The Real Deal September 2012 by The Real Deal

Jonathan Adler gets in on New York’s New Downtown at 225 Rector Place

Corner Two Bedroom Residence 18B furnished by Jonathan Adler

“I love design that is comfortable and warm but its gotta’ have a touch of glamour!” —Jonathan Adler Introducing the spectacular fully furnished model residences by Jonathan Adler and Clodagh at 225 Rector Place in Battery Park City. Take advantage now of this unprecedented opportunity to purchase a luxury condominium — in Manhattan, on a park, overlooking the water, with resort-style amenities in a Related building — from just $495,000.

Call now for an exclusive preview. Condominium Residences from $495,000. 212.779.0225

rectorplace225.com

The complete offering terms are in an offering plan available from sponsor: File No. CD 06-0209. Sponsor: RDO 225 Rector Place, LLC. Equal Housing Opportunity.

celebrating 20 years as new york’s premier mortgage specialist

SPECIALIZING IN SUPER JUMBO HOME LOANS IMPECCABLE SERVICE AND THE BEST RATES AVAILABLE NYC’s co-op and condo financing experts specializing in “hard-to-finance” buildings please call 212.688.9500, ext. 223 or visit www.guardhill.com 140 east 45th street, 31 st fl, new york, ny 10017

we make it happen! NEW YORK, NY • NEW CANAAN, CT • CHARLOTTE, NC GuardHill Financial Corp. NMLS #1609. Licensed by the Dept. of Corporations under the CA Residential Mortgage Lending Act • Licensed Lender CT Banking Dept. • Licensed Correspondent Mortgage Lender - FL Banking Dept. • Georgia Residential Mortgage Licensee #11534 • Illinois Residential Mortgage Licensee # MB.0006038 • MA Licensed Mortgage Banker and Mortgage Broker License #MC4037 • Licensed by the New Hampshire Banking Dept. • Licensed by the NJ Dept. of Banking and Insurance • Registered Mortgage Broker and Licensed Mortgage Banker – NYS Banking Dept. • Pennsylvania Licensed by the Department of Banking License #3206970 • Rhode Island Licensed Lender and Loan Broker • Virginia State Corporation Commission License #MC-1868 • GuardHill Financial Corp. is also Licensed to offer mortgage loans in Colorado, Maine, Maryland, North Carolina, Texas and Vermont.

GuardHill 20859 REAL DEAL V6.indd 1

3/30/12 10:02 AM

resort style amenities

ready to welcome you home

STUDIO CONDOMINIUMS FROM $375,000 1-BR CONDOMINIUMS FROM $490,000 2-BR CONDOMINIUMS FROM $670,000 3-BR CONDOMINIUMS FROM $835,000 8,000 sqft state-of-the-art health club, fitness center, whirlpool, steam room and saunas, themed children’s playroom, entertainment lounge, basketball court, two full-sized tennis courts, a golf putting green, a running track, dog run, 24-hour staffed lobby and concierge service and a firstclass professional property management company ready to welcome you home.

SVP-REALDEAL_2012-08-WK4-21''x14.5''_v04.indd 1

Founded in 1984, ONEX is one of North America’s oldest and most successful private equity firms. 238,000 employees * 320 acquisitions * 29% IRR The complete offering terms are in an Offering Plan available from: Sponsor. File No. CD06-0697 (Tower 3) and File No. CD07-0640 (Tower 1 and Tower 2)

Sales and Design Center

22 mins to Times Square

17 minutes to Penn Station.

8/29/2012 3:01:25 PM

resort style amenities

ready to welcome you home

SVP-REALDEAL_2012-08-WK4-21''x14.5''_v04.indd 1

Sales and Design Center

22 mins to Times Square

17 minutes to Penn Station.

8/29/2012 3:01:25 PM

Highlights continued next real estate records 46 NYC’s A look at the properties that have

what it takes to set new highs.

LAWN AND ORDER

the relos 50 Ranking A ﬁrst-ever ranking of the most valuable new NYC ofﬁces leases, including what landlords make.

The Lehman Art House could set a record if it sells for its $65 million listing price.

When the season doesn’t end Brokers say more New York City dwellers are moving to the Hamptons year round.

The next retail condo wave Fashion designer James Fairchild and his two children relocated to the East End from NYC.

56 60 Colleges today are rethinking not only the structure of their curriculum, but also that of their classrooms. With John Jay College of Criminal Justice outgrowing its widely scattered facilities, school officials asked Skidmore, Owings & Merrill to design a new vertical campus consolidating all social and academic functions, including a 65,000-square-foot roof terrace, within a single city block. Using steel girders to span a network of Amtrak tunnels running beneath the prominent Midtown site made the design possible. Now, John Jay students are better able to collaborate across disciplines and enhance their legal research—proving it’s easy to build a case for choosing structural steel.

Structural steel Right for any application

It’s not just the big guys. Low- and mid-range investors are starting to buy up retail space, too.

Unlocking Gramercy Park With 18 Gramercy Park hitting the market, TRD analyzes the real estate surrounding the fabled private park.

Getting dirty Land deals in Manhattan and Brooklyn drive prices and activity to boom-time levels.

Fulton’s facelift Sir Nicholas Grimshaw’s Fulton Center is making its mark — even though it’s only partially complete.

Residential Market Report

Checking in with brokers to take the pulse of the apartment market.

Commercial Market Report Tracking rents and vacancy ﬁgures in Manhattan’s three ofﬁce districts.

National Market Report Reports from around the country on signiﬁcant developments and trends.

A rendering of the Fulton Center, which is scheduled to be complete in 2014

Broker Mike Heaner and his dog, Dixie

For help achieving the goals of your next project, contact the Steel Institute of New York.

124 Jumping through hoops Commercial broker has trophy listings and trophywinning canines.

Publisher of Metals in Construction 211 E 43 ST | NY, NY 10017 | 212-697-5553 | www.siny.org

The Deal Sheet A roundup of ofﬁce and retail leases, building buys and ﬁnancing.

116

Calendar of Events Check out this month’s activities.

122

Comings & Goings The stories behind the latest job moves and company announcements.

124

We Heard A lighter look at industry buzz.

Architect: Skidmore, Owings & Merrill Structural Engineer: Leslie E. Robertson Associates Photograph: SOM | © Eduard Hueber

10 September 2012 www.TheRealDeal.com

126

Arthur Mirante’s new gig The former Cushman CEO talks about his life at Avison Young, his salad days and more.

THE REAL DEAL N E W YO R K R E A L E S TAT E N E W S PUBLISHER Amir Korangy EDITOR-IN-CHIEF Stuart W. Elliott MANAGING EDITOR Jill Noonan DEPUTY MANAGING EDITOR Candace Taylor EXECUTIVE DIGITAL EDITOR Gabrielle Birkner ART DIRECTORS Ronald Gross, Derek Zahedi SENIOR REPORTER Adam Pincus REPORTERS Leigh Kamping-Carder, Katherine Clarke, Guelda Voien WRITERS C.J. Hughes, David Jones, Adam Piore PRODUCTION MANAGER & RESEARCHER Linden Lim WEB PRODUCER Adam Fusfeld EDITORIAL ASSISTANT Zachary Kussin INTERN Christopher Cameron PHOTOGRAPHERS Chris Martin, Marc Scrivo DIRECTOR OF MARKETING OPERATIONS Yoav Barilan ASSOCIATE SALES DIRECTOR Ross Fox ADVERTISING SALES Eran Evron, Abi Laoshe, Nick Mascaro, Robert Stearns WEBMASTER Nima Negahban ACCOUNT COORDINATOR Kenneth Cyrus ADMINISTRATOR Junaid Zahid CIRCULATION Paul Destanko DISTRIBUTION Mitchell Newman, Michael Presto VIDEOGRAPHER Toni Comas ATTORNEY Barry J. Friedberg Trachtenberg Rodes & Friedberg ACCOUNTANTS William T. McCallum, CPA, P.C., Christine Wang The Real Deal is a registered trademark of Korangy Publishing Inc. Copyright © 2012. Call 212-2601332 or e-mail news@therealdeal.com. Warning: It is illegal to photocopy or reproduce any part of The Real Deal without express written consent. For reprints and duplication rights, call 212-260-1332. Principal ofﬁce: 158 West 29th St., New York, NY 10001. The Real Deal is published monthly. Annual subscriptions cost $95. Send check or money order to 158 West 29th St., New York, NY 10001.

12 September 2012 www.TheRealDeal.com

EDITOR’S NOTE

The battle between small-batch and big box

orget flea markets that sell “Made in Brooklyn” organic jams and small-batch beer crafted in a bespoke, locally sourced manner by twentysomething men with long beards and women with tattoo sleeves. Instead, Williamsburg — the original home of the hipster — looks to be getting a J.Crew. And a Whole Foods is already on the way. In another hip neighborhood, the Meatpacking District, the boutiques of fashionforward designers like Diane von Furstenberg and the late Alexander McQueen (whose shows have featured runway models in gas masks) are being joined by the likes of mainstream clothing retailers Patagonia and UGG Australia. Ugh, some would say. In this issue, we take an in-depth look at how mass-market retailers are making inroads and upsetting the apple (well, actually, the shopping) cart in the two artsy neighborhoods, in stories on pages 30 and 40, respectively. Retail, arguably more than other kinds of real estate, can be a lightning rod for debates about gentrification. Of course, the desire of these big retailers to open these outposts can be traced back to money. An influx of families as well as European tourists in Williamsburg is luring in the new national chains there. And in the Meatpacking District, it’s the throngs of visitors to the High Line and their spending power attracting the attention of more mass-market retailers. And landlords are reaping the benefits. On Bedford Avenue, asking rents have nearly doubled from a year and a half ago, according to brokers. In the Meatpacking District, meanwhile, in some cases rents are 10 to 20 times higher than they were in the late 1990s, and some brokers predict rents will double again in the next two to four years (though others are less bullish).

Williamsburg — the original home of the hipster — looks to be getting a J.Crew. And a Whole Foods is already on the way. But transitioning neighborhoods can make for strange bedfellows. In Williamsburg, a pricey 245-room boutique hotel on North 4th Street is replacing retailers, including a hookah bar and a Laundromat, in a typical sign of gentrification. But stores like Duane Reade — which in 2010 opened a growler bar with local beers on tap at its Bedford Avenue location — may provide a roadmap for other national chains looking to win over an otherwise reluctant clientele. (I don’t know about you, but I don’t like the idea of drinking at the same place where I would buy deodorant.) And who knows? Maybe this more mainstream flare will rub off on hipsters (hopefully this includes the woman who stood in front of me in line at Stumptown Coffee recently, who had a 15-minute conversation with the barista about where the beans in her coffee were lovingly grown). Maybe once these stores arrive, hipsters will start wearing clothing from J. Crew or the Gap with a sense of irony. To some degree, the tension between the mass market and the artisanal is a false canard. If people are selling $10 bags of granola or $14 pickles or $9 bottles of jam, there must be enough wealth to pay those prices. These handcrafted products are a sign of prosperity, not antithetical to it. The wealthy residents in the city are supporting this whole new borough of tinkerers, artists, graphic designers, small-batch entrepreneurs and chefs. But there seems to be a growing cultural gap between big cities and the rest of the country, which is partly being reflected in the presidential race. (I think its reasonable to assume that most rural tea partiers don’t care if their granola is organic). The divide is also economic. Given the general economic uncertainty nationally, big cities like New York have done well — and so has their real estate. And you can see that in the pages of this issue. We have a story about the new real estate records poised to be broken in the city on page 46, and a piece on the optimistic outlook for the fall residential market on page 16 (markedly different from this time last year). We’ve also got a story on the best residential brokerages to work for (page 34) and a profile on Rob Speyer (page 28), the new head of the Real Estate Board of New York, the youngest person ever to lead the powerful trade organization. Enjoy the (locally sourced) issue.

Stuart Elliott 14 September 2012 www.TheRealDeal.com

Private Mortgage Banking

For your upscale home financing needs, contact Adam W. Turkewitz: As a top-producing Private Mortgage Banker, Adam provides a full-service approach to your transactions, and can help simplify complex financial arrangements. With over 9 years of industry experience and local market knowledge, Adam has earned a reputation as a leading mortgage professional. · The simplicity of a single point of contact throughout the entire transaction · A streamlined underwriting process that allows for prompt decisions · Single-family, condominiums, cooperatives, condop, and leaseholds home financing available for purchase and refinance · Jumbo financing up to $6 million available · Financing available for primary residences, secondary residences and investment properties · Full product line of new construction financing including ability to provide project-specific presale requirements and finance 100% of inventory

Call today. Adam W. Turkewitz Private Mortgage Banker Wells Fargo Home Mortgage 530 Fifth Ave New York, NY 10036 Office: 212-805-1172 Mobile: 516-456-3687 adam.turkewitz@wellsfargo.com www.wfhm.com/adam-turkewitz NMLSR ID 32900

RE S I D E N T I A L MA R K E T

BY LEIGH KAMPING-CARDER hat a difference a year makes — at least when it comes to Manhattan’s residential real estate market. As the fall of 2011 began, the country was reeling. Following the near-stalemate in Congress over raising the debt ceiling, Standard & Poor’s had downgraded U.S. debt. Occupy Wall Street protesters began camping out in Zuccotti Park — a glaring reminder of an arrested economic recov-

No more fear of fall

In sharp contrast to last year, brokers expect strong market this autumn

ery. And European leaders were struggling to resolve Greece’s debt woes, which threatened to topple neighboring economies and even spread across the pond. The effects of the European debt crisis and a volatile stock market rippled through the Manhattan market in the following months, spooking buyers and sellers and denting deal volume for the remainder of the year. It’s true that none of these problems are entirely solved: U.S. unemployment rates remain stubbornly high, Greece is surviving

on E.U. bailouts, and the U.S. faces drastic spending cuts in 2013 if lawmakers fail to ﬁnd an alternative to the so-called ﬁscal cliff. But when it comes to Manhattan home sales, last fall’s worries are in the rear-view mirror. If the prevailing mood last fall was fear of a double-dip recession, this fall brokers said they expect sales to continue outpacing 2011 levels and for prices to rise or — among some property types — to remain stable. “The trajectory of the New York City sales market has been climb-

A city like no other deserves a multifamily lender like no other.

With decades of experience, Chase is New York’s go-to source for multifamily lending. There’s no city quite like New York. And there’s no company quite like Chase when it comes to serving the city’s multifamily financing needs. Offering great rates and low fees in a fast, efficient process, Chase brings New York deep market knowledge and industry expertise that’s second to none. Work with the nation’s #1 multifamily lender on your next purchase or refinance transaction on a 5+ unit apartment building. Give us a call today.

L O W F E E S | G R E AT R AT E S | S T R E A M L I N E D P R O C E S S Call (888) 763-1281 or visit www.chase.com/MFL Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. Products and services provided by JPMorgan Chase Bank, N.A. #1 claim based on 2011 FDIC data. ©2012 JPMorgan Chase & Co. Member FDIC. All rights reserved.

16 September 2012 www.TheRealDeal.com

ing steadily since the beginning of the year,” said Mark Ski, vice president of sales at Bond New York. “Interest rates remain low, and an overall feel that the economy is turning around really help fuel the fire in this marketplace.” While some brokers are still keeping their fingers crossed, as of late last month, there were 2,856 Manhattan homes under contract, about 30 percent more than the same time last year, according to data from real estate analytics firm Urban Digs. There were 5,292 active list-

ings, or about 22 percent less than a year ago. In the luxury market, signed contracts are also up compared to last year, according to Manhattan brokerage Olshan Realty. At press time, 52 contracts had been signed last month for Manhattan homes priced at $4 million or up — a 73 percent increase over the same period last year, and the strongest August since the ﬁrm began tracking the data in 2007. In a stark contrast to last fall, brokers expect the frothy sales market to endure, considering the continued low interest rates, high rents and demand from wealthy overseas buyers who see Manhattan real estate as a relatively safe investment. “During the ﬁrst half of the fall ... I anticipate the number of transactions to soar upward and the prices in the condo market to scale even higher,” said Linette Semino, an associate broker at Warburg Realty. However, she said she expects co-ops to move slowly at the same prices. “Co-op prices have become more realistic and in sync with the marketplace, especially in the studio and one-bedroom market, where the demand is not higher than the supply,” Semino said. Indeed, the main factor restraining transactions, brokers said, is the shortage of available listings and newly constructed apartments — a phenomenon they’ve cited since buyer interest picked up in the spring. “There is no shortage of buyers who are ready, willing and able to purchase,” said Beth Stern, a broker at Corcoran Sunshine Marketing Group who heads up sales at the Apthorp on the Upper West Side. “The true challenge is Manhattan’s lack of inventory,” she said. “Purchasers are anxiously awaiting upcoming new development because most buildings being brought to market this year are selling very quickly, leaving them little time for deliberation.” Additionally, some sellers may delay listing their homes this fall until the outcome of the presidential race is decided in November, Warburg’s Semino noted. Others may hold off for even higher prices, said Jacob Frydman, CEO of Continued on page 100

exceeding

expectations on the Upper East Side

The Tower Residences at Azure offer breathtaking city and river views from walls of windows, spacious living rooms, elegant dining rooms, and eat-in-kitchens. Enjoy unsurpassed amenities, including a concierge, roof deck, fitness center, resident’s lounge and children’s playroom. Azure is conveniently located near the best that the Upper East Side has to offer- shopping, dining, parks, schools, and cultural institutions. Your perfect home in your perfect neighborhood. Azure…exceeding all of your expectations.

4% Broker Commission

3 Bedrooms from $1,975,000, 4 Bedrooms from $3,950,000, Penthouse Residences from $5,686,000

Over 60% Sold!

(888) 568 -1878

A z u reN Y.c om

333 E a s t 91s t S t re e t a t Fi r s t Ave nu e O n - S it e S a le s & D e s i g n C e nt e r | O p e n Hou s e S a t & S u n 11a m - 4 p m

ANOTHER FINE DEVELOPMENT BY

The complete offering terms are available in an offering plan available from Sponsor. File No. CD07-0002. Sponsor: 1765 First Associates, LLC, 820 Elmont Rd., Elmont, NY 11003. We are pledged to the letter and the spirit of U.S. policy for the achievement of equal housing opportunity throughout the nation. Equal Housing Opportunity The DeMatteis Organizations

 



Combating construction fraud A look at prosecutors’ widening probe into overbilling and corruption by contractors

BY DAVID JONES spate of criminal prosecutions is rocking New York’s struggling construction industry just as it’s beginning to regain its footing after the downturn. In April, construction giant Lend Lease agreed to pay $56 million to settle highprofile charges with U.S. Attorney Loretta Lynch’s office for allegedly overbilling clients at major construction projects, including the renovation of Grand Central Station, the construction of the Time Warner Center at Columbus Circle and the construction of Citi Field, the home of the New York Mets. Officials at the Australia-based construction giant (formerly known as Bovis Lend Lease) said they’ve made wholesale changes to ensure that this type of activity does not happen again.

While it’s unclear exactly what the wider probe is zeroing in on, the Lend Lease case largely involved rigged contract bids, inflated billing and no-show jobs. The firm also engaged in a scheme called Eight Plus Two, where it paid foremen for up to two hours a day on sites where they never worked. It allegedly used that tactic to overbill public agencies and private developers to the tune of $19 million over a 10-year period. Construction experts say another common practice for contractors is underbidding the competition in order to secure a construction job. “If you talk to insiders in the construction industry and [ask if ] we underbid, they say, ‘Yeah,’ on the face of it,” said an official at a major New York development firm. Thomas Thacher, president of construction consulting firm Thacher Associates and

“Contractors have always tried to take advantage of owners on the basis that they control information on pricing. Owners [usually] have little, if any, information about the true cost of the work.” BARRY LEPATNER, ATTORNEY

                                 



       

EQUAL HOUSING

OPPORTUNITY

18 September 2012 www.TheRealDeal.com



However, in speaking about the settlement, a company executive claimed that billing fraud is widespread in the city’s construction industry. “While we understand these practices were common in the industry in New York, we should always hold ourselves above the industry reflecting our strong values and high ethical standards,” Steve McCann, a group chief executive officer at Lend Lease, said at an annual investor meeting. As part of the U.S. Attorney’s settlement, Lend Lease agreed to cooperate in prosecutors’ future investigations into other construction firms. So it did not come as a huge surprise to the industry when, in July, radio station WNYC reported that Lynch’s office had widened its probe into the practices at Turner Construction, Plaza Construction, Skanska USA and Tishman Construction — all firms either declined or did not respond to requests for comment. Attorney Barry LePatner, a specialist in the construction industry, noted that billing fraud is not a new issue, but said government investigators have had a difficult time, until now, gathering enough evidence to conduct such a sweeping investigation. “Contractors have always tried to take advantage of owners on the basis that they control information on pricing. Owners [usually] have little, if any, information about the true cost of the work,” LePatner told The Real Deal.

the former inspector general of the New York City School Construction Authority, said that type of fraud may be tied to the weak economy. “In some instances, cheating in a bid process can increase when you have an economy that’s impacting the industry the way this one has,” he said. Thacher led the state’s ﬁrst Construction Industry Strike Force, which was created under Governor Mario Cuomo to root out organized crime and other corrupt practices in the construction industry. He said organized crime is much less of a factor now in the industry than it was in the past, but noted that today’s corruption is more centered on underpaying workers, fraudulent use of minority contractors and bid rigging. The increased scrutiny on both corporate spending and at taxpayer-funded projects is, however, now shining a new light on corruption in the industry. And it’s prompted many to call for the implementation of more safeguards to prevent overbilling, underbidding and other fraudulent practices.

Scandals in the spotlight While the construction giants have garnered the most attention, there have been plenty of scandals lately that have involved smaller ﬁrms, government contracts and public institutions. An April audit by state comptroller Thomas DiNapoli uncovered fraudulent Continued on page 106

www.TheRealDeal.com March 2010

Central Cen Centra tra ra al Park r Co ons nse sse erva rv vatory va to to tor ory G Gard ard ardens ard dens en nss

D R A Y K C A B R U ) YO D E D U L ER INC (GARDEN

PREWAR CLASSIC. MODERN SENSIBILITY. ON THE PARK. PENTHOUSE WITH INCREDIBLE WRAP-AROUND TERRACE NOW AVAILABLE. OTHER 3-BEDROOM PARK-FACING HOMES AVAILABLE FOR IMMEDIATE OCCUPANCY.* 212.289.1212 • 1212FifthAvenue.com 1212 Fifth Avenue, New York, NY 10029

Artist Rendering by Seventh Art Group

SLCE | S. RUSSELL GROVES | NANCY PACKES, INC EXCLUSIVE MARKETING & SALES AGENT *30 days from executed contract. The complete offering terms are in an offering plan available from sponsor. File No. CD11-0057. Sponsor: 1212 Fifth Avenue Associates, LLC, c/o Durst Fetner Residential LLC, One Bryant Park, New York, NY 10035.

DFR_1212_MayAds_RealDeal_Backyard_47185b.indd 1

5/30/12 8:53 AM

By the Numbers

Fire Island rebuilds Compiled by Russell Steinberg

Vacation destination

Fire Island’s beaches have long been a popular vacation spot for New Yorkers. The 2010 Census found just 292 full-time residents — and some 4,200 summer homes — on the 31-mile-long barrier island.

Tiny hamlets

Fire Island has only two incorporated villages: Ocean Beach, with 150 full-time residents, and Saltaire, with a population of 50. The island also has a number of hamlets, some of which have only around 25 homes. (Prudential Douglas Elliman)

The price of paradise

The average listing price in Ocean Beach was $ 1.05 million at the end of the second quarter, according to Zillow. But the island’s priciest homes can be found in the hamlet known as the Pines, a resort destination popular with gay men. In Fire Island’s priciest sale of the past year, a home at 393 Ocean Walk in the Pines sold for $3.1 million last fall, according to Elliman.

Rebuilding the Pavilion

Fire on fire island

In November of 2011, a fire tore through the Pines, destroying the famous Pavilion dance club and the adjacent LaFountaine building, which contained seven businesses, including the Sip n’ Twirl disco, a pizza parlor, a clothing store and two real estate offices. (THE New York Times)

A rendering of the Pavilion

The Pavilion and other Pines properties had been purchased for $17 million in 2010 by a team of investors, including Andrew Kirtzman, Seth Weissman and Matthew Blesso, who vowed to rebuild after the fire. The Pavilion will reopen in time for the 2013 season with a new boardwalk, bars, a gym and terraces designed by architectural firm HWKN. (THE New York Times)

Ascension feud

The rebuilt Sip N’ Twirl

Feuding real estate moguls almost prevented the annual Ascension Weekend party, a three-day event, from happening this year, the Daily News reported. The spat erupted when Weissman rented the Pines house where Ascension organizer Eric von Kuersteiner — former owner of much of THE hamlet’s commercial real estate — had been throwing the August bash for years. Tickets did eventually go on sale for the party, which took place late last month.

Reopening the LaFountaine

After four months of construction, THE Sip n’ Twirl reopened in July in a new, 5,800-Square-fOOt building owned by the LaFountaine family. All of the building’s previous tenants are expected to return. (Newsday)

Celebrity hot spot

The New York Post reported in 2009 that actress Tina Fey had purchased a house in Fair Harbor, and Corcoran Group founder Barbara Corcoran owns a Matthew Blesso home in Saltaire.

111 CENTRAL PARK NORTH New Listing Modern Masterpiece on the Park Luxury Condominium 9 Rooms 4 Bedrooms 4.5 Baths 2 deeded garage parking spaces Interior: 3,377+/- sq ft Exterior: 600+/- sq ft Price: $5,000,000 20 September 2012 www.TheRealDeal.com

Maidâ&#x20AC;&#x2122;s Room 12'-0" x 8'-2"

W.I.C. Master Bedroom 19'-10" x 18'-3"

W D

Playroom/Family Room 20'-0" x 11'-0"

Bedroom 10'-9" x 10'-3" Library 21'-5" x 10'-4"

Bedroom 14'-8" x 10'-0"

Living Room 21'-5" x 21'-5"

Dining Room 20'-4" x 12'-0"

Exceptional 4BR/4B - South West Exposures with City Skyline and Hudson River Views: Residence 54T $7,620,000

limited edition, unlimited appreciation.

57th Street

The Sheffield welcomes you home. Breathtaking panoramas of the sweeping Manhattan skyline, the Hudson River and Statue of Liberty await you. Comfort and convenience extend to abundant entertainment areas; a double living room, separate

PRIVATE ENTRY DRIVE

notes:

family room, formal dining room, library, breakfast room and stunning kitchen with

actual view

56th Street

top-of-the-line Bosch, Miele and sub Zero appliances. With all of these lavish features this limited edition home presents a special and unique opportunity.

OFFERING 4% COMMISSION

Visit our model residences and on-site sales center Call (888) 433-8136 or visit TheSheffield.com Stylish Studios to Sprawling Four Bedroom Condominiums from $845,000

Immediate Occupancy â&#x20AC;˘ Pre-Approved for Favorable Financing 322 West 57th Street, New York, NY 10019 We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, sexual orientation or national origin. The complete offering terms are in an offering plan available from the Sponsor. File #CD05-0285. Fixtures, finishes and furnishings subject to change.

LOUNGE

22 September 2012 www.TheRealDeal.com

PHOTOGRAPH FOR THE REAL DEAL BY DEREK ZAHEDI

A photo of a 15'9" crocodile that was killed at famed photographer Peter Beard’s ranch in Kenya in 1968. The reptile, Collé said, was “menacing” the townspeople. The developer first met Beard at the Shagwong Tavern in Montauk in the 1960s and became friends with him in the 1980s.

Collé bought these framed Indian arrowheads in Telluride, Colo., about 20 years ago. He’s been collecting them and other artifacts since he was as a kid in Massapequa, on Long Island, but said he’s never actually found one himself.

This mini cash register belonged to Howard Gittis, who Collé called his “best friend.” Gittis, a longtime advisor to business mogul Ron Perelman, was also Collé’s main business partner. He provided the financial backing for some of Collé’s first big Hamptons deals. Collé carries around a nickel that was jammed in the slot of the register, which was given to him by Gittis’s widow after he died in 2007.

effrey Collé didn’t always build multimillion-dollar estates: The high-end Hamptons developer is a third-generation carpenter who started his career as a union man. But in the 34 years since Collé started his own company, he’s carved out a niche for custom-designed Hamptons spec homes, building and renovating properties for the likes of Donna Karan , Billy Joel and Alec Baldwin . Now, after a two-year break from building, he’s back in the game, and recently completed a spec house in Wainscott , which is on the market for $9.99 million . He’s also in the midst of developing a $10.99 million home in Water Mill on the site of the historic Halsey family farmhouse. (Collé has more in the pipeline in the $8 to $12 million range, which he called the market’s new “sweet spot.”) In addition, he’s still marketing the Stanford White–designed home that he revamped in East Hampton, which has been on the market for two years and is listed for $29.99 million . Collé’s own Wainscott house has a home office overlooking his pool — which, he says, “the dogs actually use more than I do.” B y J ill N ooNaN

Desk

Collé

Collé, 60, bought this Knicks game ball about 15 years ago. It’s signed by all of the players on the 1973 championship team, including basketball legends Walt “Clyde” Frazier, Bill Bradley and Dave DeBusschere.

Boxing legend Muhammad Ali signed these gloves “The Greatest” for Collé at a fund-raiser the developer helped organize for the late Ted Kennedy in the 1990s.

A wedding photo of Collé’s parents. The two met when his father, a sergeant stationed at the Panama Canal during World War II, went home with an army friend for the weekend during boot camp and met his sister.

of:Jeffrey

Collé doesn’t have children, but the animal and wildlife lover shares his house with his English springer spaniels, Regis and Oliver. His girlfriend, Russian hand model Yana Zinovyeva, is also there several days a week.

the

This French chalked paneling, made of quartersawn oak, is signature Collé. He is known for handselecting pricey materials for his projects.

A photograph with singer Billy Joel and actor Alec Baldwin at a Collé-hosted Thanksgiving. Collé restored and expanded two Amagansett homes — a former fisherman’s shack and an old farmhouse — for Baldwin. He also renovated an old boathouse on Shelter Island for a recording studio for Joel. “It’s where he recorded the River of Dreams album,” Collé says.

Project blueprints. Collé says he personally designs all of his projects and forgoes hiring an architect (he has a licensed engineer sign off instead). The veteran developer does have building in his blood: His grandfather was a carpenter, as was his father. Rather than go to college, Collé joined the carpentry union after high school, noting with a smile that he was “never a fan of school.”

A photograph of Collé with his close friend, the late Stephan Weiss, who was married to fashion designer Donna Karan. Collé — who partnered with Weiss and used to ride motorcycles with him — says he also renovated and expanded Weiss’s West Village art studio, which Karan turned into the Center for Urban Zen after Weiss died in 2001.

1OO% INTEGRITY

IOO% COMMISSION IOO% YOU

Level Group is a different kind of brokerage company â&#x20AC;&#x201C; where agents come first. Offering 100% commission payout, lifestyle flexibility and innovative, virtual platforms, Level Group is perfect for independent, entrepreneurial agents. Unique in its integrity, honesty and values, Level Group rises above. Move up today.

levelgroup.com/ join

COMMERCIAL MA R K E T

Welcome back, Ric. The Corcoran Group is pleased to announce Ric Swezey has joined its Soho ofﬁce as Senior Vice President. Ric’s stellar reputation and impressive sales record make him one of the top agents in the industry. Ric Swezey Senior Vice President Licences Real Estate Salesperson 212.941.2503

490 Broadway, New York, NY 10012 The Corcoran Group is a licensed real estate broker. Owned and operated by NRT LLC.

Nowhere to go but up

Manhattan office leasing collapsed last month, but experts anticipate improvement post-Labor Day BY ADAM PINCUS ffice leasing volume will almost certainly go up in September, brokers say, but that’s in part because of how far it dropped last month. Indeed, the level of office leasing nearly collapsed in August, as Manhattan tenants and landlords signed just 775,357 square feet of renewal and relocation leases — the lowest all year, preliminary data from commercial firm Cassidy Turley shows. That figure represents only about a quarter of the average monthly volume of 2.8 million square feet over the past five years. August’s tally was also less than half of the 1.8 million square feet leased in July. Other market statistics were mixed. Manhattan’s availability rate — which measures the amount of space available now or in the next 12 months — held steady in August at 10.3 percent. But the average asking rent rose by $0.95 per square foot, Cassidy Turley figures revealed. Bruce Mosler, chairman of global brokerage at Cushman & Wakefield, said so far, 2012 was slower than expected. But he predicted that activity would pick up. “I think the year will finish strongly,” Mosler said. “Because it’s been slow and there is pent-up demand. Post-Labor Day we will see it.”

Midtown In a sign of weakness, Midtown was the only of the three markets to see a rise — albeit a slight one — in the availability rate, as new blocks of space were listed and leasing activity slowed. The availability rate drifted up to 11.2 percent from 11.1 percent in July. But there was some good news for landlords. Owners increased prices slightly, with the average asking rent ticking up by $0.84 per square foot to $63.58 per foot, according to Cassidy Turley statistics. In addition, Midtown was home to Manhattan’s second- and third-largest deals in August. Salesforce.com, which provides computer cloud storage and services, signed a lease for 74,349 square feet at 685 Third Avenue, while British investment ﬁrm Rothschild North America relocated within 1251 Sixth Avenue, taking 69,418 square feet, Cassidy Turley data showed. But James Wacht, president of commercial ﬁrm Lee & Associates NYC, said despite any positive market signs, he’s seeing sublease space in Midtown increasing. “It’s a pretty good indicator of the weakness [in the market],” he said. He added the main reason prices are not dropping is because landlords are afraid 24 September 2012 www.TheRealDeal.com

Manhattan ofﬁce stats AVAILABILITY RATE

AVG. ASKING RENT

Aug ’12 July ’12

Manhattan 10.3% 10.3%

$55.90 $54.95

Aug ’12 July ’12

Midtown 11.2% 11.1%

$63.58 $62.74

Aug ’12 July ’12

Midtown South 8.1% $47.69 8.2% $46.42 Downtown 10.2% 10.4%

$38.80 $38.50

Source: Cassidy Turley

doing so will create more economic harm than just reducing their monthly revenue stream. Wacht said cutting rents would lower the value of the building if it is reﬁnanced or sold.

Midtown South Midtown South has been the darling of the Manhattan market. Underscoring its favored status last month was the fact that it was home to Manhattan’s largest office lease, as reflected by Cassidy Turley data. That’s especially telling because the largest leases are usually done in Midtown or Downtown, where the bigger buildings are. Clothing retailer J.Crew took the honors for that deal, inking an office lease for 80,000 square feet at 770 Broadway between 8th and 9th streets. The retailer is expanding in the building where it took approximately 295,018 square feet last year, CoStar data showed. Rent figures were not available for the deal. Some landlords, however, have been achieving very high rents in Midtown South. For example, in July the talent marketing agency IMG Worldwide signed a 28,312-square-foot lease at 200 Fifth Avenue for an estimated $85 per square foot, according to CoStar. By comparison, the average Midtown South asking rent rose 2.7 percent to $47.69 per square foot in August. The rise over the past year was more dramatic. The average asking rent for Class A space in Midtown South was up 26 percent compared with August 2011, to $61.99 a square foot. At the same time, Midtown rose 11 percent and Downtown just 4 percent. Continued on page 100

Pied-à-terre. On demand. Luxury furnished apartments with spacious living rooms, full kitchens and hotel amenities, available by the week or month. Call for details and to schedule a private tour.

aka SERVICED RESIDENCES New York Central Park Times Square Sutton Place United Nations STAYAKA.COM

888.509.0202

In their words...

The month’s funniest and most insightful comments on NYC real estate “When you move to Miami, you’re vegging out. Brooklyn keeps you stimulated, and that keeps you younger.” Brooklyn Borough President Marty Markowitz, who has urged the city to offer developers tax breaks for building housing for elderly residents in Downtown Brooklyn. (The Brooklyn Paper)

“Architecture [is] the greatest tool our species has available to it for figuring out life and death matters.” New York architect Madeline Gins, a proponent of the theory that buildings designed a certain way can fortify the immune system to delay or prevent death. (Architizer)

“I can’t imagine people would want to pay to live near a stinky canal. It’s one thing when you’re high and getting down [and] no one cares.” Jorge Hernandez, a frequent attendee of parties at Gowanus Grove, which may soon be displaced by a new 700-unit rental building developed by the Lightstone Group. (DNAinfo)

“The rats on my block, they don’t scurry anymore. They walk upright. They greet me and say, ‘Good morning, Mr. Borough President.’” Manhattan Borough President Scott Stringer, regarding the Upper West Side’s growing problems with rat infestation. (The New York Times) 26 September 2012 www.TheRealDeal.com

“I rented this archway and I just live behind it. In one of those trash cans.”

“Twilight” star Robert Pattinson, joking about being “homeless” after vacating the Los Angeles house he shared with ex-girlfriend Kristen Stewart. (Jimmy Kimmel Live)

“L.A. is a dinner-party town. New York is a dinner-reservation town. We love hosting cocktail parties here — you get that crazy wall-to-wall people, ‘Breakfast at Tiffany’s’ vibe between six and eight, and then you’re done.” Designer Michael Smith, on his Manhattan duplex penthouse off Madison Avenue. (Architectural Digest)

“[What would happen if ] Richard Serra and Chanel created a UFO together.” Gregg Pasquarelli, a principal at Barclays Center-designer SHoP Architects, describing what the arena looks like to him. (The New York Times)

“If we had known it would go on this long, we probably wouldn’t have done it.” J. Allen Smith, chief executive of Prudential Real Estate Investors, regarding the firm’s investment at 11 Times Square, which is more than half va-cant. (The New York Times)

www.TheRealDeal.com August 2006 00

T:10.5”

Commercial Banking Group Commercial Real Estate

T:14.5”

Capital One Bank® helps real estate companies take their businesses to the next level. As a top-10 U.S. bank, our dedicated Commercial Real Estate specialists deliver custom solutions, from streamlined cash flow to project-based financing. For real results in real estate, count on the experts at Capital One Bank. Visit capitalonebank.com/commercial to learn more.

Job: CAP121001NY Document Name: CAP121001NY_RE_1_r4.indd Description: Commercial Banking Ads

Real Estate Ads Bleed: None Trim: 10.5” x 14.5” Safety: None Gutter: None Publication: The Real Deal Full Page Art Director: Stephen Leps CopyWriter: None Acct. Mgr.: Maddie Rottman Art PRODUCER: None Print Prod.: David Niblick Proj. Mngr.: None This advertisement prepared by TAXI NYC.

CAP121001NY_RE_1_r4.indd Client: Taxi Document Name: CAP121001NY_RE_1_r4.indd Studio Artist: bh 6-9908

TMG #: 2C68763 Handle #: 3 Page Count: 1 of 1 Last Save Date: 8-24-2012 1:21 PM

Job #: CAP121001NY Print Scale: 86.23% Creator: houseb

Document Path: Macintosh HD:Users:chapmans:Desktop:SC Back-Up:2012:AUG:08:24:12:CAP121001NY_RE_1_r4.indd Font Family: Trade Gothic (Medium, Light, Bold), Minion Pro (Regular) Link Name: 51662B-BUILDING-14_i240.tif, New_FDIC_logo_white.ai, C1_Bank_G_H_rev_CMYK_R_yr.eps, CRE tomstones_NY_r2.ai Ink Name: Cyan, Magenta, Yellow, Black

Billing#: TMP-TMP-Q25335 InDesign Version: CS5 Creation Date: 3-20-2012 4:39 PM

PR O F I L E

The consensus candidate REBNY’s newly named chairman, Rob Speyer, will be the youngest to head the trade group. But insiders say his political clout and experience make up for that.

BY ADAM PIORE he selection process, one participant joked, bore a bit of a resemblance to the College of Cardinals selecting a new pope in Vatican City. One by one, the seven present and former chairs of the Real Estate Board of New York arrived at the trade organization’s Lexington Avenue headquarters and joined REBNY President Steven Spinola in the Harry Helmsley Boardroom. Then, over deli sandwiches and chocolatechip cookies brought by developer Larry Silverstein, the conclave set to work selecting perhaps the closest thing New York real estate has to its own Holy Father — the titular head of REBNY, the group charged with lobbying for the industry’s interests. The gathering consisted of Related Companies CEO Stephen Ross, Brookfield Office Properties cochairman John Zuccotti, Glenwood Management CEO Leonard Litwin, Tishman Speyer co-CEO Jerry Speyer, Jack Resnick & Sons CEO Burton Resnick, the CBRE Group’s Tri-State CEO Mary Ann Tighe and Silverstein — a group that together is responsible for billions and billions of dollars in New York real estate deals. The selection process didn’t include a vote. It simply consisted of a discussion. And the group, say those involved, considered at least four finalists, all of whom had indicated that they would be willing to serve. But in the end, Rob Speyer, who heads Tishman Speyer along with his father, Jerry, emerged as the consensus candidate. (Those interviewed by The Real Deal declined to name the other three contenders). The 42-year-old scion of the powerful real estate family will assume his threeyear term as REBNY chairman at the organization’s annual gala in January. His ascension represents a generational shift of sorts at the board — Speyer will be the youngest chairman to ever lead REBNY.

28 September 2012 www.TheRealDeal.com

“It was time to drop the average age down — previously it was 104,” joked twotime former REBNY chairman Resnick. And with the leadership position, Speyer’s also following in the footsteps of both his father, who led the group from

QUICK FACTS: COMPANY: Tishman Speyer TITLE: Co-CEO AGE: 42 PROPERTIES OWNED OR MANAGED: $36 billion EMPLOYEES: 1,300 NUMBER OF EMPLOYE NYC PROPERTIES INCLUDES: Rockefeller Center, Chrysler Building, MetLife Building blemished, despite his role in what many consider a public relations ﬁasco of epic proportions.

Growing pains

1986 to 1988, and his grandfather, Robert Tishman, who held the position from 1972 to 1975. (While Jerry Speyer was present for the selection discussion, he “did not wish to opine in any way on his son,” said Tighe, REBNY’s outgoing chairman, noting that “it was all done very properly.”) Even so, the three-generation trend is a ﬁrst for REBNY and calls to mind the names of other family dynasties such as the Kennedys and Bushes in politics and the Bonds and Griffeys in baseball. The choice is also a powerful afﬁrmation by the industry that the young mogul’s reputation remains largely un-

In 2006, Speyer led the efforts to shell out a record $5.4 billion to acquire the sprawling Stuyvesant Town and Peter Cooper Village housing complex and transform the buildings into luxury apartments. The New York Times dubbed the project a “very public introduction for Rob Speyer,” and, in the early days, he was the chief spokesman for the effort. Then, of course, the credit bubble burst, cutting the value of the property in half. Tenants organized and attacked the plan as a rapacious development scheme that would erode New York’s stock of affordable housing. Finally, a judge blocked efforts to raise rents and ordered Tishman Speyer and its partners to pay Rob Speyer about $4,000 each to those in 4,000 apartments ruled to have been illegally deregulated. Tishman Speyer and its partners walked away in 2010, defaulting on the

opponents as an aggressive play by greedy developers to drive middle-income tenants from their apartments to make a proﬁt. It was a nasty outcome for Speyer, who had maintained from the beginning that his motivation was to transform the development with $150 million in upgrades, that would both attract a new kind of tenant and improve the quality of life for longtime tenants who remained. Throughout the ordeal, Speyer insisted that Tishman Speyer’s goal was to go after tenants who were abusing the system, not those with a legal right to remain there. By the time Tishman Speyer and its partners walked away, however, Speyer had shifted his attention within the company. He had joined his father as co-CEO two years earlier, in 2008, moving his focus from overseeing all New York–based projects to also running the company’s global operations. Meanwhile, he was quietly emerging as a powerful behind-the-scenes player in New York politics. Bob Knakal, chairman of Massey Knakal, and a member of REBNY’s board, said Speyer “is very well-known by politicians in town and in the state, from the governor down to city council members.” Indeed, last year, Speyer founded a nonproﬁt called the Committee to Save New York that’s raised and spent $12.1 million to buy TV and radio ads in support of Governor Andrew Cuomo’s agenda,

“It was time to drop the average age down — previously it was 104.” BURTON RESNICK, JACK RESNICK & SONS debt, wiping out the investments of two massive public employee pension funds and leaving lenders holding billions of dollars in bad debt. In the end, the project was painted by

said Bill Mahoney, research coordinator for the New York Public Interest Research Group, a nonpartisan nonproﬁt that’s tracked the effort. The group’s founding members were Speyer and two of his em-

www.TheRealDeal.com January 2011 25

PR O F I L E ployees, according to Mahoney. “Nobody in the state has come close to the efforts of this group, which has spent millions spreading images of the governor around the state and propping him up before his budget was even available on paper,” said Mahoney. “It’s impossible to know how close [Cuomo and Speyer] are in terms of how often they communicate. But it’s clear he has done a lot to endear himself in the governor’s eyes.” Meanwhile, Speyer also serves as chair of the Mayor’s Fund to Advance New York City, a nonprofit that raises private money for some of Mayor Bloomberg’s highestpriority projects. And he’s been a generous financial backer of political candidates at every level. In the last three elections alone, he has donated well over $70,000 to federal candidates and committees, according to the Center for Responsive Politics, the Washington, D.C.–based research group that tracks the effects of money on public policy. Since 2009, he’s also contributed the maximum allowable amount to Cuomo, doling out $56,900 and giving $19,100 to the state Democratic Party, according to NYPIRG. “Due to the outsized role of the Committee to Save New York during Governor Cuomo’s tenure, it’s difficult to argue that any other nonelected official has dominated the state’s political discourse as much as Mr. Speyer,” Mahoney said.

ties to [city] elected ofﬁcials, but also strong ties to Albany,” Tighe added. “And we need someone who is up-to-date on the issues currently facing the board. Rob has been involved for a long time.” Speyer’s experience working abroad, Tighe added, was also an important consideration. He’s been increasingly in-

nently qualiﬁed.” But “at the end of day, Rob Speyer appealed to everybody, and that is what consensus is all about.”

Next generation The selection of Speyer can only help attract younger members to REBNY, whose

their discussions. Tighe recalled that once the group decided that Speyer would get the nod, “someone said, ‘this is nice because it’s a nice transition to the next generation of leadership.’ ” “But,” she noted, “that was the only remark I can remember that related to his age. Rob may be young in years, but he is

“It’s difﬁcult to argue that any other nonelected ofﬁcial has dominated the state’s political discourse [during Governor Cuomo’s tenure] as much as [Rob] Speyer.” BILL MAHONEY, NEW YORK PUBLIC INTEREST RESEARCH GROUP The crown jewel of Tishman Speyer’s NYC portfolio, Rockefeller Center

Larry Silverstein

Stuy Town, which Tishman Speyer famously defaulted on in 2010

A logical choice In recent months, the links between Speyer and REBNY’s agendas have grown increasingly apparent. Last January, sign-waving protestors converged outside REBNY’s annual dinner to denounce the tax reductions and pension reform policies that the Committee to Save New York has been advocating. (According to the committee’s website, Spinola and Kathryn Wylde, the president of the business organization the Partnership for New York City, are also now cochairs of the committee along with Speyer.) The combination of the committee’s public policy agenda and Speyer’s political connections helped make him a logical choice for REBNY. Indeed, in his role as chairman, he will be lobbying elected leaders who oversee everything from zoning to tax policies. And on the city front, REBNY is gearing up for the change in political guard that will take place at the end of Bloomberg’s third term at 2013’s close. “The ﬁrst thing we talked about was the transition that will happen under the new chairmanship to a new administration in City Hall,” Tighe said of the deliberations that went into selecting a new leader. “No one can say who will be the next mayor and what their direction will be. But we wanted someone who had strong

28 March 2012 www.TheRealDeal.com

Jack Resnick & Sons’ Burton Resnick

Tishman Speyer co-CEO Jerry Speyer, Rob’s father

CBRE’s Mary Ann Tighe, REBNY’s outgoing chairman

volved in his ﬁrm’s expansion into foreign markets such as India, Brazil and China. In fact, the day his REBNY appointment was announced Speyer was in China, where Tishman Speyer reportedly has 20 million square feet of projects in the development pipeline. That international experience, Tighe said, will help Speyer make the case for policies that will keep New York competitive. The other REBNY candidates considered for the chairmanship, said Silverstein, “were all very appropriate, all recognized for accomplishments and emi-

membership is already at, or close to, an all-time high. Some pointed to the role that technology plays with the younger generation of real estate players (Speyer is on Twitter, though he only tweets sporadically and mostly about company news). “It sends a message,” said Leonard Boxer, a partner at Stroock & Stroock & Lavan and REBNY counsel. “You get somebody who is younger — though he has experience well beyond his years.” Still, those who selected Speyer downplayed his age as a signiﬁcant factor in

REBNY President Steven Spinola

old in real estate years.” Indeed, Speyer grew up in the real estate business — learning alongside his father and maternal grandfather. Founded by Rob Speyer’s great-greatgrandfather Julius Tishman in 1898, Tishman Realty and Construction was facing ﬁnancial difﬁculties by the mid-1970s when Jerry Speyer and his father-in-law decided to liquidate the company and reorganize it as Tishman Speyer Properties. The effort was wildly successful. By the time the younger Speyer joined Continued on page 104

www.TheRealDeal.com September 2012 29

Shop Williamsburg Mainstream brands look for a foothold in Brooklyn’s hippest neighborhood The corner of Bedford Avenue and North 5th Street in Williamsburg

filling up with wealthy families, who in turn are attracting highend retailers. “As more and more families come into the neighborhood, more and more family-oriented and mainstream retailers are coming to meet that demand,” said Timothy King, the managing partner of Brooklyn-based commercial firm CPEX Real Estate Services.

Demand on the rise BY JANE C. TIMM s the capital of hipster New York, Williamsburg has long been home to a bevy of small boutiques alongside its many bars and restaurants. But until now, large national retailers have shied away from the former Brooklyn industrial area. That’s starting to change, however. Now that major retailers like Whole Foods are opening in the area, other mainstream brands are clamoring to get into the hip neighborhood, too.

“This year, there has been a new level of acceptance of Williamsburg as a prime spot for business,” said David Leiter of the Williamsburg-based brokerage Leiter Real Estate Group. “Whole Foods was the stamp of approval on the neighborhood as an area retailers needed to be in.” The shift is also due in part to changing demographics in Williamsburg, which has long attracted twentysomething singles. As the city emerges from the downturn, pricey condos and rentals are now

Retail interest in Williamsburg has been spurred by skyrocketing residential prices: According to the brokerage MNS, studios in June were renting for an average of $500 more per month than last year. “The residential side of Williamsburg has really established itself — Bushwick and Ridgewood are being gentrified because of it — and there’s a stronger density of residents now,” said Ryan Condren, managing director of retail leasing at CPEX. That, in turn, “provides a consis-

tent flow of foot traffic to the mainstream retailers.” According to brokers, the floodgates opened in March, when Midtown Equities and other investors signed a deal to buy 242 Bedford Avenue, where they plan to develop a $40 million, 150,000-square foot complex with a Whole Foods, luxury apartments, a Citibank and a New York Sports Club. The complex is currently slated to open in 2014. That deal has prompted other mainstream retailers to seriously consider Williamsburg, brokers said. Williamsburg Cinema, a new movie theater being built at Driggs Avenue and Grand Streets, will have seven screens and 1,000 stadium seats, giving moviegoers a more mainstream alternative to the artsy, smaller Nitehawk Cinemas, which opened this summer. And sources say clothing behemoth J.Crew is considering taking space at 247 Bedford Avenue, a recently renovated, 35,000-square-foot space with 13 retail storefronts available for rent. The site — which offers some of the largest retail spaces in Williamsburg — started leasing this summer, with asking rents between $185 and $200 per square foot. Lee & Associates’ Peter Levitan, one of the listing brokers at 247 Bedford, declined to comment specifically about Continued on page 102

Community lending expertise with a personal touch.

Brooklyn, NY

Bronx, NY

Brooklyn, NY

120-Unit Multifamily

48-Unit Multifamily

36-Unit Multifamily

$5,750,000

$4,000,000

$2,100,000

52-Unit Multifamily

New York, NY

36-Unit Multifamily

Brooklyn, NY

New York, NY

$6,500,000

$2,000,000

$4,000,000

Mixed-Use

At Flushing Bank we’re focused on exceeding your goals. Comprised of experienced lenders with deep market knowledge, Flushing Bank’s Real Estate Lending team is ready to help you with the perfect real estate mortgage solution. As a well-established community lender, we’ve provided credit to a diverse group of customers helping them to quickly and efﬁciently achieve their goals. Call us today and let us make your real estate dream a reality. 144-51 Northern Boulevard, Flushing, NY 11354 800.581.2889 www.FlushingBank.com

30 �� September 2012 www.TheRealDeal.com

Flushing Bank is a trade name of Flushing Savings Bank, FSB.

PHOTOGRAPH FOR THE REAL DEAL BY DEREK ZAHEDI ��

Get thousands. Save thousands. NYSERDA’s improved Multifamily Performance Program makes it easier for you to slash your energy costs.

And do it your way.

MPP-OWN-realdeal-ad-1-v1

New choices let you customize a package of cash incentives and affordable loans— with help from energy efficiency experts.

NYSERDA’s Multifamily Performance Program still offers cash, low-interest financing, and expertise to help you stop energy waste in your buildings—existing or new. What’s different? The pathway you take to get there. Get started with energy benchmarking (and earn your first cash incentive). Then tailor a plan to improve your building, save energy and take advantage of benefits that can easily surpass $1 million. An expert Multifamily Performance Partner will help you at every step. Funding is limited. Your energy-saving options are not. Contact a Partner today to get started. Call 1-866-NYSERDA or visit nyserda.ny.gov/multifamily.

��

An alternative to credit scores FICO failed to predict large numbers of defaults during the downturn — most notably “strategic” walkaways BY KENNETH HARNEY o you ever get the feeling that credit scores don’t adequately portray the true risk of an applicant for a home mortgage? Do you think that lenders’ heavy dependence on credit scores is unfair? You’ve got some company. Digital Risk, a mortgage analytics ﬁrm, is mounting an unusual frontal assault on one of the lending industry’s sacred cows. It argues that credit scores such as FICO failed to predict large numbers of defaults during the mortgage bust years — most notably thousands of “strategic” walkaways by borrowers with high scores — because they could not anticipate homeowners’ reactions to economic stress. Unless lenders use more sophisticated assessment tools that incorporate far more than credit histories, Digital Risk says, they may be misjudging not only many of today’s high-risk borrowers, but other applicants who are safer bets than their credit scores suggest.

“The mortgage industry is relying on outdated methods to determine risk,” said Peter Kassabov, chairman and chief executive of Digital Risk, which is based in Maitland, Fla. “During the mortgage crisis, high-FICO borrowers encountering distress defaulted in huge numbers, yet we still depend heavily on that one score along with [down payments] to make lending and loan modiﬁcation decisions.” According to one study conducted in 2009, 588,000 homeowners walked away from their homes strategically during 2008 alone. This amounted to 18 percent of all serious defaults that year and shocked the mortgage industry. Fair Isaac, creator of the FICO score, acknowledged the problem, and last year released an “analytic tool” that lenders can use to detect potential strategic defaulters — high-scoring, credit-savvy borrowers primarily — before they stop paying. Digital Risk, however, says stra-

tegic default is not the only weakness of traditional credit scores. The company describes itself as the “nation’s largest provider of mortgage risk, compliance and transaction management solutions,” and claims to have seven of the top 10 mortgage lenders as active clients. Early last month it introduced a multidimensional risk evaluation system it calls Veritas, which it claims integrates borrower credit characteristics with property and local real estate market data along with proprietary behavioral prediction models. The behavioral component includes what the ﬁrm calls statistical “clusters” of borrower, property and market situations — 123 in all — that give lenders a better idea of how an applicant will react to ﬁnancial problems, such as the next recession or housing downturn. The system is based on analyses of more than 5 million loans originated between 2006 and 2011, plus a separate study of how Continued on page 98

�� Rainbow Room to get landmark status? The Landmarks Preservation Commission has agreed to review a proposal for the Rainbow Room to receive a rare interior landmark designation, the New York Times reported. The famous restaurant and nightclub, located on the 65th floor of 30 Rockefeller Plaza, has been closed for three years after a dispute between landlord Tishman The Rainbow Room in better days Speyer Properties and the Cipriani family, which ran the Rainbow Room. The Ciprianis applied for the landmark status before being evicted from the space in 2009. The Landmarks hearing is scheduled for this month. There are only around 114 New York City spaces designated as interior landmarks, including the lobby of the Empire State Building. If the Rainbow Room is given landmark status, any alterations to the space would require the commission’s approval, increasing its chances of remaining a restaurant. The New York Observer reported that the financial advisory firm Lazard has already leased the space that previously served as the Rainbow Room’s kitchen.

NYCHA promises change in wake of scandal Following reports of problems at the New York City Housing Authority, two studies revealed dysfunction at the $3 billion-a-year agency, the New York Daily News reported. In response, NYCHA commissioner John Rhea last month promised sweeping reforms at the agency. Among the changes: The NYCHA board will be dismantled and two salaried mayoral appointees removed. Instead, the board will consist of Rhea and four unpaid members, including two housing project residents. NYCHA also promised to com- John Rhea mit unspent funds to speciﬁc projects in the next 18 months, and to cut response repair time and upgrade security at housing projects. Mayor Michael Bloomberg, meanwhile, announced plans to give control of the Housing Authority’s day care and senior programs to other city agencies. Rhea also hired utility executive Cecil House to ﬁll the long-vacant position of NYCHA general manager.

Fed auctions off last assets from AIG fund The Federal Reserve Bank of New York last month sold $3.4 billion in “toxic” mortgage debt it inherited from American Insurance Group, Bloomberg News reported. The newly sold assets represent the last batch of funds from the notorious $62 million Maiden Lane III LLC fund. AIG recently received more than $6 billion in proceeds from auctions, and may soon get another $1.9 billion, helping CEO Robert Benmosche buy back shares from majority owner the U.S. Treasury Department. The New York Fed’s management of Maiden Lane III will result in a cumulative net gain to the public of some $6.6 billion, the bank said. The sale “marks the end of an important chapter, our assistance to AIG, that was undertaken to stabilize the ﬁnancial system in the midst of the ﬁnancial crisis,” said Federal Reserve Bank of New York president William Dudley.

Luxurious Extended Stay Living �� Fitness center And so much more

��th��

�� 30 day minimum stay required.

32 September 2012 www.TheRealDeal.com

EDC reaches deal for Pier 17 The Howard Hughes Corporation, the owner of South Street Seaport at Pier 17, announced last month that it has reached an agreement with the New York City Economic Development Corporation for a major overhaul of the pier, Crain’s reported. Hughes is planning a “complete transformation” of the A rendering of the new Pier 17 pier, including a glass-enclosed retail space and a rooftop concert venue. The plan has now been approved by the Landmarks Preservation Commission, with the support of Community Board 1, the company said. Construction is expected to start next year and be ﬁnished by 2015. Compiled by Russell Steinberg

Come and meet our team on 10/17/2012 at AREAAâ&#x20AC;&#x2122;s Second Year Anniversary Celebration

Want to learn more about us? teamnyc@primelending.com Like us on Facebook!

ÂŠ 2012 PrimeLending, A PlainsCapital Company. Trade/service marks are the property of PlainsCapital Corporation, PlainsCapital Bank, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. PrimeLending, A PlainsCapital Company (NMLS no: 13649) is a wholly-owned subsidiary of a state-chartered bank and is an exempt lender in NY.

� � ��

� ��

TOP BROKERAGES

��

Unique bonding activities

Grateful Dead bear

orget happy hour at your local watering hole: For City Connec-

tions brokers, bonding sessions start with discount exercise classes and tributes to the Grateful Dead. Company founder David Schlamm has paid for tickets to see Dark Star Orchestra, a 15-year-old group that recreates Grateful Dead concerts right Miron Properties founder Jeffrey Schleider in front of a foosball table at his Union Square ﬂagship

Nest Seekers International offers the use of a chauffeured car to brokers taking out clients looking to spend at least $2 million on an apartment. Boutique firm Mercedes/Berk pays for agents’ lunches every day and covers brokers for showings when they go on vacation. And Blu Realty Group gives its agents discounts at Blu Café, the coffee shop located in its office on Riverside Boulevard. A firm that particularly stands out in this area is Town Residential, which offers its brokers concierge services administered by Luxury Attaché, the same company that caters to the staff of Google and, when they move in next year, the residents of new condo tower One57. The concierges — who are installed at the reception desks in each of Town’s six locations — are available free to brokers seven days a week, and do everything from booking restaurant reservations and theater tickets to hiring movers for clients. Since Town opened in December 2010, agents have put in nearly 2,000 requests for moving assistance, the firm said. Offering these services to brokers, rather than just their clients, is an apparently unique perk among New York City residential brokerages. Town CEO Andrew Heiberger said it’s a valuable timesaver for his brokers. “It is now too time-consuming for the best residential representatives to deliver world-class concierge assistance and simultaneously work on marketing their listings, network with new buyers and sellers, close sales and rentals, and maintain a substantive and well-balanced family life,” he wrote in an e-mail. Town broker Robert Dvorin said that shortly after joining the firm from Prudential Douglas Elliman, he used the con-

64 March 2012 www.TheRealDeal.com

cierge to have his sunglasses ﬁxed. At Town, “you’re not just a broker, you’re a client,” Dvorin said. “That’s the philosophy.”

Listing databases

Access to property listings — and the ability to broadcast exclusives to other agents — is the lifeblood of a broker’s business. So the database a ﬁrm provides for accessing listings is an important consideration for some brokers when deciding where to work, particularly in a market that lacks a comprehensive multiplelisting service. Some New York ﬁrms use third-party listings services — such as On-Line Residential, RealPlus and StreetEasy.com — but others have invested in proprietary technology that some brokers say is more wide-ranging and easier to use. The city’s two largest residential brokerages, Prudential Douglas Elliman and

Taxi also allows brokers to add property “remarks,” such as changes to a building’s ﬁnancing limits or the addition of a bike room, that are presumably only accessible to users of the system, said one broker who uses Taxi. Limo won points with an Elliman broker for having more accurate and up-todate listings than other services. Elliman agents can also see notes from colleagues about contract signing dates or changes to listing details, the broker said. Some of the other ﬁrms that have designed their own listings databases include Bond New York, Town Residential, City Connections, Bellmarc Realty, Keller Williams NYC, Citi Habitats and Fenwick Keats Real Estate. Bond’s listing database — called Bentley, as a wink at its more established competitors — has also gotten favorable reviews from its users. Bond broker Brian Dusseau — who has worked for Manhattan Apartments, City Connections, Keller Williams and, most recently, the now-defunct Barak Realty — called the Bentley system the

Some ﬁrms use outside listing services, others have invested in their own, easier-to-use technology. Corcoran, both have their own databases, dubbed Limo and Taxi, respectively. (The ﬁrms declined to be interviewed for this story.) Both have gotten good reviews from brokers. Taxi is “simple, easy to use, very user-friendly, [and had] a lot of information,” said a former Corcoran broker who now uses OLR, adding that Taxi seems to have more listings than OLR.

“most comprehensive database that I’ve worked with,” in part because it contains sales and, especially, rental listings that do not appear in other systems. That’s because Bond has relationships with smaller landlords that have open but limited listings, meaning they are not exclusives but are not widely disseminated, Dusseau said. Also, information on customers who

down to historical set lists. About 29 City Connections agents caught the band at a recent show at the Brooklyn Bowl in Williamsburg. Schlamm also sponsors a monthly Spin N’ Salad night, featuring a private spinning class at the New York Health & Racquet Club, followed by a dinner of salad and frozen yogurt. About 15 agents have participated, and Schlamm said his thrice-weekly spinning classes have helped him lose 35 pounds. “I hope to lead by example for anyone who wants to get healthy,” he said. Other ﬁrms bond by dining at B.B. King Blues Club & Grill (Rubicon Property), attending spinning classes at SoulCycle (Town) or attending regular group movie nights (Mark David & Co.). LKC

register with the ﬁrm is fed directly to agents’ computer dashboards, giving them the ability to link listings to clients and create show sheets, or property fact sheets, within the system. Many of the city’s other major ﬁrms, including Stribling & Associates, Brown Harris Stevens, Halstead Property, Nest Seekers International and Sotheby’s International Realty, use RealPlus, sources said.

Office facilities Offices have a way of mirroring a firm’s personality. Take the Chelsea outpost of Stribling.

www.TheRealDeal.com September 2012 35

� � ��

� ��

TOP BROKERAGES

��

Rapid Realty agents showing off their “RR” tattoos

Most durable branding [literally]

any ﬁrms boast about the loyalty of their agents, but

tin Charles, who plans to open a Rapid franchise in Forest Hills,

how many can back up those claims with tattoos?

Queens, with his wife, Michele — but does not plan to get inked.

In the last year or two, almost 20 agents at Rapid Realty

Adam Altman, a Bushwick agent whose forearm now sports

have permanently branded their bodies with the ﬁrm’s logo,

a pair of interlocking Rs, explained his motivation in a YouTube

most recently last month at a Park Slope tattoo parlor. As a

video documenting the body art session:

franchise, Rapid offers brokers a chance to run their own businesses, which may inspire the outsize dedication. “Some folks are just that excited,” said Dumbo agent MarThe office was opened in 1819 by James N. Wells & Sons, and is the longest-running residential real estate office in the country. (It is currently undergoing a renovation in tandem with the company’s image overhaul.) By contrast, four-year-old Miron Properties’ offices have a decidedly start-up feel, and seem to embody founder Jeffrey Schleider’s reverence for Google’s corporate philosophy: The Union Square flagship features a foosball table, while the Greenpoint outpost has a graffiti mural. For agents, offices represent more than the requisite desks and computers. A firm that offers multiple locations

“The company’s been good to me. I don’t see myself going anywhere, [and] if I have it on my arm, it’ll force me to keep going and working hard,” he said. “Rapid for life, yo.” LKC

than 750 square feet, and agents do not have private desks. It doesn’t hurt if a firm’s offices are attractive enough to impress visiting clients. Bond New York, whose headquarters are spread over two floors at 1776 Broadway, goes for functionality — with a couple of posh touches — in its five Manhattan outposts. The 250 Mercer Street location is in a 5,000-square-foot loft with 25-foot ceilings, while the Chelsea outpost is in a triplex townhouse featuring a landscaped backyard. Town has earned a reputation for its

“If you want to be in school all the time, they offer enough different things.” JASON PENNER KELLER WILLIAMS NYC across the city makes it easier for brokers to work from different neighborhoods, while storefront locations help drive foot traffic and client leads, brokers said. With 22 locations across the five boroughs, Elliman has more offices than any of its New York City rivals, according to its website. That’s almost twice as many as Corcoran’s 13 offices in Manhattan and Brooklyn. Rapid Realty has more than 40 franchise locations, although they are less

36 September 2012 www.TheRealDeal.com

striking facilities, which Heiberger and financial partner Joseph Sitt have no doubt spent a fortune on outfitting with sleek furniture and eye-catching art. The firm’s six locations — the largest is the Flatiron flagship at 110 Fifth Avenue — each have a “Town Square” lounge area with couches and dining areas designed as a “multipurpose meeting and break space for employees.” “You walk in there and you’re blown away by everything,” said Rutenberg’s

Bernstein, who has never worked at the ﬁrm. “Some buyers and sellers need that. They love to be treated to all of that.”

Training

Brokerages take varying approaches to training their agents, from bringing in regular guest speakers like mortgage bankers and attorneys, to offering one-on-one coaching sessions, to letting agents shadow more-experienced counterparts. But some firms have particularly extensive or effective in-house training programs, sources said. For newer agents, Citi Habitats’ mandatory 40-hour training program, taught from a 130-seat auditorium in the firm’s Park Avenue headquarters, is notably useful, sources said. The firm also offers one-on-one coaching with a corporate trainer, weekly 30-minute productivity workshops, special classes on topics like social media and listing photos, and events with guest speakers like Jeff Blau of the Related Companies, the firm said. The program was implemented in 2000 by Greg Young, who went on to launch the agent training company Broker Heaven. Citi Habitats brokers interviewed by TRD identified the training as

one of the best things about the company. Meanwhile, Keller Williams NYC offers more than 60 courses — from collaborative brainstorming sessions to a coaching program called Mega Achievement Productivity Systems, or MAPS — under its Keller Williams University banner. Most of the classes, which are taught from a 120-seat auditorium at the firm’s Park Avenue office, are free for agents. “If you want to be in school all the time, they offer enough different things,” said broker Jason Penner. Although some courses were designed by the national firm, Penner said the Manhattan franchise does a good job of tailoring classes to the local market. Bellmarc’s training is aimed at new agents. The four-week program consists of twice-weekly seminars with Binder, Bellmarc’s president, “how to” seminars with the firm’s sales managers and outside experts, two essay-based exams and additional assignments that could involve visiting 25 open houses. Town has also put a particular emphasis on education, not only for new agents but for those focusing on specialized topics, such as “Land Use Issues: Intro to Zoning in Manhattan,” and “Analyzing Building Financial Statements.” About 50 of the classes offered are led by Jeff Appel, the firm’s director of education and professional development, who moonlights as a mortgage broker at Citibank. Town also offers five-hour neighborhood specialist courses focused on 17 areas of Manhattan that include a lecture and walking tour with historian and Town broker Lina Viviano. To be certified as a specialist by the firm, brokers must pass a test made up of multiple choice, fill-in-the-blank and essay questions. More than 80 percent of Town’s agents have participated in the firm’s classes, the company said. They are taught in a 30-seat auditorium in its Astor Place office.

Technology

From in-house IT departments to user-friendly websites, technology is invaluable for real estate ﬁrms today. In this arena, Corcoran’s online marketing efforts, led by Matthew Shadbolt, are worth noting. With more than 58,000 likes on Facebook, almost 11,000 Twitter followers, and nearly 1,000 subscribers on its dedicated YouTube channel, Corcoran is far outpacing its peers when it comes to attracting social media users, brokers said. The

www.TheRealDeal.com January 2011 25

� � ��

� ��

TOP BROKERAGES

��

firm also recently debuted an iPad listings app. One smaller firm has woven technology into its very existence: the online brokerage RealDirect.com. Launched in 2010 by CEO Doug Perlson, who helped create the online radio advertising company TargetSpot, RealDirect essentially uses technology and data to replace some duties traditionally fulfilled by brokers. Sellers can list their home using RealDirect technology (which also feeds listings to StreetEasy.com, REBNY and other listing databases) in exchange for a 1 percent commission or $395 monthly fee, or turn over additional duties to brokers for a 2 percent commission. Keller Williams NYC’s eEdge platform lets agents manage contacts, leads and cli-

For those interested in trying out the high-commission-split model, the following firms offer noteworthy versions of it. Kathy Braddock and Paul Purcell’s Rutenberg Realty, which has almost 500 brokers after its founding in 2006, charges a $99 monthly fee — plus a $1,000 transaction fee for sales under $1.5 million and a $2,000 fee for sales above $1.5 million. Rental transaction fees range from $200 to $800. Brokers receive an account for the OLR listings database, a profile on the firm’s website and the use of the Rutenberg office at 127 East 56th Street (which has space for about 14 to 20 brokers at a time). Brokers who have embraced the highcommission-split model swear by the Rutenberg approach. Robert Bernstein,

High-commission-split firms often require brokers to shoulder marketing costs and work in no-frills offices. But a number of these firms have noteworthy models. ents, oversee their personal website and listings, automatically create and send custom marketing materials to clients and complete transactions. In addition to an on-site tech staff, the brokerage provides round-the-clock offsite IT support. However, the tech package costs agents $150 per month (which also covers REBNY dues and errors and omissions insurance, which many firms require agents to pay for in case of professional mistakes).

High-commissionsplit firms At many of the city’s major firms, a 50 percent commission split is still standard for newer agents, while more experienced brokers earn around 70 percent, and star brokers can negotiate even more favorable terms. But as TRD has reported, a number of firms with new high-commission-split business models have appeared in New York City. These firms fall roughly into two camps: those that charge minimal monthly fees plus transaction fees for each deal, and those that charge flat fees that run several hundred dollars per month. These firms are not for everyone: trade-offs include shouldering marketing costs, working from no-frills offices and giving up a measure of camaraderie in favor of a more entrepreneurial approach. For inexperienced agents, the training, infrastructure and brand name cachet of a major firm can be invaluable for learning the ropes and building referrals, sources say.

PHOTOGRAPH OF PURCELL AND BRADDOCK BY MICHAEL TOOLAN 64 March 2012 www.TheRealDeal.com

a former Corcoran Group broker now at Rutenberg, said, “I’m doing the exact same thing I was [doing] at Corcoran — I’m just getting paid a lot more money.” At City Connections, brokers start at a 70 to 90 percent split and qualify for a 100 percent split after grossing at least $83,500 in commissions. Brokers must cover their own Craigslist ads at $3 a pop, plus licensing fees and membership dues for REBNY. Spire Group, which now claims 130 agents and is based in the Flatiron District, has a program dubbed the “True 100% Commission.” Agents pay a $495 monthly fee, but must have at least one year of experience, demonstrate a “high closing ratio” and make a full-time commitment in order to join the firm, which was founded by Kevin Kurland. Meanwhile, Oxford Properties is one of the few firms that give brokers a choice: pay either $349 per month and keep 100 percent of the commission, or pay $49 per month and keep 90 percent. Brokers can switch plans “in good faith,” and must cover their own marketing costs. (See related story on page 122.) One of the most distinctive approaches is Keller Williams’s hybrid model. Every year brokers start at a 70 percent split until they earn $50,000 for the firm, at which point they receive 100 percent of their commissions for the rest of the year. In exchange, brokers also pay $150 per month in technology and insurance fees; a desk fee ranging from $150 to $1,000 per month, depending on the size and location of the desk (the most expensive option being a windowed desk on Park Avenue that accommodates four); and an annual $3,000 royalty and franchise fee that is deducted from commissions.

Paul Purcell and Kathy Braddock of Rutenberg, which has almost 500 brokers after its founding in 2006

Brokers can also qualify for profitsharing with the firm by recruiting new agents. Although the Manhattan franchise is not officially participating in the program, since it only launched last year, about a dozen agents in the office are getting checks for referring agents who work in other U.S. locations, according to Zhann Jochinke, chief operating officer of Keller Williams NYC. Heddings Property Group, founded several years ago by veteran broker Doug Heddings, also has a unique approach. All 26 of the firm’s agents receive the same 70 percent split and share in the firm’s profits based on their productivity. The company also has no internal competitions or awards.

Marketing support

Firms have different ways of providing marketing support for their brokers. Some offer unlimited advertising budgets for exclusive sale listings. Others give brokers annual budgets based on gross commission income. Some even offer their brokers the opportunity to take part in reality TV shows. Brokers from the ﬁrms Core, Gumley Haft Kleier and Warburg have, of course, recently begun starring on HGTV’s “Selling New York.” While it’s difﬁcult to track whether the show translates to more business — brokers from Core and Gumley

Kevin Kurland of the Spire Group, which has a 100 percent commission-split model

www.TheRealDeal.com September 2012 37

� � ��

� ��

TOP BROKERAGES

��

“He sets a tone for the firm of dealing correctly with people and ethical behavior, and it trickles down,” said Warburg broker Harriet Kaufman. Brokers praised Peters for his smarts, his accessibility and his quick adoption of social media and online marketing practices, exemplified by his frequently updated blog, “Fred’s View of Manhattan Real Estate.” “Fred Peters is an incredibly, incredibly bright person,” said one former Warburg broker. “He really understands the business as a broker, and I think that’s unusual.” Other firms are standouts for their manager-to-broker ratios. At the 50agent DJK Residential, there is one manager for every seven brokers — a ratio on par with firms a fraction of its size, according to TRD’s research. Diane Ramirez, the head of Halstead Property, which brokers say has a good management staff in place

Haft Kleier declined to be interviewed for this story — its 1.7 million viewers undoubtedly bring widespread exposure to the firms. For example, Warburg officials said traffic spikes after the show is broadcast

Frederick Peters, the president of Warburg Realty, which was singled out for its strong ﬁrm management

Also noteworthy is Sotheby’s, which has an extensive international presence. Unlike the other major Manhattan firms, Sotheby’s has nearly 600 offices in 40 countries across the globe. That allows for a broad network of in-firm referrals, brokers said. But in ex-

Of the original eight brokers at Stribling when it opened in 1980, only one has left for another firm: Barbara Fox, who departed to start her own eponymous brokerage. on Thursday nights. After a 30-second appearance on one episode, Kaufman said she received calls from people across the country. But TV appearances alone won’t sell a house. For every exclusive listing, Warburg also provides photographs taken by the firm’s in-house photographer, floor plans and show sheets at no charge to brokers. Warburg brokers also receive an annual budget based on productivity levels. “Frankly, I have not ever had to spend any extra money” out of pocket, Kaufman said. Another marketing standout, sources say, is Town, which offers a corporate matching benefit for promotional efforts that aren’t necessarily related to one specific listing, such as charity sponsorships or client events, Dvorin said. Inspired by Town marketing chief Nicole Oge’s time at Mercedes-Benz, the program will match up to $5,000 per year of a broker’s own contributions. Town also covers marketing costs for sales exclusives and high-priced rentals, and provides annual budgets for agents depending on productivity, Dvorin said.

38 September 2012 www.TheRealDeal.com

change, Sotheby’s agents pay higher marketing fees and insurance than brokers at other companies, as The Real Deal has reported.

Management

When it comes to managers, everyone’s different: What strikes one agent as a lack of attention may appear to another as a welcome dose

of freedom. But some firms have paid special attention to implementing policies that transcend the varying personalities of individual managers and help all agents do better. One such firm, sources say, is Halstead Property, led by Diane Ramirez. While Halstead officials declined to participate in TRD’s survey, brokers at the firm describe a family-like atmosphere, where board packages never leave the office before managers give their approval. “The two managers that we have [in the Park Avenue office] are the best I’ve ever seen in this business,” said one Halstead broker, who has worked at several other firms. James Gricar, the firm’s general sales manager, is “a doll, an angel, the best thing

since sliced bread,” said another Halstead broker. The agents’ enthusiasm is all the more noteworthy because Halstead is a large firm, so managers have many agents to look after. With 1,000 agents in the tri-state area, about 600 of them in Manhattan, Halstead managers are spread over 11 offices in Manhattan and Brooklyn. Downtown broker Jane Greenberg, who has been at Halstead for eight years, said new agents at the firm are given time to prove themselves. “It’s not like, ‘Oh, gee, it’s been three months and they haven’t got a deal going,’ ” Greenberg said. “They get that there’s a learning curve.” Warburg is another firm noteworthy for its management, namely because of its well-respected president, Frederick Peters.

Agent retention

In any given year, there is a certain amount of broker churn within the industry, but some firms manage to keep agents for the long haul. Of the original eight brokers at Stribling when it opened in 1980, only one has left for another firm: Barbara Fox, who departed to start her own eponymous brokerage. Many agents have worked at Stribling for decades, the company said. Warburg also focuses on agent retention: 26 percent of its 138 agents have worked there for at least 15 years, the firm said, while 14 percent have been there for more than 20 years. Brown Harris Stevens and Sotheby’s also have a reputation for low turnover (though both declined to provide specific figures). TRD

Motivating the troops — with lavish prizes

ome ﬁrms offer prizes for brokers who bring in the most ex-

• Modern Spaces offers a fourday paid vacation in the Bahamas to

clusives, signed leases, referrals or

any agent who racks up 30 rentals

gross commission income. Among

at a TF Cornerstone development

the most tantalizing:

between May and Labor Day.

• At Spire Group, agents who

• At Platinum Properties, any

bring in the most new recruits be-

agent who grosses $20,000 in com-

tween June 15 and Sept. 15 will

missions gets a custom-made suit

receive $2,500 toward a trip to the

(for men) or a shopping spree (for

broker’s destination of choice.

women). LKC

PHOTOGRAPH OF RAMIREZ BY HUGH www.TheRealDeal.com JulyHARTSHORNE 2012 37

W E G I VE T H E TOOL S

YO U M AK E THE RUL E S

AG E NT S WANTED

SU PPORTIVE. CREATIVE. LUCR AT I VE . A N E N V I R O N M E N T T H AT B R E E D S S U C C E S S

MODERNSPACESNYC.COM | AGENTSWANTED@MODERNSPACESNYC.COM

RETAIL

Mass market for Meatpacking

The trendy area is seeing more mainstream tenants and more available retail spaces, sparking debate on how much properties are worth and where the neighborhood is headed

A view of the Meatpacking District, which, despite seeing an increase in foot trafﬁc because of the High Line, has seen retail rents remain soft.

“I would not take all the vacancy as a bellwether or [landlords] not being able to lease. I would take that as an indication of the conﬁdence in the upside.”

BY ADAM PINCUS n the late 1990s, Jeffrey Kalinsky, a former Barneys shoe buyer, started scoping out the Meatpacking District to ﬁnd a home for Jeffrey, his high-end clothing store. At the time, the cobblestone streets were lined with meat purveyors and art galleries; retail rents were in the mid-$20s per square foot. When Kalinsky opened his 12,000square-foot shop, a mini department store carrying exclusive brands, at 449 West 14th Street in 1999, he accelerated

MARC WATKINS, DELSHAH CAPITAL a fashion domino effect that soon turned the Meatpacking District into a trendy see-and-be-seen neighborhood studded with designer boutiques and late-night restaurants. Today — with retail rents 10 and 20

times higher — the area is undergoing another sea change. Just as Jeffrey acted as a pioneer for the neighborhood’s haute couture crowd, a recent ﬂurry of leases is signaling a new direction for the area’s retail — one geared toward

Top retail owners in the Meatpacking District RANK

OWNER

GRND-FLR RETAIL OWNED (IN SF) AVAIL. GRND-FLR SPACE (IN SF)

PERCENT AVAILABLE

The Gottlieb estate

64,000

9,100

14%

Romanoff Equities

38,789

19,331

50%

Greenway Mews Realty

36,000

8,700

24%

Meilman Family Real Estate

32,808

7,900

24%

TF Cornerstone

27,000

18,000

67%

Yucaipa Companies

20,655

Thor Equities

15,487

100%

Alﬁeri/Real Estate Equities

15,055

100%

Taconic Investment Partners

13,500

Stellar Management

12,000

Total in all of Meatpacking

395,738

132,945

34%

Source note: The Real Deal surveyed properties from 14th Street to Gansevoort Street, and from the west side of Ninth Avenue to 10th Avenue. The Gottlieb estate’s numbers do not include its vacant buildings and undeveloped sites, which have approximately 24,000 square feet of potential ground-ﬂoor retail. In the case of multiple owners, credit was given to the primary investor. Data were collected last month.

40 September 2012 www.TheRealDeal.com

the mass-market customer, retail brokers say. Five stores have recently inked deals on 14th Street just west of Ninth Avenue, with three — outdoor retailer Patagonia, comfort shoemaker UGG Australia and yoga retailer Lululemon Athletica — unequivocally recasting the stretch away from high fashion. In fact, sources say, the northern portion of the district may come to look a bit like a suburban mall. The area is transitioning from luxury fashion to more mainstream fashion, said Lisa Rosenthal, a managing director at retail-focused brokerage Lansco. “Particularly on 14th Street, which is the gateway to the High Line,” she noted. More fashion-focused tenants are preferring instead to sign new leases just south of there in the Meatpacking District, she added. Others that arrived on 14th Street in the early 2000s, when rents were much lower, are abandoning the neighborhood entirely. For example, women’s clothing designer Yigal Azrouël, which opened its

PHOTOGRAPH FOR THE REAL DEAL BY DEREK www.TheRealDeal.com January 2011ZAHEDI 25

RETAIL ﬂagship at 408 West 14th Street in 2003, closed last month (and is reopening on Madison Avenue this month), while designer Stella McCartney relocated to Soho in January. “Like ... likes to be with like. Fashion tenants that want to be in the Meatpacking District are going to go to Washington [Street] and further south to 13th, Little West 12th and Gansevoort,” Rosenthal said. The impact of new tenants is a hot topic among brokers and investors who are trying to gauge how much buildings in the Meatpacking District should be trading for. What’s more, tens of thousands of square feet of vacant ground-ﬂoor space is being added to the market in the coming years, which will likely keep downward pressure on rents in an area already faced with a 34 percent availability rate. “The entire neighborhood is in a state of complex change,” said Jared Epstein, vice president of Aurora Capital Associates, which owns 21 Ninth Avenue, home to makeup chain Sephora and trendy seafood restaurant Catch. Developers need retail rents to be north of $1,000 a square foot to justify their acquisitions to investors, he added. “Buyers are overpaying, in my opinion,” Epstein said. “Sellers are taking advantage of the insatiable appetite that developers and investors have for this neighborhood.” This month, The Real Deal took a closer look at the quickly changing retail of the Meatpacking District, where the new Whitney Museum outpost is slated to open in 2015 and is expected to add even more tourists to the High Line destination. We analyzed which new tenants have signed for space there, broke down property owners by how much retail space they own and ranked brokerages by the amount of retail space they represent.

Much of the property is under the control of just a few under-the-radar, family-run companies, such as the estate of William Gottlieb, Romanoff Equities and Meilman Family Real Estate.

ground-floor retail on 10th Avenue at a vacant parcel and some empty buildings. Gottlieb, a big-time New York City property owner, picked up his meat-

Equities, began buying property in the neighborhood in 1944, and are now one of the largest owners in the area. At one point, the family’s holdings were even larger, but they were divided

Cliff and Richard Meilman, whose family-run company started in the meat industry and now owns a number of Meatpacking District properties.

Yigal Azrouël

Jeffrey

Brokerages repping the most Meatpacking retail space BROKERAGE

GROUND-FLOOR SPACE (IN SQ. FT.)

Robert K. Futterman & Associates

50,150

Lansco

8,700

Ripco Real Estate

7,100

Winick Realty Group

5,607

Scoop

Source note: Data from The Real Deal, brokerage ﬁrms and CoStar Group. Surveyed area is from 14th Street to Gansevoort Street, and from the west side of Ninth Avenue to 10th Avenue. Ranking includes brokerages’ listings as of late last month. It does not include leased space. Patagonia Thomas Elghanayan

“Meat” the owners While it may be tough to get a membership at the Meatpacking District’s famed Soho House New York, it appears to be even harder to join the club of real estate players that actually own property in the neighborhood. City records show there are currently 31 firms that own the approximately 70 properties in the eight city blocks that TRD analyzed between Gansevoort and 14th streets, and between Ninth and 10th avenues. The area has a total of 395,738 square feet of ground-floor space currently in use or available. Most of the area is within the 2003 Gansevoort Market Historic District, which restricts development, but several high-profile developments and potential development sites are outside that zone.

Ron Burkle

But there are also owners who are better known in real estate circles, such as Joseph Sitt’s Thor Equities, Ronald Burkle’s Yucaipa Companies and Robert Cayre’s Aurora Capital. By far the most dominant owner in the area is the Gottlieb estate, now controlled by the late investor’s greatnephew Neil Bender. The estate owns 64,000 square feet of ground-floor space — or 16 percent of the total in the eight-block swath. In addition, it owns another 24,000 square feet of potential

Joe Sitt

market properties (among scores of others) between 1980 and his death in 1999. But many of the neighborhood’s “meat” families bought buildings in the neighborhood long before that. Russian-born Nat Romanoff, for example, entered the meat business in the 1930s, and his family later launched meat companies including Nebraskaland, a major distributor that’s still in business. He and his descendants, who today run the real estate ﬁrm Romanoff

PHOTOGRAPHS OF MEILMANS AND SHOPS FOR THE REAL DEAL BY DEREK ZAHEDI; PHOTO OF ELGHANAYAN BY BEN BAKER; PHOTO OF BURKLE BY BRAD TRENT 28 March 2012 www.TheRealDeal.com

in 1999 between Nat’s sons Michael and Gerald. Romanoff Equities — headed by Michael and his son Darryl, owns 38,789 square feet of existing or proposed ground-ﬂoor retail. The company’s holdings include the series of nine buildings that occupy the entire east side of Washington Street between Gansevoort and Little West 12th streets. The ﬁrm’s retailers include clothing designer Ted Baker at 34 Little West 12th Street, designer Vince at 833 Continued on page 108

www.TheRealDeal.com September 2012 41

Paying up for extras

A cabana at Dumbo’s 70 Washington Street ranges from $70,000 to $150,000.

As the market tightens, buyers spend more for “add-ons” like storage and parking

BY JANE C. TIMM urchasing a New York City apartment has long been viewed as a smart long-term investment. But do optional extras — like parking spots, private storage units or rooftop cabanas — hold their value over time? During the real estate downturn, the answer seemed to be no, with condo developers often giving away — or deeply discounting — these extra features to lure buyers to their buildings. But as the market tightens, buyers and renters are paying higher prices for optional add-ons. Developers are responding by increasingly adding these extras into their plans for new buildings, and taking steps to make them easier for buyers to ﬁnance. After the ﬁnancial crisis, extra features “were negotiated more, or used to hold an apartment’s purchase price,” said Stephen Kliegerman, president of Halstead Property Development Marketing. But in the last year, he said, “we’re getting our apartments’ asking prices, and we’re able to charge fullprice for the add-ons.” When new condo One Brooklyn Bridge Park, for example, started sales in 2007, it had 24 outdoor cabanas and 132 parking spaces available for residents to purchase. Since then, 19 cabanas and 30 parking spaces have been sold, according to Penelope Stipanovich, an MNS broker who is director of sales at the building. While the building’s developer had to discount these extras during the downturn to get them to move, she said, they’re now sell42 September 2012 www.TheRealDeal.com

ing for their full asking prices of $150,000 to $200,000 for cabanas, and $150,000 per parking space. “We were seeing 10 percent off cabanas and parking in the last two to three years,” she said, “but there’s been less negotiating in the last year, and right now we’re going full price.”

Even rental buildings are adding more extras, beyond the standard gym and common spaces. For example, the new rental building Ten23 in Chelsea offers tenants the option of leasing private backyards off

But prices for these extras dropped at many buildings during the recession. Dumbo’s 70 Washington Street, a highend 2005 conversion of a former factory, was one of the ﬁrst new condos to offer cabanas,

Room to grow Developers use add-on sales to monetize parts of their properties that can’t be used for apartments, explained Frances Katzen, a managing director at Prudential Douglas Elliman. “The developer has bought land, and if it’s not able to be [used] as a residential area,” she said, “he can turn it into a garage and unload it [at] a very high premium.” Add-ons like cabanas — often with running water, electric wiring and gas hookups — can also help developers market their properties. “Everybody wants to have a niche, and developers are trying to differentiate themselves,” Katzen said. Or, as Alchemy Properties founder and president Kenneth Horn put it, “Everyone has their mousetrap — this is ours.” Last month, Alchemy launched 291 Union Street, a new condo in Carroll Gardens, which offers buyers the option of purchasing basement storage units and parking spaces. Horn said these days, whenever space in his buildings permits, he tries to include optional extras. “It helps us sell the building,” he said.

80 Metropolitan in Williamsburg, where cabanas ranged in price from $70,000 to $150,000.

291 Union Street in Carroll Gardens.

Ten23 in Chelsea, where tenants have the option of leasing private backyards off the eighth ﬂoor.

A cabana at Grifﬁn Court at 454 West 54th Street.

the eighth ﬂoor. The four backyards rent for an additional $1,000 per month, with full-year leases, according to the building’s rental ofﬁce. Two of the four backyards have been rented since the building launched this winter.

brokers said. The amenity proved to be popular, with some cabanas going for as much as $325,000 during the initial sellout. Then in 2009, during the real estate downturn, one of the cabanas at 70 WashContinued on page 106

www.TheRealDeal.com March 2012 00

WWW. OL R. COM WWW. OL RDI GI TAL . COM WWW. OL RNYCVOW. COM

��

� �� 1979: STATE CLAMPS DOWN ON APARTMENT REFERRAL FIRMS tate ofﬁcials proposed new measures to clamp down on apartment referral agencies 33 years ago this month. The efforts followed a surge of fraud complaints against the companies, which sold lists of available apartments to New York apartment hunters. These referral agencies offered a less expensive way to search for an apartment, allowing users to save the hefty broker’s fee — usually 12 percent of the annual rent. Instead, the user paid the agency an up-front fee, typically between $50 and $100, for a list of available apartments. But often the apartments were not actually available, the landlord had not consented to being included on the list or the building simply didn’t exist. In 1979, the state Department of State, then headed by Democratic political powerhouse Basil Paterson, saw a surge of fraud allegations. It received 350 complaints in the ﬁrst eight months Basil Paterson of the year, compared with 500 total complaints in the prior three and a half years. In response, the state instituted tighter regulations in November 1980. The referral industry began fading away in the 1980s. Today, websites such as Craigslist have supplanted it.

1950: AD GIANT OGILVY SIGNALS BOOM FOR MADISON AVE. AGENCIES

�

he two-year-old advertising agency Hewitt, Ogilvy, Benson, Mather, Inc. leased one floor in a new tower rising on Madison Avenue 62 years ago this month. The lease helped solidify Madison Avenue as home to America’s brash ad firms in the postWorld War II era. The firm — which was founded by David Ogilvy and later became the global ad giant Ogilvy & Mather — leased the 10,567-square-foot 23rd floor of the nearly completed 26-story tower at 575 Madison Avenue, between 56th and 57th streets. Other advertising firms followed the company to Madison Avenue over the next decade and to Midtown in general. Indeed, a 1960 survey by a young Harry Macklowe, then a broker with the firm Julien J. Studley, Inc., showed that advertising firms occupied more space than any other type of David Ogilvy business in the area between 34th and 59th streets. Ogilvy was far from the first ad firm to take space on Madison Avenue. In the 1920s and 1930s with the advent of radio, prominent agencies such as the predecessor to BBDO and the newly merged McCann-Erickson took space there. However, it was not until after World War II, with the growth of TV, that the street grew into the iconic symbol of the ad industry that is today portrayed in the awardwinning show “Mad Men.”

Welcome to an alternate solution…

1889: UPPER MANHATTAN EYED FOR WORLD’S FAIR LOCATION

Property Taxes Higher than your roof?

� For�more�than�20�years�the�professionals�at�Hucke�and�Associates�have�been� recognized� as� leaders� in� the� property� tax� industry.� Our� mission� and� sole� objective�is�to�ensure�our�clients�pay�only�their�fair�share�in�property�taxes.�� Through� our� expertise,� clients� are� able� to� stay� competitive� in� the� marketplace� and� make� greater� gains� to� the� bottom� line� which� results� in� larger�profits.�� Let�us�evaluate�your�real�estate�and�provide�our�opinion�of�your�current�real� estate�tax�position.� �

�

� Peter Hucke President

Hucke and Associates 1359 Broadway, Suite 1104, New York, NY 10018 212-279-9100 | www.huckeproptax.com

44 September 2012 www.TheRealDeal.com

mayoral board announced 123 years ago this month that the city would make Upper Manhattan the centerpiece of its bid to Congress to win the 1892 World’s Fair. Mayor Hugh Grant’s “World’s Fair Committee on Site and Buildings” identiﬁed a large swath of the city — between 98th and 127th streets from Park Avenue (then known as Fourth Avenue) to the Hudson River — where the site would be located. The actual site would, of course, be just a fraction of that size. Winning the World’s Fair was akin to winning the Olympics today. It would mean millions of dollars of development along with ﬂoods of tourists. In addition, it came with the opportunity to remake a portion of the city that, up until that time, reWilliam Waldorf Astor mained largely vacant. The board included real estate heir William Waldorf Astor — who agreed to allow his Uptown properties to be used for the fair — and R.H. Macy & Co. owner Isidor Straus. The site selection immediately put real estate speculators in motion buying land in the area. “One man was so eager that he bought four lots that subsequently proved to be within the site area,” the New York Times reported. But ultimately, New York lost its bid. In February 1890, the U.S. House of Representatives picked Chicago as the site for the fair, which opened in May 1893. Compiled by Adam Pincus

What’s the most important word in referring a mortgage?

CLOSING NO SWEATING — NO BULLSHIT NO BROKEN PROMISES ...................

EVERY DEAL IS THE MOST IMPORTANT DEAL TO US Great Rates – Great Programs Hard Deals – Restructured Easy Deals – Appreciated Coops – Condos – Townhouse 24-hr Turnaround Time Brokers – Mortgage Brokers – Bankers – Welcome No need to worry. “I’M ON THE JOB.” _______________

If you have a question or a deal, give me a call and you will have an answer immediately – no red tape, no answering machines, no days go by.

Call Now

Mortgage 1-800-826-2265 5

Keith Kantrowitz President

kk @ powerexpressmortgage.com

Manhattan

Local appointments. 7 days/week. Offices in:

Brooklyn, Queens, Bronx, Staten Island & Nassau County, 355 N. Canon Dr, Beverly Hills, CA 90210, Florida

(Flagship: 165 Madison Ave),

We’re an Equal Housing Lender, Licensed Mortgage Banker- NYS Dept. of Financial Services. All rates, fees, terms and guidelines are subject to change without notice. Not responsible for errors. NMLS ID#4904, NMLS ID#1324

The next records to be broken

RECORDS

A look at the residential and commercial properties that may have what it takes to break new barriers

BY KATHERINE CLARKE t’s been a year of ﬁrsts for Manhattan real estate. Six months ago, the $88 million deal for Sanford Weill’s 15 Central Park West apartment set a new record for the most expensive Manhattan condo ever sold. Only a few months later, a mystery buyer reportedly signed a contract to pay between $90 and $100 million for a duplex penthouse at Extell Development’s One57. Then in April, a new record for Manhattan’s priciest co-op sale was set when Howard Marks, the chairman of global investment management ﬁrm Oaktree Capital Management, paid $52.5

Highest total purchase price for a Manhattan condo

uch attention has been focused lately on the $100 million listing for Steven Klar’s penthouse at Midtown’s CitySpire, which hit the market in July with Prudential Douglas Elliman’s Raphael De Niro. If it sells for the full asking price, the 8,000-square-foot triplex would set a new record for the priciestever Manhattan condo sale. But the consensus among brokers is that the eyebrow-raising price tag is simply too much for a 25-year-old building. Even Elliman’s chairman, Howard Lorber, indicated that the unit may be overpriced when he said in a CNN interview last month: “Pricing apartments today, it’s not a science, you know. If this is what the owner wants for the apartment, it will either sell or it won’t sell.” And in fact, two other condos currently on the market may actually have more potential to set records, brokers said. (The number to beat depends in part on the ﬁnal sale price of the One57 duplex, which hasn’t yet closed.) One strong contender is an apartment The Ritz-Carlton at 50 Central Park South

listed by Leroy Schecter, the 85-year-old steel tycoon. His two-unit combination spread at 15 Central Park West hit the market for $95 million early last month. The two 35th-floor units, which Schecter bought for a total of $18.9 million, are listed with Core’s Emily Beare, who declined to comment. The Wall Street Journal reported that while the spread is slightly smaller than Weill’s, it ac-

46 September 2012 www.TheRealDeal.com

million for Courtney Sale Ross’s duplex at 740 Park Avenue. Aiming to replicate this success, a bevy of properties have hit the market with asking prices that could potentially set new records. And while residential properties often grab the headlines, retail and office landlords are also testing the limits of the market, asking record rents for Fifth Avenue retail and Midtown office properties. This month, TRD talked to brokers and market analysts to find out which of these high-priced properties actually have what it takes to set a new record — and which don’t.

tually has better views. Another highly desirable unit, brokers said, is a duplex penthouse at the Ritz-Carlton at 50 Central Park South, also listed for $95 million. The apartment, which is reportedly owned by an Argentinean ballroom dancer, is listed

City’s Arris Lofts, which sold for $3.04 million in 2008, according to city records. So far, prospective buyers have been surprised that such a pricey property exists in Queens, Julian said, but she believes the property’s size and views make it “one of a kind.” The View in Long Island City

by Halstead Property’s Dianne Weston, who declined to comment. The 5,078-square-foot unit is said to have a 42-foot-long ballroom that overlooks Central Park. High-end Sotheby’s broker Nikki Field, who has no afﬁliation with any of the listings, said the 15 CPW and Ritz-Carlton properties could sell for close to their asking prices. After all, $100 million sales have already closed in markets like London, Hong Kong and Moscow. “These elite properties are in a global league of their own and are now priced comparably to other markets that these buyers invest in,” she said. The Ritz-Carlton listing, in particular, is in an extremely attractive location and “will trade high,” Field said.

Highest total purchase price for a Queens condo

t TF Cornerstone’s The View in Long Island City, a penthouse listed for $3.25 million would set a record for the priciest condo sale in Queens if it achieves its asking price. Located at 4630 Center Boulevard, the 2,260square-foot resale unit has three bedrooms, four bathrooms and a private terrace. It was listed in July with Silvette Julian of Nest Seekers International. The record for the most expensive Queens condo is currently held by a unit at Long Island

Jennifer Dorfmann of Modern Spaces — the ﬁrm marketing the View’s remaining sponsor units — said that Julian’s asking price is within “the realm of reality,” given the apartment’s outdoor space and “showstopper view.” And as demand for Queens properties grows, she said, “you’re going to have more $2 million-plus buyers in Queens.” But Citi Habitats agent Christopher Butt disagreed. The unit’s price tag of more than $1,400 per square foot “doesn’t sound realistic,” he said, noting that similar units in the area have been selling for $800 to $900 per square foot. Butt is currently listing a three-bedroom at Arris Lofts for $1.49 million, and said he has “been having a really hard time” getting what he feels is the right price for the unit. “I think Long Island City is in a better position than it was pre-recession,” he said, but still, “post-recession, it is not getting what it should.”

Highest total price for a Brooklyn home

triplex apartment atop One Main Street in Dumbo has been sitting on the market for over three years, most recently listed with Michele Kleier and Samantha Kleier Forbes of Gumley Haft Kleier. The 7,000-square-foot penthouse — wellknown for the four giant glass-faced clocks that serve as its windows — ﬁrst hit the mar-

www.TheRealDeal.com January 2011 25

RECORDS ket in 2009 asking $25 million. But the property, developed by Two Trees Management, has seen several price chops, and is now asking $19 million, almost twice the highest price ever paid for a Brooklyn home. A Brooklyn Heights mansion once owned by Truman Capote sold last winter for $12.5 million, setting the record for a single-family residence in the borough. The Clock Tower at One Main Street in Brooklyn

Kleier told TRD that it’s difﬁcult to put a price on such an unusual property. “It’s obviously not for everyone,” she said. “With a property as unusual as this, you almost have to pick a number out of a hat and wait for the right buyer to come along.” Kleier, who declined to comment on the possibility of further price cuts, said she sees a celebrity or tech mogul as the most likely buyer of the property. Other industry sources said the property is unlikely to sell for close to its current asking price. “It’s been on the market for a long time,” said one broker with knowledge of the Dumbo market. “People that have $19 million or $20 million to spend would rather be in Manhattan.” Another source said: “It’s a totally ridiculous price. It’s a very dramatic apartment, but the layout is not very family-friendly. A lot of the square footage is taken up with elevators and staircases. I don’t think it’s better than everything else that’s ever sold in Brooklyn.” Still, industry sources said the apartment would most likely sell for $12 to $14 million. Asher Abehsera, a vice president at Two Trees, did not respond to a request for comment.

Highest price per square foot for a Manhattan ofﬁce building

he Lehman Art House, a Beaux-Arts commercial townhouse at 7 West 54th Street, hit the market in May for $65 million, or just under $4,000 per square foot. If it sells for that price, it would crush the existing record for a city ofﬁce building sale, set this spring when Spanish tile company Porcelanosa paid some $2,600 per square foot for the Commodore Criterion building on Fifth Avenue. Once the home of former Lehman Brothers chief Philip Lehman, the Art House is currently owned by investment group Zimmer Lucas Capital, which uses

64 March 2012 www.TheRealDeal.com

the six-story building as its headquarters. The company paid just $13 million for the building in 2005. The property has a rusticated limestone exterior, but has been renovated with übermodern conveniences inside, including video-conferencing and trading rooms, as well as a gym, sauna and retractable glass roof system on the sixth floor, which opens directly onto a 737-squarefoot outdoor terrace. “No other commercial townhouse has ever come on the market with that caliber of renovation in my 23 years of dealing with this segment of the market,” said top residential broker Paula Del Nunzio of Brown Harris Stevens, who is marketing the property. “The same people that spend $80 million for somewhere to live can spend $65 million for somewhere to have the most exquisite corporate headquarters.” Del Nunzio said she expects a highend jewelry or fashion retailer, along the lines of Swiss watch and jewelry company Chopard or luxury goods designer Hermès, to take the space as its headquarters. The building, which comes with 9,000 square feet of air rights, is commercially zoned, making an office building its only allowable use. Still, brokers said it was not entirely fair to compare the townhouse to a traditional office building; “They’re different animals,” one broker said. Another broker, Paula Del who asked to reNunzio main anonymous, called the asking price “outlandish,” saying: “It would be a miracle if [Del Nunzio] got 50 percent of the asking price.” Others said they believe the building’s widely reported size — 16,676 The Lehman Art House

square feet — is exaggerated, and that the building is actually smaller than that. Asked if he thought the listing price was realistic, however, Eastern Consolidated’s David Schechtman said that “in 2012 and hopefully in 2013, wealth from all over the world, and especially from Europe, is ﬂeeing to New York City. When a broad enough net is cast, it’s incredible the users who surface.” He added that Del Nunzio shouldn’t be underestimated. “I know enough about New York City real estate to never bet against this broker,” he said.

Highest total purchase price for a Manhattan co-op 828 Fifth Avenue

t 828 Fifth Avenue — the former James Berwind Mansion, which went co-op in the 1980s —a three-unit combination is on the market for a total of $72 million. If the eight-bedroom, 15,000-square-foot spread sells for that price, it would be the highest price ever paid for a single co-op residence in Manhattan. As noted above, that record is currently held by the $52.5 million sale of Ross’s Park Avenue apartment. The units once belonged to the late builder Howard Ronson, who attempted to buy the whole Georgian mansion before he died in 2007, but was thwarted by other owners in the building. Ronson’s estate now owns 72 percent of the building, including the full second, third, fourth and sixth floors, plus half of the first floor. The estate also owns the English basement and the roof terrace, according to the listing. Listing brokers Alexa Lambert of Stribling & Associates and Sharon Baum of the Corcoran Group did not respond to requests for comment. Kathy Braddock of Rutenberg Realty said she would not be surprised if the listing sold for its full asking price. “If you want to have a European lifestyle and feel like you’re living in Paris in New York, [then you’ll buy it,]” she said. “You’re talking about a stratosphere of buyer who, if they really want something, it doesn’t matter what it costs. If you’ve got a billion dollars, what is $72 million?”

www.TheRealDeal.com September 2012 47

RECORDS

Highest total purchase price for a residential Manhattan townhouse The Woolworth Mansion

t’s been on the market for roughly a year and a half, but if the Woolworth Mansion on the Upper East Side sells for its full $90 million asking price, it would shatter the record for the priciest residential townhouse sale in New York City history. The 19,950square-foot mansion, at 4 East 80th Street, is listed by Del Nunzio. The record is currently held by the Harkness Mansion on East 75th Street, which sold for $53 million in 2006, also with Del Nunzio. The 25-foot-wide Woolworth townhouse, which was originally commissioned by discount store mogul Frank Woolworth, is owned by the estate of ﬁtness guru Lucille Roberts, who died in 2003. But unlike the Harkness Mansion, which sold just a month after being listed, the Woolworth house has lingered on the market since 2011, leading some to suggest it may be overpriced. Del Nunzio said she doesn’t think the price is overly ambitious, especially in light of recent deals at buildings like 15 Central Park West. The Sandy Weill apartment, for example, sold for $13,048 per square foot, she noted. “The math makes sense,” she said. “If a condominium of 10,000 square feet can sell for over $13,000 per square foot ... a townhouse of 20,000 square feet can sell for $5,000 a foot.” The property’s renovation — which took place gradually over the last decade — also helps justify its asking price, Del Nunzio said. She noted that most high-end townhouses hit the market unrenovated, in which case buyers are “two or three years from moving in.” Del Nunzio’s track record suggests that she knows what she’s talking about. Still, it’s hard to tell if the price tag is achievable, brokers said. “It’s clearly not an everyday property,” Braddock said. “It’s not like valuing a three-bedroom apartment, where you can look at other units in the building and draw some logical conclusion. Is there a comp for this property? Not really.”

Highest total purchase price for a Hamptons home

obert Hurst, a retired Goldman Sachs executive, put his Sagaponack home on the market in June for $65 million with the Corcoran Group’s Debbie Loefﬂer and Julie Briggs. If it sells for its full asking price, it would be the priciest-ever home sale on Long Island’s East End. The current record was set in 2008, with the $60 million

48 September 2012 www.TheRealDeal.com

sale of an oceanfront Southampton estate. (It would not come close to breaking the record for undeveloped land, which was set in 2007 by billionaire investment guru Rob Baron, who paid $103 million for a 40-acre waterfront plot in East Hampton.) Hurst’s 11,000-square-foot house sits on an unusually large estate — 33 acres — and is surrounded by 19 additional acres of reserve property that can never be developed, said Ernest Cervi, an executive managing director in Corcoran’s Bridgehampton ofﬁce. Buyers may be willing to pay more for the assurance that no one can ever build beside them, he said. “It’s a 33-acre parcel in Sagaponack with 1,475 feet of waterfront,” he added. “It’s unlikely that anything else like this would come on the market again, because it doesn’t exist.” However, industry sources are not convinced that the parcel can top $60 million. “New price records or ceilings are set in great markets,” said Judi Desiderio, CEO of the East End brokerage Town & Country Real Estate. “In good markets, people feel ﬂush and are willing to be a trendsetter. This is not that kind of market.”

Fifth Avenue in February, reportedly paid roughly that. H&M’s lease at the 640 Fifth space, which is on the ground floor of a larger 36,000-square-foot space, expires at the end of 2014. It’s not yet clear if H&M will seek to remain at the site, but the clothing store recently signed an even larger lease for 57,000 square feet in a nearby location at Fifth Avenue and 48th Street, perhaps indicating that it will not be seeking to renew its lease with Vornado. While Vornado did not respond to a request for comment, CEO Michael Fascitelli said in an earnings call last month: “In the next couple of years, one of our best leases of Fifth Avenue expires. Re-leasing there could produce an annual increase in rent of more than $20 million.” Elliman retail broker Faith Hope Consolo, who is not affiliated with the property, said the space could in fact achieve $3,500 per foot in rent. “There is no more famous or heavily trafficked street in the world than Fifth Avenue,” Consolo noted. “Although people will think it’s a hefty rent, there is always an international or national retailer that wants to make a statement. It’s not about profit. It’s about

Robert Hurst’s Sagaponack home

However, she continued, “I think they priced it to the uniqueness of the property. If someone falls in love with it — who knows?” Another source with knowledge of the Hamptons market said a buyer would likely pay no more than $40 million for the property. “This could be another Ed Gordon property,” the source said, referencing the 60-acre Montauk estate of the late Edward S. Gordon, founder of the eponymous commercial brokerage. That property is now asking $68 million after hitting the market in 2003 for $75 million. If it sold for its current asking price, it could also set the record price paid for a Hamptons home, but sources said a deal at that price is unlikely, given that it’s lingered on the market for so long.

position in the marketplace.” Real Capital Analytics managing director Dan Fasulo agreed. “A lot of folks are convinced that the format [of retail] is going to look a lot different in the future,” he said. “Instead of just expanding by adding more and more locations, retailers are going to have fewer phys-

Highest rent for a Manhattan retail space

ical locations, but be willing to pay more and more for the best locations. It’s almost a showroom. You come in and look at everything, and then go online to buy.”

ornado Realty Trust is quietly shopping around a prime ground-ﬂoor retail space at 640 Fifth Avenue asking upwards of $3,500 per square foot in annual rent, TRD learned last month. If the 10,000-squarefoot space — currently occupied by the clothing retailer H&M — fetches that amount, it would set a new record for retail rent in Manhattan. A recent report released by the Real Estate Board of New York noted that $3,000 per foot was the highest asking rent on record for Fifth Avenue. M.A.C Cosmetics, which signed a lease for 1,400 square feet at Vornado’s 691

Highest total purchase price for a New Jersey ofﬁce property

H&M

450-acre New Jersey ofﬁce complex, comprised of 13 buildings and owned by Bank of America, is poised to break state records after hitting the market in May with commercial brokerage Cushman & Wakeﬁeld. Continued on page 98

www.TheRealDeal.com January 2011 25

New York by Gehry

Metal Shutter Houses

Manhattan House

535 West End Avenue

The Visionaire

Laureate

One Thirty West 12

One York

Superior Ink

Date: August 27, 2012

File Name: NYBG_RealDeal_Sept2012_FP_HR.pdf

For approval, please sign and date below

Project: dbox Advertising

GD: SJ

Art:

Date:

Publication: Real Deal Magazine

Copy:

Date:

Issue: September 2012 issue

Client:

Date:

AM:

Date:

Specs: Full Page Trim Size: 10.5 in Ă&#x2014; 14.5 in

COMMERCIAL

Lucrative leasing

BY ADAM PINCUS espite the excitement and anticipation of finding a new office space, corporate relocations always come with risk. There is the chance of signing a poorly timed lease at the height of the market or bungling a build-out. Compounding matters now is that employment growth for global and national firms has been weak in Manhattan. “Most tenants have a predisposition not to move,” said Michael T. Cohen, president of the tri-state area for commercial firm

when so many of their counterparts would not. Using data generated by Midtown South-based real estate tracking ﬁrm CompStak, we tallied a ﬁrst-ever ranking of the 10 largest leasing relocation deals of the past year in Manhattan — by total economic value to the landlord. That means that instead of simply ranking deals by square feet or by taking rent, we looked at the size of the deal, the price per square foot and the length of the lease, and then subtracted the free rent and landlord contributions. The result is essentially

A ﬁrst-ever tally of the most valuable new ofﬁce leases inked in Manhattan

paid about half that, which is common in the industry. Brokers say that landlords generally view the commission, free rent, build-out fees and other expenses as the cost of doing business. But those payments can be equivalent to two years or more in revenue. “Most landlords and their capital sources and partners understand you are buying a stream of cash ﬂow,” Cohen said. Still, not all landlords have the ﬁnancial wherewithal to make those payments. The landlords capable of signing the biggest relocation deals in this market are

TRD shared the deals with the firms that brokered them, including CBRE Group, Cushman & Wakefield and Newmark Grubb Knight Frank, which declined to comment on the data. We also shared the data with the landlords, who either did not respond or declined to comment. However, other sources, including several landlords and commercial brokers, told TRD that the list appeared solid. Below is a behind-the-scenes look at the 10 most economically valuable Manhattan office leases for the 12 months ending Aug. 1, including what sweeteners landlords pro-

Most valuable relocation leases in Manhattan in the past year RANK TENANT/ADDRESS

BUILDING OWNER

SQ. FT. LEASED

STARTING RENT

TOTAL LEASE VALUE (OVER LIFE OF LEASE)

U.S. GSA (1 World Trade Center)

Durst Organization/Port Authority

270,104

$65.00

$351 million

Condé Nast (1 World Trade Center)

Durst Organization/Port Authority

133,000

$65.00

$247 million

Open Society Foundations (1770 Broadway)

M1 Real Estate

152,000

$53.00

$242 million

New York Genome Center (101 Sixth Ave.)

Edward J. Minskoff Equities

171,000

$65.00

$224 million

Guggenheim Partners (330 Madison Ave.)

Vornado Realty Trust

186,151

$66.50

$190 million

Columbia Doctors (1290 Sixth Ave.)

Vornado Realty Trust

122,000

$58.41

$158 million

Havas (200 & 205 Hudson St. & 75 Varick St.) Trinity Church Real Estate

256,824

$39.00

$142 million

JCPenney (200 Lafayette St.)

Kushner Companies and CIM Group

123,000

$80.00

$138 million

IntercontinentalExchange (55 East 52nd St.)

Fisher Brothers and Soho China

93,361

$95.00

$128 million

Baker & McKenzie (452 Fifth Ave.)

Property & Building Corp.

105,803

$68.00

$101 million

Source note: Data provided by CompStak and The Real Deal research. Only relocation deals between Aug. 1, 2011, and July 31, 2012, were considered. Renewal leases were not included in the ranking. Total lease value was generated by multiplying the square feet by the rent (including escalations) and the length of the lease and then subtracting tenant improvement expenses and free rent that was provided by the landlord. 1770 Broadway

1 World Trade Center

Douglas Durst

Colliers International. “The reason is that it is usually a lot cheaper to stay. And the typical driver, ‘This space does not work for me anymore...’ is job growth. And we are not seeing a lot of that.” While media giant Viacom’s recordbreaking, 1.6 million-square-foot renewal and expansion at 1515 Broadway in Times Square was a boon for landlord SL Green Realty, it further underscored that reluctance to relocate. In fact, as of late August, only seven of Manhattan’s 20 largest leasing deals were relocations, information from real estate tracking ﬁrm CoStar Group shows. This month, TRD looked at the tenants who did move to new ofﬁces, in an effort to zero in on what made them take the leap 50 September 2012 www.TheRealDeal.com

the landlord’s total revenue over the life of the lease. The ranking also reveals just how much money landlords must dole out — in cash for tenant improvements, commissions and free rent — to attract a large tenant. While commission statistics are generally not public, TRD applied the standard commission formula to get a rough idea of how much the landlords paid in brokers’ fees. We calculated the commission for the tenant broker as 32 percent of the ﬁrst year of full-lease payments. However, because brokers often discount their fees and rebate up to 50 percent of their commissions to the tenant on large deals, we provided a range. We assumed landlord-side brokers were

101 Sixth Avenue

Steven Roth

those who are in strong financial shape and can maintain the building without having rent come in for some time. Interestingly, tenants are signing on for longer than usual. While medium and large Manhattan leases typically run for terms of 10 to 15 years, six of our top 10 were longer than 15 years. Dirk Hrobsky, managing director at commercial firm UGL Services, said getting “big companies that are so committed to New York for the long term” is a huge positive for the New York office market. He said it’s especially impressive that tenants — who will often spend millions to customize their space — have made the investment at a time when the economic climate (at least nationally) is so precarious.

vided to convince their respective tenants to sign on.

U.S. General Services Administration: $351 million (20 years) After more than ﬁve years of talks, the federal government’s real estate management arm signed a lease in July for 270,104 square feet spread over six ﬂoors at the under-construction 1 World Trade Center. The building is owned by the Port Authority of New York and New Jersey and the Durst Organization. The total value of the lease came to a stunning $351 million over 20 years, and the tenant has renewal options. A spokesPHOTOGRAPH OF 101 SIXTH AVENUE BY PROPERTYSHARK.COM www.TheRealDeal.com March 2012 00

COMMERCIAL person for the GSA — which was originally planning to take about 650,000 square feet in the tower — told TRD it had not decided which federal agencies would take space in the building. The federal government currently has agencies scattered throughout the city, though several of them were located in 6 World Trade Center before it was destroyed in the 2001 terrorist attacks. As part of the lease, the Port Authority has authorized approval for $42.5 million to pay for tenant improvements, and $4.4 million in commission fees to GSA’s brokerage Studley, according to minutes from a June Port Authority meeting. The minutes do not state how much Durst will contribute. The two owners represented the building in-house. The deal came amid political pressure. Senator Charles Schumer was lobbying GSA to ﬁnalize the drawn-out negotiations, while Florida Rep. John Mica wanted to hold up the deal because of an unrelated dispute with the Obama administration over another government lease in Washington, D.C.

70 countries around the world. It is moving from just 75,000 square feet at 400 West 59th Street, a mostly residential building. Landlord M1 Real Estate paid the tenant brokers an estimated $2 to $4 million, according to TRD’s estimate. Its own broker, a team led by Cohen of Colliers, likely pocketed less than half of that.

New York Genome Center: $224 million (20 years) The nonproﬁt biomedical institute, which is backed by some of the city’s largest research hospitals, signed the largest relocation deal in the extremely active Midtown South market in July. It took 171,000 square feet at Edward J. Minskoff Equities’ Charles Schumer

ment, signed the fifth-most-valuable relocation lease in the last 12 months. The firm — which is headed by Mark Walter, who is also the chairman of the L.A. Dodgers baseball franchise — signed a nearly 16year lease in January for 186,151 square feet at Vornado Realty Trust’s 330 Madison Avenue. Vornado’s total take-home is an estimated $190 million. (Last year, the firm completed a modernization of the building, which was constructed in 1963, at a cost of about $100 million.) Like the Port Authority and Durst, Vornado also scored two of the top 10 most valuable relocation leases of the last 12 months. Guggenheim locked in a starting rent of $66.50 per square foot. The financial firm currently occupies about 114,000 square feet at 135 East 57th Street, sourcGeorge Soros

Havas: $142 million (16 years)

Condé Nast: $247 million (25 years) It should come as no surprise that Condé Nast, the publishing giant, made the list of most valuable office leases. The firm, which is slated to move from its location at 4 Times Square in 2014, has been the source of hundreds of news articles because of the 1.05-million-square-foot deal it signed in the spring of 2011 — also at 1 World Trade Center. But it’s not that older megalease that puts it on this list. Instead, it’s the 133,000 square feet of additional space that it added to its lease in January. The additional space, which takes up three floors, has an economic value of $247 million over the 25-year term. Following a 12-month period of free rent, rental payments will start at $65 per square foot and rise to more than $100 per foot, according to CompStak. CBRE’s Mary Ann Tighe represented Condé Nast, and Cushman’s Tara Stacom represented Durst and the Port Authority. TRD estimated the commission for CBRE to be $2 to $3.9 million, and about half that for Cushman.

Open Society Foundations: $242 million (30 years) The Open Society Foundations, the grantmaker started by hedge-fund mogul and Democratic Party activist George Soros, took the third spot for most valuable lease of the last 12 months. The nonproﬁt — which was represented by James Coleman and Steve Kaufman of Midtown-based Hanley Advisors, as well as Eric Deutsch of CBRE — signed a 152,000-square-foot lease, valued at $242 million, for the entire ofﬁce portion of the Argonaut Building at 1770 Broadway. The 30-year deal, which was signed in September 2011, was the longest on the ranking. The foundation works to advance human rights and democratic societies in more than

tire third ﬂoor — starts at $58.41 per square foot and rises to more than $86 per foot by the end of the term in 2036. Real Estate Weekly reported that ColumbiaDoctors, which is leaving about 100,000 square feet at 650 Madison Avenue, would pay more than $200 per square foot to build out the space — on top of the about $60 per foot Vornado will pitch in. The doctors signed the lease, in part, to justify the high cost of the build-out, according to CompStak. Vornado paid a commission TRD estimated to be between $1.4 and $2.8 million to tenant brokerage Newmark, whose team included Neil Goldmacher and Mark Weiss. Vornado represented the building in-house along with a Cushman team, including Bruce Mosler and Arthur Mirante (now at Avison Young). The Cushman team likely earned about half of what the Newmark agents received.

Tara Stacom

Bruce Mosler

101 Sixth Avenue, a 425,000-square-foot tower a block north of Canal Street. The deal for ﬂoors two through seven begins with 15 months of free rent. Annual rental payments of about $11 million kick in after that, according to CompStak. The 20-year lease has a total economic value of $224 million for Minskoff, who bought out his longtime partners at the building in December. The deal does not come cheaply, however. Minskoff committed to pay $60 per square foot for the tenant improvements, or about $10.3 million, the CompStak ﬁgures show, as well as the commission to tenant-rep brokerage Newmark, estimated to be between $2.2 and $4.4 million. The landlord agents — Paul Glickman, Mitchell Konsker and Matthew Astrachan — of Jones Lang LaSalle, received about half that, according to TRD’s estimate.

Guggenheim Partners: $190 million (16 years) The ﬁnancial services ﬁrm, which has more than $160 billion under manage-

PHOTOGRAPH OF STACOM BY MARC SCRIVO; PHOTOGRAPH OF MOSLER BY BEN BAKER

es said, and plans to relocate in March 2013. Guggenheim was one of just two financial firms on the top 10 list, underscoring the weak climate for investment firms. The firm was represented by Peter Hennessy of Cassidy Turley. The firm’s estimated commission was $2.2 to $4.4 million. Vornado was represented by Frank Doyle at JLL, which likely received half of that.

ColumbiaDoctors, the Physicians and Surgeons of Columbia University: $158 million (25 years) Vornado also locked in the sixth-most valuable lease of the year when it signed a 25year deal valued at a total of $158 million at 1290 Sixth Avenue with a multispecialty practice of physicians afﬁliated with Columbia University Medical Center. The 122,000-square-foot lease — for a portion of the ground and second ﬂoors and the en-

Last spring, the Paris-based, publicly traded advertising firm Havas signed a 16year deal with Trinity Church Real Estate in three buildings for seven floors at 200 Hudson Street, one floor at 205 Hudson and additional space in 75 Varick Street, all in Tribeca. The lease, for a total of 256,824 square feet, started at $39 per square foot, and included a year of free rent and about $14.5 million in landlord contributions, according to CompStak. Havas is expected to bring together 1,100 employees from different divisions located in several buildings. The ad company was represented by Newmark brokers David Falk and David Greenstein. TRD estimated their commissions to be $1.85 to $3.7 million. Trinity was repped by Cushman brokers including Robert Constable, Andrew Peretz and Mikael Nahmias, as well as Trinity’s Marc Packman. The Cushman commission was likely less than half the Newmark fee.

JCPenney: $138 million (15 years) Moderately priced retailer JCPenney, which is partially owned by Vornado, signed a 15year lease for 123,000 square feet of ofﬁce space at Kushner Companies and CIM Group’s 200 Lafayette Street in Soho. The deal in the rehabilitated Class B building has a value of $138 million, and starts at an eyepopping $80 per square foot after 15 months of free rent. A source said the deal may include retail space, which is why the rent is so high. The source also noted that it’s a triple-net lease, meaning that the tenant will assume all of the ﬁnancial responsibility such as real estate taxes, which amount to roughly $2 million a year. If those taxes are, in fact, included, it would bring the value of the lease up to $168 million for Kushner and CIM. Continued on page 104

www.TheRealDeal.com September 2012 00 51 www.TheRealDeal.com March 2012

When the season isn’t over

“Year rounding” in the Hamptons on the rise, brokers say

BY GUELDA VOIEN ginning to expand in the mid-’90s unt this time of year, many der Clinton-era prosperity, and it’s been Hamptons homeowners re- slowly growing since. The 2000 census gretfully close up their sum- reported that East Hampton had 19,719 mer houses and head back to residents. By 2010, that number had New York City. But for a growing num- grown 8.8 percent to 21,457. In Amaganber of people, that’s no longer the case. With more school options, an expanding Hamptons economy and technological improvements that allow for telecommuting in many industries, Long Island’s East End has increasingly become a sought-after place to live year-round, real estate experts say. Brokers say the appeal of the Hamptons — for both New Yorkers ready for a change of pace and buyers from the West Coast and abroad — has widened. At Fashion designer the same time, the once-stark James Fairchild with his stratification between full-time two children at the store residents and seasonal visitors he recently opened in has narrowed, they noted. Southampton. The “I am seeing it morphing into family moved to the a year-round place,” said JonaEast End from New than Miller, CEO of appraisal York City in 2008. firm Miller Samuel, which tracks Hamptons sales. And after a lull during the worst years of the economic downturn, the migration of yearrounders to the East End is intensifying, sett, the population grew by around 9.1 brokers and builders said. percent during that same period, from “The market did slow down for a cou- 1,067 people in 2000 to 1,165 in 2010. Census data doesn’t specifically track ple years, and then, about a year and a half ago, people were coming out again how many residents live in the Hamptons and looking at properties,” said Hamp- year-round or which use their homes only tons luxury home-builder Jeffrey Collé seasonally. But brokers said that, in the last few years, they’ve seen a significant (see related story on page 22). At a 6,800-square-foot Wainscott increase in the number of year-round home Collé recently completed, which residents — in part because the Internet is on the market for $9.99 million, a potential buyer is “in the process of checking out schools,” he said. “They want to move here full-time, and will buy based on where the school is decent for their child.”

ing from New York City, she said. That’s contributed to an overall return to health for the Hamptons real estate market, brokers said, as well as the meteoric rise in prices over the past decade. Miller said average home prices in the

Some brokers said the influx of yearround dwellers may be one reason for the current uptick in the lower end of the East End market. According to a secondquarter market report from Brown Harris Stevens, the number of sales under

East End jumped some 120 percent from $685,476 in the second quarter of 2002 to $1.51 million in the second quarter of this year. While the Hamptons market did see a slowdown during the financial crisis, Miller noted, it failed to behave like a typical second-home market. “The Hamptons surprised everybody after Lehman,” Miller said. “[People]

$1 million increased 42 percent from the same period of last year. “The lower-end market is very, very hot,” said Collé, who has recently refocused his business on building homes in the $10 million range, as opposed to the $20 million range.

“In the last two years or so, I’ve seen more and more people [relocating from New York City].”

Turning on the switch The Hamptons, with its scenic vistas and wide, sandy beaches, has long been a popular summer playground for New Yorkers. But when Collé became a year-round Hamptons resident in the 1970s, the area was still composed of sleepy fishing and farming villages for much of the year. “When I moved out here, literally, there was nothing,” he recalled. “After Labor Day, there were no traffic lights between Southampton and East Hampton. It was like someone turned [off ] a switch.” He first noticed the high season be52 September 2012 www.TheRealDeal.com

SUSAN BREITENBACH, THE CORCORAN GROUP has allowed more people to work from home. Susan Breitenbach, a broker with the Corcoran Group’s Bridgehampton office, said that when she first moved to the Hamptons 33 years ago, economic opportunities were limited. “Now, anybody can work from their home computer,” she said. The Hamptons migration has picked up as the recession has receded, Breitenbach added. “In the last two years or so, I’ve seen more and more people” relocat-

thought they’d be hurt substantially more. That didn’t happen — the overall Hamptons market kind of paralleled the city, which suggests that it’s some kind of hybrid of full- and part-time living at this point.” In the second quarter of this year, East Hampton saw a 150 percent increase in homes sales from the same period of last year, according to data from Corcoran. The median price in East Hampton grew 7 percent to $770,000 during that time as well.

School choice The primary driver of demographic change in the Hamptons has likely been the expansion of educational options in the area, industry experts said. The Ross School, a private K–12 day and boarding school, helped kick things off in 1991, when it was founded by the late Time Warner baron Steve Ross and his wife Courtney, to educate their daughter, Nicole. Famous alumni of the school, which now has some 570 students, include Alexa Ray Joel, daughter of singer Billy Joel and model Christie Brinkley. With the opening of Ross, “that’s when people began to feel that they could get a good education out here,” Collé said. In 1996, another private school opened: the Hayground School in Bridgehampton, founded by the late restaurateur Jeff Salaway. The school’s annual “chef ’s dinner” attracts celebrities, like Continued on page 110 PHOTOGRAPH BY KARL RIVENBURGH www.TheRealDeal.com March 2012 00

Ac c ept edbyov er1, 100bui l di ngsr epr es ent i ngov er160, 000apar t ment s ,

Retail condos: Not just for the big guys

Low- and mid-range market sees growing activity as investors buy up store spaces

BY GUELDA VOIEN eople say mom-and-pop stores are dying off,” said Adelaide Polsinelli, an investment sales broker with Eastern Consolidated. “But they aren’t dying off poor.” A number of mom-and-pop landlords Polsinelli has worked with have recently sold off their Manhattan buildings at a great proﬁt, with the new buyer “condo-ing” the retail — or separating the commercial space from the rest of the building and then selling it. As the demand for these assets has in-

condos at 141 Fifth Avenue for a total of $46 million to an unknown buyer, and Extell Development in March unloaded retail condos at 13-15 West 20th Street and 32 West 18th Street for a total of $6.1 million to a group of foreign buyers, according to Eastern Consolidated, which brokered the deals. In fact, the rising demand for retail condos has prompted Eastern Consolidated to launch a new, six-broker retail sales division led by Polsinelli, the ﬁrm said. “There was just such demand,” said Daun Paris, cofounder of Eastern Consolidated, which says it’s done some $200 million

quire multi-family investments are [now] purchasing retail condos,” said Kevin Salmon, cofounder of Salmon & Marshall, a three-and-a-half-year-old Manhattan ﬁrm that specializes in retail condos priced under $10 million. Andrew Mandell, a partner at Ripco Real Estate, said clients are “asking the question more and more often: Is that person willing to sell their retail?”

Multi-family no more? As has been reported, demand for retail condos has been on the rise for several years. Eastern Consolidated’s Daun Paris (left) and Adelaide Polsinelli, head of the ﬁrm’s new retail sales division

creased in recent years, megadeals like Vornado’s $707 million retail condo purchase at 666 Fifth Avenue have grabbed headlines. But the trend is now trickling down to the lower end of the market, brokers said, with demand heating up for small and mid-size retail condos in up-and-coming markets like southern Soho, especially along Canal Street, and the area adjacent to Times Square. In 2011, Manhattan saw 17 retail condo deals under $10 million, for a total of $92.5 million, according to the research ﬁrm Real Capital Analytics. That was up from 10 deals worth $49.6 million in 2010, and four totaling $29.9 million in 2009. In addition to retailers purchasing their spaces, small-time investors and major real estate players are trading retail condos at the lower and middle end of the market, too. Vornado, for example, reportedly purchased a 9,200-square-foot retail condo at 72 Mercer Street last month for $31 million. In October, SL Green Realty sold two retail 54 September 2012 www.TheRealDeal.com

worth of retail condo deals this year. “We were doing so much consulting” for prospective buyers, it only made sense to form a dedicated division, she added. To staff the new division, which will also sell retail co-ops, apartment buildings with signiﬁcant retail components and other retail-driven assets, Eastern hired brokers

So far in 2012, Manhattan has seen 25 retail condo deals worth nearly $965 million for an average price per square foot of $2,733, according to RCA. That’s up from $2,207 last year, when a total of 40 trades took place. But lower-priced deals have beneﬁted the most from the inﬂux of capital, brokers

“From $2 million to $20 million, it’s kind of a different ballgame.” MATTHEW MARSHALL, SALMON & MARSHALL from Ripco Real Estate, Skyline Properties and other companies, and said it would add another four brokers to the group in the next six months or so. Brokers say one reason for the increased demand for low- and mid-priced retail condos is rising prices for multi-family properties. “Investors who [normally] seek to ac-

said. In particular, private investors have shown particular interest in buying retail condos, which they can then lease out to retailers. In these kinds of deals, private investors are often able to pounce faster than institutional investors and larger funds, said Salmon & Marshall cofounder Matthew Marshall.

“From $2 to $20 million, it’s kind of a different ballgame,” Marshall said. At the same time, other types of real estate investments are becoming less attractive. Michael Brown of Ascot Properties NYC, a Manhattan-based real estate investment company, said high prices and easy lending for multi-family buildings have “driven cap rates down so much, it just doesn’t make sense for us.” Instead, his firm bought four retail condos in the last 18 months, each valued between $3 and $14 million, he said. Another reason investors are attracted to retail condos is that stores tend to be lowermaintenance tenants than residences. Once a space is rented to a retailer, “this asset type provides investors with an ease of mind,” Salmon said. “It limits the chance for a tenant to call at 2 a.m. due to lack of heat.” Plus, the surge of tourism has bolstered retail sales in New York, which means retail rents have risen. Average asking rents for ground-floor space on the Broadway corridor of Soho, for example, have risen more than 17.2 percent over the past six months, according to the CBRE Group’s secondquarter retail report. That also makes retail tenants more likely to want to buy their spaces. “As rents continue to rise precipitously, the idea of controlling costs is ever more appealing” to retailers, said Faith Hope Consolo, chairman of retail leasing and sales at Elliman. An increase in 1031 exchanges — where owners buy property with money from the sale of property they already own, thus deferring the capital gains tax — has also contributed to the rising interest in retail condos, as investors have looked for cash flow in the difficult commercial real estate market, brokers said.

The downsides But there are downsides to investing in retail condos. For one thing, interest in the sector is growing, which means prices are going up, especially since retail condos in the city are relatively scarce to begin with. “It’s a very competitive market with lots of prospective buyers,” said Robin Abrams, executive vice president at Lansco, who noted that approximately half her brokers have done retail condo deals. Still, many brokers are bullish on the budding retail condo sector. “It’s as close as you possibly get to a management-free investment,” said Michael Rudder, of Rudder Property Group, which focuses on commercial condos. “They aren’t rent-regulated, and you aren’t getting calls from your tenant about ﬁxing the toilet.” TRD www.TheRealDeal.com March 2012 00

Delivering on the Assignment

CAPITAL PARTNERS LLC.

H K S

Since the formation of HKS Capital Partners LLC on April 1, 2011, we have closed over $1.5 Billion in transactions, and we would like to thank all of our clients and lending relationships. We look forward to a prosperous future!

• Debt • Equity • Mezzanine • Construction • Bridge • Private • Joint Ventures

127 West 24th Street, 2nd Floor, NY 10011 (212) 254 1600 • www.hkscapitalpartners.com

Unlocking Gramercy Park With 18 Gramercy Park hitting the market, TRD analyzes the real estate surrounding the fabled private garden By Leigh Kamping-Carder he on-site sales office at 18 Gramercy Park isn’t open yet — it officially launches this month — but four contracts are already out at the luxury condo conversion, according to developers Arthur and William Lie Zeckendorf. What makes this building so special? Aside from its developers — whose résumé includes the indisputably successful 15 Central Park West — the project is one of the 34 residential buildings surrounding Manhattan’s only private park. Apartments bordering Gramercy Park are relatively rare — especially since the area is a historic district, where many buildings are landmarked, and owners often stay put for years. The residences, mostly co-ops, also come with a much-coveted key to the park, which dates to 1831, when the attorney and landowner Samuel Ruggles divided the surrounding land into lots and created the park. (He was also responsible for establishing the park’s famed key system.) In recent memory, two other new developments have appeared on the park. The most recent is Mann Realty’s ongoing 51-unit condo conversion of a rental building at 36 Gramercy Park East, which is almost 70 percent sold out. That followed Ian Schrager’s 50 Gramercy Park North, made up of 23 cond-op residences in the 180-room Gramercy Park Hotel. The building, which Schrager overhauled in 2005, is now sold out. The most expensive sponsor sale there was just under $13.3 million. But 18 Gramercy Park South is looking to

surpass previous price records. The majority of the building’s 16 units — all 4,200-square-foot, full-floor four-bedrooms — will go on the market for $14 to $18 million, with a smaller two-bedroom maisonette priced at $9.25 million and a much larger duplex penthouse asking $42 million, according to offering plan documents. If the penthouse fetches anywhere near its asking price, it would blow away any other sale on the exclusive park. “The market downtown for large, mint-condition apartments is in that price range,” Arthur Zeckendorf said when asked for the rationale behind the prices. In fact, he said, the brothers are already considering a price hike, possibly in October. Carol Friedman, a Nest Seekers International broker who manages sales at 36 Gramercy Park East, said that the much-pricier Zeckendorf project will appeal to a different kind of buyer. To date, the priciest-ever sale of a home in Gramercy Park is the $22 million penthouse at 50 Gramercy Park North, which closed in February 2011, and is currently on the market for $18.9 million. But the scarcity of large, new apartments bordering the leafy enclave lends credence to the Zeckendorfs’ asking prices, sources said. The fact that the high-end market is strong and that the developers are once again collaborating with architect Robert A.M. Stern and money man Eyal Ofer — the team behind 15 Central Park West — also doesn’t hurt. “He’s got everything in line to make those apartments reasonable to billionaires,” said Arlene Harrison, the president of the Gramercy Park Block Association and a friend of William Zeckendorf. In the last decade, the median 18 Gramercy Park South price for an apartment on the park

has nearly tripled, from $339,000 in 2002 to $910,000 in 2012, according to data provided to The Real Deal by appraisal firm Miller Samuel (see chart). This year, there were 25 sales through Aug. 1 (or 42 on an annualized basis), compared to 60 in 2011 and 57 in 2002. However, the transaction volume and prices have tended to spike and fall in line with closings at No. 50 and No. 36, the data show. This month, TRD examined the recent closings and listings around the perimeter of Gramercy Park to put the prices at the latest development in context.

No. 3

No. 8

No. 11

ike many apartments overlooking Gramercy Park, the apartments at 3 Gramercy Park West have rarely traded hands in the last few decades. In 1969, a group of four individuals purchased the four-story building, according to city records, and have since deeded their stakes to a handful of new owners. (Unlike co-ops, however, the residents own a percentage of the property, rather than shares in a corporation, records show.) One of those early owners, Richard McCabe, sold a first-floor studio for $775,000 in 2008 — the most recent sale in the building, city records show.

ne of only two rental buildings on the park, Stonehenge Partners’ 8 Gramercy Park South has 55 studio, one- and two-bedroom apartments. Two studios are currently listed for $3,295 and $2,950 per month. In July, a studio in Gramercy/Flatiron rented for an average of $2,425, according to the latest monthly rental market report from brokerage Citi Habitats. Headed by Ofer Yardeni and Joel Seiden, Stonehenge bought the property in 2008 for $28.9 million from the trust of philanthropist Harold Steinberg and his late wife, Mimi. The residents’ entrance faces the park, but a restaurant called L’Express Café occupies a groundfloor retail space at 249 Park Avenue South.

rammy-winning bassist John Benitez listed the townhouse at 11 Gramercy Park South for $25 million in May, with the Modlin Group’s Adam Modlin and Marisa Sargent. Benitez bought the five-story property from County Dollar Corp. in 1992, paying an undisclosed sum. Dating back to the 1850s, the 11,610-squarefoot townhouse is currently configured as three apartments, including two duplexes that span the fourth and fifth floors, according to the listing. One of the units is occupied by a rent-controlled tenant.

56 September 2012 www.TheRealDeal.com

From left: Arthur and William Lie Zeckendorf

Sales on Gramercy Park No. of Sales 57

Median Price

2003

$412,500

2004

$495,000

2005

$680,000

2006

$657,500

2007

$1.5 million

2008 2009

$975,000

$680,000

2010

$945,548

2011

$685,750

2012

$910,000

Year 2002

$339,000

Source note: Data provided by Miller Samuel. Includes closed sales of condos, co-ops and cond-ops. Gramercy Park figures from residential buildings on the park. 2012 figures are annualized.

No. 19

ossibly the largest single-family home on the park, the Stanford White–designed townhouse at 19 Gramercy Park South last traded hands more than a decade ago. In 2000, fashion designer Richard Tyler sold the 37-room brick house for $15.8 million to Timber Falls Foundation, a charitable organization run by Henry Jarecki, the doctor, businessman and founder of the movie listing service Moviefone. At the time, the New York Observer reported that Jarecki planned to run the foundation out of the house. He could not immediately be reached for comment.

No. 22

ovie producer Eric Ellenbogen, whose credits include “Lassie” and “Underdog,” paid $2.1 million for 22 Gramercy Park South, an eight-unit building, in 1999, later converting it into two triplex condos. He kept the ground-floor unit for himself and sold the other in February 2011 for nearly $9.2 million to a buyer identified in city records as Bagliani Ririfi LLC. The two owners put the entire building on the market for $22 million with Brown Harris Stevens’ John Burger and the Corcoran Group’s Antonio Cosentino, giving buyers the option to purchase the units individually for $11 million each. (The entire building has actually been on and off the market since 2010.) Bagliani Ririfi sold the upper penthouse for $9.25 million this past March to Amangar Holdings LLC. Ellenbogen sold his triplex in July to a Palo Alto, Calif.–based LLC for slightly less.

lion this past December. The 45-unit building is also home to comedian and TV host Jimmy Fallon, who first bought there in 2004, then acquired another unit on a higher floor for $1.35 million in 2010, city records show. In the spring of last year, the city approved his combination of the two apartments, records show.

million sale of his two-bedroom penthouse last September. Phillips, the former host of “Dateline NBC,” was asking $5.8 million. The only current listing is a two-bedroom asking $3.2 million, down from $4.5 million when it was first listed in May.

No. 36

im Parsons, star of “The Big Bang Theory,” is the most recent buyer at 36 Gramercy Park East, the 12-story building that Maurice Mann’s Mann Realty is converting from 51 rent-stabilized apartments to condos. Sales started in 2010, and 16 units are left, including 11 that are still occupied by tenants, said Nest Seekers’ Friedman. In the last year, closing prices have ranged from $1.6 to $4.3 million. Parsons’s $2.8 million purchase, which closed in June, is his second unit in the building. Three units are currently on the market, the most expensive of which is a 2,227-square-foot three-bedroom priced at $4.85 million.

No. 49

etter known as One Lexington Avenue, 49 Gramercy Park North is one of a handful of more luxury-oriented co-op buildings on the park. In the last year, actor Uma Thurman paid $1.5 million for a unit on the eighth floor, where she already owns another apartment. In early August, Thurman won city approval to combine them. She is a longtime owner at the 28-unit building, where she initially shared an apartment with her now ex-husband Ethan Hawke. (That unit sold in 2006 for $8.6 million.) Meanwhile, the sell-

No. 50

No. 49

No. 45

No. 38 No. 36

No. 3 No. 34

No. 23

nvestment advisor Carlos Alejandro Pérez Dávila, a member of the wealthy Santo Domingo clan, is in the midst of a $1.5 million renovation of 23 Gramercy Park South, city records show. Whether the renovation is needed is up for debate: The 27-foot-wide mansion was previously owned by Michael Hirtenstein, the technology mogul and nightlife impresario, who converted the former office building into a sprawling single-family home. He sold it to Dávila for $18.5 million in 2009. Dávila received city approval to renovate the 1847 home in April.

No. 34

nown as the oldest surviving co-op in New York City, 34 Gramercy Park East was erected in 1883, when co-ops first emerged as a way for middle-class homebuyers to differentiate their multifamily dwellings from working-class tenements. A two-bedroom on the fourth floor of the 10-story building was on the market until June for just under $3 million. The owners had offered it as a potential combination with another unit they own in the building, but that apartment sold for $1.25 mil-

No. 8

No. 11

No. 18

No. 38

hree apartments at 38 Gramercy Park North have found buyers in the last 12 months, according to city records. In June, Alexander Rower, the grandson of sculptor Alexander Calder and head of a foundation dedicated to the artist, bought a first-floor unit for $575,000 — about 3 percent over the asking price, less than a month after it went on the market. In addition, a third-floor apartment sold for $575,000, and a fourth-floor unit sold for $585,000. Neither appears to have been publicly listed. Built in the 1850s, the five-story, 36-unit co-op now has one listing on the market — a one-bedroom and a studio first listed in July that’s being offered as a potential combination for $875,000.

No. 45

t 14 stories, 45 Gramercy Park North is one of the taller buildings on the park, and its 40 co-op units include some of the area’s pricier sales and listings in recent years. In the last 12 months, the sole closing was television reporter Stone Phillips’ $5.7

No. 19

No. 22

No. 23

ers of the apartment she bought purchased a duplex at No. 49 that spans the sixth and seventh floors for $3.1 million. Both sales closed in early July.

No. 50

n 2005, Schrager overhauled the fabled Gramercy Park Hotel, converting it into 23 cond-op units. But resales there have tended to be less pricey than the sponsor sales. In November, a buyer — reportedly actor Jennifer Aniston — paid $7 million for a ninth-floor unit that went for $9 million as a sponsor sale. And fashion designer Karl Lagerfeld paid almost $6.7 million for his apartment, which is now listed with Prudential Douglas Elliman’s Dolly Lenz for just under $5 million. One explanation is the property’s status as a cond-op, meaning the developer leases, rather than owns the land. As a result, monthly charges for unit owners have increased as lease payments have gone up, impacting resale prices. At one three-bedroom currently listed for $10.8 million, common charges are $12,000 per month, according to the listing. TRD

www.TheRealDeal.com September 2012 57

When you lease-t expect it

As rental market stays hot, landlords pile on new contractual requirements for tenants

BY TRACEY SAMUELSON ate summer and early fall in New York City is moving season — the busiest time of year for apartment hunters, rental brokers and landlords. And thanks to a hot rental market, this year is especially hectic. But before New Yorkers get the keys to their new digs, they ﬁrst have to sign a lease. Nothing is as “complicated, and simple at the same time” as a New York apartment lease, said Harold Kobner, a sales and rental broker at Argo Residential in Manhattan. Most city landlords use standard leases, like those offered by the Real Estate Board of New York, so clauses in the leases them-

in one of his properties years ago. In one of Kobner’s recent deals, a rider detailed the tenants’ responsibilities for maintaining the apartment’s 700-squarefoot terrace, including watering the hydrangeas and clearing out the outdoor drains on a biweekly basis. This month, TRD looked at how the changing market and other factors have impacted the growing list of stipulations in today’s rental leases.

selves tend to be fairly uniform. What does vary widely from landlord to landlord — and causes confusion among renters and brokers — are the riders: six or seven pages of addendum that clarify, expand and add to the lease terms. These riders reflect landlords’ personal preferences, spell out the building’s rules or are tailored to specific tenants. For example, landlords may include a rider concerning rules for pets for a tenant with a dog, but omit it for a petless renter. Anthony Lolli, the founder of brokerage Rapid Realty and owner of several small apartment buildings in Brooklyn, said he uses lease riders prohibiting smoking and the use of candles in all his units, due to a fire 58 September 2012 www.TheRealDeal.com

“That was one of the weirdest things I’ve ever seen,” he said. His clients were outraged that the landlord would presume to control what they could and couldn’t bring into the apartment, he noted, but they signed the lease anyway.

Buoyed in part by the still-uneven sales market — which has pushed many would-

one-month requirement. With certain landlords or management companies, two months security has recently become standard — “even for the most qualiﬁed tenants,” said Bond New York executive director of leasing Douglas Wagner. Of course, those well-qualiﬁed tenants are in shorter supply than in the past, due to the Great Recession and its aftereffects. “I’ve seen more bruised credit this year than ever before,” Wagner said. Perhaps for the same reason, some landlords now require every tenant to have a guarantor, regardless of how much money they make. In the past, renters typically

be buyers into rentals — the average rent for a Manhattan apartment hit a record $3,459 in July, according to data from brokerage Citi Habitats. And while vacancy rates rose slightly for the month — to 1.2 percent from 0.8 percent — the city’s rental market is still extremely tight. That competition for apartments means landlords can be more selective, said Gordon Golub, executive vice president and director of rentals at Citi Habitats. “Landlords will go with more qualiﬁed renters or someone who pays the most rent,” he said. They can also require tenants to pay the equivalent of two months rent for a security deposit, instead of the more typical

needed guarantors only if their salary was less than 40 times the annual rent. This shift presents some challenges for rental agents. “From a brokerage perspective, it’s very hard to explain to someone who makes 50 times the annual rent that they need a guarantor,” Wagner said. In fact, when faced with this request, “many [clients] will reconsider submitting an application.” Still, the market is strong enough that most renters in today’s market are going along with landlords’ demands. In fact, Wagner recently came across a lease where the landlord forbade the tenant from having any “adult material” in the apartment.

Gov. David Paterson to sign the Bedbug Disclosure Act in 2010, requiring landlords to notify new tenants if there has been an infestation in the apartment, ﬂoor or building in the last year and how it was addressed. This typically happens in the form of a rider included with a new lease, which the tenant signs and returns to the landlord as a way of acknowledging the information has been shared. Brokers said this is the most signiﬁcant and widespread new rider in use today. In addition, some landlords are choosing to also include language in the rider about dealing with an infestation, should one occur after the tenant moves in. Some owners

Security deposits and guarantors

Bedbug riders The most signiﬁcant change to leases recently, brokers said, is due to bedbugs. The pests have made their way into many New York apartment buildings and retail locations in the last few years, grabbing headlines and creating an overarching sense of paranoia. Fears of infestation prompted former

Continued on page 96

www.TheRealDeal.com March 2012 00

Exclusively from Charlie Attias

823 Park Avenue - Apt 8

785 5th Ave - Apt 4DE $8,900,000 WEB# 2332372

715 Park Avenue - Apt 4B $3,500,000 WEB# 2353715

$15,000,000 WEB# 2458246

845 UN Plaza - Apt 55B $4,750,000 WEB# 2302345

1 Central Park South - Apt 1508 $2,350,000 WEB# 2153601

Search by WEB# on

Charlie Attias

• One of Corcoran’s Top Agents

Senior Vice President

• Top 1% Brokers in NRT Incorporated - Nationwide (of 48,000 brokers)

Licensed Associate Real Estate Broker

660 Madison Avenue New York, NY 10065 212.605.9381 charlie.attias@corcoran.com

• Member of 2007, 2008, 2009, 2010 & 2011 Multimillion Dollar Club

The Corcoran Group is a licensed real estate broker. Owned and operated by NRT LLC.

DEVELOPMENT

Getting dirty

Land deals in Manhattan and Brooklyn drive prices, activity to pre-recession levels

208 East 14th Street

BY C. J. HUGHES ndustry analysts continue to debate whether the New York City real estate market has recovered, but there’s no question that land prices here have. In some cases, development sites are trading for close to — and even exceeding — the levels they hit just before the 2008 financial crisis. Eager developers, encouraged by lenders with a newfound willingness to write loans for construction projects, are acquiring development sites across the city, pushing up land prices. According to data compiled for The Real Deal by real estate research firm PropertyShark and the commercial brokerage Massey Knakal, the gains in price and volume are being driven by a flurry of activity in Manhattan and Brooklyn. In fact, the surge in appetite for land has some developers worried that a bubble is imminent. “I’m starting to feel that it is going out of control,” said Miki Naftali, CEO of the Naftali Group, which last month closed on a deal to buy an interest in a development site at 33 Beekman Street in the Financial District. The asking prices for some properties are twice what they were just 12 months ago, noted Naftali, though he declined to reveal what he paid at 33 Beekman. Closed sales data doesn’t show increases quite that steep, but prices are clearly on the rise. For Manhattan development deals so far in 2012, the price per buildable square foot is $323.43, up from $308.32 last year, according to data from Massey Knakal Realty; in Brooklyn, it’s grown to $117.71 from $113.24 in 2011. Activity, too, is on the rise. In the first six months of 2012, there were 275 sales of vacant properties (including parking lots) in New York City, according to PropertyShark. If that energetic sales pace continues as analysts expect, the year will conclude with some 550 land buys, the most since 2008, when the city saw 620. “The level of activity indicates that people are buying land again, and there’s no question there’s been improvement in pricing,” said Teresa Nygard, a land appraiser for Manhattan-based KTR Real Estate Advisors.

60 September 2012 www.TheRealDeal.com

Top Manhattan development deals for 2012 (by price per buildable square foot)

ADDRESS

TOTAL PRICE

$/BUILDABLE SQ. FT.

24 Varick Street (11 N. Moore) $47.71 million

$707.29

37 Great Jones Street

$7.5 million

$632.91

105 West 57th Street

$40 million

$617.00

888 Lexington Avenue

$13.25 million

$520.40

245 West 14th Street

$14.75 million

$477.43

Source: Massey Knakal

Top Brooklyn development deals for 2012 (by price per buildable square foot)

ADDRESS

TOTAL PRICE

$/BUILDABLE SQ. FT.

61 Park Place

$5.75 million

$357.50

174 Montague Street

$12 million

$240.00

242 Bedford Avenue

$21 million

$221.52

30 Henry Street

$3.5 million

$211.97

77-79 Grand St., 265 Wythe Ave. $2.1 million

$206.86

Source: Massey Knakal

www.TheRealDeal.com January 2011 25

DEVELOPMENT

Sales of development sites in Manhattan YEAR

TRANSACTIONS

DOLLAR VOLUME

BUILDABLE SQUARE FEET

PRICE PER BUILDABLE SQUARE FOOT

2010

$704.21 million

1.94 million

$325.11

2011

$1.45 billion

4.77 million

$308.32

2012*

$809.36 million

2.6 million

$323.43

Source: Massey Knakal. *The 2012 ﬁgures include deals from the ﬁrst six months of the year.

The buyers Michael Stern, JDS Development Group JDS paid $40 million

for a vacant lot at 105 West 57th Street, where it plans to build a 100,000-square-foot, 50-story condo tower.

Sales of development sites in Brooklyn YEAR

TRANSACTIONS

DOLLAR VOLUME

BUILDABLE SQUARE FEET

PRICE PER BUILDABLE SQUARE FOOT

2010

$90.83 million

1.08 million

$101.11

2011

$280.04 million

2.12 million

$113.24

2012*

$258.27 million

2.24 million

$117.71

Source: Massey Knakal. *The 2012 ﬁgures include deals from the ﬁrst six months of the year.

NYC vacant land sales, 2008–2012 New York City

2008

2009

2010

2011

2012*

No. of properties sold

620

440

514

537

275

Median sale price

$428,958

$359,272

$365,000

$400,000

$408,867

Manhattan

2008

2009

2010

2011

2012*

No. of properties sold

Median sale price

$3.65 million

$1.17 million

$4.24 million

$3.87 million

$3.52 million

Brooklyn

2008

2009

2010

2011

2012*

No. of properties sold

195

128

137

206

128

Median sale price

$443,464

$323,458

$400,000

$395,938

$450,000

Queens

2008

2009

2010

2011

2012*

No. of properties sold

161

147

135

126

Median sale price

$529,490

$370,000

$400,000

$405,000

$408,867

The Bronx

2008

2009

2010

2011

2012*

No. of properties sold

116

Median sale price

$380,000

$185,000

$240,000

$197,500

$260,000

Staten Island

2008

2009

2010

2011

2012*

No. of properties sold

111

122

Median sale price

$300,000

$378,000

$295,000

$359,970

$267,500

Source: PropertyShark. Data contains vacant properties, including parking lots, sold between January 2008 and June 30, 2012. Data does not include playgrounds, beaches or parkland. *The 2012 ﬁgures include deals from the ﬁrst six months of the year.

Manhattan deals The uptick in land sales, experts said, is partly due to the greater availability of construction ﬁnancing. “Without a construction loan, land is worth nothing,” said Abraham Hidary, president of Hidrock Realty, which paid $27.9 million, or around $200 per buildable square foot, in March for a vacant lot at 133 Greenwich Street. Along with partner Robert Finvarb Cos., Hidary said his

PHOTOGRAPH VELLAwww.TheRealDeal.com BY DEREK ZAHEDI 28 March OF 2012

team plans to build a $100 million, 320room hotel on the site, which is slated to open in 2015. That deal was one of 27 vacant Manhattan land buys in the ﬁrst half of this year, according to PropertyShark. If that activity keeps up, 2012 will see more activity than last year, when the borough had a total of 46 deals for vacant land; 2010, when there were 41; 2009, when there were 23; and even 2008, when there were 37.

Miki Naftali, the Naftali Group The Naftali Group partnered with SL Green to acquire a development site at 33 Beekman Street in the Financial District, where they plan to build a 30-story housing facility for Pace University students.

Zach Vella, VE Equities VE Equities paid $47.7 million, or $707 per buildable square foot, for a site at 11 North Moore Street, where the ﬁrm is developing a new 11-story, 70,000-square-foot condo building.

And that doesn’t include sites with existing structures that will likely be converted to new uses, or razed for new buildings. According to Massey Knakal, which does track those sites, Manhattan has already seen 44 deals for development sites in the ﬁrst half of the year, worth $809.4 million. That puts the borough on track to far exceed last year’s 54 total transactions. The strong residential market is Continued on page 100

www.TheRealDeal.com September 2012 61

Nonproﬁts look to cash out

Faced with tepid business conditions, some groups put their townhouses on the block and decide to downsize to commercial condos instead

M BY TOM ACITELLI

ore than six decades ago, the Xavier Society for the Blind bought the 15,783-squarefoot, seven-story building at 154 East 23rd Street. In July, it put the property on the market for $13 million. The decision came in response to changes in how the nonprofit, a library service for the visually impaired, produces its audio and print materials. But the decision was also driven by changes in New York’s investment sales market. “These are savvy folks, and they realized that they missed the up market of ’05, ’06, ’07,” said David Schechtman, an executive managing director at Eastern Consolidated, the brokerage marketing the building. “They are hip enough and well-advised enough to realize we’re at a real high in the market again.” Indeed, last year was the busiest since the recession for building sales in the five boroughs — and by the year’s end, 2012 might prove even busier in terms of sales volume. A midyear report from Massey Knakal found that the city’s $14.2 billion in building sales through June represented a 3 percent increase over the $27.4 billion in the first half of 2011 — when annualized. The brokerage predicted that the $14.2 billion tallied so far would more than double by the end of the year. While no complete overall numbers are available, recent sales and listings suggest that nonprofits are capitalizing on this robust market to unload Manhattan properties. In fact, many nonprofits are looking to cash out of the buildings they own in desirable residential areas and downsize into cheaper commercial condos in other neighborhoods. The move can provide the best of both worlds: A cash windfall from the sale without giving up the benefits of owning property. Plus, buying a commercial condo can be cheaper than leasing. In addition to Xavier, other notable nonprofit listings include the Jehovah’s Witnesses’ 5,088-square-foot building at 67 Remsen Street in Brooklyn Heights and the 10,000-squarefoot townhouse at 149 East 78th Street owned by the Ackerman Institute for the Family, a therapy center. The Albert Ellis Institute, the 154 East 23rd Street behavioral therapy facility, is also once again marketing its 13,000-square-foot townhouse at 45 East 65th Street after taking it off the market in November and the NAACP Legal Defense Fund is looking to sell a couple of floors at 99 Hudson Street. Meanwhile, in June, the New York Public Library sold 140,000 square feet at 188 Madison Avenue for more than 62 September 2012 www.TheRealDeal.com

$60 million to Church Pension Corp. — a nonprofit that provides insurance and other benefits to those affiliated with the Episcopal Church. On the purchase

side, there have been numerous commercial condo sales just Ackerman Institute for the Family’s in the last several 149 East 78th Street months, including the China Institute in America, which took 48,000 square feet at 40 Rector Street in May, after looking to buy space near its East 65th Street gallery, which turned out to be too expensive. It’s not just the robust sales market driving these decisions to buy and sell, according to brokers. The increase of larger commercial condos on the market and the reemergence last year of tax-exempt financing for nonprofits through the city are also playing a role. Also a factor, of course, is the financial challenges these nonprofits are confronting post-recession. “Basically, the nonprofit market is constrained right now by funding cuts from the private and the public sectors,” said Suzanne Sunshine, president of S. Sunshine & Associates, which provides commercial leasing brokerage and consulting services to nonprofits.

“If you’re going to buy, it’s going to be condos, not buildings. The buildings that are getting sold are getting sold for residential use or development use — they’re not getting sold to other nonprofits.” DAVID LEBENSTEIN, CASSIDY TURLEY “I think that [some] nonprofits can hold on to their assets by subletting,” she added. “The ones that are not doing as well as they would like, or need to do, are going to sell their real estate assets.” Xavier is one nonprofit in transition. It hired Sunshine a couple of years ago to sublease two floors at its 23rd Street building. The nonprofit never ended up subleasing, but has now decided to sell the building. For Xavier, the transaction represents a downsizing, as does the would-be sale by the Ackerman Institute of its East 78th Street location, which it has owned since shortly

after it was founded in 1960. Eastern is not only marketing the Ackerman site, but also brokered the deal to move the nonprofit into a commercial condo at 936 Broadway. The growing sizes of the commercial condos now on the market have spurred nonprofits to sell the buildings they own as well, brokers say. Novelties less than a decade ago, commercial condos were until recently typically under 10,000 square feet. Bigger ones, like the more than 11,000-square-foot floor plates at 936 Broadway or the 30,000-square-foot-plus plates at 40 Rector, have come online to the relief of nonprofits that still want to own, but want to also take advantage of the sales market to unload their entire buildings at a premium. And commercial condos can prove financially tantalizing. Were a nonprofit to buy, for example, a 20,000-squarefoot condo for the average Manhattan asking price of $531 a square foot (as of late 2011), it would pay a onetime cost of $10.6 million, which might be mitigated by tax-exempt financing. If the nonprofit were to lease the same amount of space — even at a relatively low Manhattan asking rent like $40 a square foot — it would pay roughly $10 million over the course of a 10-year lease, taking into account escalating rental rates. So, sources say, it would be in a better position after 10 years if the market improved. “If you’re going to buy or want to buy or need to buy, it’s going to be condos, not buildings,” said David Lebenstein, a senior managing director at Cassidy Turley. “The buildings that are getting sold are getting sold for residential use or development use — they’re not getting sold to other nonprofits.” Michael Rudder, a principal at the Soho-based Rudder Property Group, noted that many nonprofits are encouraged by donors to purchase property.

“They ﬁnd it easier to raise funds from donors to buy rather than to lease. DoThe Albert Ellis Institute’s nors view leasing as 45 East 65th Street throwing away money, whereas they view ownership as helping to sustain the nonproﬁt in the long-term,” he said, adding that organizations often launch capital campaigns to raise money for a purchase and offer naming rights. In addition, there are deals to be had in buying commercial condos. Rudder pointed to the Urban Justice Center, which provides legal services to poor and homeless New Yorkers, as a case in point. The organization owned a commercial condo at 666 Broadway in Noho until selling in 2006 and then leased 20,000 square feet at 123 Williams Street for just under $30 a square foot. But in April, UJC bought a 32,522Continued on page 96 PHOTOGRAPHS FOR THE REAL DEAL BY DEREK ZAHEDI www.TheRealDeal.com March 2012 00

Why Halstead? Hereâ&#x20AC;&#x2122;s why.

50 Central Park South $95,000,000 Web#3255792 Dianne Weston, EVP 212.381.3267

163 East 64th Street $27,750,000 Web#3349493 Eva Penson, VP 212.381.3370

362 West Broadway $10,500,000 Web#2264803 Richard Orenstein, EVP 212.381.4248

27 Contentment Island, Darien, CT $26,000,000 Web#98536598 Pam Spellane 203.656.6555

Amagansett, NY $5,995,000 Web#50801 Jennifer Dâ&#x20AC;&#x2122;Auria 631.324.6100 x356

halstead.com

Halstead Property, LLC We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin.

New York

Hamptons

Connecticut

New Jersey

5 BR, 4.5 BATH WEB ID: 664175

1045 PARK AVENUE

$10 M

4 BR, 5 BATH WEB ID: 358947

17 EAST 17TH STREET - PH

$40,000

3 BR, 3 BATH WEB ID: 816390

31 WEST 21ST STREET

$7.895 M

4 BR, 4 BATH WEB ID: 890026

800 SIXTH AVENUE

$25,000

2 BR, 2 BATH WEB ID: 733169

28 EAST 21ST STREET

$1.795 M

2 BR, 3 BATH WEB ID: 763464

10 WEST STREET - PH

We define our neighborhoods as much as they define us.

110 Fifth Avenue New York, NY 10011 212.633.1000

730 Fifth Avenue New York, NY 10019 212.242.9900

88 Greenwich Street New York, NY 10006 212.269.8888

45 Horatio Street New York, NY 10014 212.604.0300

26 Astor Place New York, NY 10003 212.584.6100

239 East 79th Street New York, NY 10075 212.929.1400

$15,000

TOWN Residential, LLC is a licensed real estate broker and proud member of REBNY. Town Residential LLC is a partnership with Thor Equities LLC. We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status, or national origin. All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. No representation is made as to the accuracy of any description. All measurements and square footages are approximate. Exact dimensions can be obtained by retaining the services of an architect or engineer.

5 BR, 4.5 BATH WEB ID: 664175

1045 PARK AVENUE

$10 M

4 BR, 5 BATH WEB ID: 358947

17 EAST 17TH STREET - PH

$40,000

3 BR, 3 BATH WEB ID: 816390

31 WEST 21ST STREET

$7.895 M

4 BR, 4 BATH WEB ID: 890026

800 SIXTH AVENUE

$25,000

2 BR, 2 BATH WEB ID: 733169

28 EAST 21ST STREET

$1.795 M

2 BR, 3 BATH WEB ID: 763464

10 WEST STREET - PH

We define our neighborhoods as much as they define us.

110 Fifth Avenue New York, NY 10011 212.633.1000

730 Fifth Avenue New York, NY 10019 212.242.9900

88 Greenwich Street New York, NY 10006 212.269.8888

45 Horatio Street New York, NY 10014 212.604.0300

26 Astor Place New York, NY 10003 212.584.6100

239 East 79th Street New York, NY 10075 212.929.1400

$15,000

The investment sa

Tax attorney

TRD untangles NYC real estate’s c

ired by the buyer, a tax certiorari attorney makes sure the property’s real estate taxes are in order. An accountant may also be brought in to review historical financial records. Current tenants of the building may also be asked to fill out an estoppel for the buyer or buyer’s lender. This document asks if the tenant’s lease has been changed, assigned or supplemented; whether the landlord has met all conditions under the lease; whether the tenant has any outstanding claims against the landlord; and whether any rent has been paid in advance.

By Janna Herron his spring, The Real Deal mapped out the web of relationships that comprise New York City’s residential real estate industry. This month, we tackled the parallel ecosystem of the city’s commercial market, weaving together the buyers, sellers,

State

Tenants

bout 45 percent of New York City’s housing stock is rentstabilized, according to a 2011 survey. If the buyer is acquiring a building containing rent-stabilized apartments, a specialist from the state’s Division of Housing & Community Renewal will be called in during the due-diligence period. The new owner will be responsible for registering rent-stabilized units each year with DHCR, which is currently encouraging landlords to register online. Buyers of rent-stabilized properties should also be familiar with the changes in rent laws ushered in by the Rent Act of 2011, which altered key regulation requirements in place since 2003.

Buyer’s attorney

awyers for the buyer and seller are, not surprisingly, at odds with each other as they try to wrangle a better deal for their clients. In cases where an auction is held, the seller’s attorney will often draft a contract that outlines the seller’s terms and conditions for an auction-sale process. Investors are then invited to make a bestand-final bid, along with any changes they would want to make to the contract. That gives the seller and the seller’s attorney a good idea of how complicated the journey to closing will be with a specific buyer. For example, is the contract dependent on the buyer getting a loan? Would the buyer require a higher-than-normal number of consultants to perform due diligence? The buyer’s attorney, meanwhile, checks the leases tied to the building, and makes sure a certificate of occupancy exists.

Seller’s attorney

66 September 2012 www.TheRealDeal.com

Buildi Sale

nce the deal is in contract, the buyer or buyer’s lender hires an appraiser, who makes sure that the property is worth what the buyer is paying. A recent study by two real estate executives — one from Colliers International and the other from McKenna Long & Aldridge — found that among properties securitized with real estate bonds and foreclosed on, about a third had been overvalued by more than 50 percent. (Michael Falsetta, an executive vice president at Manhattan appraisal firm Miller Cicero, called into question the study’s methodology, however.) Those too-high appraisals can have negative consequences for the banks when it comes to determining how much is appropriate to lend and how they value the property on their books. And the appraisal industry likely will come under more scrutiny as a boatload of real estate debt matures, and past inaccurate appraisals stymie refinancing. But there is one bright spot for the industry: Falsetta said that the recent uptick in activity has made it easier to determine property values. “There were not a lot of transactions [in 2009], and it was harder than ever to judge the value of anything,” he said. “The increase in transaction volume in sales of buildings, condos, rentals and land has made the appraiser’s job a lot easier in the last 12 months.”

Appraiser Insurance company

attorneys, lenders, regulators and others needed to make a New York City building sale happen. This Mother Nature–like web — in which each species depends on and supports the survival of one another — also highlights new trends and regulations that New York’s commercial players con-

Buyer

Title closer

t sales ecosystem

ate’s complex web of relationships front when they’re closing a deal. The most complicated relationships are detailed in blurbs, while other connections are marked with arrows. Of course, just as animals fight for their turf in the wild, interactions between New York real estate players can get heated when interests collide, especially in today’s

challenging conditions. “Every deal is becoming more difficult to get done,” said Sheri Chromow, a partner in the New York office of law firm Katten Muchin Rosenman, “in part because the parties are nervous about spending too much, and in part because getting financing is harder.”

Buyer’s lender

Buyer’s broker

uilding Sale

ecuring a mortgage is still more difficult than it was during the boom, though the financing spigot has recently opened up some. Many lenders now ask buyers to fork over 30 to 40 percent in equity to secure loans for most property types, said Steven Kohn, president of Cushman & Wakefield’s equity, debt and structured finance practice, though buyers of multifamily buildings may get by with only about 25 percent. Interest rates, meanwhile, remain low, but aren’t falling in sync with Treasuries, since most lenders have floors for rates, Kohn said. As another alternative, the seller’s lender may allow the buyer to assume the existing mortgage on a property, then get a smaller mortgage to make up any difference. This can save the seller in mortgage recording taxes, brokers noted. If a buyer will be getting a cash infusion from a capital partner, that equity needs to be raised before making an offer or, at the very latest, during due diligence. However, Chromow said: “Not all the equity is lined up in advance. It’s very surprising to me, and it’s happening more these days.”

here have always been joint-venture buying relationships in the Big Apple. But experts say they’ve recently noticed more foreign buyers looking to team up with stateside investors. On the multifamily side, Citicore’s Shafran said he is seeing investors from Europe and Israel, along with funds, sniffing around. But there are very few properties available for sale, especially in Upper Manhattan, where many investors are looking for deals. “The market is heating up,” Shafran said, so instead of selling, “a lot of landlords are keeping their properties” and refinancing. With good reason: The median New York City monthly rent increased more than 15 percent year-over-year in the second quarter, hitting the second highest level in two years at $3,125, according to Miller Samuel.

Seller Joint venture partner

Property manager

Seller’s broker

ommercial brokerage in New York is a very small community,” said Timour Shafran, a managing partner at Citicore Inc., a Manhattan-based brokerage. “Everyone knows everyone.” Seller’s brokers are infinitely more common than buyer’s brokers in New York building sales, but it’s not unheard of for a buyer, especially an overseas buyer or a player new to the market, to hire representation, experts say. Many sellers’ brokers these days are turning to accelerated, nondistressed auctions to speed up the sales process and keep buyers competitive on price, said Chromow. In today’s market, about half of all commercial building sales involve auctions, according to Real Capital Analytics managing director Dan Fasulo.

efore signing on the dotted line, building buyers hire a host of consultants to make sure the deal is on the up-and-up. That is especially important in today’s tenuous market, where banks can be fickle about when they’ll lend. An environmental engineer or inspector checks for asbestos, oil spills and other contamination. If there are problems, financing on the building can be put in jeopardy. Another engineer or consultant will provide a property condition assessment, which makes sure the building is structurally sound. Some buyers may ask for more specific building consultants, such as a curtain wall expert, who checks for water penetration, or an elevator engineer, sources say.

Consultants Distressed owner

he combination of overleveraged properties and low interest rates has created another, nontraditional sales market: recapitalizations. SL Green Realty, the Blackstone Grou p and other opportunistic investors are swooping in to take debt positions in distressed properties, which they can convert to equity stakes and eventually take control of the asset, Fasulo explained. Foreign buyers and institutional investors, meanwhile, are providing equity to troubled property owners and taking a minority stake. These unconventional transactions make up about half of today’s sales market, according to Fasulo. These conditions have come as a surprise to some investors, “who thought this would play out differently,” he said. “They thought these properties would be foreclosed on by the bank and sold for pennies on the dollar. If you played it like that, then you missed the market.”

New investors

www.TheRealDeal.com September 2012 67

ARCHITECTURE REVIEW

JA M E S G A R D N E R

Fulton’s new face-lift

Sir Nicholas Grimshaw’s Fulton Center is already making its mark — even though it’s only partially complete

ne of the great charms of glassand-steel Modernism is that for months, even years, you can pass a construction site and see nothing more than a hole in the ground — and then, as though from one day to the next, a real and powerful structure emerges and is quickly topped out and substantially clad. Before the advent of modern engineering, nothing of the sort was even imaginable. And so as I was walking near Wall Street last month, I was delighted to see that the Fulton Center, designed by Grimshaw, the firm led by British architect Sir Nicholas Grimshaw, is already making its presence felt. Formerly dubbed the Fulton Street Transit Center, this $1.4 billion project began in 2005. But let it be said that what modern New York has gained in the speed of its construction technology, it often loses in delays and red tape. From start to finish, the Empire State Building took all of 15 months to complete. That’s a pace that’s rarely met now. The Fulton Center, for example, suffered substantial work stoppages and shortages of money (even before the financial debacle). Originally slated for completion in 2007, the project is now slated to be finished in June 2014, according the Metropolitan Transportation Authority, which is constructing it. However, the Fulton Center, which recently put out a request for proposals to find a private manager for its 70,000 square feet of retail space, is evidence that, in a general way, architecture is getting somewhat better in New York. By that I mean that one has the very distinct impression that the architect is at least trying, something that was not always the case in the past. Improvements in the city’s residential and commercial architecture are old news, but the story is less often told with regard to our government-built infrastructure. A case in point is the subway station at 63rd Street and Lexington Avenue, which opened in 1989. This project was striking for two reasons: First, because it was so new, and second, because it looked so old. From the moment it opened it was, as it remains, startlingly ugly, most memorable for walls arrayed in glazed brick burnished to a shrill shade of radioactive tangerine. The reason it looked so old is that it was planned in a Mod style as far back as the 1960s, and once the powers that be signed off on the design (which had been unlovely to begin with), no one

68 September 2012 www.TheRealDeal.com

was able, or willing, to alter it. Things are far better now. Our infrastructure is probably more efﬁcient, and it certainly looks better. This is evident in the South Ferry subway station — a glittering, Europhile undertaking that was completed in 2009 and is arrayed with high-concept, topographically inspired murals by the Starn Twins, the artists and identical twins of the Chelsea gallery fame. Then, of course, there is Spanish ar-

houses a soaring atrium. It has been conceived in an unapologetically Modernist idiom as a four-story curtain wall divided into six identical sections that are each subdivided into four bays that march majestically along Broadway. As beﬁts the modular units dear to the International style, there is no orientation from right to left or top to bottom. The architect’s website describes the fedora part of the structure as a glass oculus “deﬁned by a hyperbolic paraboloid

A rendering of the Fulton Center, which is scheduled to be complete in 2014

The project under construction last month

chitect Santiago Calatrava’s World Trade Center Transportation Hub at the corner of Church and Fulton streets. That project is not scheduled for completion until 2014, but with its brilliant exteriors and its spiked skeletal frame, it is destined to become one of the most striking structures of any sort in the city. And now Sir Nicholas’s Fulton Center, just a block away, is already making an important contribution to the streetscape of Lower Manhattan — even in its state of partial completion. Conceptually, the project is fairly easy to describe: a rectangular box out of whose center rises an irregular domeshaped conﬁguration, with a ﬂattened summit that sits on its base like the top of a fedora emerging from a hatbox. The base itself, arrayed in glass and pale steel,

cable net” — whatever that means, Architect Sir Nicholas Grimshaw exactly. Still, as you look up into the dome, which was designed in partnership with the artist James Carpenter, you will see an elegant network of cables converging upon the ﬂattened top at the center. Various precedents have been suggested for this new building. One that comes up fairly frequently is the Pantheon in Rome, since both buildings have openings at the top to admit light, even though the Fulton Center’s is glazed over. That creates one striking difference: The rain will not be pouring into the building as it does into its Roman counterpart. Another comparison has been found in London’s recently completed City Hall,

also known as the Onion or, in the words of London’s Mayor Boris Johnson, the Glass Gonad. The main point of similarity with this strange and off-kilter oval structure, designed by Sir Norman Foster, is the London building’s central stairway, which spirals in asymmetrical orbits. I believe, however, that a more germane comparison can be found in the energetic buildings of such French Enlightenment architects as Claude-Nicolas Ledoux, with his Rotonde de la Villette in Paris, or the even more exorbitant structures of the Neoclassical French architect Etienne-Louis Boullée, who made use of radically simplified forms so daring that they were rarely built. One of his boldest ideas, a huge circular structure in a square, was realized only 200 years after his death at the Rose Air and Space Center at the American Museum of Natural History, which opened in 2000. That design was conceived by Todd Schliemann (who was at the firm then known as Polshek Partnership) and the execution was more centered and symmetrical than the Fulton Center. That, I believe, is the most direct precedent for the transit hub. Sir Nicholas is already well known to New Yorkers, even if his name will not be immediately recognized. For it is his firm that designed, several years ago, much of the city’s new street furniture, especially those glassy bus-shelters and newsstands that approach ubiquity in the five boroughs. In these, as well as in many other projects, Sir Nicholas displays a powerful and original sense of Modernist design with a high level of craftsmanship all too rare even in New York in recent years. It often happens that architectural firms specialize in one type of building over another. Sir Nicholas seems most interested in infrastructure, especially transportation buildings. Everything from Terminal 3 and Pier 4A at London’s Heathrow to the entirety of Pulkovo Airport in Saint Petersburg has come out of his workshop, not to mention a bus station in Bilbao, Spain, and the international terminal at London’s Waterloo train station. In general, British architects have led the world recently in the quality and beauty of their contributions to infrastructure. It is good to know that, with the imminent completion of the Fulton Center, Manhattan will benefit from their highly developed skills in this area as well. TRD

2012 Transactions by Tim Davis

SOLD

In COntract

SOLD

Oceanfront

Beechwood

Meadow Lane

oceanfront

East Hampton. Last asking $32M

Southampton. Last asking $38M

Southampton. Last asking $11M

Southampton. Last asking $19.95M

SOLD

OCEAN AND POND VIEWS

estate sections

fresh and new

Orient Soundfront

Southampton. Last ask $3.995M

Southampton. Last asking $3.95M

Water Mill. Last asking $5.9M

Orient. Sold $3.5M

SOLD

30 Acre Reserve Views

SOUTH OF HIGHWAY REDUCED

VILLAGE INVESTMENT

COUNTRY STYLE

Southampton. Last asking $2.695M

Water Mill. Last asking $1.95M

Southampton. Last asking $995K

Water Mill. Last asking $2.25M

SOLD

IN CONTRACT

WYANDANCH LANE

Estate Section South

ENTERTAINER’S DREAM HOME

close TO OCEAN AND MAIN STREET

Southampton. Last ask $15.5M

Bridgehampton. Last asking $12.99M

Water Mill. Last asking $6.2M

Southampton Village. Last asking $4.95M

Tim Davis SVP, Lic. Associate R.E. Broker Regional Brokerage Advisor – East End 631.283.7300 ext 211 tgdavis@corcoran.com corcoran.com/tgdavis

THE HAMPTONS

SHELTER ISLAND

NORTH FORK

Equal Housing Opportunity. The Corcoran Group is a licensed real estate broker. Owned and operated by NRT LLC.

Irons, drivers and wedges, oh my! Real estate pros hit the links for TRD’s annual golf tournament

he Real Deal’s second-annual Hampton’s golf tournament was a hole-in-one. Held at Hampton Hills Country Club in Wes-

thampton Beach, the event drew nearly 100 golfers. The first-place team included Reynold Christian of JPMorgan Chase, Chirag PaJoe Koicim (left) and JD

StreetEasy.com staffers

tel of High Net Revenues and commercial investors Andrew Ackerman and Gene Kaplan. But they weren’t the only ones in good

spirits after the 18-hole event. The group gathered back at the country club for food and drinks to recap their birdies, pars and bogies after leaving the links. From left: Da ni

el Segal, Tam ir Sh and Lenny St emesh eigman

Parker

Gilad Azaria

Gene Kaplan (left) and Andrew Ackerman

The Real Deal staff with Stanley Pine

(fourth from left) and Judy Sahagian

(second from right)

From left: Ilan Bruhim, Gilad Azaria and David Bahin

ss Fox

y (left) and Ro

Amir Korang

Daniel Sega

l (left) and Ta

mir Shemes

h Michael Signet

Jennie Durkovic

From left: Da Yoav Barilan niel Segal, Lenny St eigman, and Tamir Sh emesh

Amir Korangy

Craig Turin mas Donovan and Larry Rosenberg, Tho is, hel Mic e org Ge From left: Jordan Goldman (left) and Jerry Goldman

From left: Ri Corey Tucker chard Helfman, Nore en Cody, and John Sa nchez

From left: Lou Salvatico, John Macri, David Fallarino and Stuart Gelb

DeNelle O

’Connor (l Sarah Da eft) and lidowitz

ill Passavia

ft) and W e Passavia (le

70 September 2012 www.TheRealDeal.com

Daniel Sultan

Zahid Sarah Mesbah and Junaid From left: Jennie Durkovic,

LEASE IN GOOD COMPANY TENANTS INCLUDE Citibank Chase Phillips International Stroock, Stroock & Lavan Universal Music MCI International Young & Rubicam Weight Watchers AIG Elite Modeling Agency Mimeo New York and Jazz

CURRENTLY AVAILABLE 60 Madison Avenue Entire 8th fl 14,800 sf 72 Madison Avenue Entire 11th Floor 5,000 sf 115 E 57th (Galleria) Entire 8th & 9th Floors 25,500 sf 535/545 Fifth Avenue Entire 3rd and 11th Floors 32,778 sf 17 Battery Place North Entire 4th and 5th Floors 46,686 sf

The Moinian Group | Moinian.com

17 Battery Place North

17 Battery Place North: Newmark Knight Frank Adam Leshowitz 212.233.8182 aleshowitz@newmarkkf.com

LGD-555_THE_REAL_DEAL_082812.indd 1

60 Madison Avenue & 72 Madison Avenue: The Moinian Group Jovani S. Rampersad 212.808.4000 x 231 Jovani@moiniangroup.com

60 Madison Avenue

115 East 57th Street

535-545 Fifth Avenue

72 Madison Avenue

115 East 57th Street:

535 / 545 Fifth Avenue:

Cushman & Wakefield Ben Shapiro 212-841-5007 Ben.shapiro@cushwake.com

Savitt Partners, LLC. Harlan Cygielman 212.452.6070 hcygielman@savittpartners.com

8/29/12 2:08 PM

Vital Stats: Name: David Sigman Age: 51 Hometown: Roslyn Heights, N.Y. Title and Company: Principal of LCOR Currently living in: Port Washington, N.Y.

By Katherine ClarKe

Building blocks: LCOR is a national company with multifamily residential and mixed-use properties. How many buildings does it own in NYC? We have 25 Broad in Manhattan and 34 Berry Street in Brooklyn, which have a total of about 450 units. We [also] have 250 North 10th Street in Williamsburg, which is currently under construction for delivery in 2014. It will have 235 units, and we’ll start leasing it up in the fall of 2013. We also own the vacant site at 45 Broad Street. Nationally, we have a total of about 7,500 residential units.

How did you get into real estate? My father was a consulting mechanical and electrical engineer. He had his own firm on Long Island, and my sister worked for [Jeremiah O’Connor of O’Connor Capital Partners] and Larry Silverstein. I got introduced to it that way. I started down in Washington for three years, and then I worked for Bill Zeckendorf for six years before coming to LCOR in 1994. With Zeckendorf, I started as project manager on Worldwide Plaza and then worked on the early development of the Ronald Reagan Federal Office Building [in Washington, D.C.].

Landlord life: What has been your strangest tenant experience? We had one guy who was selling dope out of his apartment. The cops had been monitoring him for a long time. When they knocked on his door, he ran up the fire stairs to the roof and threatened to jump onto a major Midtown Manhattan street, which then had to be blocked off while they talked him off the ledge. We also had a woman who had stopped taking her schizophrenia medication and showed up in the lobby naked.

The bottom line: How did the recession impact your business? In terms of new development, it was all on hold. We did start 34 Berry Street in 2009, so even at the depths we still got a construction loan going. But other new starts were limited. On the good side, we did a lot of work for the Lehman Brothers bankruptcy estate. They asked us if we would property manage 5,000 units that we ended up purchasing from them and asset manage 20,000 rental units nationally. That’s kind of what paid the bills through most of the downturn. 34 Berry Street

What’s going on with the construction you’re doing at 25 Broad Street? We’re taking down the south wing. It only had apart apartments on one side of the corridor. It was very inefficient. We’re transferring the floor area to 45 Broad Street, which will end up being a 60-story tower.

You went with smaller, studio-size apartments on Berry Street. Why? We inherited the project from an another developer who went bankrupt right after we bought it. We redid some of the drawings, but still end ended up with a ton of studios. But for the time that we built that project, that was okay. It was mostly younger people in Williamsburg. The next project, on North 10th Street, will have more one- and two-bedrooms. When you go to Williamsburg now, you see more people in their 30s — and more strollers.

The California State Teachers’ Retirement System pur purchased a more than 90 percent stake in LCOR earlier this year. What does that mean for the firm? Lehman was our partner and an owner of our firm starting in 1999. CalSTRS joined us on a number of new development and acquisition deals starting in 2006. Then this year, they joined with us to acquire Lehman’s interest in our firm, our existing pipeline of new deals, our completed Lehman deals and 5,000 residential units we had been managing for Lehman since 2009. The combined package was around $830 million and closed this past May. We’re still partnered with Lehman on a number of deals where we couldn’t bring CalSTRS in.

Does the deal change the direction of the company at all? No, it’s still going to be a mix of development and acquisitions, but the focus is mostly residential development on the East Coast. In terms of acquisitions, we’ll be looking anywhere in Manhattan, Long Island City and Downtown Brooklyn. We keep looking in Williamsburg, but there’s not much left. It has to be large enough for at least 150 units. We’re also starting to look in Greenpoint.

Are you raising or lowering rents across your portfolio? Rents are going up pretty dramatically. The rents in Brooklyn have gone way up since we got there. We’ve only been leasing there since 2010, but rents are already up 25 percent. TRD

LCOR’s New York properties —

72 September 2012 www.TheRealDeal.com

PHOTOGRAPHS FOR THE REAL DEAL BY DEREK ZAHEDI

1OO% INTEGRITY

IOO% COMMISSION IOO% YOU

levelgroup.com/ join

Q&A

Astoria euphoria

The Queens neighborhood sees strong interest in new developments, but “ancient zoning” keeps it from competing with LIC and other areas residential use. The problem for developers, they say, is that there isn’t that much land — at

BY MELISSA DEHNCKE-MCGILL

t used to be that Astoria, Queens, was an ethnic Greek enclave dominated by an older

least in desirable locations near the subway — left to buy. Some sources that we talked to ar-

housing stock of prewar buildings and one- and two-family homes. But in the last

gued that the city needs to step in and rezone the area in order to deal with the issue because

few years, the neighborhood, which has been gentrifying over the last decade or so,

Astoria is losing buyers to rival neighborhoods.

has continued to see lots of new residential development, and with it, more young professionals looking for new construction housing at the right price. This month, The Real Deal talked to residential brokers and market analysts about

“Long Island City has reaped the rewards of Astoria’s ancient zoning,” said Vickie Palmos, a salesperson at Astoria NY Condo. On the ﬂip side of the market, brokers say that rental demand is going strong — especially for new construction units.

how real estate in Astoria is holding up. What we found is that while sales volume is down compared to last year, it’s largely

As new buyers and renters ﬂood into the neighborhood, the area is seeing an increase in

because there are far fewer condo projects on the market now. That, in turn, is a result

the number of restaurants, bars and retail amenities. “Of course, it’s not the same change

of many of the planned condos turning rental when the market soured. But when new

we see in Williamsburg or in the Meatpacking District, but this is not a [mostly new] resi-

development projects do come on the market now, they tend to do far better than resales

dential neighborhood as those are,” one broker said.

in the neighborhood.

For more on which price ranges are doing best and worst, what new residential projects

Brokers said that nearly every inch of available land in Astoria has been developed for

Vickie Palmos

salesperson, Astoria NY Condos What’s going on with residential prices in Astoria today? Overall, prices are down about 10 percent from two years ago, depending on the category. But prices seem to have stabilized since last year. In some cases — such as for four-to-six-family [homes] and onebedroom condos — there’s high demand with extremely low-to-almost-no inventory. I would expect sales prices for these categories to be above present averages by the end of the year. Which price ranges and apartment types are performing best right now in Astoria? The best performing categories are without question condominium sales ranging from about $400,000 to $430,000, and twofamily homes at about $750,000. Combined, they represent about 75 percent of the Astoria sales. Which price ranges and apartment types are struggling the most? The worst performing price ranges for condo sales are $600,000-plus units. They are often unusually large two- or three-bedrooms that lag on the market almost double the average number of days than other types of apartments do. How do you think Lincoln Equities’ $1 billion Hallets Point project will impact the market? It can only help the Astoria market. In my opinion, we are at a disadvantage compared to Long Island City and Brooklyn in terms of available land and attractive up74 September 2012 www.TheRealDeal.com

zoned locations for high-rise residences. Hallets Point will help Astoria break into this exclusive market. A few years ago there were a lot of new development projects coming to the Astoria market and some were converting from condo to rental. How is the new development market doing now? The new residential developments are Astoria’s real estate backbone and savior. The resale market is not nearly as robust. There are a handful of new developments in the wings that are estimated to be completed within six months. They are typically eightto-20 unit boutique buildings with limited amenities. How are rentals doing in Astoria compared to sales? The rental business in Astoria is booming. The Sterling at 21-16 31st Avenue, a new 32-unit condo, decided to go rental. Our ﬁrm rented 32 units in 45 days. The one-bedroom units ranged from $1,850 to $2,300. There were no incentives or negotiations. We also listed 21-60 33rd Street, a 21-unit condo building that went rental. Its grand opening is this October. Pricing will be very similar. The most desired residential inventory, in both sales and rentals, is without question new construction. What’s the inventory like in Astoria these days, and how does that compare to a year ago, two years ago and during the boom? The condo inventory is at an all-time low. There is a huge demand for new one-bedroom units, with very little inventory in the near future. How long are properties staying on the

are in the pipeline and how quickly apartments are selling, we turn to our panel of experts.

market in Astoria these days? Assuming a property is priced within around 5 percent of a realistic appraisal, new one-bedroom condos will stay on the market for 45 days on average. New twoto-three-bedroom condos will stay on for 150 days and one-to-three-family homes will stay on the market 160 days. These figures represent a 50 percent drop in days on the market compared to two or three years ago. What kind of new retail and restaurants are you seeing in Astoria today? It still has the largest Greek influence in the city, but now you also hear nicknames in the neighborhood such as Athens Square, Lil’ Egypt, Lil’ Brazil, etc. That’s all brought a mix of fine dining, casual chic, international cafés and nightlife. What are the biggest challenges to selling residential property in Astoria today? The greatest challenge is the availability of development sites. Rezoning in certain “walk to train” locations can solve this problem. When the market demands a product that doesn’t exist in your area, [buyers] move on. Astoria’s demographics prove we need rezoning and incentives. Long Island City has reaped the rewards of Astoria’s ancient zoning rules. Who are the most active buyers in Astoria right now, and how does that differ from the past? The most active buyer in the Astoria market is without question the new condo purchaser. This demographic represents 50 percent of the Astoria real estate market. Our evidence shows the average buyer in this market is a 25-to-35-yearold, single, college-educated professional working in Manhattan.

Charles Sciberras

vice president, residential sales, Realty Executives Today How do you think Lincoln Equities’ $1 billion Hallets Point project will impact the market? I think this is going to take place four to five years from now. If the population grows as it has been recently, there will be a need for those spaces. Thirty thousand people moved to Long Island City over the last five or six years. ... The only drawback about this development is that it’s over a mile from the subway. So they will have to make an adjustment in price and provide some type of transportation to get back and forth. How are rentals doing in Astoria compared to sales? Rentals are very strong and sales are very strong. A 500-to-600-square-foot rental in a prewar building gets $1,300 to $1,500, and the landlord pays the utilities. If you ask $1,700, it’s going to sit. What are the biggest challenges to selling residential property in Astoria today? For the property owners to be realistic in their pricing. Also, everything depends on the location. The closer it is to the subway, the higher the price. Who are the most active buyers in Astoria right now, and how does that differ from the past? There are a lot of young couples, single people and foreigners. We’re getting an influx from Europe, the Middle East, from www.TheRealDeal.com May 2006

Q&A all over the world, as well as Manhattanites and residents from Long Island.

Robson Lemos

senior vice president, Corcoran Group How is overall residential sale volume doing in Astoria these days, and how does that compare to a year ago, two years ago and during the boom? Sales volume is smaller because there are fewer projects now than two years ago, plus several condo projects became rentals to fit to the new reality of the market. However, sales are still going on in almost the same way they were during the boom. The only years that they were really difficult were 2009 and 2010. Before the boom, tenants moved to Astoria just to save money. Now they’re moving to Astoria to save money and to get a better residence than they could get in Manhattan for the same price. What’s going on with residential prices in Astoria today? Are they up or down compared to a year ago, two years ago and during the boom? Prices are almost the same as they were a year ago, maybe a little better because of the short inventory now. However, it is not the same as it was during the boom. Prices for new development condos before the boom were around $500 per square foot; during the boom we sold as high as $750; now it’s around $700. Meanwhile, before the boom, co-ops were selling for around $300 per square foot, during the boom they got as high as $450 and now it’s around $400. Lincoln Equities’ $1 billion Hallets Point proposal to build 2,300 residential units could break ground in Astoria this fall. How do you think that will impact the market? I think that it will impact the market in a very good way. First of all, bigger developments sell better in Astoria, because the small projects are usually from first-time developers and they can’t deliver the product as it was promised. How is the Astoria market faring for residential investors? You can still put 30 to 50 percent down in Astoria for a condo investment property and have it rented for more than your financing combined with common charges and real estate taxes. So it’s a good location for investors. What kinds of discounts off asking price are being seen these days in Astoria? We don’t have a formula for it because each property has its own selling appeal. Buyers are becoming wiser. ... My experience shows around a 5 percent negotiation gap for well-priced properties, more for overpriced properties and less for underpriced. During the boom there was almost no negotiation.

How long are properties staying on the market in Astoria these days, and how does that compare to a year ago, two years ago and during the boom? If priced right, properties stay on the market around four months now. A year ago, it could take six months if priced right. During the boom, I sold a few small condo buildings in three weeks to two months. What kind of new retail and restaurants are you seeing in Astoria today, and how is that impacting the residential market? You see all kinds of retail in Astoria now that you didn’t see during the boom. For example, I did the marketing and leasing of four rental buildings next to Astoria Boulevard and 21st Street when there was no supermarket around, which made it harder to lease the units. Today you have an amazing supermarket at Crescent Street and Newtown Road. ... You [also] have a museum, [movie] theater and restaurants. Of course, it’s not the same change we see in Williamsburg or in the Meatpacking District, but this is not a [mostly new] residential neighborhood as those are. What are the biggest challenges to selling residential property in Astoria today? The ﬁrst challenge is that most of the available land next to subway stations with prices that made sense in Astoria is developed already or not for sale. If you are a developer considering building next to a subway station, you need to buy a house to demolish and it has to be in an area zoned to allow a buildable square footage that makes sense. The second challenge is the subway lines that come to Astoria. They don’t work with the same frequency as in other neighborhoods. The third challenge is ﬁnancing, though it’s a little better than it was in 2010 and 2011.

Harold Valestin

How are rentals doing in Astoria compared to sales? Rentals have followed Manhattan in regards to the rise in pricing. Astoria has an extremely strong rental market. There is more inventory to work with in rentals. What kinds of discounts off asking price are being seen these days in Astoria? If priced well, the wiggle room is tight. In my experience, it’s roughly 3 to 7 percent. This is a drop from the last few years when a buyer could get more like 5 to 10 percent off.

Jonathan Miller

president/CEO, Miller Samuel Inc. What’s going on with residential prices in Astoria today? The median sales price in the second quarter was $361,845 — up 13.4 percent from 2011, but 11.7 percent below 2010 and 26.6 percent below 2008.

Which price ranges and apartment types are performing best right now in Astoria? In terms of price, co-ops and condos are fairly close. The median sales price of a

co-op was up 16.2 percent in the second quarter from a year ago, while condos were up 18.7 percent in same period. But one-to-three-family homes slipped 0.8 percent.

Chris Shiamili

owner, Ardor New York Real Estate What kind of new retail and restaurants are you seeing in Astoria, and how is that impacting the residential market? Every major avenue has a host of restaurants, coffee shops, pastry shops and all kinds of things. The amount of retail space is more or less limited. What has been developing over the last ﬁve or six years are some new nightclubs and huge gym spaces. Most [of the clubs] are going into old warehouses. What are the most surprising trends you’re seeing in the Astoria residential market right now? Living in Astoria for the past 23 years, I never thought that developers would be able to sell condos on 21st Avenue or 31st Street because of the traffic and the noise pollution. What surprises me is that every inch of Astoria is being developed. TRD

��

vice president, MNS

What’s going on with residential prices in Astoria today? Prices are deﬁnitely up. As inventory has dried up, the prices have risen. Which price ranges and apartment types are performing best and worst in Astoria? Studios and one-bedrooms are doing the best due to their price point, but two- and three-bedrooms are [also] doing well. The $800,000-to-$1 million range is tougher because obviously there are fewer buyers in these ranges. Not that deals haven’t been done in those ranges, but they are tougher to come by.

��

�� www.TheRealDeal.com September 2012 75

�� CONNECTICUT

New Haven’s Downtown Crossing gets green light A plan ﬁrst proposed six years ago that will pave the way for New Haven to transform nearly 11 acres of underutilized land into a medical hub cleared its ﬁnal hurdle last month when it was unanimously approved by the Board of Aldermen. The rezoning allows the city to build streets and pedestrian sidewalks above Route 34,

100 College Street in New Haven

which cuts through New Haven. The construction will reconnect the two sides of the city that have

been controversially divided for decades. Preparation for the ﬁrst phase of the so-called “Downtown Crossing” plan — the construction of a 10-story, $140 million biotech building at 100 College Street — will get underway in January. Construction on the actual building, which is being developed by Carter Winstanley, is scheduled to begin in May 2013, according to the New Haven Register. The project will receive $35 million in state and federal funding. Gov. Dannel Malloy is also kicking in $51 million through the state’s

First Five program to help anchor story building will include 169 tenant Alexion Pharmaceuticals apartments and 7,650 square feet relocate to the building. of retail space, according to the Newark Star-Ledger. NEW JERSEY The Star-Ledger also reported Shaq’s project gets that the project was approved for loan; Kushner acquires up to $20.6 million in tax credits two residential buildings over the next 10 years through the Basketball great Shaquille O’Neal Urban Hub Tax Credit Program. is taking on another real estate Last year, Shaq and Newark Mayproject in his hometown of New- or Cory Booker announced a $7 ark, N.J. The New Jersey Redevelopment Authority, which provides funding to revitalize urban areas in the state, approved a $2.5 million loan for the construction of a Newark apartment building proposed by an investment group that includes Shaq. The $64 million, 25-

Shaquille O’Neal

ALNO USA: YOUR PARTNER IN KITCHEN DESIGN.

million deal to expand a movie theater in the city’s struggling Central Ward section. Kushner Companies acquired two New Jersey apartment buildings — Skyline Apartments and Boulevard Apartments — in late July. The buildings, which are in Hasbrouck Heights, have a combined 338 units. A source with knowledge of the deal, Kushner’s ﬁrst in New Jersey since 2007, told TRD that Kushner paid $57.5 million. The buildings include studios to two-bedrooms priced between $1,150 and $1,550 per month. WESTCHESTER COUNTY

Capital Theatre to reopen in Port Chester

A truly owned subsidiary of Alno AG Germany

USA

A truly owned subsidiary of ALNO AG

With a lineup of musical performances from the Roots to the Steve Miller Band to Bob Dylan, Port Chester’s legendary Capital Theatre will reopen after a 15-year hiatus this month. Brooklyn Bowl founder Peter Shapiro leased it last year, and on Sept. 4, the theater — which has been used mostly for private events in recent years — will host its ﬁrst show since 1997. Shapiro has spent over $2 million renovating the 1,800-seat facility, installing a new lighting system, 10 high-deﬁnition projectors and a state-of-the-art sound system. The goal, he told the New York Times, was to create a “psychedelic rock palace.” “This is a queen. This is not a princess,” he said of the theater. “That means giving her the best sound available in the world.” Ticket prices are expected to range from $20 to $200, depending on the show. Compiled by Russell Steinberg

76 September 2012 www.TheRealDeal.com

The seven-story townhouse at 45 East 74th Street is representative of architectural craftsmanship and design that pays homage to the classic sense of style and elegance characteristic of the historic Upper East Side. The townhouse, perfectly positioned on a prime residential block between Park and Madison Avenues, is nestled in the heart of Manhattanâ&#x20AC;&#x2122;s historic Gold Coast. Originally constructed in 1879, a century later, this spectacular home has been dramatically reinvented and technologically transformed into one of the worldâ&#x20AC;&#x2122;s most beautiful residences. Priced at $33 Million

FRANK ARENDS Senior Vice President, Associate Broker O: (646) 998-7416 farends@townrealestate.com

BRETT MILES Senior Vice President, Associate Broker O: (646) 998-7427 brett@townrealestate.com

Web ID: 935757

TERRY NAINI Senior Vice President, Associate Broker O: (646) 998-7457 tnaini@townrealestate.com

��

The Willis Tower Koch’s ranch

C O L O R A D O Billionaire Bill Koch

is building a private Old West– style town on his 6,400-acre ranch in Gunnison County, Colo., the Denver Post reported. Over the past two years, the County Planning Commission has given Koch permission to build around 50 buildings on the site, which is not open to the public, the Post said. Koch, the founder of the energy company Oxbow Group, is also building a 22,000-squarefoot mansion on the ranch. The house will be the largest in the county when completed. The home of the late Laura Ziskin

Chicago In one of Chicago’s largest-ever office leasing deals, United Airlines and Mayor Rahm Emanuel announced last month that the air carrier would move its headquarters to Willis Tower. United will take an additional 200,000 square feet in the landmark building (formerly known as the Sears Tower) and extend the lease for its current 625,000-square-foot space in the building by another two years to 2028, according to Crain’s Chicago Business. United’s top executives will join the company’s operations center and other employees at the Willis Tower early next year, bringing United’s total workers in the building to 4,000 across 16 floors. According to a second-quarter market report from Jones Lang LaSalle, Chicago’s Central Business District had a total office vacancy rate of 15.9 percent, or roughly 22 million square feet, and an average asking rent of $31.44.

Miami In the largest Miami office transaction since 2008, fund management firm Crocker Partners paid $262.5 million for the 34-story, 786,000-square-foot Miami Center, the Wall Street Journal reported. The seller was Sumitomo Corp. of America, a unit of the Japanese global trading firm Sumitomo Corp. The deal breaks down to roughly $334 per square foot, well above Miami’s $169-per-square-foot average for 2011, but below the $400 range that some large Miami trophy office buildings fetched near the peak of the market. The tower was completed by developer Theodore Gould in 1983, and counts Citigroup as one of its biggest tenants. The now-defunct Stanford Financial Group also previously occupied several floors of the building. Nearly one-fifth of downtown Miami’s office market remains vacant, compared with 9.2 percent in 2007, according to the research firm Reis Inc. Thomas Crocker, founder of Crocker Partners, told the Journal he plans to lease up, stabilize and ultimately sell the property, along with sev78 September 2012 www.TheRealDeal.com

eral other ofﬁce buildings that his ﬁrm has acquired in Miami and other cities in the past 20 months.

Baltimore Olympian Michael Phelps sold his 4,080-square-foot Baltimore townhouse for $1.25 million, a loss from the $1.7 million he paid for the property in 2007, the Baltimore Business Journal reported. Phelps, who is reportedly moving into a row house off Canton Square, had listed his townhouse with Krauss Real Property Brokerage. The home, not surprisingly, comes with an indoor swimming pool. The housing market in Maryland has seen tough times in recent years: The rate of new foreclosure filings in the state far exceeded that of any other state this spring, the Baltimore Sun reported. Almost 20 in every 1,000 home loans in Maryland — twice the national average — went into foreclosure during April, May and June, according to data released last month by the Mortgage Bankers Association. The number of new foreclosures in the second quarter increased 141 percent compared with the same period of last year. Still, after years of losses, the Baltimorearea housing market has begun to see price increases, the Sun reported. Average sale prices remained flat or rose in more than half of the Baltimore region during the first six months of the year, compared with the same period of last year.

Washington, D.C. Amtrak has proposed a $7 billion expansion of Washington’s Union Station, the Washington Post reported. The plan would double the number of trains the century-old station can accommodate and aim to improve the passenger experience at what is the second-busiest Amtrak station in the country. The proposal comes amid developer Akridge’s plans for Burnham Place, a $1.5 billion ofﬁce, hotel and residential complex to be built on a deck over the tracks behind the station. Compiled by Zachary Kussin

SANTA MONICA Screenwriter

Alvin Sargent has sold the Santa Monica home he shared with his wife, the late ﬁlm producer Laura Ziskin, for $11.1 million, the Los Angeles Times reported. Ziskin, who produced “Pretty Woman” and the “Spider-Man” movies, died last year from breast cancer at the age of 61. The fourbedroom home hit the market in April for $11.85 million with Elisabeth Halsted of Prudential California Realty. Schwimmer’s house

Actor David Schwimmer has sold his Los Angeles compound for $8.9 million, the Daily Mail reported. The “Friends” alum listed the ninebedroom, 11,336-square-foot home late last year for $10.7 million and later dropped the price to $10.2 million. Schwimmer purchased the home for $5.5 million in 2001. LOS ANGELES

ONCE WE SEE THE TARGET READY, AIM , SOLD FA S T E R S A L E S SMARTER MARKETING HIGHER PRICE PER SQ FT

MNS.COM MNS Chelsea MNS Gramercy Park MNS Williamsburg

1 8 9 8 th A v e n u e , N e w Yo r k , N Y 1 0 0 1 1 212.721.2500 1 1 5 E a s t 2 3 rd S t r e e t , N e w Yo r k , N Y 1 0 0 1 0 212.475.9000 165 Bedford Avenue, Brooklyn, NY 11211 718.222.1545

��

NYC Citibank branch portfolio for sale A portfolio of seven Citibank retail branch locations throughout the city is on the market. While there is no set asking price, the portfolio could generate offers 181 Montague Street in the range of $100 million, Newmark Grubb Knight Frank’s Kenneth Zakin said in a news release. Zakin is marketing the bank branch sites with colleagues Randall Liberman and Hymie Dweck. The properties — which can be purchased together or separately — are located at 123 East 86th Street, 1275 Madison Avenue and 2261 First Avenue in Manhattan; 181 Montague Street and 885 Flatbush Avenue in Brooklyn; 107-01 71st Avenue in Queens; and 1800 Williamsbridge Road in the Bronx.

Astoria development site hits market One of the largest listings being marketed by New York brokerage newcomer Avison Young came online last month: a four-acre residential development site on the waterfront in Astoria, Queens. The Wall Street Journal reported that the site, at 3-15 26th Avenue, was formerly a lumber yard featured in the 1992 ﬁlm “Freejack” and is now asking $80 million. Avison Young CEO Arthur Mirante told the paper that based on discussions he had with the Department of City Planning, the land could be rezoned to allow for 800,000 square feet of residential

development. That would make the asking price an even $100 per buildable square foot.

Boerum Hill development site lists for $40M A Boerum Hill parking lot ripe for residential development hit the block for about $40 million, the New York Observer reported last month. The 71 Smith Street site, at State Street, can legally accommodate 206,530 square feet of residential space and another 105,271 square feet of commercial space, the Observer said. The land is being marketed by Cushman & Wakeﬁeld and JRT Realty Group. The site is owned by a joint venture of Hamlin Ventures and Time Equities. “It could be a residential and hotel site,” Cushman’s Nat Rockett told the Observer. “We’re also thinking it could be attractive to a school use for some of the space.”

Inwood ofﬁce building on the market A 60,000-square-foot commercial property in Inwood is for sale with an asking price of $35 million. The single-story building, 4055 10th Avenue located at 4055 10th Avenue, on the northeast corner of East 216th Street, is being leased on a long-term basis to the city’s Human Resources Administration. In addition to the government tenant, the ofﬁce building’s roof is leased long-term to a local parking operator. Bob Knakal and Robert Shapiro of Massey Knakal are handling the sale.

Harlem apartment complex on the block A 39-unit Central Harlem apartment complex that includes ﬁve retail spaces hit the market last month with an asking price of $16 million. The Jerome, a seven-sto213–219 West 116th Street ry prewar rental building, at 213-219 West 116th Street, has 25 rent-stabilized units and is 100 percent occupied. Eastern Consolidated’s Ronda Rogovin and her daughter, Jamie Rogovin, are the listing brokers. The building’s lobby has been renovated, and the retail tenants have 5 percent annual rent increases stipulated in their leases, the Rogovins told The Real Deal last month. Current retail tenants include a pharmacy, a market, a video store, a furniture store and a café.

South Street Seaport buildings for sale Two loft buildings located in the South Street Seaport Historic District are on the market with a combined asking price of $9.55 million. Located at 259 Front Street and 160 South Street, the block-through buildings occupy an entire lot, and each property has one commercial unit on the ground ﬂoor with three full-ﬂoor apartments above. The prewar buildings have approximately 14,790 square feet. An additional 7,469 square feet of air rights are available for future development. David Davison and Glenn Raff of Besen & Associates are handling the assignment. Compiled by Linden Lim

Taking our clients to the next level for almost a century

OWNER ��BUILDER ��OPERATOR 80 September 2012 www.TheRealDeal.com

Manhattan Ofﬁce

Corporate Headquarters

Contact: Jordan Pla� 757 Third Avenue, Suite 2028 New York, New York 10017 212.376.5508 www.kaled.com

Contact: Gregory J. Kalikow, Esq. 7001 Brush Hollow Road, Suite 200 Westbury, New York 11590 516.876.4800 www.thekalikowgroup.com

O P P O R T U N I T I E S A R E I L L U M I N AT E D W H E N C O N D I T I O N S A R E E X A C T LY R I G H T The Aurora Borealis - The Northern Lights occur when highly charged ions trapped by the Earthâ&#x20AC;&#x2122;s magnetic field interact with molecules, releasing energy as visible light.

Potential is maximized in an ideal atmosphere. With our vast resources, global expertise and deep local market knowledge, the professionals at WeiserMazars light the path through a dynamically changing business landscape. Let us provide the professionalism, personal service and custom solutions, exactly right for your business.

Please contact Shahab Moreh Partner-in-charge, Real Estate Services 866.545.2432 | Shahab.Moreh@WeiserMazars.com www.WeiserMazars.com/RD

WeiserMazars LLP is an independent member ďŹ rm of Mazars Group.

A C C O U N T I N G

015843 Real Deal_v1.indd 1

T A X

Exactly Right.

A D V I S O R Y

7/12/12 12:33 PM

Built-in Appliances

AMERICA’S LARGEST WHOLESALE APPLIANCE DISTRIBUTOR For OVER 100 years P.C. Richard & Son has been providing the building industry with unbeatable service, integrity and reliability.

SAVINGS

GUARANTEED LOW PRICES ALL QUALITY BRANDS FOR LESS

SELECTION

THE LARGEST SELECTION OF BRAND NAME DESIGNER KITCHEN APPLIANCES

SERVICE

THE LARGEST INVENTORY FOR NEXT DAY DELIVERY BY OUR VERY OWN DELIVERY TEAMS

P.C. RICHARD & SON ... HERE FOR YOU ... ALWAYS

PROFESSIONAL NEXT DAY DELIVERY AVAILABLE

THE COMPANY YOU CAN TRUST SINCE 1909

1.800.368.6869 DISTRIBUTING TO: NEW YORK, NEW JERSEY, CONNECTICUT, PENNSYLVANIA, DELAWARE, MARYLAND, WASHINGTON DC, MASSACHUSETTS, RHODE ISLAND

Builders@PCRichard.com Fax# 1.800.479.0336 150 PRICE PARKWAY FARMINGDALE, NY 11735

DESIGNER #1 - P.C. Richard & Son - Ad for BUILDERS DIVISION ‘THE REAL DEAL’ Magazine • AD SIZE: FULL PAGE: • Bleed Size: 10.75”w x 14.75” • Trim Size: 10.5”w x 14.5”h • Safety Area: 10.25”w x 14.25” Full Color-Bleed Please -- REQUEST PREFERRED POSITION / RIGHT-HAND PAGE - Thank you -- again!

Deal Sheet summary

The Deal Sheet, on pages 84 to 94, covers transactions from 7/11/12 through 8/10/12. Please submit future deals to deals@therealdeal.com.

Sales

Overview

By type

Property sales Deals Dollars

43 $946,950,000

Financing

By dollar volume (in millions)

Development

Hotel

Industrial

Mixed-Use

70.69

Multi-family

141.18

Mixed-Use Multi-family

30.49

Transactions

Office

603.59

Buildings

Retail

101

Aggregate value

$356,220,000

Leases Office

Retail

Total

123

Leases square feet Office Retail Total

1,437,805 228,162 1,665,967

Office leases Office leases by industry Industry

Office leases sf by industry Leases

Industry

Top tenant reps for office leasing by sf

Square feet leased

Tenant representative

Square feet leased

Advertising & Marketing

Architecture & Design

Communications

Consulting

Corporate Services

39,061

Adams & Co.

32,575

Education

11,053

Cassidy Turley

27,540

Fashion*

38,531

CBRE Group

26,384

Financial

327,921

42,581 5,670 190,700 5,077

Newmark Grubb Knight Frank

358,585

Studley

259,716

Jones Lang LaSalle

164,574

Tarter Stats Oâ&#x20AC;&#x2122;Toole

42,628

Kassin Sabbagh Realty

17,658

Capstone Realty

17,607

Government

Health & Beauty

13,179

Cushman & Wakefield

16,725

Jewelry

7,300

Fountain Realty Group

11,600

Legal

18,523

BIOC Commercial Real Estate

10,500

Media

27,850

Handler Real Estate Services

10,181

NGO

252,931

A.C. Lawrence & Co.

9,949

Other

168,548

Lee & Associates

8,122

Kenneth Zund Realty

7,900

Other

Science & Technology

270,000

18,880

Retail leases Top tenant reps for leasing by sf

Retail leases by industry

Broker

Fashion

37,307

Financial Services

21,683

Square feet leased

Retail leases sf by industry

JTRE

32,068

Financial Services

NAI Friedland Realty

30,200

Food & Beverage

24,266

Ripco Real Estate

21,800

Health & Beauty

36,468

Cushman & Wakefield

21,683

Musical Instruments

29,688

Greenberg Group

13,600

Other

78,750

Newmark Grubb Knight Frank

8,904

Kassin Sabbagh Realty

7,550

CBRE Group

7,521

Crown Retail Services

7,500

Pura Vida Enterprises

6,450

JDF Realty

5,000

Edison Properties

3,100

Lansco Corp.

2,800

(*includes showroom space)

www.www.TheRealDeal.com September 2012 83

Deal Sheet

Commercial deals in New York City Deals are listed from largest to smallest in square feet leased or bought. The Deal Sheet covers transactions from 7/11/12 to 8/10/12. Please submit future deals to deals@therealdeal.com.

Office leases Address

Size

Tenant / Representative

Landlord / Representative

Notes

One World Trade Center

270,000

General Services Administration / n/a

Port Authority of New York and New Jersey; Durst Organization / n/a

The federal agency signed a 20-year lease, the New York Post reported. The GSA first began talks for the space five years ago. The deal pushes the 3 million-square-foot tower past 50 percent leased. Conde Nast and Chinese real estate firm Vantone are the other tenants who have signed for space in the building.

101 Sixth Ave

170,000

New York Genome Center / Bill Harvey, Newmark Grubb Knight Frank

Edward J. Minskoff Equities / n/a

The nonprofit biotech center signed a lease for seven floors of office and laboratory space. The center is also leasing space at 375 Pearl Street to meet its offsite data center requirements.

200 Madison Ave

170,000

Havas Worldwide Health / D. Falk, J. Greenstein, Newmark Grubb Knight Frank

George Comfort & Sons; Loeb Partners Realty / Represented in-house

The health and wellness communications agency signed a long-term lease renewal and expansion. The tenant will occupy the entire sixth, seventh and ninth floors as well as part of the 20th floor.

14 Wall St

165,000

Amerigroup Corp. of Virginia Beach / Z. Holzman, P. Revson, Studley; R. Hopen, Hopen Corporate Services

Alex Rovt; D. Ghadamian, J. Zamir, Capstone Equities / H. Fiddle, B. Gerla, J. Cope, E. Haskell, CBRE

The health insurance company signed a lease on the 11th, 12th, 14th, 21st and 22nd floors. The asking rent was in the mid-$30s per square foot. The tenant is consolidating its New York City offices into the new space.

1177 Sixth Ave

68,958

Practising Law Institute / I. Schuman, P. Gardner, H. Poretsky, D. Goldstein, Studley

Silverstein Properties / P. Glickman, F. Doyle, C. Wasserberger, Jones Lang LaSalle

The nonprofit signed a 15-year lease on floors two, three and four.

250 West 39th St

33,918

HMS / C. O’Toole, J. Mines, Tarter Stats O’Toole

n/a / C. O’Toole, J. Mines, Tarter Stats O’Toole

The tenant signed a lease.

390 Park Ave

31,200

Third Point LLC / Alexander Chudnoff, Jones Lang LaSalle

RFR Holdings / Steven Morrows, RFR Realty

The hedge fund signed a new long-term lease.

6 East 32nd St

30,720

Operative Media / J. Wenk, R. Masiello, Jones Lang LaSalle

Meringoff Properties / M. Stein, J. Vacker, Meringoff Properties

The digital advertising management company signed an eight-year lease for the entire second and third floors. The asking rent was $41 per square foot, Crain’s reported.

400 East Fordham Rd (The Bronx)

30,000

FEGS / n/a

Fordham Place Office LLC / Carl Silbergleit, NAI Friedland Realty

The employment agency signed a lease.

551 Fifth Ave

29,063

ABM Industries / R. Martin, B. Lane, Jones Lang LaSalle

The Feil Organization / B. Feil, K. Driscoll, The Feil Organization

The integrated facilities solutions company signed a lease renewal.

44 Wall St

25,758

TitleVest / Marc Shapses, Studley

n/a / n/a

The title insurance company signed a lease renewal and expanded. The tenant renewed about 17,000 square feet and added about 8,758 square feet on the ninth floor.

399 Park Ave

25,000

The Jordan Company / David Hoffman Jr., Cassidy Turley

Boston Properties / P. Turchin, CBRE; A. Frazier, Boston Properties

The private equity firm signed a 15-year lease for a full floor.

601 West 26th St

24,000

The Centre for Social Innovation / n/a

RXR Realty / n/a

The social enterprise company signed a lease.

35 East 21st St

21,000

Tumblr / M. Bergey, M. Saker, CBRE

Centaur Properties / D. Levine, D. Falk, Newmark Grubb Knight Frank

The blogging website signed a lease renewal and expansion, the New York Observer reported. The tenant will occupy the entire ninth floor and part of the sixth and 10th floors.

747 Third Ave

20,792

Toppan Vite / A. Chudnoff, D. Turkewitz, Jones Lang LaSalle

William Kaufman Organization / M. Lencher, Sage Realty; A. Tener, F. Doyle, Jones Lang LaSalle

The financial printing services company signed a new long-term lease for the entire seventh and partial sixth floors.

15 East 26th St

19,280

Jump Trading / G. Ohls, M. Felice, M. Carolan, Jones Lang LaSalle

Savanna / M. Konsker, M. Astrachan, M. Polhemus, B. Wunsch, Jones Lang LaSalle

The algorithmic trading firm signed an 11-year lease for the entire third floor.

475 10th Ave

18,500

LivePerson / M. Kaufman, G. Greenspan, Kaufman Organization

n/a / Kristin Fisher, Adler Group

The marketing, web analytics and expert advice company signed a new eightyear lease to expand onto the third floor, the New York Post reported. The tenant already occupies an 18,500-square-foot space on the fifth floor. The asking rent was $35 per square foot, according to the Post.

34 West 33rd St

16,881

Children’s Wear Center / David Levy, Adams & Co.

n/a / David Levy, Adams & Co.

The children’s wear company signed a lease for the entire fifth floor. The reported asking rent was $37 per square foot.

1140 Sixth Ave

12,750

Knighthead Capital / S. Panzer, J. Fischer, Jones Lang LaSalle

Equity Offices / J. Glick, D. Neye, R. Masiello, Jones Lang LaSalle

The hedge fund signed a lease, the New York Post reported. The tenant is relocating from 623 Fifth Avenue.

252 West 37th St

10,500

SGS / Jonathan Stravitz, BIOC Commercial Real Estate

Eretz Group / C. O’Toole, J. Mines, Tarter Stats O’Toole

The tenant signed a lease on the eighth floor.

470 Park Ave South

10,181

Raff & Becker LLC / Peter Newman, Handler Real Estate Services

TIAA-CREF / G. Smith, J. Thompson, K. Pezzolla, JRT Realty

The law firm signed a nine-year lease on the third floor.

470 Park Ave South

9,361

Civic Entertainment LLC / Allen Gurevich, Newmark Grubb Knight Frank

TIAA-CREF / G. Smith, J. Thompson, K. Pezzolla, JRT Realty

The strategic marketing agency signed a seven-year lease on the 16th floor.

590 Madison Ave

9,300

GenNx360 LLC / Alexander Chudnoff, Jones Lang LaSalle

590 Madison Avenue LLC / Jeffrey Sussman, Edward J. Minskoff Equities

The hedge fund signed a new, direct, short-term lease. The tenant was previously subleasing space at the building.

545 Madison Ave

8,802

Peter B. Cannell & Co. / D. Preate, J. Mayeske, C&W

LCOR / G. Rothkin, P. Milunec, K. Cody, R. Kluge, B. Flippin, CBRE

The investment management firm signed a 10-year lease on the 11th floor.

546 Fifth Ave

8,706

Argonaut Management / Alexander Chudnoff, Jones Lang LaSalle

Safra National Bank of New York / D. Ades, L. Briody, CBRE

The hedge fund signed a new, direct, short-term lease. The tenant was previously subleasing at the building.

1441 Broadway

8,500

Breaking Waves International / Morris Sabbagh, Kassin Sabbagh Realty

Lechar Realty / R. Doolittle, M. Toubin, Murray Hill Properties

The swimwear company signed an office lease.

156 Fifth Ave

8,000

Daily Motion / T. Murtha, J. McLaughlin, Capstone Realty

n/a / HRC

The video-sharing website signed a long-term lease for part of the seventh floor.

10 West 33rd St

7,930

Stone Mountain USA LLC / David Levy, Adams & Co.

Ten West Thirty Third Associates / David Levy, Adams & Co.

The accessories company signed a new 10-year lease on the seventh floor. The reported asking rent was $42 per square foot.

1140 Sixth Ave

7,466

Grace Beauty / M. Okun, R. Selig, CBC Hunter Realty

Equity Offices / J. Glick, D. Neye, R. Masiello, Jones Lang LaSalle

The manufacturer and distributor for the beauty industry signed a lease, the New York Post reported.

84 September 2012 www.TheRealDeal.com

www.TheRealDeal.net December 200

ST U NNI NG R EN TA L APARTMENTS W ITH 80,000 SQ FT OF U NR IVA LED AME N IT IE S

N OW L E A S I N G STUDIOS FROM $2925

1 BEDROOMS FROM $3,300

1 BED HOME OFFICE FROM $3,850

2 BEDROOMS FROM $4,650

212.876.6666 | MERCEDESHOUS ENY.COM | 550 W. 54TH STREET

Office leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

110 William St

7,324

OTC FIN LLC; Manhattan Institute of Management / Lily Lin, A.C. Lawrence & Co.

New York City Economic Development Corporation / Dean Bodnar, New York City Economic Development Corporation

The financial firm and the nonprofit signed a seven-year, four-month sublease.

535 Fifth Ave

7,300

Sandeep Diamond Corporation / M. Rudder, M. Heller, Rudder Property Group

The Moinian Group / A. Sachs, B. Shapiro, J. Fales, M. Fennon, C&W

The jewelry firm signed a long-term lease for the entire 15th floor. The tenant is relocating from 20 East 46th Street.

240 West 37th St

5,650

Likeable / S. Bloom, S. Eaton, Bloom Real Estate

Isaac Chetrit / Joseph Mangiacotti, CBRE

The social media leveraging company signed an expansion lease, bringing its total occupancy to 11,650 square feet, the New York Post reported.

350 Fifth Ave (Empire State Building)

5,384

Safe Banking Systems Software LLC / Rob Wizenberg, CBRE

W&H Properties / W. Cohen, R. Kass, S. Ursini, Newmark Grubb Knight Frank

The computer software company signed a new lease.

90 Broad St

5,077

Linium LLC / Kate Pezzolla, JRT Realty

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The information technology and business process consulting firm signed a five-year lease to relocate to a portion of the ninth floor. The company is moving from 275 Madison Avenue.

264 West 40th St

5,000

NML International / Vicus Partners

Renaissance Properties / Nora Stats, Tarter Stats O’Toole

The tenant signed a lease for the entire 16th floor. The reported asking rent was $42 per square foot.

148 Madison Ave

5,000

ELS Realty Corp. / Morris Sabbagh, Kassin Sabbagh Realty

148 Mad New Owner LLC / B. Bernstein, H. Epstein, Winoker Realty

The legal company signed a lease.

90 Broad St

4,943

Fogel Neale Partners LLC / T. Wilson, R. Satler, Newmark Grubb Knight Frank

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The private wealth management services firm signed a three-year lease for part of the 22nd floor. The tenant had previously subleased space at the building.

90 Broad St

4,805

Engle Martin & Associates / Seth Hecht, Colliers International

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The independent loss adjusting and claims management services firm signed a five-year lease for part of the ninth floor. The company is relocating from One Grand Central Tower.

281 Park Ave South

4,800

Points of Light / Carri Lyon, C&W

Federation of Protestant Welfare Agencies / D. Lebenstein, D. Wollens, E. Kent, Cassidy Turley

The nonprofit signed a new lease.

90 Broad St

4,780

RealMatch Ltd. / Kenneth Salzman, Lee & Associates

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The recruitment advertising network signed a five-year lease for part of the 22nd floor.

151 West 46th St

4,500

T. O. Dey Inc. / Tom Pfingst, Kenneth Zund Realty

Jack Elo / n/a

The custom show designer and manufacturer signed a lease to relocate and expand on the entire third floor.

90 Broad St

4,281

Professional Group Plans Inc. / Adam Leshowitz, Newmark Grubb Knight Frank

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The employee benefits specialist signed a five-year lease for part of the eighth floor. The company is relocating from 535 Fifth Avenue.

33 35th St (Brooklyn)

4,158

EDM Imports / Morris Sabbagh, Kassin Sabbagh Realty

Industry City / n/a

The importing company signed a lease.

260 West 39th St

3,600

Jill Stuart International / S. Penzner, N. Stange, Susan Penzner Real Estate

n/a / Joe McLaughlin, Capstone Realty Advisors

The fashion company signed a lease for part of the 17th floor.

281 Park Ave South

3,510

Boys Town New York / Corey Abdo, Winoker Realty

Federation of Protestant Welfare Agencies / D. Lebenstein, D. Wollens, E. Kent, Cassidy Turley

The nonprofit signed a lease.

363 Seventh Ave

3,400

A-List Services LLC / Tom Pfingst, Kenneth Zund Realty

n/a / n/a

The exam preparatory service company signed a lease for the entire 13th floor.

90 Broad St

3,342

Stuart A. Klein / S. Klein, J. Myers, Lee & Associates

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The attorney signed a five-year lease on the sixth floor.

123-127 Lafayette St

3,300

Dr. Qin / Jonathan Mines, Tarter Stats O’Toole

n/a / n/a

The doctor signed a lease.

264 West 40th St

3,210

Lividi / Nora Stats, Tarter Stats O’Toole

Renaissance Properties / Nora Stats, Tarter Stats O’Toole

The tenant signed a lease for the entire 20th floor. The reported asking rent was $50 per square foot.

131-19 Jamaica Ave (Queens)

3,200

Rydan Security Inc. / n/a

JBN Realty Corp. / Rommel Tinio, Right Time Realty

The security company signed a five-year lease to expand into larger offices.

90 Broad St

3,123

Fair Health Inc. / Ben Shapiro, C&W

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The nonprofit signed a three-year lease for part of the second floor.

227 West 29th St

3,117

Ten Arquitectos / Michael Jaffe, Capstone Realty

Kew Management / Represented inhouse

The architectural firm signed a lease.

39 West 38th St

2,868

Cake Factory / Matt Spiegal, Tungsten Properties

n/a / C. O’Toole, S. Moore, Tarter Stats O’Toole

The tenant signed a lease on the fifth floor.

90 Broad St

2,763

National Catastrophe Adjusters Group / John Moxley, Jones Lang LaSalle

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The insurance management firm signed a two-year lease for part of the fourth floor.

227 West 29th St

2,653

Casenex LLC / Ethan Balin, Miyad Realty

Kew Management / Represented inhouse

The educational materials producer signed a lease.

555 Madison Ave

2,625

Article One Partners Holdings LLC / Lily Lin, A.C. Lawrence & Co.

C&W / Robert Baraf, C&W

The art-search-services company signed a five-year, nine-month sublease.

227 West 29th St

2,553

Brian Orter Lighting Design LLC / Erik Nissani, Willow Stone Realty

Kew Management / Represented inhouse

The lighting design firm signed a lease.

11 West 25th St

2,500

Bizo Inc. / n/a

Kew Management / Represented inhouse

The marketing company signed a lease.

138 Spring St

2,500

Think Global School / Rice & Associates

Rivercrest Realty / Nora Stats, Tarter Stats O’Toole

The school signed a lease on the fourth floor. The reported asking rent was $62 per square foot.

150 West 36th St

2,500

NY Vocal Coaching Inc. / Richard Russo, MCR

n/a / C. O’Toole, E. Eckstein, Tarter Stats O’Toole

The vocal coach signed a lease on the third floor.

256 West 36th St

2,500

Nimble TV / Robert Dalton, RMD Realty

n/a / C. O’Toole, E. Eckstein, Tarter Stats O’Toole

The tenant signed a lease on the 12th floor.

1630 Broadway

2,500

Oasis Valley Spa / Renard Suggs, Fountain Realty Group

n/a / n/a

The spa signed a 10-year office lease

261 East 78th St

2,500

Skyline Developers / n/a

n/a / n/a

The developer signed a lease for a sales office for 200 East 79th Street. Stribling Marketing Associates, who will handle sales and marketing at the development, will also occupy the space.

80-90 Eighth Ave

2,400

Inet Giant Media / David Gomez, Fountain Realty Group

n/a / Matthew Mandell, Newmark Grubb Knight Frank

The Internet firm signed a five-year lease.

86 September 2012 www.TheRealDeal.com

Office leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

488 Eighth Ave

2,400

Oasis Valley Spa / Renard Suggs, Fountain Realty Group

n/a / n/a

The spa signed an office lease on the second floor.

501 Fifth Ave

2,290

CFP Americas LLC / B. Wilson, D. O’Donnell, Capstone Realty

n/a / Danielle Nolan, Abramson Brothers

The corporate finance advisory services firm signed a lease for part of the 11th floor.

60 Madison Ave

2,200

DSA Realty / Daniel Lolai, Murray Hill Properties

The Moinian Group / Jovani Rampersad, The Moinian Group

The real estate company signed a lease.

147 West 26th St

2,200

Point Logic / Kevin Phelan, Capstone Realty Advisors

n/a / n/a

The marketing communications firm signed a lease for part of the fourth floor.

463 Seventh Ave

2,052

Max Matson LTD / David Levy, Adams & Co.

The Arsenal Company LLC / David Levy, Adams & Co.

The tenant signed a lease renewal. The reported asking rent was $39 per square foot.

26 Broadway

2,000

Garic Inc. / Chelsea Merrifield, Capstone Realty Advisors

n/a / Jamie Jacobs, Newmark Grubb Knight Frank

The computer-leasing company signed a lease for part of the 23rd floor.

281 Park Ave South

1,890

Volunteers of Legal Service / E. Kent, D. Lebenstein, Cassidy Turley

Federation of Protestant Welfare Agencies / D. Lebenstein, D. Wollens, E. Kent, Cassidy Turley

The nonprofit signed a lease.

463 Seventh Ave

1,620

Trimfit Inc. / David Levy, Adams & Co.

The Arsenal Company LLC / David Levy, Adams & Co.

The fashion company signed a lease. The reported asking rent was $39 per square foot.

10 East 40th St

1,600

BFH Associates LLC / Lisa Dresner, Fountain Realty Group

n/a / Richard Brickell, Joseph P. Day Realty

The medical tenant signed a 10-year lease.

463 Seventh Ave

1,503

Rose and Olive / Brett Maslin, Adams & Co.

The Arsenal Company LLC / David Levy, Adams & Co.

The tenant signed a lease. The reported asking rent was $39 per square foot.

261 West 35th St

1,500

Tarp Inc. / Jessica Luciere, Fountain Realty Group

n/a / Justin Management

The entertainment firm signed a five-year lease.

463 Seventh Ave

1,344

Supreme Trading Ltd. / Brett Maslin, Adams & Co.

The Arsenal Company LLC / David Levy, Adams & Co.

The tenant signed a lease. The reported asking rent was $39 per square foot.

463 Seventh Ave

1,245

Fabric NY LLC / David Levy, Adams & Co.

The Arsenal Company LLC / David Levy, Adams & Co.

The textile company signed a lease. The reported asking rent was $39 per square foot.

347 West 36th St

1,200

Onslot Creative / Elsa Gendall, Fountain Realty Group

n/a / Barry Bernstein, Winoker Realty

The media company signed a three-year lease.

252 West 38th St

1,200

Rooftop Group USA / Rafina Ibragimova, Tarter Stats O’Toole

Florenzia Properties / Carlos Silberman, Florenzia Properties

The tenant signed a lease. The reported asking rent was $34 per square foot.

421 Seventh Ave

1,200

Adams Associates Inc. / M. Kabiri, W. Stein, Manhattan Commercial Realty

n/a / Penny Cohn, AAG Management

The tenant signed a five-year lease.

1123 Broadway

1,096

Zero in Media LLC / n/a

Kew Management / Represented inhouse

The technology firm signed a lease.

214 West 39th St

1,000

Zero Degrees Celsius / Rafina Ibragimova, Tarter Stats O’Toole

Granite Management / n/a

The tenant signed a lease. The reported asking rent was $35 per square foot.

1550-1556 Third Ave

813

Bodywise Physical Therapy and Pilates PC / Nancy Washburn, Jonathan Barry Associates

Muss Development / n/a

The health and fitness center signed a new five-year lease for a sixth-floor suite. The reported asking rent was $55 per square foot.

1123 Broadway

690

Bread & Butter Entertainment LLC / n/a

Kew Management / Represented inhouse

The event coordination, marketing and promotion solutions agency for the entertainment industry signed a lease.

281 Park Ave South

650

FoodCorps / D. Lebenstein, E. Lent, Cassidy Turley

Federation of Protestant Welfare Agencies / D. Lebenstein, D. Wollens, E. Kent, Cassidy Turley

The nonprofit signed a lease.

421 Seventh Ave

329

Adams Associates / M. Kabiri, W. Stein, Manhattan Commercial Realty

n/a / Penny Cohn, AAG Management

The tenant signed a five-year lease for a second office space in the building.

519 Eighth Ave

300

LDS Inc. / M. Kabiri, W. Stein, Manhattan Commercial Realty

n/a / Zev London, Boomtown Realty

The tenant signed a one-year lease.

1133 Broadway

251

Glow Gluten Free LLC / n/a

Kew Management / Represented inhouse

The cookie company leased office space.

Retail leases Address

Size

Tenant / Representative

Landlord / Representative

Notes

333 West 34th St

29,688

Sam Ash Music Stores / n/a

SL Green / J. Roseman, G. Gropper, Newmark Grubb Knight Frank; D. Kaufman, D. Amsterdam, SL Green

The music store signed a 15-year lease for new retail space on the ground floor and basement. The shop is relocating from its long-time home on West 48th Street.

One Grand Central Place

21,683

JPMorgan Chase / G. Spiegelman, M. O’Neill, C&W

W&H Properties / Jared Lack, Newmark Grubb Knight Frank

The bank signed a 15-year lease renewal and expansion.

1623 Flatbush Ave (Brooklyn)

17,098

Retro Fitness / Jack Terzi, JTRE

Renaissance Realty Group / Adir Cohen, Renaissance Realty Group

The fitness center signed a lease.

5030 Broadway

15,000

City University of New York / n/a

n/a / L. Lazzarino, J. Miller, Edison Properties

The school leased retail space. The reported asking rent was $45 per square foot.

252 Atlantic Ave (Brooklyn)

14,970

Retro Fitness / Jack Terzi, JTRE

Renaissance Realty Group / Adir Cohen, Renaissance Realty Group

The fitness center signed a lease.

152 West 34th St

13,600

Crocs / Steven Greenberg, Greenberg Group

The Riese Organization / Mark Stempel, CityVest Realty Corp.

The footwear company signed a lease for its fourth Manhattan location.

1775 Grand Concourse (The Bronx)

10,100

1775 G C Food Corp / R. Herko, D. Scotto, S. Lorenzo, NAI Friedland Realty

J J Operating Inc. / R. Herko, D. Scotto, S. Lorenzo, NAI Friedland Realty

The tenant signed a lease.

269 Madison Ave

10,000

FC USA Inc. / Gene Meer, NAI Friedland Realty

n/a / J. Zund, B. Mehlman, Kenneth Zund Realty Associates

The parent company of Liberty Travel signed a long-term lease for the groundfloor retail space.

1701 Utica Ave (Brooklyn)

10,000

Dollar Tree / R. Senior, E. Bukai, M. Mahony, Ripco Real Estate

Renaissance Realty Group / Adir Cohen, Renaissance Realty Group

The discount store signed a 10-year lease.

130 New Lots Ave (Brooklyn)

10,000

Dollar Tree / R. Senior, E. Bukai, M. Mahony, Ripco Real Estate

Renaissance Realty Group / Adir Cohen, Renaissance Realty Group

The discount store signed a seven-year lease.

88 September 2012 www.TheRealDeal.com

www

Want to Make Your Building Smoke-Free?

Healthier Air Means Healthier Profits  Reduce liability against fires and other damage  Attract more residents with cleaner units

To get started, call 311 to receive your NYC

Smoke-Free Living SMOKE-FREE

Healthier homes, healthier investments

NYC

Smoke-Free Living

Healthier homes, healthier investments

NYC

Smoke-Free Living HOUSING KIT Healthier homes, healthier living

NYC

Smoke-Free Living

Healthier homes, healthier living

NYC

Retail leases continued Address

Size

Tenant / Representative

Landlord / Representative

Notes

414 West 14th St

7,521

Patagonia / A. Yunis, M. Krell, CBRE

Sitt Asset Management; Carlyle Group / n/a

The outdoor clothing retailer signed a lease for another location.

789 Madison Ave

7,500

Kate Spade / Virginia Pittarelli, Crown Retail Services

Friedland Properties / Aaron Prince, Friedland Properties

The fashion designer signed a 10-year lease.

5030 Broadway

6,450

JBFSC / R. Carrillo, A. Diggle, Pura Vida Enterprises

n/a / L. Lazzarino, J. Miller, Edison Properties

The tenant signed a retail lease. The reported asking rent was $45 per square foot.

640 Pelham Pkwy (The Bronx)

6,100

640 Pelham Food Corp / R. Herko, D. Scotto, S. Lorenzo, NAI Friedland Realty

Solil Management / R. Herko, D. Scotto, S. Lorenzo, NAI Friedland Realty

The tenant signed a lease.

14 East 58th St

5,500

n/a / Gregg Gropper, Newmark Grubb Knight Frank

Friedland Properties / Aaron Prince, Friedland Properties

The Italian restaurant signed a lease.

1167 Madison Ave

5,000

Altamarea Group / L. Siben, B. Kahr, JDF Realty

Duell Management System / n/a

The restaurant group signed a 12.5-year lease for a new restaurant, the New York Post reported.

1730 Crosby Ave (The Bronx)

4,000

Fortune 99C / R. Herko, D. Scotto, NAI Friedland Realty

Anthony Scovotti / R. Herko, D. Scotto, NAI Friedland Realty

The tenant signed a retail lease.

90 Broad St

3,404

Potbelly Sandwich Works / M. Frankel, B. Birnbaum, Newmark Grubb Knight Frank

90 Broad Owner LLC / J. Ryan III, E. DiTolla, S. Cahaly, Jones Lang LaSalle

The sandwich shop signed a 10-year lease for another location.

5030 Broadway

3,100

Royal Drug Pharmacy / L. Lazzarino, J. Miller, Edison Properties

n/a / L. Lazzarino, J. Miller, Edison Properties

The pharmacy signed a lease.

370 Lexington Ave

2,900

Zaro’s Bread Basket / n/a

Sherwood Equities / A. Weissleder, J. Burrowes, Sherwood Equities

The bakery signed an eight-year lease for another location.

795 Madison Ave

2,800

Anya Hindmarch / Robin Abrams, Lansco Corp.

EGAT America / G. Dana, R. Dana, A. Kramer, Prudential Douglas Elliman

The accessories retailer signed a 12-year lease, the New York Post reported.

146 West 29th St

2,486

United Nude / P. Carrillo, R. Buckley, SBC Associates

Shainaya & Samara LLC / n/a

The shoe designer signed a retail lease.

5002 Fifth Ave (Brooklyn)

2,200

The Gold Standard Jewelry / Edward Gottlieb, Schuckman Realty

n/a / Morris Sabbagh, Kassin Sabbagh Realty

The jeweler signed a lease.

26 West 47th St

2,000

A Top Spa / Abraham Kassin, Kassin Sabbagh Realty

26 on 47 LLC / Abraham Kassin, Kassin Sabbagh Realty

The spa signed a lease.

72 Nassau St

1,900

Know Style / Morris Sabbagh, Kassin Sabbagh Realty

GALB Realty / Charles Gengler, David Baldwin Realty

The clothing store signed a lease for its 16th location.

One Worldwide Plaza

1,819

Just Salad / New Street Realty Advisors

George Comfort & Sons / Andrew Halder, George Comfort & Sons

The salad eatery signed a lease.

152 West 36th St

1,800

Advantage Reserve / Nelson Mieses, Rescom Properties

n/a / Carlos Silverman, Falcon Properties

The hotel call center reservations company signed a three-year retail lease.

180 West Broadway

1,800

Drybar / Richard Skulnik, Ripco Real Estate

n/a / Mark Kapnick, SRS Urban

The salon signed a 10-year lease.

10-43 44th Dr (Queens)

1,725

John Brown Smoke House / n/a

Irene Batas / Joe Ibrahim, Right Time Realty

The barbecue restaurant signed a 10-year lease to relocate and expand to a larger space.

1129 Broadway

1,618

Num Pang / n/a

Kew Management / Represented inhouse

The Cambodian-style sandwich shop signed a lease for another location.

148 West 125th St

1,500

Orva Shoes / M. Sabbagh, A. Kassin, Kassin Sabbagh Realty

148 West 125th Street LLC / n/a

The shoe store signed a lease.

222 First Ave

900

Joey Pepperoni / Morris, Sabbagh, Kassin Sabbagh Realty

SEYS Group LLC / E. Nissim, I. Nissim, Mason Asset Management

The pizzeria signed a lease.

113 West 10th St

750

The Bees Knees Baking Company / Joseph Robinson, Bond New York

Patchin Place LLC / Quality Living Village Inc.

The bakery signed a 10-year lease. The reported asking rent was $120 per square foot.

207 East Fordham Rd (The Bronx)

650

2 Bros Pizza / Morris Sabbagh, Kassin Sabbagh Realty

Fordham Grand LLC / Morris Sabbagh, Kassin Sabbagh Realty

The pizza chain signed a lease for its 14th location.

82 Christopher St

600

Perfect Brows / Morris Sabbagh, Kassin Sabbagh Realty

Jayvanka II LLC / n/a

The salon signed a lease for its 14th location.

Buys Address

Size

Buyer / Representative

Seller / Representative

Notes

One Court Square (Queens)

50-story, 1.4 million sf office bldg

David Werner / n/a

SL Green; JPMorgan / D. Harmon, A. Spies, Eastdil Secured

The property sold for $500 million, or about $350 per square foot, the New York Post reported.

31 West 27th St

12-story office bldg

Walnut Hill Group / n/a

Soho Properties / n/a

The property sold for $65 million. Sharif El-Gamal’s Soho Properties acquired the building for $45.7 million in October 2009.

465 Broadway

14,100 sf retail condo

Savanna / n/a

GLL Real Estate Partners / W. Heller, W. Silverman, E. Negrin, Studley

The retail condo sold for $57 million. The space consists of 9,400 square feet on the ground floor and 4,700 square feet below grade. The deal was financed with a $42 million acquisition loan from Mesa West Capital and equity from Savanna Real Estate Fund II.

20 West 47th St

Office bldg

Alishaev Brothers / n/a

Extell Development / n/a

The property sold for $38.59 million. Extell Development wrested full control of the building from Frank Ring in a court-ordered judicial sale in February 2011. Extell had been a 75 percent stakeholder in the property.

85 and 89 Jane St

2 mixed-use bldgs

n/a / Robby Browne, Corcoran

Danta Raso and Ricard de La Rosa / P. McCuen, J. St. Andre, Peter McCuen and Associates

The properties sold for $32 million, or almost $2,700 per square foot.

1875-1925 Nostrand Ave (Brooklyn)

14 one-story retail bldgs, 34,000 sf total

Nostrand Retail Group LLC / n/a

Emmes Asset Management / n/a

The block-long stretch of retail buildings sold for $18.5 million. Tenants include a Key Foods supermarket, Papa John’s and Subway, as well as 11 momand-pop stores. The seller acquired the properties in 1997 for an undisclosed sum through an entity called NRP LLC, according to city property records.

176-182 82nd St

Four 5-story mixeduse bldgs

The Praedium Group / n/a

Navistone Amsterdam LLC / n/a

The package of buildings sold for $17 million. The sellers acquired the properties for $18.7 million in May 2008.

90 September 2012 www.TheRealDeal.com

Discover 360° Service Finding the right space means more than just location. Cassidy Turley’s tenant representation specialists will develop your ideal real estate strategy, no matter your size, scale or scope. Our experience, proprietary research and unique strategic approach give our experts a 360º view.

VIEWS LEASE TERMS BRANDING OWNERSHIP WIRING Discover Excellence in Tenant Representation. Discover Cassidy Turley. Peter Hennessy President, New York Tri-State Region 212.318.9790 Peter.Hennessy@cassidyturley.com www.cassidyturley.com Tenant Representation / Project Leasing / Capital Markets / Project & Development Services / Property Management / Corporate Services

Buys continued Address

Size

Buyer/ Representative

Seller / Representative

Notes

502 West 41st St

140,000 sf air rights

Extell Development / n/a

Roman Catholic Church / n/a

The development rights sold for $16.46 million. Extell plans to use the air rights to increase the size of its planned 40-story-plus residential development on the west side of 10th Avenue, between 40th and 41st streets.

831 Bartholdi St (The Bronx)

6-story, 127,629 sf apt. bldg, 122 units total

Local private investor / Alex Frants, Besen & Associates

n/a / Matthew Slonim, Besen & Associates

The property sold for $14 million, or $110 per square foot. The price represents a capitalization rate of 7 percent and a gross rent multiple of 7.

450 and 452 Amsterdam Ave

2 apt. bldgs, 16 units total

Trevi Retail / Steven Vegh, Multi Investment Group

Silverstone Property Group / Steven Vegh, Multi Investment Group

The rental buildings sold for $12.5 million. The properties have a combined four retail units, which are leased to a bar, two restaurants and a stationery store.

83 Spring St

5,200 sf retail condo

n/a / n/a

n/a / Itzhaki Properties

The retail condo sold for $11.5 million. The price represents a capitalization rate of 5.4 percent. Stationery store Paper Source leases the space on a longterm lease.

32-40 and 32-50 93rd St (Queens)

Two 4-story apt. bldgs, 78 units total

n/a / Aaron Jungreis, Rosewood Realty

93rd Associates LLC / Michael Guttman, Rosewood Realty

The walk-up building sold for $9.6 million.

Manhattan portfolio

4 apt. bldgs

n/a / Joe Berko, Berko & Associates

n/a / Steve Geller, Berko & Associates

The package of properties sold for $9 million. The buildings are located at 15 and 17 Arden Street and 149 and 157 Vermilyea Street.

6 West 107th St

7-story apt. bldg, 21 units total

n/a / n/a

Stonehenge Partners / Ariel Property Advisors

The elevator building sold for $8.75 million. Stonehenge acquired the building in August 1995 for $670,000.

327 and 329 East Houston St

2 vacant lots

East Houston Development LLC / n/a

Michael Albano / n/a

The vacant lots sold for $8.4 million, the Lo-Down reported.

2901 Avenue J (Brooklyn)

6-story apt. bldg, 48 units total

n/a / Michael Guttman, Rosewood Realty

Pasem Realty LLC / A. Jungreis, J. Blatter, Rosewood Realty

The elevator building sold for $8 million. The price represents a gross rent multiple of 13.

332 East 95th St

6-story, 18,888 sf apt. bldg

Latham Properties / Orly Hazan, Besen & Associates

Margules Properties / Orly Hazan, Besen & Associates

The building sold for $7.6 million.

1444 Third Ave

Mixed-use bldg

n/a / O. Hazan, A. Tayar, Besen & Associates

Hoaxter Trust / O. Hazan, A. Tayar, Besen & Associates

The property sold for $7.5 million.

Brooklyn portfolio

6 apt. bldgs, 47 units total

n/a / n/a

n/a / Michael Amirkhanian, Massey Knakal

The package of multifamily buildings sold for $7.33 million. The properties are located in the Bedford-Stuyvesant section of Brooklyn, at 654 Putnam Avenue, 419-21 Marcus Garvey Boulevard, 319 Malcolm X Boulevard and 804 and 814 Macon Street.

109 St. Marks Pl

6-story apt. bldg, 24 units total

n/a / David Bess, Besen & Associates

109 St. Marks Pl LLC / G. Raff, L. Blumberg, Besen & Associates

The property sold for $7 million, or $674 per square foot. The price represents a capitalization rate of 4.75 percent.

1308 East 13th St (Brooklyn)

5-story, 30,000 sf retail bldg

HH Realty Equities / Robert Klein, Kalmon Dolgin Affiliates

Avenue M Associates / Robert Klein, Kalmon Dolgin Affiliates

The property sold for $6.5 million.

500, 504 and 506 West 172nd St

Three 5-story apt. bldgs, 61 units total

n/a / Amit Doshi, Besen & Associates

500-506 West 172nd Street Holdings LP / Amit Doshi, Besen & Associates

The walk-up buildings sold for $6.1 million, or $130 per square foot.

111 East 77th St

3-story, 5,300 sf mixed-use bldg

n/a / n/a

n/a / Thomas Gammino Jr., Massey Knakal

The walk-up property sold for $6.1 million, or $1,150 per square foot. Should the buyer choose to develop on the site, the property allows for an additional 13,000 square feet of development rights through a community facility bonus FAR of 5.1.

999 Willoughby Ave (Brooklyn)

5-story, 22,000 sf apt. bldg, 18 units total

n/a / Ben Weiss, Besen & Associates

n/a / Jesse Cirolli-Quinones, Besen & Associates

The property sold for $5.9 million, or $268 per square foot. The price represents a capitalization rate of 6 percent and a gross rent multiple of 13.7.

1431A York Ave

12,000 sf apt. bldg, 18 units total

n/a / n/a

n/a / G. Garvin, J. Ciraulo, Massey Knakal

The corner walk-up building sold for $5.6 million, or about $467 per square foot. In addition to the one-bedroom apartments, the property has two retail units.

40 Morton St

5-story apt. bldg, 15 units total

n/a / n/a

n/a / B. Emmetsberger, J. Nelson, Massey Knakal

The walk-up building sold for $5.44 million, or $611 per square foot. The residential units are configured as five one-bedrooms and 10 two-bedrooms.

660 East 242nd St (The Bronx)

6-story, 55,000 sf apt. bldg, 61 units total

F&G Realty Group / Josh Orlander, GFI Realty

Gun Hill Management / Josh Orlander, GFI Realty

The elevator building sold for $5 million.

515 West 47th St

10,675 sf mixed-use bldg

n/a / Agustin Pena, Berko & Associates

n/a / Abraham Farig, Berko & Associates

The property sold for $4.74 million.

434 East 83rd St

5-story, 8,515 sf apt. bldg, 21 units total

n/a / Shay Zach, Itzhaki Properties

The walk-up building sold for $4.27 million. The price represents a capitalization rate of 5.75 percent.

482-510 Riverdale Ave (Brooklyn)

2 apt. bldgs, 36,000 sf total

n/a / Agustin Pena, Berko & Associates

The multifamily package sold for $4.17 million. The price represents a capitalization rate of 9 percent and a gross rent multiple of 6.

331 East Houston St and 163 Ridge St

Development site

East Houston Development LLC / n/a

n/a / n/a

The lots sold for $4 million, the Lo-Down reported.

145 Mulberry St

6,700 sf retail condo

n/a / K. Salmon, M. Marshall, Salmon & Marshall

The retail condo sold for $4 million. The space has 3,900 square feet on the ground floor and 2,800 square feet of selling space on the lower level.

1387 Grand Concourse (The Bronx)

5-story, 33,420 sf apt. bldg, 40 units total

1387 Realty LLC / Jonathan Birnbaum, Rosewood Realty

1387 Grand Concourse LLC / M. Kerwin, A. Jungreis, Rosewood Realty

The walk-up property sold for $3.7 million.

43 Wooster St

4,300 sf retail condo

n/a / K. Salmon, M. Marshall, Salmon & Marshall

The retail condo sold for $3.5 million.

711-721 East 228th St (The Bronx)

3 apt. bldgs, 45 units total

228 Threestar LLC; Quantum Equities / Yitzie Pretter, Quantum Equities

East 228th St LLC / n/a

The three properties sold for $3.45 million.

626 Manhattan Ave (Brooklyn)

4,050 sf mixed-use bldg

GreenBush Realty / n/a

626 Manhattan Avenue Corp. / D. Gutoff, G. Saffioti, P. Nigido, Eastern Consolidated

The property sold for $3.35 million.

310 West 90th St

4-story, 5,780 sf apt. bldg, 9 units total

n/a / n/a

n/a / H. Oster, P. Smadbeck, Massey Knakal

The property sold for $3.15 million, or about $544 per square foot.

1665 Grand Concourse (The Bronx)

5-story, 34,386 sf apt. bldg, 33 units total

1665 GC LLC / Aaron Jungreis, Rosewood Realty

Steveco Partners LLC / Devin Cohn, Rosewood Realty

The walk-up building sold for $3.1 million.

551-553 Manhattan Ave

4-story, 9,782 sf apt. bldg, 6 units total

n/a / n/a

n/a / J. Lipton, T. Gammino, Massey Knakal

The property sold for $2.27 million, or about $232 per square foot.

149 Fourth Ave

4-story, 5,940 sf apt. bldg, 6 units total

n/a / n/a

Cityview Apartments LLC / A. Hess, J. Colleran, TerraCRG

The property sold for $2.12 million, or $357 per square foot. The price represents a capitalization rate of 6.1 percent and a gross rent multiple of 12.9. The property has an additional 4,655 square feet of development rights.

92 September 2012 www.TheRealDeal.com The

Real Deal Ad Sept.pdf

CMY

8/30/12

1:10 PM

Buys continued Address

Size

Buyer/ Representative

Seller / Representative

Notes

338 Clinton Ave (Brooklyn)

5-story, 4,593 sf brownstone

n/a / n/a

n/a / Stephen Palmese, Massey Knakal

The property sold for $1.93 million, or about $419 per square foot.

111-113 Kane St (Brooklyn)

8,100 buildable sf development site

n/a / n/a

n/a / K. Freeman, M. Amirkhanian, Massey Knakal

The development site sold for $1.63 million, or $200 per buildable square foot.

2272 Adam Clayton Powell Jr. Blvd

5-story, 6,355 sf apt. bldg, 4 units total

n/a / Joseph Aizer, Aizer Realty

n/a / V. Sozio, J. Deutch, Areil Property Advisors

The property sold for $1.2 million.

Financing Address

Size

Borrower / Representative

Lender / Representative

Notes

Four World Financial Center

1.9 million sf office bldg

Brookfield Properties / n/a

Deutsche Bank / n/a

A $270 million loan was provided to refinance the building, the New York Observer reported.

120 Cabrini Blvd

585-unit apt. bldg

Castle Village Owners Corp. / n/a

NCB / n/a

A $36 million first mortgage and a $5 million line of credit were arranged for the building.

35 West 36th St

12-story, 79,200 sf office bldg

Hidrock Realty / n/a

Assurant / n/a

A $16.1 million loan was provided to refinance the building. The mortgage was provided at a 3.89 percent interest rate.

Brooklyn portfolio

6 apt. bldgs, 46 units total

IWC Capital Management LLC / Efrat Sharon, TerraCRG

n/a / n/a

A $5.5 million first mortgage was arranged for the acquisition of the multifamily portfolio. The buildings are located at 654 Putnam Avenue, 319 Malcolm X Boulevard, 419 Marcus Garvey Boulevard, 421 Marcus Garvey Boulevard, 804 Macon Street and 814 Macon Street.

255 Fieldston Terrace (The Bronx)

73-unit apt. bldg

255 Fieldston Buyers Corp. / n/a

NCB / n/a

A $2.8 million first mortgage and a $500,000 line of credit were arranged for the building.

1970-1992 Ralph Ave (Brooklyn)

16,000 sf retail bldg

n/a / Houlihan-Parnes Realtors; Q10 New York Realty Advisors

Local bank / n/a

A $2.5 million first mortgage was provided for the property. The seven-year, non-recourse loan has a fixed rate of 4.08 percent with a 30-year amortization schedule.

35-55 29th St (Queens)

54-unit apt. bldg

The Paul Revere Owners Corp. / n/a

NCB / n/a

A $1.9 million first mortgage and a $500,000 line of credit were arranged for the building.

1223 Jerome Ave (The Bronx)

1-story comm. bldg and parking lot

n/a / n/a

Intervest Bank / Berko & Associates

A $2 million loan was provided for the property.

190 North 14th St (Brooklyn)

Mixed-use bldg

n/a / n/a

Community National Bank / Berko & Associates

A $2 million loan was provided for the building.

1165 Pugsley Ave (The Bronx)

32-unit apt. bldg

1165 Pugsley LLC / Angela Ortiz, Besen Capital

NYCB / n/a

A $2 million first mortgage was arranged for the building.

33 West 93rd St

33-unit apt. bldg

Nine-G Cooperative Inc. / n/a

NCB / n/a

A $1.6 million first mortgage was arranged for the building.

345 West 70th St

36-unit apt. bldg

345 West 70th Tenants Corp. / n/a

NCB / n/a

A $1.2 million first mortgage and a $250,000 line of credit were arranged for the building.

5730 Mosholu Ave (The Bronx)

42-unit apt. bldg

5730 Mosholu Owners Corp. / n/a

NCB / n/a

A $1.2 million first mortgage and a $250,000 line of credit were arranged for the building.

47-49 King St

12-unit apt. bldg

47-49 King Street Housing Corporation / n/a

NCB / n/a

A $1.1 million first mortgage and a $250,000 line of credit were arranged for the building.

534 West 47th St

20-unit apt. bldg

Midtown Wesst Properties / Angela Ortiz, Besen Capital

NYCB / n/a

A $1.3 million first mortgage was arranged for the building. In addition to the apartments, the property has a professional office.

326-328 East 73rd St

40-unit apt. bldg

326-328 East 73rd Street Residents Inc. / n/a

NCB / n/a

A $1.2 million first mortgage was arranged for the building.

56 West 82nd St

19-unit apt. bldg

56 West 82nd Street Apartment Corp. / n/a

NCB / n/a

An $820,000 first mortgage and a $250,000 line of credit were arranged for the building.

Other Deals New York City’s first JW Marriott coming to Essex House after $362M deal The neon sign atop the Essex House may stay, but the name won’t. Strategic Hotels & Resorts confirmed its reported purchase of the former Jumeirah Essex House at 160 Central Park South last month for the price of $362.3 million and said it would flag the hotel with Manhattan’s first JW Marriott, Bloomberg News reported. Marriott signed a 50-year management agreement to operate the property, to be named the JW Marriott Essex House, and guaranteed a net operating income of as much as $21.5 million annually for eight years. The deal, financed with a $190 million loan from Bank of America, is expected to close by Sept. 7. (The deal was announced after the deadline for the Deal Sheet.)

Madison Ave. building trades for $7K per foot Two stories on Madison Avenue cost Friedland Properties $140 million last month. The New York Post reported that the 20,000-square-foot Bank of New York Mellon building on the Upper East Side entered contract for more than $7,000 per square foot to Friedland. The bank’s building, at 706 Madison Avenue, has 88 feet of frontage on Madison 94 September 2012 www.TheRealDeal.com

Avenue and 80 feet along East 63rd Street. Italian design company Domenico Vacca has a short-term lease for some of the ground floor. The Post said the sales price was so high because of competition from other developers salivating over the potential to unlock an additional 50,000 square feet of developable rights. (The deal was announced after the deadline for the Deal Sheet.)

Chetrit is latest to make Far West Side play Major property news emerged from the Far West Side near the Jacob Javits Center for the third time over a twoday period last month. A day after The Real Deal reported Rockrose Development closed on its purchase of a West 39th Street development parcel and the Imperatore family reportedly began exploring a sale of a 1 million-squarefoot development site across 11th Avenue from the Javits Center, Crain’s reported Aug. 16 that Joseph Chetrit entered contract to buy property in the area. Chetrit acquired a block-through site of four adjacent lots, partly occupied by industrial buildings, on the north side of West 37th Street between 10th and 11th avenues for $26 million. (The deal was announced after the deadline for the Deal Sheet.)

DDG picks up Soho’s Tootsie Roll factory DDG Partners is in contract to buy the four-building Soho Tootsie Roll factory complex from Lehman Brothers Holdings. Crain’s reported last month that DDG paid as much as $39 million for the properties and is likely to instigate a condominium conversion. The block-through properties contain 56,000 square feet at 325 West Broadway, on the corner of Grand Street, and have Wooster Street frontage. (The deal was announced after the deadline for the Deal Sheet.)

Vornado files to raze two Midtown buildings Vornado Realty Trust is moving forward with its plans to demolish two small mid-block commercial buildings in Midtown that are tied to a large condominium development on Central Park South. The large real estate investment trust filed plans with the city’s Department of Buildings last month to demolish 231 West 58th Street, a three-story structure, and 229 West 58th Street, which has five floors. The properties are located between Broadway and Seventh Avenue. The buildings are near a residential apartment building at 220 Central Park South, which Vornado is demolishing and where the REIT plans to build a 41-story luxury apartment condo. TRD

Banker and Broker

It can be both.

(And we’re not talking just apples and oranges.)

Luxury Mortgage Corp® is both a mortgage banker and a mortgage broker. This means

we offer our own mortgages along with those from commercial banks, savings banks and credit unions. Through this unique platform, we give our clients access to the widest menu of options at extremely competitive rates, outstanding customer satisfaction and a team with the experience to avoid the obstacles and put it all together. This not only makes the whole process easier and faster, but provides peace of mind for our clients — as well as for everyone else sitting at the closing table.

That’s quite a luxury these days. Mira Dick

Sr. Loan Originator Coop & Condo Specialist NMLS# 84555 Licensed in New York

(203) 569-4232

(516) 528-4555

/LuxuryMtgCorp

@LuxuryMtgCorp

mdick@luxurymortgage.com

LUXURY MORTGAGE CORP® • FOUR LANDMARK SQUARE, SUITE 300 • STAMFORD, CT 06901 CT: Stamford (HQ), Southport • NY: Garden City, Manhattan, White Plains • NJ: Paramus • SC: Mt Pleasant • CA: Newport Beach NMLS Entity # 2745. Licensed by the Department of Corporations under the California Residential Mortgage Lending Act, Colorado Mortgage Company Registration-203.327.6000-Check the license status of your mortgage loan originator at http://www.dora.state.co.us/real-estate/index. htm, CT Licensed Mortgage Lender, FL Licensed Mortgage Lender, Georgia Residential Mortgage Licensee # 23006-Four Landmark Square, Suite 300, Stamford, CT 06901, Illinois Residential Mortgage Licensee # 6615 by the Illinois Department of Financial and Professional Regulation, Division of Banking, 122 South Michigan Avenue, Suite 1900, Chicago, Illinois 60603, (312) 793-3000, Maryland Mortgage Lender, Licensed by the New Hampshire Banking Department-#10099MB, Massachusetts Licensed Mortgage Lender/Broker, License #MC2745, Licensed Residential Mortgage Lender -New Jersey Department of Banking & Insurance, New Mexico Mortgage Loan Company License No. 03841, Licensed Mortgage Banker- New York State Department of Financial Services-122 East 42nd Street, Suite 4900 New York, NY 10168, North Carolina Mortgage Lender License # L-104218, Licensed by the Pennsylvania Department of Banking-Mortgage Lender License #27662, Rhode Island Licensed Lender #20031560LL/Broker #20092580LB, South Carolina BFI Mortgage Lender/Servicer, Texas Mortgage Banker Registration-Four Landmark Square, Suite 300, Stamford, CT 06901, Washington Consumer License # CL-2745. Luxury Mortgage Corp®, luxurymortgage.com® and Luxury Mortgage® are registered service marks of Luxury Mortgage Corp. All Rights Reserved.

Leases from page 58

HARALD GRANT

specify that renters are responsible for the cost of removing bedbugs from the apartment, Kobner said. Other landlords have unofﬁcial policies of paying for one remediation, but charge tenants for future incidents.

Pet policy During the recession’s soft rental market, some New York landlords began allowing pets to help fill vacancies in their buildings. Now that the rental market has recovered, however, they are reinstating no-pet policies, sources said. “If it was previously offered as an enticement, they don’t need it anymore,” said Wagner. “Buildings are mostly full and, if they aren’t now, they will be next week.” These days, “landlords who prefer not to take pets are not doing it,” said Golub, though he noted that rentals in outlying areas or new buildings needing to fill many units quickly are more likely to allow pets. Landlords who do allow pets take precautions to prevent them from damaging their property. Some riders specify that a certain percentage of the floor — especially original hardwoods — be covered by carpets or area rugs if a tenant has a pet. And some include language requiring dogs’ removal if neighbors complain about barking. Lolli, for example, said he now allows pets, provided his tenants pay an additional security deposit and can show him the animals’ “credentials,” like obedience school or other training courses.

Bicycles

ON THE OCEAN AND THE BAY, WATER MILL Dock

I Ocean Views I Gourmet Kitchen I Pool/Spa I 5 Bedrooms I 5.5 Baths

CO-EXCLUSIVE. $18,950,000. WEB: 0055789

New York has become signiﬁcantly more bike-friendly in recent years, with the Bloomberg administration installing bike lines citywide. But landlords and their tenants struggle with where to store all these bicycles. “New York has become eco-friendly lately, it’s sort of an ‘in’ thing,” said Lolli. “But if you own a [building], your hallway can look like a bike shop.” That can create ﬁre and safety hazards, as well as aesthetic issues for the building, and has recently led some landlords to adopt lease riders expressly prohibiting bike storage in common areas of the building.

Mold Mold is the new asbestos, according to Sherwin Belkin, a partner specializing in residential real estate at the Manhattan-based law ﬁrm Belkin Burden Wenig & Goldman. In recent years, he said, there have been “many claims [related to] the presence of mold.” As a result, Belkin said he’s seen an increasing number of leases that contain riders concerning mold, including speciﬁc instructions for preventing its growth. Some go so far as to instruct tenants to run the AC whenever windows are closed, fully close the bathroom door while showering, and avoid over-watering houseplants.

Air conditioners

TRADITIONAL HOME ON SOUTH MAIN WITH POOL & TENNIS

Kobner said many landlords have begun to include riders requiring new tenants to hire a licensed professional to install air conditioning window units rather than putting them in themselves. That’s due in part to well-publicized incidents like one earlier this summer, in which an air-conditioning unit fell from the 20th ﬂoor of an Upper East Side housing complex onto a playground. These riders also typically state that building personnel and supers are not allowed to install ACs, so as to limit the landlord’s potential liability from incorrectly installed units. “Let’s just say air conditioners take up lots of pages of leases today,” Kobner said. TRD

5 Bedroom Suites I 4 Fireplaces I 1.28 Acres I 5 Bedrooms I 5.5 Baths EXCLUSIVE. $9,995,000. WEB: 0055960

HARALD GRANT SVP, ASSOCIATE BROKER

Cell 516.527.7712 harald.grant@sothebyshomes.com SOUTHAMPTON BROKERAGE

sothebyshomes.com/hamptons

50 NUGENT STREET, SOUTHAMPTON, NY 11968 T 631.283.0600 F 631.283.0921 Sotheby’s International Realty, Inc. is operated by Sotheby’s International Realty, Inc.

96 September 2012 www.TheRealDeal.com

Nonprofits from page 62 square-foot commercial condo at the abovementioned 40 Rector for $8.4 million or $258 a square foot — not including common charges of about $7 a foot, Rudder said. “When you factor in their mortgage and common charges, it was still a lot less expensive to buy than it was to lease a market-rate rental in Lower Manhattan for $30 bucks a foot,” he said. The tax-exempt financing, which is available through government bonds, also helps reduce costs. The city’s Economic Development Corporation in July approved $75.6 million in taxexempt financing for four nonprofits, including the Browning School, an elite all-boys private school that will use the financing for an expansion on the Upper East Side. Such tax-exempt financing all but dried up in early 2008, but it’s returning through a bond-issuing program called Build NYC, which the EDC launched in late 2011. “There is plenty of healthy activity,” said Carri Lyon, a Cushman & Wakefield senior director who specializes in nonprofits. “Is there the supply to meet it? If more supply came online of larger floor plates, there’d be more activity. I certainly have groups that want it.” TRD

STI_The Real Deal_Sept2012_fin.pdf 1 8/29/2012 2:34:28 PM

Harney

City life...Beach living. Why trek to the Hamptons when the most incredible, pristine beaches lie within view of the Manhattan skyline? Rockaway is NYC's best kept secret! Hipsters, surfers and families of all ages are discovering a fabulous beach community they can all belong to. Just 30 minutes from Manhattan!

FOURTH HOME FROM THE BEACH! Move right in to this immaculate Center Hall Colonial located on a gorgeous Beach Block in Neponist. 4 BR, 3.5 baths, large eat in kitchen with sliders leading to a back patio and in-ground swimming pool. $2,225,000

from page 32

100,000 borrowers performed after having their loan terms modified, according to the company. Alex Santos, president and cofounder of Digital Risk, said in an interview that the models have been “validated” on large batches of clients’ loan files. Veritas separated out applicants destined to default in a future period of financial stress from those likely to keep paying on time, even when credit scores and other data were similar. The value of this for mortgage applicants whose scores don’t meet today’s high requirements is significant. For example, according to Santos, two homebuyers with identical 690 FICO scores and down payments might be rejected — Fannie Mae and Freddie Mac both have average FICOs in the 760 range. Yet using the Veritas system, one of them could be identified as a safe bet and the other a future disaster. Fair Isaac isn’t taking critiques of its scoring lightly. “We continually work with our customers to make sure the FICO score is the best predictor of a person’s likelihood to repay a debt,” said Anthony Sprauve, a FICO spokesman. “Our customers vote with their feet since, according to [research firm] Tower Group, lenders ask for FICO scores more than 90 percent of the time when buying scores from the big credit bureaus.” Veritas is already being used by a small number of lenders, according to Santos, but as a newcomer to the mortgage risk–scoring marketplace it will take time to be validated and widely accepted — if ever. But the issue it raises is intriguing: Are there better technologies to evaluate loan applicants than scores based on credit histories? The jury is out. But in the meantime, borrowers should keep their FICO scores as high as possible because FICO is still what lenders are going to check. Kenneth Harney is a syndicated real estate columnist.

Records FABULOUS LOCATION AND GREAT BUY! Create a lifetime of memories in this warm and welcoming Cedar Colonial just three homes from the ocean. 4 BR, 3.5 baths and This is an unbelievable buy! $1,675,000

from page 48

The campus, in Mercer County’s Hopewell Township, totals 1.7 million square feet and is expected to sell for around $400 million. That’s almost $23 million more than the state’s current record for an office property sale, which was set by the $377.5 million sale of Newport Tower, a single building on the Hudson River in Jersey City in October 2011. Cushman & Wakefield declined to comment on the listing, which does not have an official asking price, though it was reportedly valued at $386 million in 2009. BofA took ownership of the office complex in 2008 when it acquired Merrill Lynch. Merrill had previously constructed it to house 6,500 employees. A spokesperson for Bank of America said the bank is “looking for a sale and a full-site leaseback at this point.” John Boyd, Jr., a principal at the Princeton-based Boyd Company, a consultancy firm serving corporate clients, said he could see a Fortune 500 company paying close to $400 million for the complex. “Mercer County is the kind of market right now that’s increasingly attractive for major head-office relocations because cost structures in central Jersey are lower,” said Boyd. “The northern New Jersey office market has rebounded quite strongly, and there are some opportunities to attract industry from Manhattan.” Timothy King, managing partner at CPEX Real Estate Services, said $400 million, or around $235 a square foot, is “not a wacky number” for the property. “If you won the lottery and went to Home Depot and bought your own bricks,” he said, “you probably could not replace those buildings for a price less than $235 a square foot.” TRD C O R R E C T I O N S A N D C L A R I F I C AT I O N S In the “Meet the Landlord” feature in August’s magazine, Larry Korman’s title was misstated. His correct title is co-CEO of Korman Communities and president of AKA. Also, the

BREATHTAKING OCEANFRONT! A once in a lifetime opportunity to own this 6 BR, 6 bath home literally sitting on the sand. Great for entertaining and priced to sell! $2,999,000

Korman family built 30,000 homes, not 3,000, over a 40-year period. In the August Deal Sheet, the brokers for the $4.8 million sale of 146 Montague Street in Brooklyn were incorrectly named as Isaac Glasman and Ofer Cohen of Itzhaki Properties. The correct brokers, representing both sides of the transaction, were Itzhaki Properties’

Come explore this wonderful community with me. I promise you will not be disappointed. Hope to hear from you soon!

Lisa Jackson

Broker/Owner

Of��w.rockaprop.com 98 September 2012 www.TheRealDeal.com

Dennis Gelin and Rosewood Realty Group’s Billy Billitzer. Gelin has since left Itzhaki to join AZAD Property Group.

Follow The Real Deal on Twitter: twitter.com /trdny www.TheRealDeal.com March 2012 00

Relationship Driven. Execution Focused. Only Meridian Capital Groupâ&#x20AC;&#x2122;s powerful financing relationships can consistently achieve the unparalleled results our clients require.

Meridian Capital Group, LLC

proudly advised on financing for the following transaction:

350 Park Avenue New York, NY 585,000 Sq. Ft. Office Tower

$300,000,000 This transaction was negotiated by: Moshe Majeski, Managing Director Ronnie Levine, Managing Director

1 Battery Park Plaza New York, NY 10004 | 212 972 3600 | www.meridiancapital.com Real Deall - 350 Park - Sept. 2012.indd 1

8/15/12 12:04 PM

Residential market

from page 16

United Realty Partners, a Manhattan-based real estate investment and advisory ﬁrm. “Sellers of properties in the luxury market — but not at the top of the market — are expecting to get prices that may not be achievable, and may be holding out because of the perception that prices are increasing, given some of the unique ultrahigh-price deals that have gotten done recently,” Frydman said. Some brokers, including Prudential Douglas Elliman’s Jacky Teplitzky and MNS CEO Andrew Barrocas, expect

transactions to drop in the fall because of a lack of inventory. Fortunately, some 1,000 units are expected to hit the market by the end of the second half of 2012, double the number of the same period in 2011, Corcoran’s Stern said. In the rental market, Soﬁa Estevez, an executive vice president at developer TF Cornerstone, which is currently leasing up luxury rental towers at 4540 Center Boulevard and 4615 Center Boulevard in Long Island City, said rents are up about 10 percent over last fall. “At the end of last year, we were still heavily giving con-

cessions,” she said. “This year, there is great traffic, very high occupancy, and also a very good absorption rate for our new projects.” An influx of early career professionals in the fields of law, finance and consulting should bring high demand for rentals through mid-October, said Douglas Wagner, Bond’s executive director of leasing. “This pressure will be consistent with last fall, and we anticipate continued low vacancy levels in every Manhattan neighborhood,” he said. TRD

dipped by 0.1 points to 8.1 percent in August.

Jewish Child Care Association, a nonprofit that is consolidating in already leased space in Brooklyn. Also, as TRD reported late last month, San Francisco-based law firm Sedgwick signed a lease to move its New York offices from about 75,446 square feet at 125 Broad Street to 43,374 square feet at Brookfield Office Properties’ 2 World Financial Center. The availability rate Downtown was 10.2 percent, a 0.2 point drop from the prior month. During the same period, the average asking rent ticked up by $0.30 per foot to $38.80 per foot. TRD

Commercial market from page 24 In addition, rents on the side streets in Midtown South are in the $50-per-square-foot range and higher, more than for comparable office space in the Grand Central area of Midtown, said Richard Farley of commercial firm ABS Partners Real Estate. “It is a phenomenon that I don’t think we have ever seen before,” he said. Yet some think the high prices in Midtown South, fueled partly by a tech boom, will decline. “I don’t think that is sustainable,” Wacht said. “I don’t think it is a long-term trend.” The area’s availability rate

Downtown While large blocks of space are expected to come on the market in the coming years Downtown, space currently remains tight. An analysis of CoStar data showed that only two blocks of space larger than 20,000 square feet were put on the market last month Downtown, compared with eight in Midtown. One of the blocks, 26,953 square feet at Silverstein Properties’ 120 Wall Street, is currently occupied by the

Land deals from page 61 one of the main forces driving more investors to buy land. The average monthly rent for a Manhattan apartment, for example, hit a record high of around $3,400 this spring, according to data from the brokerage Citi Habitats. Prices for new condos in some areas, meanwhile, are now hovering around $2,000 per square foot, brokers said. That may explain why the priciest land deals of the year are those that are slated for use as new condominiums. The priciest Manhattan development deal per square foot so far in 2012, according to Massey Knakal, was the sale of a parking lot at 24 Varick Street, also known as 11 North Moore. That deal closed in June for $47.7 million, or $707 per buildable square foot. As The Real Deal has reported, VE Equities, headed by Zach Vella and Justin Ehrlich, is developing a 20unit condominium there. And at 105 West 57th Street, JDS Development Group purchased the controlling interest in a lot owned by Starwood Capital Group for $40 million. The price for the site, which can accommodate a skyscraper, comes to $617 per buildable square foot, according to Massey Knakal. JDS — the developer of the Chelsea condo conversion Walker Tower — plans to build a 100,000-square-foot, 50story condo on the site, which is already zoned for residential. Sites like these, which are “shovel-ready,” tend to fetch top-dollar from developers, explained Ofer Cohen, president of the commercial brokerage TerraCRG. Other development deals that fetch top-dollar are often those with existing structures that are ripe for conversion to residential uses. In April, for example, a 10,446-square-foot factory and garage building at 37 Great Jones Street sold for $7.5 million. According to Massey Knakal, the seller, Great Jones Street Property LLC, paid around $633 per buildable square foot for the site. The landmarked building is being converted to five residential lofts and the project, developed by DIB Management, is currently seeking approval for its plan from the city’s Landmarks Preservation Commission. Another high-profile Manhattan land deal, which closed in 2011 but also seems to reflect the land-rush trend, is a weedy vacant lot at 208 East 14th Street, which has sat vacant for years with no apparent interest among developers to 100 September 2012 www.TheRealDeal.com

build on it. It was nicknamed the “mystery lot” by Curbed. A partnership of New Jersey-based Ironstate Development Company, Abe and Scott Shnay, and CB Developers bought it last year for $33.2 million and is now beginning to build an eight-story, 82-unit condo that is scheduled for completion in 2013.

Brooklyn boom Brooklyn has seen an even more dramatic spike in activity. Last year — Brooklyn’s most active since the ﬁnancial crisis — some 206 vacant properties traded hands in the borough, according to PropertyShark. That’s more than the 195 that traded in 2008. Naftali is currently constructing a 104-unit apartment building on an empty lot in Park Slope, which he bought seven months ago for around $100 per buildable square foot. Today, with demand rising, he said he believes he could sell the property for $200 per buildable foot. “The market is moving so fast,” he said. The borough’s high level of activity can be traced to a sudden uptick in supply: Many development sites that were stalled during the recession and then tied up in litigation are now coming to market. “A huge vacuum opened,” Cohen said. Simultaneously, Brooklyn’s popularity has grown throughout the downturn. Cohen estimated that residential rents in Brooklyn have been growing by about 10 percent per year. Illustrating the new thirst for Brooklyn land is one of the borough’s priciest land deals this year: the sale of a stalled site at 242 Bedford Avenue in Williamsburg, where a Whole Foods will soon be opening, the New York Post reported. Michael Cayre’s Midtown Equities, along with Aurora Capital and developer Alex Adjmi, closed on the purchase from landlord Yahuda Backer in March. According to Massey Knakal, the site traded for $21 million, or around $222 per buildable square foot. The partners’ 150,000-square-foot development will also include luxury rental apartments, the Post reported. In another deal with a high price per square foot, an 8,150square-foot Brooklyn Heights building at 174 Montague Street, formerly the home of Eamonn’s Irish pub, traded

hands in May for $12 million, or $240 per buildable square foot, according to Massey Knakal. The Brooklyn Eagle reported that the new owners are Eli Stoll and Charles Dayan, and that the existing two-story structure will be replaced by condos. Also in May, 313 Gold Street in Downtown Brooklyn traded for $19 million. Since the site can accommodate a skyscraper of up to 40 stories, that works out to only around $81 per buildable square foot, according to TerraCRG. The vacant lot, at Johnson Street — located next to the now sold-out Oro condominium — was supposed to be the site of Oro’s sister building, but developers appeared to have scrapped those plans when they put the land on the market this year. A group called Brooklyn Princess LLC was the purchaser, according to city records. And in June, at 61 Park Place in Park Slope, a 5,000square-foot building owned by the Catholic Church was purchased for $5.75 million, or $357.50 per buildable square foot, the priciest per-square-foot deal this year in Brooklyn. According to ﬁlings with the city’s Department of Buildings, a demolition permit for the site has already been issued.

Other boroughs Outside Manhattan and Brooklyn, however, land sales are still far below their boom-time levels. In the Bronx and Staten Island, activity tumbled after the ﬁnancial crisis and has stayed roughly the same since, according to PropertyShark. In Queens, the number of land trades has decreased every year since 2008. There have been 49 sales of vacant properties this year, on track to ﬁnish the year at about 100, less than last year’s total of 126, according to PropertyShark. PropertyShark’s Calen Onet attributed the sluggishness to lenders’ view that Queens is “the NYC borough with the most foreclosures.” The one exception was the massive deal in February by Victor Elmaleh’s World-Wide Group, for a 25,000-squarefoot lot on 24th Street in Long Island City. World-Wide bought the lot for $28.9 million from the Criterion Group, according to city property records. Elmaleh’s plans for the site are unclear, though. He did not return a call for comment, nor did Criterion. TRD www.TheRealDeal.com January 2012 00

sky_RD_combo_11-2012_v2_mccd_Layout 1 8/28/12 2:44 PM Page 1

75% sold 36 EAST 22ND ST NYC

3 Bedroom Penthouse lofts with private outdoor terraces

212.697.8679

THESTORYHOUSENYC.COM

BE A PART OF THE SKYLINE

penthouse condominium collection

70% sold 9 COLLEGE PLACE BROOKLYN, NY

2 & 3 Bedroom Penthouse lofts with private outdoor terraces

718.855.3333 LOVELANENY.COM

ManhattanSkyline.com

8.28.12 • Real Deal Combo Ad • mechanical size: 10.5 x 14.5 • Bleed: none • Issue: Sept 2012

Williamsburg

from page 30

J.Crew, but said his team has been in talks with “fashion brands” and several “notable restaurants” about taking space in the complex. He added that the project’s owner, a partnership led by Red Sky Capital, wants “established tenants,” but also retailers who are right for the neighborhood; to that end, “we’re focusing on edgier, younger concepts,” he said. Ultimately, Levitan expects the complex to be a “mix of furniture, clothing, accessories and restaurants.” Furniture is an especially fast-growing sector of Williamsburg retail, brokers said. “All those new residents need furniture,” said Condren. “Stores like Raymour & Flanigan are looking in Williamsburg. Pier 1 Imports has a rapid expansion plan, CB2 was at one point looking in Brooklyn. They’re all entertaining the [idea of the Williamsburg] market.” Pier 1 Imports spokesperson Jennifer Engstrand said the chain is “exploring options for a store location in Brooklyn, New York, for 2013, but no location details have been announced.” Raymour & Flanigan and CB2 did not respond to requests for comment. Of course, ultimately, they may not all open locations in Williamsburg, Condren noted; not all stores are a good ﬁt for the hipper-than-thou ’hood. For example, sources said the discount clothing retailer T.J.Maxx has looked at 242 Bedford and other spaces in Williamsburg, but a broker with knowledge of the deal said the chain isn’t presently planning to move into the neighborhood. Williamsburg is “never going to be Madison Avenue, with Coach and Burberry,” Condren said. “But there’s too much noise about Williamsburg for retailers not to look.”

Some mainstreamers are looking to blend with the hip neighborhood by putting a local spin on their brands. The Duane Reade at Bedford Avenue, for example, has a growler bar with local beers on tap. As a result of this increased demand, the hottest retail corridors in North Williamsburg — Bedford and Driggs avenues and Berry Street — have seen their asking rents increase. On Bedford, listing rents are now up to $175 a foot, with deals closing around $150 per square foot, Condren said. Eighteen months ago, rents were closing at just around $100 a foot. Berry and Driggs are pulling in rents of up to $60 per square foot — up from around $40 just a year and a half ago, he said. Even off the main drags, demand for Williamsburg space is on the rise, brokers said. “You’re now seeing the places off Bedford ﬁlling up in the Kent and Wythe area,” Leiter said, adding that the traditionally Hasidic part of Williamsburg, the South side, is now starting to see the rapid restaurant and bar growth that ﬁrst characterized North Williamsburg’s rise.

Getting creative Until now, one of the major obstacles to retail development in the area was the lack of available space. According to King, most of Williamsburg’s existing retail stock is in 20-by-100-foot-wide buildings — with only 1,500 to 1,800 square feet of “real, usable space.” Those small spaces work well for boutiques, but many national retailers require more square footage. “Nothing is large enough to take care of the nationals,

THURSDAY, SEPTEMBER 13th

that’s the problem,” Kalmon Dolgin’s Neil Dolgin said. But with so much demand for stores in the area, retailers are now looking for ways to overcome these obstacles by leasing less-than-prime space on second floors and basements. For example, Condren brokered a deal for Retro Fitness, a national chain of gyms, which opened a 25,000square-foot facility at 203 Berry in February, with much of its space underground. So far, it seems to have paid off. “They’re breaking all their projections for memberships,” said Condren. King noted that retailers’ willingness to accept “odd configurations, lower- or upper-level real estate is a sure sign of a market in high demand. There’s a strong desire to get into a certain marketplace, so when they can’t find a classic space, they’re going to compromise to get into that market.” Another solution is for developers to assemble multiple properties. One particularly large assemblage is nearly a full city block bound by North 4th and 3rd streets, Driggs and Metropolitan — which was purchased in April by Waterbridge Capital’s Joel Schreiber for $68 million. The developer reportedly plans to build a 245-room boutique hotel and renovate the 50,000-square-foot space — which previously housed a bagel shop, laundromat, supermarket and hookah bar —in hopes of attracting prominent retailers. The project is “a block away from the Whole Foods,” Condren said, “so it’s really going to be ground zero for where you’re going to see big box, prime, national tenants.” TRD

www.yjprealestate.com

THE YOUNG JEWISH PROFESSIONALS

Real Estate Summit 102 September 2012 www.TheRealDeal.com

David Kramer

Emanuel Stern

Principal

President & CEO

HUDSON COMPANIES, INC.

HARTZ MOUNTAIN INDUSTRIES, INC.

ACADIA REALTY TRUST

Michael Cohen

Ken Bernstein

Marty Miner

President Tri-State Region

Partner

COLLIERS INTERNATIONAL NY LLC

HOLLAND & KNIGHT

Thank You for supporting the next generation of New York’s real estate leaders.

www.TheRealDeal.com January 2012 00

THANK YOU 4 DEVELOPMENTS

8 ACQUISITIONS

500,000+ SF

TO OUR PARTNERS, LENDERS AND INVESTORS FOR A GREAT YEAR

NAFTALI GROUP www.NAFTALIGROUP.com 212.759.9777

Speyer

from page 29

the family business in 1995 — after graduating from Columbia University, then working as a reporter for the New York Daily News and then the New York Observer — Tishman Speyer’s portfolio had grown to include 15 million square feet of real estate nationwide. Speyer spent his first three years at the firm doing retail leasing at Rockefeller Center, the firm’s trophy property. Then he joined the firm’s acquisition and development team, working on projects that included the redevelopment and leasing of 300 Park Avenue (also known as the Colgate-Palmolive Building) and the development and pre-leasing of the 375,000-square-foot office tower his company built at 222 East 41st Street, among other projects. In 2001, he took over responsibility for all of Tishman Speyer’s New York efforts, quarterbacking acquisitions like the Lipstick Building, the New York Times Building and the MetLife Building. But his biggest deal will likely long cast a shadow over all the others: the record acquisition of Stuy Town and Peter Cooper Village. Despite the PR fallout from the default, Tishman Speyer’s actual cash exposure to the property was relatively small. As has been widely reported, the firm doled out just $112.5 million of the $1.9 billion originally put up to buy the property — the rest came from partners including BlackRock, the Crown family and the pension funds CalSTRS and CalPERS. In addition, prior to the default, Tishman and its partners agreed to pay between $250 to $300 million into a reserve fund to try and hang onto the property, a source close to the company told TRD in 2008. In the end, it was the other investors that took the biggest hit. Speyer declined to be interviewed for this article, and has not often spoken publicly about the experience. But in an interview with Bloomberg Television in March, he made it clear that he was not eager to reenter the domestic residential business. “We put Stuyvesant Town firmly behind us,” he said. “We’ve moved forward. Our activity in the United States in the last couple of years has been focused on office.” He declined to say he would steer clear of residential acquisitions for good, but noted that: “The last nine deals we’ve done in the last 18 months in America have all been office. The next nine deals will likely be mostly office.”

Coming of age Bernard Mendik, one of New York City’s leading landlords, was the longest-serving chairman of REBNY and

considered by some to be the most accomplished, Tighe said. Mendik — who sold his 4 million-square-foot portfolio for $437 million in cash and securities to Vornado Realty Trust in 1997 — served as REBNY chairman from 1992 until he died in 2001. During his REBNY tenure, he helped block a plan to limit the height of New York skyscrapers and helped convince Albany to cut back on real estate capital gains and transfer taxes. It remains to be seen how Speyer will perform in his new role, but those who’ve worked with him describe him as a consensus builder, well-suited to a position that involves dealing with the concerns of different membership groups. “He’s very thoughtful and very good about listening to what people have to say,” said Jonathan Mechanic, chairman of Fried Frank’s real estate department. “I’ve dealt with him in a business context and watched him in meetings. ... Some people are always imposing their thoughts on others. He listens to everything, takes it in and then forms a judgment based on relevant information. He will be open to the ideas of other members.” That ability will undoubtedly come in handy. His primary job will be to represent the organization’s 2,000 developers, brokers and real estate players in the commercial and residential sectors. (As president, Spinola runs the day-to-day operations of the board. But Spinola technically works under the chairman, who heads the so-called Board of Governors, which is made up of industry heavyweights. And while Spinola is, of course, paid, the chairman is a volunteer.) A number of those interviewed said they believed Speyer’s experience in leasing, acquisition and development in both residential and commercial will be important in his new role. Frederick Peters, president of Warburg Realty and a member of the REBNY board, noted that while Tighe comes from the commercial world, she was very attuned to the organization’s residential membership, too. But “before Mary Ann’s tenure at the full-board level, residential brokerage felt a little like a stepchild to me,” he said. “She made us feel more integrated and integral to the process by reaching out, by taking an interest in our issues.” In addition, Speyer will be expected to be a “thought leader,” said Tighe, placing the emphasis on important emerging issues so that “we are not just playing defense.”

The issues range from the broad and consequential to the narrow and relatively parochial. During her three-year term, for instance, Tighe has pressed the industry’s interests in the Midtown East rezoning, a plan unveiled in July that would allow a “vertical expansion” of the skyline along a 74-block area stretching from 37th to 57th streets around Grand Central Station. But she also recently took on the issue of a residential broker who complained that for months the city had held up the sale of a pricey townhouse because a construction permit remained open on the city books, despite the fact that the work was finished a long time ago. The job of chair, Tighe said, “is a material time commitment. When public officials are ready to see you, they are not working around your calendar. If [the] mayor or [a] deputy mayor wants to meet on an issue you are [working on], typically they will call up and say, ‘This is when we can do it.’” Speyer will inherit a number of issues from Tighe when he assumes the job. The industry has been battling to restore funding for a second station to be used for the No. 7 subway line — and potentially extend it into New Jersey, Tighe said. The battle to counteract efforts by some elected officials to aggressively landmark historic storefronts on the Upper West Side also remains an issue. In addition, tax reform is also a perennial concern. “Our real estate tax burden as a percentage of revenue is more than double that of any state in the country,” said Knakal. “Rob can speak with firsthand knowledge with what tax policies are like in other cities across the country and really give some perspective; explain why people can decide to move to Boston, Chicago or somewhere else.” At the heart of all these issues, said Peters, is the mission to “make sure New York remains a competitive and strong environment for both development and the attraction of business.” Peters said Speyer’s age would be a positive for the organization. “The perspective is different,” he said. “Many of us came of age when the city was much more segmented. People who are younger have a much broader view of the city as encompassing every neighborhood instead of just the neighborhoods where they grew up. It’s important to add into the mix. “It doesn’t make sense,” he added, “to have all the decisions being made by a bunch of old guys.” TRD

The starting rent for ICE at the tower (which is owned by Fisher Brothers and Soho China) was $95 per foot — the highest among the top 10 deals. The total value of the deal was $128 million, with an estimated commission to the tenant brokerage CBRE and its brokers, Paul Myers and Rocco Laginestra, of $1.6 to $3.3 million. Fisher Brothers represented itself. ICE currently has a large ofﬁce space at 1 North End Avenue in Battery Park City, and also leases space at 875 Third Avenue and 7 Times Square. The publicly traded company said in its 2011 annual report that it expected to spend $30 to $35 million in capital expenses consolidating its New York and London ofﬁces.

which signed a 15-year, 105,803-square-foot lease at 452 Fifth Avenue, which is owned by the Property & Building Corp., a division of the Israel company IDB Group. The lease includes a year of free rent and $75 per square foot of tenant improvements that are together worth about $15 million, according to CompStak. The international law firm moved from 1114 Sixth Avenue, the Grace Building, on the opposite side of Bryant Park, to its new location. A Studley brokerage team — led by company CEO Mitchell Steir and including John Mambrino, David Goldstein and Matthew Barlow — represented the law ﬁrm for an estimated commission of between $1.4 and $2.7 million. Meanwhile, CBRE brokers Craig Reicher, Howard Fiddle, James Ackerson, Zachary Freeman, Sinclair Li and Greg Maurer-Hollaender represented the landlord, and likely received half that in commission. TRD

Leases from page 51 That rental rate is above the average price per foot for even Class A space in Midtown South, which was $61.99 per square foot last month, ﬁgures from Cassidy Turley showed. The estimated tenant-broker commission for New Rochelle, N.Y.-based Welco Realty was between $1.8 and $3.6 million. The building was represented by Newmark brokers David Falk, Jason Greenstein and Daniel Levine, who likely got about half that.

The IntercontinentalExchange: $128 million (15 years) The IntercontinentalExchange — an Atlanta-based firm that offers a trading platform to commodities brokers — signed a 93,361-square-foot deal at 55 East 52nd Street in May. The firm took floors 39, 40 and 41 in the Park Avenue Plaza building in the space formerly occupied by the bankrupt MF Global, once led by former New Jersey Governor Jon Corzine.

104 September 2012 www.TheRealDeal.com

Baker & McKenzie: $101 million (15 years) Rounding out the top 10 most valuable relocation leases of the last 12 months is the law firm Baker & McKenzie,

www.TheRealDeal.com January 2012 00

Arbor Small Loans Multifamily Financing, Custom Fit to Your Business

Streamline your path to financial strength Arbor Commercial Mortgage’s Fannie Mae DUS® Small Loan program streamlines the entire loan process for Multifamily acquisitions and refinancings with loans ranging from $750,000 to $3 million ($5 million in major MSAs), sending your property quickly in the right financial direction. Growing Financial Partnerships

Growing Financial Partnerships

1-800-ARBOR-10 • www.arbor.com Follow us on twitter @arbor1 Flickr

Twitter

Retweet

MySpace

StumbleUpon

Digg

Unique Arbor Advantages • Reduced documentation requirements • Streamlined report formats • Flexible legal/closing requirements • Reduced physical needs assessment and environmental screen • Non-recourse available in certain markets • 80% maximum LTV

Fannie Mae • FHA • Bridge • MezzanINe • CMBS Birmingham, AL • Bloomfield Hills, MI • Boston, MA • Dallas, TX • Los Angeles, CA New York, NY • Philadelphia, PA • Uniondale, NY • Washington, DC

Construction fraud

from page 18

bids for construction at SUNY Downstate Medical Center in Brooklyn made by Eagle Two Construction, a Brooklynbased contractor. The report noted the construction firm won six contracts worth $92,000, largely with the help of phony bids from front companies that made it seem like there was more competition than really existed. Those fake companies were all affiliated with Two Eagle. The contractor was paid more than $1.2 million from SUNY for construction work over a 14-year period ending in 2010. The comptroller forwarded the findings to law enforcement officials, but it’s unclear whether criminal charges will be pursued. Eagle Two was suspended as a contractor for its biggest client, Columbia University, the Daily News reported. Eagle Two officials did not return calls for comment. Meanwhile, in June the city Department of Housing Preservation and Development was rocked when former assistant commissioner Wendell Waters pleaded guilty to bribery and racketeering conspiracy. Waters was originally charged in October 2011 with six developers who allegedly bribed HPD officials to get affordable housing contracts. The developers allegedly received millions in kickbacks from contractors they hired to perform the construction on these sites. Five additional arrests have been made as part of the HPD case. Legal experts say the increased amount of fraud can be tied to the rush to complete projects, as developers often have deadlines placed on them by lenders — especially in this post-recession environment. Many of the recent cases being pursued stem from the boom, industry experts said. “People were throwing these buildings up with spit and cardboard and selling them out as quickly as possible,” said attorney Steven Sladkus, chairman of the real estate practice at Wolf Haldenstein.

In late July, Sladkus represented the condo board at Beacon Tower, a 79-unit luxury building at 85 Adams Street in the Dumbo section of Brooklyn, which filed a $150 million RICO lawsuit against developers Shaya Boymelgreen and Lev Leviev’s Africa Israel. The suit alleges that the developers filed false documents to get a temporary certificate of occupancy from the city in time for a closing deadline. It also says the building’s architects and engineers submitted documents verifying there was fire-stopping material in the walls, but a later inspection showed the material had not been installed. Aaron Abraham, a director of the construction and real estate group at the law firm Goulston & Storrs, which represents the developers at Beacon, said the allegations are nothing more than trumped up charges. “We feel the complaint totally lacks merit,” he said, adding that many of the allegations date back to 2007 and beyond the statute of limitations.

Industry clean up Cleaning up the construction industry may not be easy, but those who’ve been caught in the crosshairs have taken steps to make sure they never repeat these same mistakes. McCann said the firm terminated or secured the resignation of all management and employees that were responsible for the fraudulent conduct. He also noted that the firm strengthened certain rules related to compliance, billing, safety and regulatory issues. (The firm was required to make comprehensive reforms as part of the agreement with Lynch’s office.) Meanwhile, city officials, who asked not to be identified, told TRD that HPD has implemented more rigorous review processes to root out crooked contractors and government officials. Specifically, the agency has increased monitoring

of developers and general contractors. HPD also maintains a list of contractors that require “enhanced review” based on their history of compliance with labor laws and construction quality. HPD said it may block the closing of a project if the developer wants to use a contractor that is on that list. Meanwhile, Thacher said his firm has worked as an “integrity monitor” at various sites, ranging from Madison Square Garden to Columbia University and the new Yankee Stadium site, to provide an increased level of oversight over construction activities. All of these scandals come as the New York construction industry is struggling to deal with the still-tenuous economy. Overall construction employment fell 3 percent yearover-year in the first quarter to 102,000 — the lowest level of construction employment since the first quarter of 1999. And according to the New York Building Congress, a trade organization that promotes the construction industry, private and public institutions launched $702 million in construction projects in New York City in the first half of 2012 — a 41 percent decline from $1.2 billion in the same period of the previous year. But there may be an improvement on the horizon: New office construction in Midtown is projected to rise to 2.1 million square feet in 2012, up from 1.7 million square feet in 2011. And some say it’s only a few players creating the appearance of wider trouble in the industry. “I don’t want to label the whole industry, but there are still a few bad apples out there who think it’s still the 1980s,” said Bob Viterertti, a former prosecutor and managing director at Kroll Advisory Solutions, a firm that consults on corporate security issues. TRD

Pricey extras from page 42 ington hit the sales market for $269,000, only to drop its price to $239,000 two months later. Another building resident, who bought a cabana in 2006 for $200,000, put it on the market in June 2011 for $240,000 with listing agent Grant Priest of Elliman. They then lowered the price 17 percent to $200,000, Priest said, but still couldn’t ﬁnd a buyer before delisting the unit several months later. Another broker working at 70 Washington said one owner recently sold a cabana for $150,000 in a resale — taking a loss of more than $50,000. New condo 80 Metropolitan in Williamsburg hit the market in 2008, and its sister building 58 Metropolitan followed in the fall of 2010. Both buildings offered cabanas, priced from $70,000 to $150,000, and private parking spaces for $50,000, according to Halstead Property’s Jay Overbye, the building’s director of sales. At ﬁrst, parking spaces, and especially cabanas, in the two buildings saw heavy price cuts, with cabana prices slashed by “easily 50 percent,” Overbye said. In the last eight months, however, the cabanas have sold closer to their asking prices, with discounts now around 30 percent, he said. A recent buyer at 58 Metropolitan, for example, paid full price for an apartment and parking space, but received a 35 percent discount on his cabana, paying $95,000 for it, Overbye said. All the extras in both buildings have now sold out, he said, except for one parking space at 58 Metropolitan. The fate of a building’s amenities depends, of course, on the type of amenity and the popularity of the building itself.

106 September 2012 www.TheRealDeal.com

At the indisputably successful 15 Central Park West, the price of storage units and studio “staff ” apartments “has gone up tremendously,” even during the recession, according to real estate broker and building resident Noel Berk. Building residents are the only ones who can purchase the in-demand “staff apartments,” and also use them as home offices, guest rooms or libraries. They trade for around $2 million each, and private storage units cost some $100,000, Berk said; when the building first went on sale in 2007, the staff apartments were priced under $1 million, and storage units went for $30,000. Private storage units tend to be highly desirable everywhere in cramped New York. Aptsandlofts.com president David Maundrell said he always encourages buyers to purchase private storage units along with their apartments because “it’s a great investment.” That’s especially true, he said, because owners in many buildings are able to rent their unused storage spaces to neighbors for $55 to $100 a month. He added that many buyers who were given storage units for free by developers during the downturn are making significant profits off them in resales: Prices for private storage spaces in Brooklyn currently range from $8,000 to $25,000, depending on size and the building, he said.

Package deals Optional extras are usually separate transactions from apartment sales, with their own price and deed. But, especially in today’s difﬁcult mortgage climate, that can present some challenges since banks won’t ﬁnance a cabana or a

parking space on its own. In response, developers have started to combine the deeds of add-ons and the apartments into one, so buyers can more easily arrange financing. Every unit at Alchemy’s 95-unit Griffin Court Condominium on West 54th Street, for example, comes with a private storage unit. The price of the storage, $40,000 to $50,000, is tacked onto cost of the apartment and included in the deed. In addition, 16 of the building’s larger apartments also come with private rooftop cabanas, which add an extra $80,000 to $90,000 to the total price, according to Horn. At 291 Union Street, all units come with basement storage units, while larger apartments have a private parking space included in the price, Horn said. “If we sold storage cages individually, most people wouldn’t be able to finance them,” he said. “They’d have to buy them with cash.” Katzen, however, noted that there are some drawbacks for buyers when it comes to purchasing add-ons: When buyers purchase additional portions of the land, for example, they also take on the property tax fees — something that doesn’t occur when residents rent storage or parking spaces in the building. And while people will always need a place to live, the demand for cabanas and other trendy extras may not be around forever. “It’s a risky purchase,” she said. “Will the market support paying $200,000 for a cabana in five years? In five years, people may be over it.” TRD

www.TheRealDeal.com January 2012 00

As a realtor, once I help my clients ﬁnd the right home, I rely on Sterling to help us ﬁnd the right loan. Sterling’s Residential Mortgage Division Flexible and easy to work with Access to virtually any type of mortgage program Very responsive – they answer my calls and return emails quickly Serving the New York Metro area since 1929

Meatpacking District

from page 41

Washington and the label Zadig & Voltaire at 831 Washington. The firm also owns a vacant development site at 860 Washington Street, outside the Historic District, where it’s planning to build a 10-story office building with two floors of retail. (The site faces the Standard Hotel and is next to fashion designer Diane von Furstenberg’s building at 874 Washington Street.) Gerald, meanwhile, unloaded his properties through two sales. In 2004, he sold a large parcel to Andre Balazs, the developer of the Standard Hotel, for $18 million. And in July, he sold his other property at 55 Gansevoort through a friendly foreclosure to DelShah Capital. However, his son Robert and other investors are currently contesting the transfer in civil court. The Meilman family, which also worked in the meat industry, owns the high-profile strip of buildings from 413 to 435 West 14th Street as well as a building on West 13th Street. It purchased its properties in 1956 and 1964. On the nonmeat-family front, Burkle bought 430 West 14th Street, which includes the entire blockfront along Washington Street where apparel store Scoop is located, as well as the Soho House property at 33 Ninth Avenue (which he co-owns with Joseph and Michael Cayre of Midtown Equities). Meanwhile, Thor Equities owns 446 West 14th — currently occupied by designer Krizia — as well as the large development site the firm co-owns with Taconic Investment Partners at 837 Washington Street, where it’s planning a 55,000-square-foot office and retail building. Thor has been active buying and selling. It unloaded a condo at 413 West 13th Street for $34 million in July 2011, after leasing it to mainstream clothing retailer All Saints. Other small investors include a company controlled by Isabel Litterman and Fred Tate — which favor restaurants and bars. They acquired their parcels in 1982 and have 10,300 square feet of ground-floor retail. They lease to the nightclubs Revel and Cielo at 10 and 18 Little West 12th Street, respectively.

Brokers get busy As with many other elements of the Meatpacking District, the battle to represent landlords does not fit the typical pattern seen throughout the rest of Manhattan. A decade ago there was virtually no space to fight over. Now it’s one of the most dynamic markets in Manhattan. While many of the borough’s most active firms — such as Robert K. Futterman & Associates, CBRE Group and Winick Realty Group — have a strong presence representing property owners, so do lower-profile retail firms Lansco and Ripco Real Estate. In addition, some large owners such as Meilman, Romanoff and Thor generally represent themselves. Other companies spread the work around. The Gottlieb estate hired Ripco at 72 Gansevoort, but CBRE for the more high-profile 405 West 14th Street (formerly Son Cubano restaurant), which leased to UGG. Thomas Elghanayan, chairman of TF Cornerstone, said he interviewed several brokerage firms before settling on RKF to represent space at 95 Horatio Street, a large rental building with retail fronting Washington, Gansevoort and West streets. (The firm signed a flurry of leases over the past year and a half to tenants such as clothing store Intermix, women’s designer Jay Godfrey and Swiss lingerie designer Hanro.) “They convinced us they were the best to attract the kind of high-end tenants that we are looking for,” he said.

108 September 2012 www.TheRealDeal.com

Indeed, RKF represents the most available groundfloor space in the district (among third-party brokers) with 50,150 square feet, including a large development at the site of a former gas station at 461 West 14th Street, with 15,055 square feet available. The brokerage is marketing two spaces at TF Cornerstone’s building: One, with an alternate address of 90 Gansevoort, has about 9,130 square feet, and the other, with an alternate address of 525 West Street, has about 8,340 square feet. RKF’s Karen Bellantoni is representing a 4,000-square-foot, vacant ground-floor space owned by Premier Equities at 22 Little West 12th. The building, which is net leased from the Gottlieb estate, is currently being upgraded. The landlord there wants a “dry use” tenant, not a restaurant. Meanwhile, Lansco represents Greenway Mews, a major property owner with two available spaces — at 19 and 27–29 Little West 12th. “[27-29] Little West 12th will be a perfect fashion use, but we also have the capability to vent for a restaurant, and 19 Little West 12th Street, with its 15-foot ceilings, is perfect for a women’s footwear or accessory use or possibly a men’s haberdasher,” said Lansco’s Roger Eulau, who is representing the space with Lansco colleague Roger Cohen. Winick’s Kelly Gedinsky compared the Meatpacking District to Soho, which has national brands concentrated on Broadway and smaller retailers in the interior. “I am noticing more boutique and luxury on 13th Street,” she said. “There is a different market for users on Broadway versus Greene and Mercer. Similar to that trend, I’m seeing the side streets fill up with luxury and couture,” she added. Her firm represents two locations in the area: the 3,600 square feet at 420 West 14th, where the Heller Gallery has a lease expiring next year, and a smaller space at 414 West 13th. But even as tenants have been actively making deals, not all leasing efforts have been successful. Thor High Street Advisors (a brokerage arm of Sitt’s Thor Equities) was seeking $4 million annually for the prime corner occupied by the Gaslight Lounge at 400 West 14th, which comes to about $600 per square foot for the ground floor. The lounge has three years left on its lease, and the listing late last year was seen as an effort to test the strength of the market. But no one took it, and insiders blamed an overly aggressive asking rent. Other spaces, like the new construction at 450 West 14th Street, which RKF once represented, have also sat empty.

Blank canvas The Gottlieb estate, an enigmatic owner infamous for leaving buildings empty or underperforming for years, controls the biggest currently undeveloped parcels. But insiders are crediting Bender — who is heading the estate after years of family litigation — with changing the firm’s direction, and being more aggressive and opportunistic in his management. “I think the redevelopment of his land is going to be the key that dictates the outcome of the Meatpacking District,” Aurora’s Epstein said, explaining that the estate owns a lot of space with untapped potential. Real estate pros differ widely on what rents landlords will be able to extract from tenants over the next decade. (Sources said the highest rents ever paid in the area have been about $425 to $450 per foot during the real estate boom. Today, rents have fallen and are about $290 to $350 per foot on 14th Street and the northern portion of Washington Street and about $100 less on the side streets.)

Some see rents doubling in the area. Marc Watkins, executive vice president and head of acquisitions at investment firm DelShah, predicted that on prime 14th Street and on Washington, rents will surge to $800 per square foot within two to four years. “I would not take all the vacancy as a bellwether or [landlords] not being able to lease,” he said. “I would take that as an indication of the confidence in the upside.” But Epstein doesn’t think rents on 14th Street will break $500 per foot in the near future, partly because of the new product coming to the market. The decline in rental prices — which comes despite higher foot traffic from the High Line — is a clear result of the tough economy. But adding more pressure to the situation is that retailers must sell enough merchandise to justify the rents. That’s unlike Fifth Avenue and other locations where a storefront is also considered an advertisement. Sitt said the moderate decline was part of a natural “digestion process.” “Look at rents 15 years ago,” said Sitt, who is currently asking about $600 for the ground floor at 837 Washington. “The increase has been tremendous.” While bullish on rents, he noted another trend that could push ground-floor prices down — the popularity of second-floor retail, especially for restaurants, such as Catch. For his part, Bender is currently rehabilitating a portion of the mostly vacant stretch on the south side of Gansevoort between Greenwich and Washington. With the Whitney kitty-corner to that stretch, Gansevoort could soon become a gateway to the museum, brokers say. Insiders say Bender plans to put in a farmer’s market in the coming months at 52 Gansevoort, but the block has some development restrictions put in place by the city to help preserve the meatpacking industry. Investors are also watching to see if Romanoff goes through with plans to build a 10-story office building at 860 Washington. And aggressive landlords are trying to figure out how to add more retail space to the market. For example, an office tenant currently occupies the ground, second and third floors of 412 West 14th Street. Premier Equities and Thor Equities bought the commercial condo for $18 million in April 2012, but can’t lease the retail until they get the tenant out. Sources say the tenant wants $10 million to leave. Meanwhile, insiders are debating whether any of the world’s largest retailers will ever come to the district. No megatenants like the Gap or Uniqlo have opened stores in the area. Cliff Meilman, of the Meilman family, said that’s because of the neighborhood’s focus on niche markets. “That is why you’ll find ‘concept’ stores for these kinds of brands opening down here — Puma Black Station, Levi’s selling vintage jeans and a Sephora build-out unlike any of their other stores,” said Meilman. “They know they need to be here but understand they’re talking to a different audience.” But Epstein said a massive, mainstream retailer might try to take the plunge. “I think you could see larger users like an H&M or a Zara come to the market. And I [also] think there is a real opportunity for an influx of luxury tenants through the redevelopment of the vacant parcels. It could be luxury retail. It only takes one Louis Vuitton,” he said. TRD

www.TheRealDeal.com January 2012 00

BROOKLYN CHARM.

DUMBO CHIC.

KARL FISCHER DESIGNED LOFT RESIDENCES NOW AVAILABLE FOR RENT

ONE TRAIN STOP FROM MANHATTAN OVERSIZE WINDOWS. HIGH CEILINGS. FITNESS ROOM. ROOFTOP DECK.

LEAH RUBIN LIC. R.E. BROKER OLYMPIC REALTY NEW YORK, INC. 580 Fifth Avenue 14th Fl. New York, NY 10036 Direct 212-882-1505 • Office 212-382-3888 Leah@Olympic-Realty.com

177 CONCORD STREET, BROOKLYN, NY

Hamptons

Home may mean different things to different people, but you can nd the right thing for all of them. One of Europe’s leading manufacturers, ALNO provides awardwinning kitchens and support from initial design to installation and beyond.

FLAGSHIP SHOWROOM AND HEADQUARTERS ALNO USA CORPORATION The Architects & Designers Building 150 East 58th Street, 10th oor, New York, NY 10155 Ph. 212.688.8088, info@alno.com, www.alno.com

from page 52

fashion designer Isaac Mizrahi, and considerable cash donations. In 2002, New York businessman Michael Recanati donated funds to start the Morriss Center, based on the Harvard Project Zero educational think tank’s model. Janet Stork, who teaches education at Harvard, was hired from the Dalton School in New York to run the Morriss Center High School. In 2006, Ross and the Morriss Center merged to form one school for students from pre-nursery through high school. Some Hamptons public schools have seen a recent uptick in enrollment as well, according to data from the New York State Education Department. In the Sag Harbor Union Free School District, enrollment jumped from 877 students in the 2008-2009 school year to 957 in 2010-2011, after dropping for several years during the recession. The John M. Marshall Elementary School in East Hampton had 568 students in the 2010-2011 school year, up from 441 in 2008-2009. And at the elementary Amagansett School, there were 102 students in the 2010-2011 school year, up from 89 in 2008-09. The Amagansett school district is “among the best in the state,” Collé said, noting that the buyers he works with are often interested in living in that district. In the past, Breitenbach said, school options were one factor that kept wealthy Manhattanites from moving to the Hamptons year-round. “I think the schools were what people were worried about,” she said. Now that those options have improved, she said, she sees a number of people who work in Manhattan’s financial sector moving out full-time, and either working from home or from satellite offices that are increasingly being set up in the Hamptons. In 2005, for example, a Victorian house at 225 Windmill Lane in Southampton Village became the first hedge-fund “hotel,” where funds could rent desks with Bloomberg terminals and trading software. Though that office shuttered during the downturn, technology’s continual evolution is letting more and more financial professionals work from the Hamptons. “We’ve got friends who do equity trading out of their homes,” said fashion designer James Fairchild, who spent two decades as a vice president for design at Ralph Lauren before opening his own store in Southampton this spring. “Lots of investment bankers have the capability of moving out here. They can work anywhere they want to if they have a computer.”

Growing industry 27.07.12 18:03 Not

ALN52-015-12_B2B_The_Real_Deal_117,475x161,925_4c.indd 1

A lush, green lawn in the city?

Leagas Delaney Hamburg

Kunde ALNO AG Format 117,475 x 161,925 mm Job-Nr. ALN52-0015-12 CYAN

MAGENTA

YELLOW

Datum

27.07.2012

Medium The Real Deal

Projekt B2B-Anzeigen USA DU-Termin 27.07.2012 Druckverfahren

BLACK

Remarkable realism Leagas Delaney definiert keine Überfüllungen in Reinzeichnungsdokumenten, A waterless, low-maintenance diese sind von der Litho/Druck anzulegen und zu überprüfen. alternative to live grass

Does not require fertilizers or pesticides

Great for areas where live grass is difficult to grow or maintain

Excellent resiliency and appearance

Designed for long-lasting installations in any climate

Yes, it’s true. DuPontTM ForeverLawn® Select Synthetic Grass provides a waterless, low-maintenance alternative to live grass. Designed to look and feel realistic from thatch to top, this product creates a lush, well-manicured landscape with minimal upkeep that stays green year round.

110 September 2012 www.TheRealDeal.com

Grass without limits. SERVING NYC AND NASSAU COUNTY

METRO

212.461.7101 syntheticgrass.dupont.com sales@foreverlawnmetro.com 44 Wall Street, 12th Floor New York, NY 10005

all full-time East End residents work remotely. As the Hamptons has skyrocketed in popularity as a vacation destination in recent decades, the growing real estate industry and related fields have employed more and more people. “The business of building and decorating houses goes on year-round,” said Peter Turino, president of Brown Harris Stevens of the Hamptons. “You have builders, decorators, attorneys, mortgage bankers, surveyors — a whole army of people servicing the real estate industry out here.” Brown Harris Stevens, for example, entered the Hamptons market in 2004 with four offices, and has expanded to seven in the interceding years. The firm now has 175 Hamptons brokers, Turino noted. Fairchild moved from New York City to the Hamptons full-time in 2008, he said, so his two sons could spend more time outside without him worrying about their safety. “It’s great for kids with all these outdoor activities,” said Fairchild, whose children now attend public school in Sag Harbor. “In New York City it’s, like, what do you do with them?” The Hamptons is also changing in other ways that make it appealing as a primary residence. The number of restaurants open year-round has increased, for example: Local favorite Bostwick’s Chowder House in East Hampton recently announced that it would remain open this year at least through Christmas for the first time. It joins hot spots like Southampton’s Red Bar Brasserie and East Hampton Grill, which attract bold-faced names throughout the year. But mostly, people moving to the Hamptons are looking for a particular country lifestyle. “It’s a way of life,” said top Hamptons real estate broker Harald Grant. “People want their kids to live out here as opposed to the city life.” TRD

Follow The Real Deal on Twitter: twitter.com /trdny www.TheRealDeal.com March 2012 00

Citibank can help your clients buy a house and then help them make it their home. Your clients will get their first month's mortgage payment refunded up to $2,500 when they get a Citibank mortgage and set up automatic payments from a linked Citibank checking account.* It's just our way of saying welcome to the neighborhood.

To learn more, please contact the Senior Lending Manager in your marketplace: Manhattan Downtown: Bruce Nohe 212-867-4922 bruce.nohe@citi.com NMLS ID 721753

Manhattan Midtown: Lori Ribler 914-217-0817 lori.ribler@citi.com NMLS ID 727325

Manhattan Uptown: James Dorcely 347-331-9260 james.dorcely@citi.com NMLS ID 460196

Bronx: Robert Bisberg 646-404-4570 robert.bisberg@citi.com NMLS ID 422745

Queens: Michael Scavelli 347-574-0018 michael.scavelli@citi.com NMLS ID 721719

Brooklyn/Staten Island: Amy Blackwood 917-224-9206 amarilis.blackwood@citi.com NMLS ID 726463

* The cash bonus will be deposited to your linked Citibank checking account within 90 days of the end of the statement period in which you met this offer’s qualifying requirements. This offer is available to new and existing customers who: 1) obtain a new home purchase mortgage loan from Citibank and 2) open or maintain a personal Regular Checking account in the Basic Banking Package, The Citibank® Account Package or The Citigold® Account Package; and 3) sign up for automated monthly debit of the mortgage payment from their Citibank checking account. The opening of the qualifying checking account must be completed within 15 calendar days of the application. Within 90 days of making your fi rst automated mortgage payment, the equivalent of the principal and interest portion, up to $2,500, will be deposited into your linked Citibank checking account. This is a one-time cash bonus and will not include a refund of the escrow portion of the monthly payment for taxes or insurance. To receive the cash bonus you must make your fi rst and subsequent mortgage payments on time and the mortgage must not otherwise be in default. In addition, your linked checking account must be open and in good standing at the time the cash bonus is deposited to that account. Important Tax Information: Participation limited to citizens or resident aliens of the United States (U.S.) with a valid U.S. taxpayer identifi cation number. For tax purposes, the cash bonus will be treated as an offset or refund of mortgage interest paid and will be reported to the IRS as such on Form 1098 in the year paid by Citibank, N.A., as required by applicable law. Please consult your tax advisor. Terms, conditions, restrictions and fees for accounts, products, programs and services apply and are subject to change. Offer not applicable on Home Equity Loans, Lines of Credit or mortgage refi nances. Offer may be modifi ed or withdrawn at any time without notice, cannot be combined with any other offer, and is limited to one per customer 18 years or older. The application must be submitted by November 30, 2012 to qualify for the offer. This is not a commitment to lend. All loans are subject to credit and property approval. Certain restrictions may apply on all programs. ©2012 Citibank. Citibank, N.A. Member FDIC. NMLS #412915. Citi, Citigold, Citibank, Citibank with Arc Design and SureStart are registered service marks of Citigroup Inc.

New York’s Premier Residential Real Estate Law Firm

KATZ & MATZ p.c. 1350 Avenue of the Americas, 3rd floor New York, NY (212) 244-4630 www.katzmatz.net PROUDLY CLOSING LOANS ON BEHALF OF CITIBANK, WELLS FARGO BANK, T.D. BANK, HSBC, FIRST REPUBLIC BANK, BANK OF AMERICA AND OTHER PRESTIGOUS LENDING INSTITUTIONS

SELECT LISTINGS

DROBENKO & ASSOCIATES, P.C.

FRANK D. ISOLDI Invites You To Discover Westfield, NJ

“The Door To Prime Representation”

Walter Drobenko, Esq.

Attorney at Law

25-84 Steinway Street Astoria, N.Y. 11103 (718) 721-2000 (718) 721-8812 wdrobenko@cs.com DrobenkoLaw.com

Caviar - The Ultimate Gift

FRANK D. ISOLDI Broker Associate #1 Agent, Westfield Office 908-233-5555 x 202 isre@aol.com www.frankdisoldi.com

A unique community renowned for its top notch schools, beautiful parks, quaint, tree lined streets & vibrant, bustling awardwinning downtown filled with great retail shops & outstanding restaurants. A commuter’s dream town … just 22 miles from New York City with NYC bus & train service & 10 miles to Newark Liberty Airport. Call me to arrange a tour of the town.

Buying, Selling or Referring .. FRANK can assist you with ALL your real estate needs.

Ahsas Interiors NY Specifications Writing Interior & Commercial Planning Design Contact us today for your next project

Caviar

Smoked Salmon

Fioe Gras

Gourmet Foods

Catering

Corporate Gifts

Mention this Ad and receive a 10% discount oﬀ your ﬁrst order

00 May 2011 www.TheRealDeal.com

Mellonee Walker Sole Proprietor ahsasintny@gmail.com

Law Offices of Jeffrey M. Goldstein, PLLC 600 Lexington Avenue Tenth Floor New York, NY 10022 Phone (646) 805-9436 Fax (212) 504-7987 The Law Offices of Jeffrey M. Goldstein, PLLC represents, Buyers and Sellers in residential and commercial real estate transactions; Lenders and Borrowers in mortgage transactions; and Landlord and Tenants in commercial leasing transactions.

www.TheRealDeal.com September 2012 113

SELECT LISTINGS

ARE YOU or YOUR CLIENTS IN: A NEGATIVE EQUITY/ UPSIDEDOWN REAL-ESTATE SITUATION?

h o r i zo n

Alternative for Short-Sale is Here

B L I N D S S H A D E S C U R TA I N S MANUAL & ELECTRIC

1. Non-Conforming Jumbo Loan Help. 2. Profession Work-Out Attorneys and Loan Specialists to Restructure current loans. 3. Owners Establish a 2012 Equity position. 4. Agents/Brokers receive Fee or Commission. 5. Owner new loan @ 75% of 2012 value.

One source for window treatments in Manhattan and Brooklyn

For specific details contact: 917-439-8508 http://frankmediate.mfgcapitalgroup.com

Frank Mediate

horizonyc.com

1400 Broadway Suite 2312 New York, NY 10018 212-867-7500 1-866-735-9418 info@ussecurityassociates.com Armed & Unarmed Contract Security Services, Loss Prevention Agents & Fire Safety Directors

Liverpool Carting Co., Inc Louis Gino Fava Owner

Liverpool Carting Co., Inc. Commercial & Residential Tel: 718-993-4525 e-mail: liverpoolcarting@verizon.net www.liverpoolcarting.com

114 September 2012 www.TheRealDeal.com

ATM •

To receive a complimentary security survey and for additional information please call : Mordechay Givoni 212-867-7500 Ext: 239 Michael Hymanson 212-867-7500 Ext: 208 Ashley Penner 212-867-7500 Ext: 237

•

www.ussecurityassociates.com

www.TheRealDeal.com July 2012 93

SELECT LISTINGS

[ new york private realty group ] Your Key to Manhattan

Discreet Representation. Diligent Research. Results.

Accurately track employee time and attendance at your building 516-414-1290 www.handpunchguys.com

889 First Avenue @ 50th Street New York, N.Y .10022 ٠ www.NYPRG.com David J. Larijani, Broker. DLarijani@NYPRG.com Main 646.502.8969

$400

Run your ad in print issue and in digital edition Contact: Robert Stearns rs@therealdeal.com 212-991-5047

Founded in 1989, EBI Consulting is one of the largest physical due diligence firms nationally. Our services include: Property Condition Assessments Phase I & II Environmental Site Assessments Site Investigation & Remediation Plan & Cost Reviews Construction Loan Monitoring Energy Benchmarking & Audits (LL84 & LL87) LEED EBOM Studies

www.ebiconsulting.com JOSH SIMON | (646) 584-4792 jsimon@ebiconsulting.com

Our Clients Rely On Us For the Very Best. So Can You.

Specializing in Real Estate, Restaurants & Hospitality �� concept and design of high-end sales and marketing collateral ��highest-quality printing and presentation packaging ��world-class branded promotional items ��turnkey project management, from beginning to end

Discover the Netmore experience.... A new and better way to buy Real Estate. Where service becomes personal! Mike Malul, Broker 600 Third Ave, Ste. 220 New York, NY 10016

p: 212.953.1099 c: 646.339.5040 mike@netmorerealty.com

w ww.netmorerealty.com 00 May 2011 www.TheRealDeal.com

Make your next project extraordinary, contact us today.

Spire Printing & Packaging 501 Fifth Avenue, Suite 811 New York, NY 10017 212.661.1157 bweiser@spireprintingandpackaging.com www.spireprintingandpackaging.com/portfolio

www.TheRealDeal.com September 2012 115

S E P T EMB E R C A L ENDA R 6

The Municipal Arts Society hosts a lecture entitled “Saving the Lions’ Cage: NYPL’s Multi-Story Stacks.” Architect and author Charles Warren will discuss the New York Public Library’s plan to remove millions of books from its century-old building at Fifth Avenue and 42nd Street, and the historic value of the book stacks that will be destroyed once the shelves are emptied. The Skyscraper Museum, 39 Battery Place. 6:30 to 8 p.m. Free. Information and registration: www.skyscraper.org.

2 3 4 5 6

9–12

The New York State Land Association presents its 2012 Annual Meeting, which includes the installation of a new slate of association officers and the awarding of honorary lifetime memberships. A two-hour panel discussion with senior executives from seven underwriters will be moderated by Rusty Solomon of Mandrien Consulting. Topics to be discussed include medium- and long-range economic forecasts, adapting to new federal regulations and the impact of REOs. Panelists will include WFG’s Joe Drum, John Hollenbeck of First American Title and George Houghton of Stewart Title. Gurney’s Inn, 290 Old Montauk Highway, Montauk, N.Y. Fee: $450 for full access for members; nonmembers will be charged an additional $100 per registration. Information and registration: www.nyslta.org.

7 8 9 10 11 12 13

Real Estate Insiders Networks hosts a one-year anniversary party with open bar and hors d’oeuvres. Slate, 54 West 21st Street. 6:30 to 8:30 p.m. Fee: $45, $55 after Sept. 5. Information and registration: www.reinny.com.

The Appraisal Institute’s Metropolitan New York Chapter hosts its annual conference, “Partnerships that Work — Arts & Sciences Enhancing Real Estate.” Speakers include Karen Brooks, president of the Brooklyn Academy of Music; MaryAnne Gilmartin, executive vice president of Forest City Ratner; Paul Pariser, co-CEO of Taconic Investment Partners; and Seth Pinksy, president of New York City Economic Development Corporation. Club 101, 101 Park Avenue. 8 a.m. to 2 p.m. Fee: $250. Information and registration: www.aimetrony.com.

15 16

18 19

21 22 23

The Young Men’s/Women’s Real Estate Association of New York hosts its monthly luncheon, with keynote speaker Haim Chera of Crown Acquisitions. The University Club, 1 West 54th Street. Noon. Fee: Free for members, $80 for guests. Information and registration: www.ymwrea.org.

CapRate Events presents “DRED: Distressed Real Estate Debrief.” Sam Chandan, president and chief economist of Chandan Economics, will give a keynote address entitled “Political Gridlock, the Fiscal Cliff, and What This Election Holds for CRE Debt Markets and Distress.” Panel discussions will include “Receivership Opportunities and the Judicial Foreclosure Process in New York, New Jersey and Pennsylvania,” and “Special Servicing Debrief.” McGraw Hill Conference Center, 1221 Sixth Avenue. 8 a.m. to 1 p.m. Fee: $200. Information and registration: www.cre-events.com/distressed2012.

The Historic Districts Council presents a bicycle tour of the Port Morris Gantries. In the South Bronx neighborhood of Port Morris, a pair of ferry gantries deteriorating in an empty lot may seem an eyesore to some, but the Friends of Brook Park sees them as the centerpiece to an engaging public space. Harry Bubbins, director of Friends of Brook Park, will lead a bicycle tour of the proposed site of Brook Park and other historic areas in the neighborhood. Location TBA. Noon. Fee: $5 for members, $10 for nonmembers. Information and registration: www.hdc.org.

26 27 28 29 30

116 September 2012 www.TheRealDeal.com

24 The New York State Association for Affordable Housing presents its ninth-annual “Upstate New York Affordable Housing Conference,” featuring remarks by Rochester Mayor Thomas Richards. The Radisson Hotel Rochester Riverside, 120 East Main Street, Rochester, N.Y. 9 a.m. to 5 p.m. Fee: $165 for members, $50 for students, $265 for nonmembers. Information and registration: www.nysafah.org.

The American Institute of Architects presents “Trade Press: An Evolving Role,” the third program in a four-part “Architecture and the Media” series. Moderated by Julie Iovine, executive editor of the Architect’s Newspaper, the panel discussion will focus on whether trade publications are becoming hybrids of journalism and networking sites. Panelists include Katie Weeks, editor of Eco-Structure magazine; Linda Barr of Real Estate Weekly; Stacy Rauen, senior managing editor of Hospitality Design; and Diana Moser of Multi-Housing News. The Center for Architecture, 536 LaGuardia Place. 6 to 8 p.m. Fee: $10 for members and students, $20 for nonmembers. Information and registration: www.cfa.aiany.org.

The New York Building Congress presents a “Construction Industry Breakfast Forum,” with guest speaker Sen. Charles Schumer. The Pierre Hotel, 2 East 61st Street. 8 a.m. Fee: $85 for members, $800 for a member table, $150 for nonmembers, $1,250 for a nonmember table. Information and registration: www.buildingcongress.com.

www.TheRealDeal.com August 2006 00

Real Deal full page color ads_Layout 1 7/27/2012 11:59 AM Page 1

The best credit terms in the industry

More Locations. Better Service. 718-534-4583 www.AWSupply.com

APARTMENT BUILDING SUPPLIES

T h e R e a l D e a l C r o s s w o rd

CitySpire, REBNY and more By Myles Mellor

GROW. WISELY. EisnerAmper’s Real Estate Services Group provides a wide array of audit, tax and advisory services to the real estate community, including REITs and real estate opportunity funds. Our goal is to help our clients structure sound transactions and examine each aspect of operations to help maximize potential returns and build future success. And as a leading service provider for financial service companies as well as family offices, EisnerAmper is uniquely positioned to create synergies that help our real estate clients grow their businesses. TM

Let’s get down to business.

. J.D., LLM Kenneth Weissenberg, CPA, Partner 212.891.4070 kenneth.weissenberg@eisneramper.com

Independent Member of PKF International

Aaron Kaiser, CPA Partner 212.891.8084 aaron.kaiser@eisneramper.com

NEW YORK | NEW JERSEY | PENNSYLVANIA | CALIFORNIA | CAYMAN ISLANDS

www.eisneramper.com

EisnerAmper LLP Accountants & Advisors

Across 1 4

THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY

8 9

REQUEST FOR PROPOSALS FOR THE SITE WIDE PROPERTY MANAGER FOR THE WORLD TRADE CENTER SITE PROPERTIES

10 12 13

The Port Authority of New York and New Jersey is seeking to identify firms interested in responding to a Request for Proposals (RFP) for the performance of Property Management Services for the World Trade Center Site Properties. RFP # 30235 is available on-line at: http://www.panynj.gov/businessopportunities/bid-proposal-advertisements.html. Addenda to the RFP, if any, will be posted at this site. Monitor the advertisement on the website to ensure your awareness of any changes. If you have any technical problems accessing the documents online, email us at askforbids@panynj.gov or call (201) 395-3405 for assistance. Your e-mail should include the RFP number, your firm name, email address, contact person, mailing address, and telephone number. Joint ventures/teams are acceptable. It is currently anticipated that proposals shall be due by 2:00 PM on September 28, 2012 or as otherwise indicated in the solicitation package provided to you. Proposals must have the RFP number and full legal firm name clearly indicated on the outside of the package. Send Proposal(s) to: The Port Authority of NY & NJ, Attn: Bid/ Proposal Custodian, Procurement Department, 2 Montgomery Street, 3rd Floor, Jersey City, NJ 07302. A VALID PHOTO ID IS REQUIRED TO GAIN ACCESS INTO THE BUILDING, IF YOU ARE HAND DELIVERING YOUR PROPOSAL. 118 September 2012 www.TheRealDeal.com

14 15 18 20

Footwear store replacing three restaurant spaces in Herald Square Billionaire who purchased an apartment at 834 Fifth Avenue for $34 million, Robert ____ The recently sold California property that housed the offices of designers Job 53602 PAUTH Charles and ____ Eames Real Deal Prince, e.g. 1/4 pg 4.625” x 6.375” The group that bought four 8.16.12 p8 residential buildings on the UWS for $17 million with plans to convert them to condos One element of the ULURP process Spacious Long Island–based developer who listed his CitySpire penthouse for $100 million Shakespeare comedy, Much A___ About Nothing After junior Silent okay The Quogue location where supermarket mogul John Catsimatidis owns a home, ____ Road

21 U.S. Attorney who negotiated a $56 million settlement with Lend Lease 23 The federal agency that finalized a deal in July to lease office space in One World Trade Center 26 Site of the Federal Reserve Bank of New York’s downtown office building, 33 Maiden _____ 27 Adds years 29 Developer handling the Marriott Marquis retail development 31 Celebrity friend of luxury hotel owner Vikram Chatwal, Naomi ____ 34 They offer shelter from the ski slopes 37 Johnson & Johnson heiress who recently chopped the listing price on her West Village townhouse 39 ____ Retail, on a buying spree in Manhattan 40 Manhattan rents are currently at an ___-time high 41 Goes with bump and spike for Misty May-Treanor and Kerri Walsh-Jennings 42 ____ Harbor 43 Inferior imitation

Down 1

2 3 4 5 6 7

8 11 16 17 19 20

Axa Financial CEO who recently bought an $11 million co-op in the Carnegie Hill Historic District Sell Protected from sunlight Structures Newest Yankee looking for a Manhattan residence Profit from an investment, for short Spy ring “femme fatale” ____ Chapman who had an online real estate business Underhanded New REBNY chairman, ___ Speyer Plural suffix Where Vornado recently sold the Washington Office Center for $186 million Have the deed Rose Associates now has a ___ concierge service for its buildings

22 Persona ___ grata 24 One of Manhattan’s priciest residential strips, Park ___ 25 Chairman of Prudential Douglas Elliman’s Retail Group 26 Venues 27 Realtor.com has a useful one of these for tech-savvy brokers 28 The night before 30 They share apartments 32 The ___ Ross of the North Fork, Town & Country broker Kate Carpluk, who put up 2,000 American flags for July 4th 33 What you can get while waiting for a broker at Modern Spaces 35 Top Hamptons broker Harald ____ 36 Give up 38 ___ borrow or steal To play this puzzle online, and see the solution, visit www.TheRealDeal.com.

The Most Sought After Address for Healthcare Providers in Manhattan

800

FIFTH AVENUE

800A Fifth Avenue at 61st Street Overlooking Central Park 1,200 to over 4,500 Square Foot Professional Suites Available for Lease Separate Medical Entrance • On-site Attended Garage • Steps from All Transportation

Paul L. Wexler • 212-836-1075 • plw@corcoran.com President, Corcoran Wexler, Associate Broker

30462 CorWex RealDeal Sept12.indd 1

8/28/12 12:33 PM

RESIDENTIAL DEALS

Success is a done deal.

$15,000,000

$7,400,000

Cinemas 123

Loehmann’s Plaza

MOVIE THEATER NEW YORK, NY

212,134 SF EAST BRUNSWICK, NJ

LENDER: REGIONAL BANK

LENDER: LIFE COMPANY

Capital Markets northmarq.com 33 ofﬁces coast-to-coast Capital Services East/Westchester 914.683.3710

Long Island 516.333.4034

New York Metro 212.904.1994

New Jersey 973.538.2330

Fulton Center

Washington Heights $309,000 812 Riverside Drive, Apt. #47

One-bedroom, one-bath, 650 sf new condo conversion; unit has marble baths, hardwood floors, part-time doorman, live-in super; common charges $422 per month, taxes $79 per year; asking price $309,000; 59 weeks on the market. (Brokers: Sandy Edry, Keller Williams; Eileen Kim, Bond New York) “This couple was in the army and had been in Afghanistan last year. They moved to New York because [the wife] is starting at Columbia Business School this fall. She grew up in Stuy Town. They were here for one week to get married and find an apartment. I showed them apartments for two days. Space was the most important thing, and they wanted to be close to Columbia. They also wanted laundry in the unit and a building that would allow pets. I mostly showed them apartments in Washington Heights and Harlem. They chose this one because it met all the criteria and wasn’t very expensive. Because of their experience in Afghanistan ... if there was a hiccup in the process, the wife would say, “Okay, this is a First World problem, we can handle this.” I think they had, like, seven different addresses [in the last few years], and the bank didn’t understand why they moved so much. In fact, one of the addresses just said “Afghanistan.” But it wasn’t hard for them to get financing, actually.” Eileen Kim, Bond New York

Financial District $1.97 million 75 Wall Street, Apt. #20C

Retail/Commercial Master Lease Opportunity at Fulton Center Approx 65,000 Square Feet of Space in MTA’s Signature New Transit Center Fulton Street and Broadway - Lower Manhattan The Metropolitan Transportation Authority is seeking proposals from experienced developers and property managers for the long-term master leasing of the Fulton Center. The Fulton Center will link 9 subway lines, PATH service, and the World Trade Center Site, improving travel for nearly 300,000 transit riders every day. This iconic development will include approximately 65,000 sq ft of retail/commercial space and over 50 revenue-generating multimedia displays in the newly constructed Fulton Building, historic Corbin Building, and Dey Street Headhouse and Concourse. More information about this opportunity including a copy of the Request For Proposals (RFP) may be found on the Internet by going to: http://mta.info/mta/realestate/retail_leasing.html

120 September 2012 www.TheRealDeal.com

Three-bedroom, 2.5-bath, 1,692 sf new condo conversion; building has doorman, rooftop terrace, billiards room, gym; common charges $1,972 per month; taxes $67 per month; asking price $2.1 million; 11 weeks on the market. (Brokers: Ariel Cohen, Prudential Douglas Elliman; Maria Ellis, Citi Habitats)

“I represent the sponsor for the entire building. This is probably the busiest summer I’ve ever experienced. Basically, this summer is on crack. This buyer was an all-cash investor. It was off the market, [but the investor approached us]. When he took possession of the unit there was a rental tenant in place, so from the day he closed, it had income in place. We closed in less than 30 days. Even though he was all cash, we didn’t end up lowering the price — we negotiated a little bit, but not too much. It ended up selling for well over $1,200 a square foot. There was also a 14-year tax abatement.” Ariel Cohen, Prudential Douglas Elliman

Greenwich Village $4.65 million 65 West 13th Street, #2F

Three-bedroom, three-bath condo at the Greenwich; building has doorman, concierge, roof deck; common charges $1,853 per month; taxes $1,842; asking price $4.9 million; 12 weeks on the market. (Broker: Ric Swezey, Town Residential; Ed Freiberg, Town Residential. Swezey was at Town when the deal was completed, but has since moved to the Corcoran Group.) “The buyer was actually a friend of mine — he also works in the real estate business. We started looking a while ago, but he had really specific requirements. He wanted a big lofty space [with] high ceilings. He wanted a condo and wanted it in the Village. There are not a ton of places over 2,000 square feet [in that area]. He wanted a three-bedroom because of the [potential] resale value. We had been looking for probably a year and a half — we’d seen 50, 75 apartments. We couldn’t hit the sweet spot, though. We finally saw this one. He walked in and he tried to play poker face, but when he turned to me, [I knew]. It had a huge entertaining space, 14-foot ceilings. He wanted to create an office space, maybe expand a bedroom. With a loft, he can adjust it to whatever his needs are, which might change over time. It took a bit of negotiating. They were tough, but he’s pretty tough, too. It was pretty much a smooth deal from [when they settled on the price] because he is one of the most organized people I’ve ever worked with. We got financing very quickly, got the board package in pretty fast. He could have closed in less than a month, but this took six weeks because the seller needed the time to relocate.” Ed Freiberg, Town Residential

TRD

Real Deal 55 Retail Sept2012_Real Deal 8/14/12 3:30 PM Page 1

FINANCIAL DISTRICT’S #1 RETAIL OPPORTUNITY

11,000+ Sq. Ft. of Prime Retail Space Offering High Visibility on Broadway

The Space • Soaring ceilings • Dramatic all glass storefront • Will build to suit

Ground Floor: 4,883 Sq. Ft. Mezzanine: 6,372 Sq. Ft.

The Location • 5+ million tourists a year • Access to over 300,000 employees

An Amazing Flagship Opportunity Just Blocks From Wall Street

• One of the fastest growing residential areas with over 55,000 residents • 2nd largest business district in the city

For additional information or lease inquiries please contact: Ramona Huegel or David M. Israni

212.609.3700 WWW.55BROADWAY.COM

GREAT SERVICE IS ALWAYS GOOD BUSINESS

• One of the wealthiest neighborhoods in NYC • Home to the biggest names in retail • Surrounded by exceptional restaurants • Tremendous foot traffic • Close proximity to the 4, 5, 1, 2, 3, R, J, M & Z subway lines, PATH and ferries to Brooklyn, Staten Island & New Jersey

“We're earning the right to be your next landlord.” Daniel M. Blanco

Raymond Chalmé

COMINGS & GOINGS

BROKER EXCHANGE

Cole Schotz forms new real estate group

Residential

he law firm Cole, Schotz, Meisel, Forman & Leonard has launched a new Real Estate Special Opportunities Group to focus on debt acquisitions, restructurings and workouts. The 120-agent law firm celebrated the group’s official launch last month with a cocktail party at the Kimberly Suites Hotel in Midtown Manhattan. Led by Cole Schotz partners Leo Leyva, Richard Abramson and Jordan Fisch, the new group has a total of 13 lawyers based in the firm’s New York and New Jersey offices. The group formally combines some lawyers from the firm’s real estate, litigation, bankruptcy and corporate departments, who have been working together on real estate deals for more than 15 years. Recently, however, they noticed a significant uptick in the number of distressed deals. “We found ourselves frequently working on real estate transactions focused in the distressed arena,” said Leyva, who also cochairs Cole Schotz’s litigation practice. As a result, he said, “we From left: Richard Abramson and Leo Leyva at decided to formally brand the group.” the Kimberly Hotel last month. The change will add more structure to what was otherwise a loosely defined group of attorneys, he said, and make it easier to market its services to potential clients. The new group’s client list includes investment firm Savanna and Equity One, a north Miami Beach– based investment fund. Leyva represented Savanna in the May 2012 sale of a $157.7 million promissory note. Abramson, who also chairs Cole Schotz’s real estate department, worked on Savanna’s 2010 purchase of 1375 Broadway for $135 million. The group may expand by hiring additional lawyers with a background in commercial real estate finance, Leyva said. By David Jones

Romeo Lepe joined the ﬁrm as an associate broker. Previously, he

For Oxford Property Group, a room of its own

very real estate firm needs an office of its own. That’s certainly true for two-year-old, high-commissionsplit brokerage Oxford Property Group, which is moving into its own office for the first time. The 130-agent residential and commercial brokerage currently shares space at 220 Fifth Avenue with a law firm, but will move this month into its own full-floor office at Fifth Avenue and 30th Street. Adam Mahfouda, a Rutenberg Realty alum who founded Oxford Property Group with industry veteran Greg Harden, said most of the company’s agents work remotely rather than in the office. Still, he said he’s looking forward to having “our own branded space.” Oxford is one of many new Manhattan brokerages with a high-commission-split model, in which agents keep the lion’s share of their commissions while paying the firm fixed monthly fees. In what Mahfouda touts as “the best commission structure in the industry,” Oxford agents can choose to pay the firm $349 per month and keep their full commission or pay $49 per month and take 90 percent instead. This model is different from Rutenberg and other high-commission-split firms, Mahfouda said, because there are no transaction fees paid per deal. “While many agencies in New York claim to be 100 percent firms, they typically retain over 25 percent of the gross commissions on rental transactions,” he said. One benefit of Oxford’s new, 4,500-square-foot office is that teams or individual agents have the option of renting a permanent desk or office within the company’s space, Mahfouda said. The company will also offer 20 to 30 shared workstations. “Part of the reason we’re moving is we’d like to offer agents a desk if they’d like,” Mahfouda noted. He said the firm expects “to continue growing and bringing in new talent,” and the new space should be large enough to accommodate the firm’s growth for some time, even if it adds “another 100 to 200 agents.” By Andrea Cetra and Candace Taylor

Oxford agents can choose to pay the ﬁrm $349 per month and keep their full commission or pay $49 per month and take 90 percent instead.

Charles Rutenberg Realty of New York was a broker at Unified Network Realty. Citi Habitats Aash Jethra was hired as a sales associate. He was previously a real estate salesperson at Mark David & Co. Daniel Gale Sotheby’s International Realty Deborah Hauser was named sales manager of the Cold Spring Harbor office, in addition to her responsibilities as director of business development. Miron Properties Tapu Naik joined the firm from Metropolitan Property Group, and Nicole Wallah was hired from Goldstar Property Group. Robert O’Hara joined from the Stuyvesant Town leasing office, where he was an on-site agent. Vlado Vojtko joined the company from CitiSpot. Prudential Douglas Elliman Chris Poore joined the firm as executive vice president from the Corcoran Group. Sarah Williams was hired from Halstead Property.

Commercial Avison Young Michael Goldring was hired as a principal in the capital markets group, specializing in private negotiated loan-sale transactions. He was previously a senior vice president at ICAP. Steven Kurtz, the founder of Kurtz Realty Consulting in New Jersey, also joined the firm as a principal, and will focus on growing the firm’s valuation advisory services platform. Cassidy Turley Judd McArthur joined the firm as senior vice president. Previously, he was a senior vice president at Cresa. HFZ Capital Group Anthony Marrone, formerly a senior vice president at Bovis Lend Lease, joined the firm as managing director of construction. MacKenzie Landers was hired from the New York City Department of Design and Construction as director of asset management and development. Matthew Arbeit and Steven Spektor joined the firm as senior project managers. Venable Michael Peskowitz joined the New York office as a partner in the firm’s real estate practice group. He was previously a principal in Sidley Austin’s New York office. Compiled by Andrea Cetra

Harlem Lofts acquires local competitor, turns divisions into new ﬁrms

n a bid to become Harlem’s largest redeveloper of townhouses, real estate services ﬁrm Harlem Lofts has acquired a local competitor. Harlem Lofts last month hired Charlie Marcus, the developer of projects such as the 11-unit Ellington condo at 111 West 117th Street. Marcus will be offered an ownership stake in the Harlem Lofts redevelopment arm, which has been renamed Harlem Property Re+Development, explained Harlem Lofts president Robb Pair. Pair said he and Marcus have long admired each other’s work. “I would go and spy on his projects, and he would spy on mine,” Pair said. Harlem Lofts, developer of townhouse conversions such as the four-unit condo 764 Saint Nicholas Avenue, has made other organizational changes as well, separating its divisions into three distinct companies under the Harlem Lofts umbrella: Harlem Property Re+Development, Harlem Property Management and Harlem Real Estate, the brokerage arm. The brokerage and property management arms of the company 122 September 2012 www.TheRealDeal.com

will begin a “serious recruitment effort” after Labor Day, said Harlem Lofts chief operating officer Craig Rothfeld. With the addition of Marcus’s book of business, Harlem Lofts hopes to significantly increase its market share. “In this case, the whole is definitely greater than the sum of its parts,” Rothfeld said. Pair started redeveloping brownstones A townhouse at 764 Saint Nicholas Avenue, converted to condos by Harlem Lofts. with Harlem Lofts in 1999, and added a brokerage arm to the company in 2008. He said the recent changes are part of his “vision” to become a sort of one-stop shop for clients, “the best choice in Harlem for real estate investors.” By Guelda Voien

More savings means happier residents. Lower the cost of keeping your residents connected – with bulk-rate discounts on TV, Internet and Home Phone service. Time Warner Cable is pleased to offer select buildings discounted rates on TV, Internet and Home Phone through our shared savings plan. We will work with you to identify the right mix of services for your residents, and set up turnkey billing and customer service. Everyone’s happy – when you say hello to savings! To find out more about our shared savings plan, call 212.598.1761.

Shared Savings Plan is available to qualifying residential buildings in Time Warner Cable of New York and New Jersey service areas. Savings is applied to regular retail rates for services included in the Shared Savings Plan. Additional restrictions may apply. Contact Time Warner Cable’s New Market Development/ MDU Department to discuss eligibility and program requirements. All rights reserved. Time Warner Cable and Time Warner Cable logo are trademarks of Time Warner, Inc. © 2012 All rights reserved. realdeal_9.1_mdu_shared2_10.5x14.5

Jumping through hoops Commercial broker has trophy listings and trophy-winning canines

Heaner and Dixie at a dog sports competition

no longer handle him. After training Max, Heaner began showing him competitively. “I kind of got the bug,” recalled Heaner, who discovered that working with the dogs helps him relax. “It’s like therapy to me.” He has since trained six other dogs and competed with the American Kennel Club, the Canadian Kennel Club and the United States Dog Agility Association. Right now,

Kicking off real estate deals Despite

questions, ‘crowd-funding’ used to buy properties

he nonproﬁt New Brooklyn Theater company has found an unusual way of raising funds to buy and restore the historic Slave Theater in Bedford-Stuyvesant. NBT, which needs $200,000 for a down payment on the 1215 Fulton Street building, last month posted about The Slave Theater

the project on the “crowd-funding” website Kickstarter. Already, some 218 people have contributed more than $22,000 through the site, which allows users to browse through lists of projects and donate money. More and more crowd-funding dollars are being spent on buying, renovating or leasing New York City properties, industry experts said. A group of science enthusiasts, for example, recently used the crowd-funding site Indiegogo to raise more than $1.1 million to buy inventor Nikola Tesla’s now-abandoned Long Island laboratory, with plans to convert it into a science museum. Sites like Fundrise and PropertyPeers, meanwhile, are speciﬁcally designed to help users make equity investments in real estate. The New York City Council is even getting in on the act: The city now has its own Kickstarter site, which highlights “creative ideas” and projects in low-income neighborhoods. For a project like the Slave Theater, crowd-funding seemed like a perfect ﬁt. Sarah Wolff, an executive producer at the theater company, said that the group

Scenester shopping

Bushwick retail mall sees uptick in leasing

hopping malls are exactly the kind of thing that hipsters love to hate. So when Shops at the Loom opened in 2009 amid the warehouses and abandoned buildings of Bushwick’s Knickerbocker Avenue, it seemed unlikely that its 21 small retail spaces would ever be ﬁlled. But the 25,000-square-foot converted pillow factory is now almost fully leased, according to owner Bushburg Properties. And the locals certainly seemed to be embracing the place at a charity event there on a recent Thursday night, when The Real Deal found a scene not unlike that of a Lower East Side nightclub: competent DJ, attractive young revelers, even a Marc Jacobs bag that was almost certainly not a Chinatown knockoff. The event, a fundraiser for the Manhattan Skateboarding School, took place at the North Brooklyn Collective, a newly opened bicycle store that serves as the Loom’s de facto anchor tenant. Laura Vivoni, who handles marketing for Bushburg, said that there’s been a recent uptick in retail leasing activity. “We were surprised,” she said. “Even from a few months back, we are getting more and more interest.” 124 September 2012 www.TheRealDeal.com

Shops at the Loom

In the past four months, the Loom has leased a total of ﬁve spaces, including the North Brooklyn Collective store. Other new tenants include the dessert shop Henson’s Can-

WE HEARD

▼

uring the day, Mike Heaner is a top dog in commercial leasing at the Kaufman Organization. But at night and on weekends, he’s focused on true canine competition. A dog sports trainer, Heaner spends ﬁve days a week preparing his Belgian Malinois, Dixie, for competitions in locations like Indiana and Florida. The two compete several times a month in events for agility and “competitive obedience,” which tests Dixie’s ability to respond to commands. (Dog sports competitions are different from the well-known Westminster dog show, which judges a dog’s appearance and breeding rather than performance.) Heaner stumbled into dog sports training 16 years ago when he inherited Max — an untrained, 80-pound Bouvier des Flandres — from a neighbor who could

in addition to working with seven-yearold Dixie, he’s training a new puppy for future competitions. Heaner and his dogs have earned hundreds of ribbons, and he won his highest honor when one of his dogs, Sophie, was named “the No. 1 obedience dog in Canada,” he said. For Heaner, dog-training is just a hobby, but he said the sport does have some similarities to commercial real estate: the need for dedication, focus, organization and commitment, for example. “I always tell our young brokers that this business is a marathon and not a sprint,” Heaner said. “Same goes for training — you have to set achievable, intermediate goals, all leading toward long-term success.” By Zachary Kussin

used Kickstarter in lieu of courting traditional investors because it symbolizes the kind of grassroots spirit they want to cultivate. “We feel that developing a community consensus around the site’s future is more valuable than any other project catalyst,” Wolff said. But crowd-funding’s potential for real estate is somewhat limited by SEC regulations. And the Jumpstart Our Business Startups Act, signed by president Obama last April, caps the crowd-funds a group can raise at $1 million per year — a number too low for purchases in most urban real estate markets. Perhaps for those reasons, both Kickstarter and Indiegogo specifically ban for-profit real estate projects. But nonprofits using its crowd-sourced funds to buy real estate appears to be permissible under both sites’ terms of service. (Neither website responded to requests for comment.) Still, when it comes to crowd-funding and real estate, a bevy of legal and logistical questions remain. Buying property with crowd-funds “sounds so simple,” said PropertyPeers cofounder Mark Mascia, who is also CEO of Manhattan-based Mascia Development. But “there is still so much unknown due to the complexity and size of real estate transactions. It was way harder than any of us realized initially.” By Christopher Cameron

teen, a tattoo parlor, a pet supply shop called Bushy Tails and the Studio at the Dark Room, where photographers can pay by the hour for studio time. When the Loom first opened for business in 2009, only 30 percent of the spaces were occupied. Now, only one 500-square-foot space remains available, Vivoni said, and its asking rent of $3 per square foot is far higher than the $1 per foot Bushburg initially asked for spaces in the complex. The improving economy has no doubt played a role, and Vivoni noted the growth of the arts scene in Bushwick, which has helped propel foot traffic. “We have a very eclectic style and it goes well with the direction in which Bushwick is heading,” she said. Another factor in the Loom’s success may be the presence of residential apartments on the second floor, which serve as a built-in customer base. At least some of the commercial tenants, such as a Laundromat, were brought in as a convenience for the residents, Vivoni said. Still, the Loom isn’t totally immune to hipster scorn. At the recent charity event, one visitor glanced up from a 22-ounce Tecate Light to remark that the complex, in her opinion, is still “a work in progress.” By Guelda Voien www.TheRealDeal.com July 2012 105

Should I lock-in to the current price or wait?

Can I get a fixed or variable price?

How long can my contract term be?

Is natural gas really as clean as they say?

Do You Know The Facts About Natural Gas? Natural gas prices are near historic lows as a result of current market dynamics. But choosing the right energy supplier to meet the natural gas requirements of your business is a complex decision. For 15 years, ConEdison Solutions has been helping businesses optimize their energy management choicesâ&#x20AC;&#x201D;to save more, reduce total energy usage, and integrate green power solutions. We have the energy expertise and financial strength to provide the energy solutions your business needs. And you can count on us to be there for the long haul when market conditions or your business circumstances change. Natural gas and electricity | Demand response and control | Energy optimization | Green power | Energy efficiency

Contact your ConEdison Solutions expert today 1.800.316.8011

www.conedisonsolutions.com/quote

ConEdison Solutions is a leading energy services company that provides competitive power supply, renewable energy, sustainability services, and cost-effective energy solutions for commercial, industrial, residential, and government customers. The company is based in Valhalla, New York, with offices in Burlington, Massachusetts; Cherry Hill, New Jersey; Chicago, Illinois; Falls Church, Virginia; Houston, Texas; Tampa, Florida; and Overland Park, Kansas. The firmâ&#x20AC;&#x2122;s dedicated team of energy professionals delivers a broad range of commodity, consulting, demand-side management and performance contracting services. ConEdison Solutions offers programs and services designed to help customers achieve their individual energy objectives and is accredited as an Energy Services Provider (ESP) by NAESCO.

THE CLOSING WITH ARTHUR

MIRANTE II Arthur Mirante II is a principal and tri-state president of Avison Young, a Canadian commercial brokerage that made its first push into the New York City market last fall. An attorney by trade, Mirante joined the firm in April after 41 years at Cushman & Wakefield, where he became the firm’s first nonbroker CEO at age 40. In his 20 years as chief executive, he oversaw the firm’s expansion from 60 offices in the U.S. to 173 offices globally, and grew revenues tenfold, from $100 million to $1 billion. He stepped down as CEO in 2004 to become a broker and Cushman’s president of Global Development. He’s been involved in megadeals, including the record $1.8 billion acquisition of 666 Fifth Avenue in 2007 and the $1.72 billion sale of 200 Park Avenue in 2005. What is your full name? Arthur Joseph Mirante II. What is your date of birth? August 25, 1943. Where do you live? On East 76th Street, right on the FDR Drive. We also have a home in Sharon, Conn. Where did you grow up? Right across the river in North Bergen, N.J. I was lucky to get a football scholarship to Holy Cross College in Massachusetts. It got me out of the neighborhood. Most of the other guys in my high school class went on to be electricians, carpenters; they went to work in the shipyards. We were in a [lower middle-class] economic situation, so absent an athletic scholarship, I don’t know if I would have gone to college. What were your parents like? They were very loving. My father was a refrigeration mechanic. I am Arthur J. Mirante II. They didn’t want me to be called “junior,” so they put the “second” on my birth certificate. I never used it [until] my father went bankrupt. He used [his savings] to get a patent on an invention he had, an automobile engine run by Freon gas. But the gas then became illegal because of the environmental fumes it gives off. I had to start using “the second” to get a charge card when I was in college. Otherwise the application would come back and say, “You’re bankrupt.” I heard that you played pro football for a day. Yes. For the Newark Bears [a now-defunct minor league team]. I had a contract, $75 a game. After the first game, I ran back a few kickoffs and I said, “I don’t think I want to do this anymore.” Why? No. 1, I wasn’t good enough to go to the NFL. No. 2, getting your brains beat in is kind of a difficult way to make a living. What did you do instead? My [now ex-] wife got pregnant, and I went to St. John’s University Law School during the day, and worked at night. I worked in the jails up in the Bronx, in what was known as Fort Apache, for the probation department.

126 September 2012 www.TheRealDeal.com

When I wasn’t interviewing prisoners to see if they qualified for parole or not, I could study. What did that teach you? It taught me not to commit any crimes. [Laughs] How did you get into real estate? I was an attorney practicing for a firm called Albanese & Albanese [founded by real estate attorney and developer Vincent Albanese]. I applied for a job as a lawyer at several of the big real estate companies. About six months after I applied for the job, I got hired by Cushman & Wakefield in 1971. You were appointed CEO in 1984. How did you get that job? I was very young and unprepared when [then-general counsel George Lees] had a stroke. I was the only lawyer in the firm, and our then-president Jim Peters came to me and said, “I know you’re not ready for this, but you’re going to be our general counsel.” Then there came a time when [former CEO Stephen Siegel] asked me to please undertake the oversight and management in the New York area. [When Siegel left,] I became CEO. Why did you leave Cushman for a firm that’s been described as a start-up, at least in New York City? Well, it’s not like I’ve been jumping around! It’s 41 years at the same company. The single reason is the opportunity that Avison Young offered me to build a brand-new business from the bottom up, here in the New York tri-state area. I wouldn’t have moved to another giant firm.

Was there a catalyst, or a moment when you decided to do that? No. The moment was when I got a call and I said, “What’s the name of the company?” What are the best and worst parts of the new firm? The best part is the excitement and energy. The worst is that I miss my friends at Cushman & Wakefield. What is your proudest real estate transaction? Helping the Alvin Ailey dance company [where Mirante is a board member] find a permanent home. Two years earlier, we had just avoided bankruptcy. We now have a building on 55th Street and Ninth Avenue. Are you married? I’m on my second marriage. My first marriage was 20plus years, the second is 18 years. I have a 17-year-old from my current marriage, two adult children in their 40s and six grandchildren. I’m very lucky. Where’s your wife from? She grew up on the [Caribbean] island of St. Vincent and the Grenadines, so we used to go down a minimum of once a year. We even bought some land on this wonderful island called Bequia. What makes a successful marriage? Oy. I think it’s all about one word: sacrifice. It’s very hard, I think, to live with one person, be monogamous, because of all the stresses that life has. A lot of times, you don’t figure that out until your second marriage. By Leigh Kamping-Carder

PHOTOGRAPH FOR THE REAL DEAL BY MARC SCRIVO00 www.TheRealDeal.com July 2006

No. These aren’t our listings. 550 Park Ave

888 Park Ave

1070 Park Ave

570 Park Ave

911 Park Ave

1088 Park Ave

580 Park Ave

930 Park Ave

1111 Park Ave

737 Park Ave

941 Park Ave

1112 Park Ave

740 Park Ave

969 Park Ave

1130 Park Ave

785 Park Ave

975 Park Ave

1150 Park Ave

800 Park Ave

993 Park Ave

1165 Park Ave

820 Park Ave

1020 Park Ave

1185 Park Ave

829 Park Ave

1040 Park Ave

1192 Park Ave

860 Park Ave

1045 Park Ave

1199 Park Ave

876 Park Ave

1050 Park Ave

1220 Park Ave

885 Park Ave

1060 Park Ave

1260 Park Ave

It’s our resumé. Since 1990, The Renovated Home has become NYC's premier design-build firm by under-promising and over-delivering on our projects at some of the city's most prestigious residences. Always on time and on budget.

For us, a day at work is just a walk in the park.

design

build

execute 2 1 2 . 5 1 7 . 7 0 2 0

The Renovated Home

1477 third ave

therenovatedhome.com

new york city

Sandy Edry

building exclusives, incl. new 200-unit condo

39M Rana Williams

in current, exclusive luxury listings

5.7M Jill Raff

Michael Shapot

Central Park West exclusive listing in contract

referrals from Keller Williams network

9.5M

info@kwnyc.com

Jason Penner

Soho loft listing in contract

(212) 838-3700

14M

Whitney Didier

in signed contracts in the last month

We know NYC