News
THOR'S $200M PLAY
July 21, 2010
| THOR'S $200M PLAY |
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| It's a wrap—with a new wrap. Thor Equities just closed on a $200M deal to purchase and renovate the iconic 693 Fifth Ave., aka the Takashimaya Building, to make it more appealing for a luxury retail flagship. Part of the renovations will include replacing the granite façade with a modern glass one. Thor will transform the first eight floors into retail space, while the current 3.5k SF ground floor retail will be nearly doubled to 6k SF. Floors 9-20 will keep their original design. Construction will start this fall for a spring '11 completion. Thor will acting as its own leasing agent and the new tenant will have the exclusive building naming rights. Sales Transactions Hotels Union Square Mezz 1 LLC and Hotels Union Square Mezz 2 LLC filed a joint Chapter 11 plan in the US Bankruptcy Court that will wind up the bankruptcy cases related to the W New York-Union Square. Current owner LEM and the property's mezz lenders have reached a settlement to sell the hotel to a new venture led by Host Hotels & Resorts (in which Istithmar World is a minority member). After purchasing, the first mezz loan in favor of Dekabank will be repaid, and LEM will receive current and future payments in repayment of its original mezz loan. The first mortgage will remain in place upon approval of the first mortgage lender. W Hotel Management will continue to manage the hotel under its existing agreement. *** A beach of a deal for Massey Knakal: it sold the 12.1k SF 1113-1123 Brighton Beach Ave., former home to Odessa Restraurant, in Brighton Beach to a Russian investor for $4.8M cash. The firm's Brian Hanson and Valentin Presnov repped the seller. And up in the Bronx, Massey Knakal sold a five-story, 51.2k SF walk-up apartment building at 2105 Walton Ave. in Morris Heights for $3.7M cash. The firm's Karl Brumback and David Simone exclusively brokered the deal. *** CBRE's private client group sold the 16.1k SF office building at 1029 East Main St. in Stamford, Conn. for $1.8M. The firm's Al Mirin and Kate Schwartz repped the owner. Lease Transactions Production Resource Group inked a 220k SF office and warehouse deal at 915 Secaucus Rd. in Secaucus, NJ. for its Northeast HQ. Cushman & Wakefield's Stan Danzig and Stephen Elman repped the tenant, while Charles Reese repped owner Hartz Mountain Industries in-house. *** Diageo North America signed a five-year, 51k SF lease at 530 Fifth Ave. Newmark Knight Frank's Scott Klau and CLW Real Estate's Joe Garvey repped the tenant, while NKF's Howard Kesseler, Brian Waterman, and Jordan Gosin repped owner The Moinian Group. *** Third Avenue certainly wasn't sleeping this week:
Shearman & Sterling renewed its lease for 38.7k SF at 850 Third for five years (tenant reps: Cushman & Wakefield's Franklin Speyer, Amy Fox, William Fressle, Robert Gastel, and Jonathan Luttwak; landlord reps: C&W's Matther Astrachan and Robert Galluci, with Kevin Kuzemchack in-house for Shorenstein Properties). Columbus Nova signed a 17.3k SF lease at 900 Third(tenant reps: Studley's David Dusek and Brad Wolk; landlord reps: JLL's David Kleiner and Doug Nye, with Jim Vandervliet in-house for Paramount Group).*** Nor was Broadway:
Jay Suites signed a 10-year, 16.8k SF lease at 1370 Broadway (tenant rep: JLL's Sean Black; landlord rep: David Sitt in-house for Sitt Asset Management). Journey's leased 4.5k SF at 626 Broadway (tenant rep: Colliers International's Adam Zeiberg; landlord reps: Newmark Knight Frank's Jeffrey Roseman and Jason Maurer for Moklam Enterprises). HSBC Bank inked a 3.9k SF renewal at 1350 Broadway(tenant rep: Lansco's Stuart Lilien; landlord reps: CBRE's Andrew Goldberg, Matt Chmielecki, and Eric Gelber for W&H) .*** It's good to see something moving quickly on the Long Island Expressway—Melville Corporate Center III at 324 S. Service Rd. in Melville saw three new leases, bringing its occupancy to more than 90%. TD Bank inked a 12-year, 42k SF lease for its regional HQ (tenant rep: USI Real Estate Brokerage Services' Paul Ferraro), while Avivia took 15k SF (tenant reps: Corporate National Realty's Frank Pagano and JLL's Brian Higgins) and Vitro Packing took 4k SF (tenant reps: The Robert Cos.' Bob Joyce). Ted Weiss, Craig Weiss, and Jennifer Lynch represented owner T. Weiss Realty in-house for the deals. *** In one of Westchester County's largest leases this year, Allen Systems Group signed a seven-year, 26.4k SF lease at the RiverView at Purchase, 287 Bowman Ave. It's relocating from its current NY office at 120 Old Post Rd. in Rye. CBRE's William Cuddy repped the tenant, while CBRE's Timothy Donohue repped owner Phoenix Capital Partners. *** Janney Montgomery Scott signed a seven-year, 22.2k SF lease at 575 Lexington Ave. JLL's Jim Wenk and Paul Formichelli repped the tenant, while Roger Silverstein and Jeremy Moss represented owner Silverstein Properties in-house. *** It was a fine week for furniture retailers: Lillian August committed to a 19k SF lease at 11 W. 19th St. (tenant reps: Cushman & Wakefield's Alan Schmerzler and Chris Schwart; landlord reps: Savitt Partners' Bob Savitt, Michael Dubin, and Carol Sacks). And it was Straight From the Crate and into 295 Park Avenue South, where the retailer signed a 3.1k SF lease for its second Manhattan location (tenant rep: Winick Realty Group's Hal Shapiro; landlord reps: Winick's Steven Baker and Michael Gleicher for Abington Holdings). *** Columbus Square is now where the pets go. Petco leased the last remaining big-box retail space at the mixed-used complex, inking a 20.1k SF deal at 805 Columbus Ave. Ripco Realty's Andrew Mandell, Richard Skulnik, and Brian Schuster repped the tenant (naturally—its mascot is a dog), while Winick's Lori Shabtai and Kelly Gedinsky repped the landlord, Chetrit Group and Stellar Management. *** Three leases brought Advance Realty's Bedminster, NJ portfolio to 100% occupancy: Prostaken's 5k SF lease at 1430 Route 206(tenant rep: Cornerstone Real Estate's Eric Ladden); Getting Hired's 4k SF lease at 1545 Route 206; and AF Scott's 2.6k SF lease at 1420 Route 206. Advance's Brian Banaszynski provided in-house rep in all three deals. *** VELOCITY Broadcasting inked a high-definition lease at 527 Madison Ave., where it will occupy 6.5k SF on the 25th floor for 10 years. NAI Global New York City's Stephen Grill repped the tenant, while Cassidy Turley's Jim Frederick and Peter Occhi repped owner Mitsui Fudosan America. Down the street at 143 Madison, tenant Reshma for Congress inked a four-month, 3k SF lease for the congressional candidate's first NYC office. NAI's Philip Silverstein represented Reshma. *** The Tourist Office of Spain is relocating to One Grand Central Place, signing a 15-year, 8.5k SF lease. Cushman & Wakefield's Owen Hane and John Fitzsimons repped the tenant, while Newmark Knight Frank's Billy Cohen, Ryan Kass, and Alison Coffey represented owner W&H Properties. *** ¡Delicioso! Spanish-Mediterranean restaurant Flor del Sol signed a 4.3k SF lease at 100 Tenth Ave. in The Caledonia, a luxury residential development. Robert K. Futterman & Associates' Caleb Petersen repped the tenant, while RKF's Robert Futterman and Brandon Singer repped owners Related Cos., Taconic Investment Partners, and Abington Properties. In other international fare, the Thomas Keller Restaurant Group signed a new 4k SF lease for its French-Boulangerie Bouchon Bakery at 1 Rockefeller Plaza. The owner is Tishman Speyer. Délicieux! *** Mulberry is packing its designer bags and moving to 450 W. 15th St. in Chelsea, where it inked a five-year, 6k SF lease. Newmark Knight Frank's Brandl Frey and Brian Waterman represented the landlord,Stellar Management. *** 216-20 Hillside Ave. in Queens Village is the perfect prescription for EBI Pharmacy and Supermarket, which inked a 4k SF lease for its second NYC location. The site was a former Blockbuster Video that closed 18 months ago. Northwest Atlantic's Steve Gillman, along with Hillside Metro Associates' Robert Corroon, represented landlord Hillside in the deal. *** Wouldn't it be nice to pay for rent in bottles and cans? TriBoro Bottle & Can Redemption Center inked a 3.5k SF retail lease at 71-02 Cypress Hills St. in Glendale, Queens, a former Chrysler dealership and repair center that was converted into a multi-tenant retail center. Kalmon Dolgin Affiliates' Fred Rufrano repped both sides of the deal. *** ReachCapital Management is investing its time at 500 Mamaroneck Ave. with a second lease extension for its 3k SF space, this time through '20. The tenant represented itself, while Jeffrey Newman and Kimberly Zaccagnino repped owner Malkin Properties in-house. *** The Fashion District sewed up three deals:
Cote de France's seven-year, 11.5k SF renewal at 48 W. 37th St. (brokers: Adams & Co.'s David Levy and Joseph Friedman). Freedom On Board International's 2.3k SF lease at 525 Seventh Ave. (tenant rep: Vicus Partners' Waite Buckley; landlord reps: Savitt Partners' Brian Neugeboren and Bob Savitt and Olmstead Properties' Steven Marvin).Financing Meridian Capital Group is on a spree, announcing more than $140M in financing deals in NYC and Long Island including: a $55M new mortgage on a 10-story commercial condo building on W. 57th St. (arranged by Allan Lieberman); a $16.5M new mortgage on a 274-unit multifamily building on Father Capodanno Blvd. in Staten Island (arranged by Michael Kesselman); a $14M new mortgage for a 180-unit multifamily building on North Broadway in Hicksville, LI (arranged by Moshe Majeski); a $13.8M new mortgage on a 144-unit multifamily building on Nesconset Hwy. in Nesconset, LI (arranged by Abe Hirsch); and a $12.5M new mortgage on a 347-unit multifamily building on W. 55th St. (arranged by David Ostrov). *** NCB FSB arranged over $48M in new loan originations including a $9.1M first mortgage and $500k line of credit for a 165-unit co-op at 80 Central Park West (arranged by Mindy Goldstein); a $4M first mortgage and $250k line of credit for a 94-unit co-op at 241 E. 76 St.(arranged by Sheldon Gartenstein); and a $3.3M first mortgage and $500k line of credit for Wesley House, a 72-unit co-op at 10 Old Mamaroneck Rd. in White Plains (arranged by Edward Howe III). *** GCP Capital Group announced $33M worth of mortgage financing including $14M for three parking garages in Manhattan (arranged by Alan Perlmutter); $6M for a vacant 18-story high-rise being converted into a mixed-use loft building in Jersey City (arranged by Adam Brotovski); $4.5M for a five-story, gut-renovated elevator loft building on Mercer Street (arranged by Matthew Classi); and $3.5M for a six-story walk-up on Walton Ave. and $3M for a five-story apartment building on Jerome Ave., both in the Bronx (arranged by Brotovski). *** CB Richard Ellis and Abyssinian Development Corp. announced a $12.4M fixed-rate first mortgage to refinance the Pathmark located at 160 E. 125th St. in Harlem. The five-year, non-recourse loan was funded by Basis Investment Group, and features a 30-year amortization schedule and a 75% LTV. CBRE's Enoch Lawrence and Rayne Karaivanov, along with ADC's James Howard, were the lead principals. Construction & Development Get ready for even more retail at Brooklyn's Fulton Street Mall—Acadia Realty Trust, P/A Associates, and Washington Square Partners commenced construction on the first phase of City Point, a mixed-use project being financed with a $20M Recovery Zone Facility bond through the NYC Capital Resource Corp. The first phase includes a four-story, 50k SF retail building designed by Cook + Fox and Greenberg Farrow, which will ultimately be part of a 1.5M SF mix of commercial, retail, and affordable and market-rate housing in Downtown Brooklyn. *** 1350 Broadway finished its 18-month, $53M upgrade program, which includes a new lobby, entrances, renovated elevators, a new roof and façade, renovated public corridors and restrooms, and updated building-wide systems. *** Let the sun shine—the Community Preservation Corp. and Bridge Street Development Corp. unveiled the newly renovated and rehabilitated Joshua Court apartment complex at 300 Putnam Ave. in Bed-Stuy, Brooklyn. The six-story, 52-unit development, which had been blighted, underwent significant renovations and is the first solar-paneled residential apartment complex in the area. The NYC Council provided $3.5M for the upgrade, while construction financing of $8.3M and permanent financing of $5.7M was provided by CPC,HPD, and NYC Pension Funds. Executive Moves Marcus & Millichap announced John Kerin as president and CEO of the firm. He was previously an SVP and managing director, overseeing 18 offices nationwide. He joined the firm in '81 and moved up the ranks to managing director in '96. *** Cushman & Wakefield promoted Stephen Kay to national practice leader of its automobile dealership group, growing its valuation and advisory services' coverage of specialty property types. Stephen has been active in appraisal since '91, and has overseen the valuation of more than 3k dealerships in North America. He's a graduate of the University of Illinois. *** Steve Eynon returned to CBRE as SVP, where he will continue to focus on tenant and landlord representation. He was previously at JLL, which he joined last year. He was also formerly director of leasing for the Empire State Building, where he secured more than 500k SF of transactions including the FDIC's 103k SF and Coty's 90k SF leases. He's a graduate of Lehigh. *** Sandy Monaghan joined Cushman & Wakefield's resolution group as managing director, focusing on real estate recovery solutions to clients with distressed assets. He was previously with JPMorgan's global real assets division, and held positions at Archon Group, JE Robert Cos., and Tower Realty. He's a Trinity College grad *** David Zwang joined Grubb & Ellis' Fairfield, NJ office as SVP of the office group. He was previously with Cushman & Wakefield, where he was responsible for clients including MetLife, USI, and York Telecom. He also held a position at Lansco Corp. He's a graduate of Rutgers. *** Ronald Giscombe joined Giscombe Realty Group as property management specialist. He was previously with the Federal Aviation Administration as an airway technical system specialist before retiring, and held positions with St. Louis, Ill.'s A.O. Smith Boiler Co. and was a court officer in NY. He is a veteran of the USAF. *** Christopher Hanson joined MKDA's NY office as senior project manager and director of the firm's healthcare practice. He was previously project leader at NY Presbyterian Hospital, and also held positions at Gertler Wente Kerbeykian Architects and Highland Associates. He's a graduate of NYIT and SUNY Delhi. *** Michael Sanchirico moved to MKDA's Stamford, Conn. office as senior project manager in response to increased activity in Fairfield and Westchester Counties. He was previously in the firm's NYC HQ. He is a graduate of Catholic University and Capital Community College. |
