elevators and a renovated lobby at the 33-story, 780,000-square-foot tower, at 1501 Broadway. The landlord just recently secured a 10-year, $130 million mortgage with an annual interest rate of 3.16 percent.

Ten large Manhattan office tenants have signed on to lowering their energy consumption by 30 percent over the next ten years. The pledge will affect the efficiency of about 17 million square feet of office space. Though new developments like 11 Times Square and One Bryant Park have energy-saving systems, the owners have had difficulty reigning in tenants' high consumption.

LinkedIn, which puts the networking in social networking, has expanded its footprint inside the Empire State Building and signed a full-floor deal encompassing 31,196 square feet, which brings its total presence in the tower to 109,719 square feet.

Air India, has singeda 15-year deal for space at 570 Lexington Avenue or known as the old General Electric Building, and will be moving one floor down from its current space. The airline which shuttles passengers non-stop between New York and Delhi signed a deal for 7,846 square feet of space at the 50-story, 460,000-square-foot property.

Law firm Patterson Belknap has renewed its lease for 200,000 square feet at 1133 Sixth Avenue for 20 years. The firm's current lease, the building's largest, had been due to expire in December 2014. The building's landlord the Durst Organization would have been left with vacancies for two major blocks of space at the property if Patterson had opted to move from floors 18 through 26. Another large tenant, the Internal Revenue Service, will leave its eight-floor space next year.

A seven-story mixed-use building is being planned for 324-326 Grand Street. The site was previously slated for landlord Baruch Singer's 18-story, 36-room hotel, which was scrapped following the economic downturn.

Three buildings in Sohowill come down so a new office and retail development can go up. A BP PLC gas station, a former mechanic shop and the Puck Fair bar, all at the corner of Houston and Lafayette streets, will be replaced by a seven-story office building with retail shops.

Madison Square Garden went before the City Planning Commission to try and secure a permit to operate indefinitely atop Penn Station. MSG's permit expired in January. Opponents of the arena's push to stay permanently at the Penn Station location want to give MSG a 10-year option that would give developers and planners time to brainstorm a plan to boost economic growth on the West Side. .

Related Companies and Oxford Properties Group have signed on beauty giant L'Oreal and SAP as anchor tenants for the South Tower at the Hudson Yards megaproject. The deals will result in L'Oreal and SAP joining anchor tenant Coach in the building, which is now over 80 percent leased.

New York University just won an important legal victory in its push to expand almost 1.9 million square feet. The New York Supreme Court rejected a request for discovery brought by a coalition of groups including the Greenwich Village Society for Historic Preservation, the East Village Community Coalition, and NYU Faculty Against the Sexton Plan.

Times Square Construction & Development has changed its plans for 325 Lexington Avenue yet again. Initially, the developer intended to build a 31-story mixed-use structure with 103 units, plus a restaurant and bar on the ground floor.

Financial firm Loeb Holding Corp. has signed a 22,000-square-foot lease at 125 Broad Street in, bringing the Mack-Cali-owned portion of the 1.3-million-square-foot building to full occupancy. Loeb's nearly 16-year lease encompasses half of the 14th floor. The firm was previously at 61 Broadway. Asking rents are in the $30s per square foot.

State Street Bank has signed a 105,951-square-foot deal at 1290 Sixth Avenue, known as the AXA Financial Center. The 10-year deal is a major shot in the arm for the sluggish Sixth Avenue corridor. State Street will take the entire sixth floor and will vacate 70,000 square feet at Brookfield Office Properties' 2 World Financial Center, as well as it part of the 10th floor that it occupies under a sublease at 1290 Sixth Avenue.

AppNexus, an advertising technology company, has signed a deal to more than double the size of its footprint at 28-40 West 23rd Street in Midtown South. The company, which formerly had roughly 91,000 square feet inside the two connected buildings, will now have about 220,000 in a 10-year deal. AppNexus is paying about $60 per square foot.

A planned 715-foot Midtown East skyscraper that was put on hold by the real-estate downturn may be resurrected by a group of developers led by World-Wide Group. As part of the financing deal for the tower, located at the southwest corner of 57th Street and Second Avenue, Starwood Property Trust would provide a roughly $450 million loan and J.P. Morgan Chase and Rose Associates would make equity investments.

Nyack College has found a new home in Lower Manhattan, ending a nearly six-year search. The Christian liberal-arts college will take eight floors covering 166,385 square feet at 2 Washington Street, a 22-story building near Battery Park. Nyack whose main campus is in Rockland County will pay roughly $32.50 per square foot for the space in a 20-year deal, which will see it more than double its New York presence. The college will relocate from two locations: a floor at 93 Worth Street and the entire building at 361 Broadway.

Non-profit organization the Municipal Arts Society has recruited four well-known architectural firms to find a new home for Madison Square Garden and lend their design knowledge to reconfiguring Penn Station when (and if) the stadium moves. The list among others include: Santiago Calatrava, SHoP Architects, SOM and Diller, Scofidio + Renfro.

The Howard Hughes Corporation may build a hotel, retail space and market-rate residential apartments at the South Street Seaport as seen by a letter of intent, ending months of speculation about the developer's plans for the megaproject.

An advertising agency has inked a major new lease at 1400 Broadway, helping to position the area as a creative hub class. Interpublic Group of Cos., one of the advertising industry's "big four," inked a 86,000-square-foot deal on the lower floors of the building, and will move from its current offices on 23rd Street in the Flatiron District and in Soho on Sixth Avenue.
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