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Category Archive620 Eighth Avenue

Hedge Fund Kepos Capital Inks 20K-SF Lease at 11 Times Square

Alternative investment firm Kepos Capital has agreed to move its Manhattan headquarters to a 20,000-square-foot space at SJP Properties11 Times Square, Commercial Observer has learned.

Kepos signed a 10-year deal last month for part of the 35th floor at the 40-story, 1.1-million-square-foot office tower at 640 Eighth Avenue between West 41st and West 42nd Streets, according to sources with knowledge of the transaction.

The firm is expected to relocate to its new Midtown West space in August from its current location just one block south at the New York Times Building at 620 Eighth Avenue, where it presently occupies around 17,000 square feet on the 44th floor.

Asking rent in the deal was not immediately clear. Paul Glickman and Diana Biasotti of JLL represented landlord SJP—which owns 11 Times Square in partnership with PGIM and Norges Bank—while CBRE’s Ben Friedland and Michael Movshovich represented Kepos

In a statement, SJP CEO Steven Pozycki said Kepos wanted to “maintain its presence in the city’s premier transit hub,” referring to 11 Times Square’s proximity to Port Authority Bus Terminal across Eighth Avenue and Penn Station several blocks south. “For today’s financial services firms, it’s critical to have an office that provides state-of-the-art connectivity and is outfitted with the latest technology infrastructure,” he said.

Matt DesChamps, Kepos’ COO, said in a statement that the new space’s larger footprint and the firm’s “ability to design the space to our requirements” provided it the “opportunity to create a customized work environment to serve our clients and support our growing business in the years ahead.”

“Kepos Capital joins a roster of leading financial and technology firms attracted to one of the city’s most advanced and sophisticated commercial towers,” JLL’s Glickman said in a statement to CO. Law firm Proskauer and tech giant Microsoft anchor the office building, which was completed in 2010.

Representatives for CBRE did not immediately provide comment.

Kepos was founded in 2010 by former Goldman Sachs partners Mark Carhart, Giorgio De Santis and Bob Litterman, who previously led the quantitative investment strategies division at Goldman Sachs Asset Management. The firm manages $3 billion in assets for a global base of institutional investors.

Madrid-based amusement park operator Parques Reunidos signed a lease last year to anchor 11 Times Square’s retail space, where it is developing a 45,000-square-foot indoor entertainment complex, known as Lionsgate Entertainment City, in partnership with film studio Lionsgate.

Source: commercial

Gilmartin Leaves Forest City to Start Development Firm With L&L Execs

After 24 years with Forest City, MaryAnne Gilmartin is striking out on her own.

The Forest City New York chief executive officer is leaving her post at the top of Bruce Ratner’s firm to team up with L&L Holding Company executives David Levinson and Robert Lapidus on a new venture called L&L MAG. Gilmartin, who will be the chief executive officer of L&L MAG, confirmed the move to Commercial Observer yesterday after Brooklyn business website The Bridge leaked the news.

She’s also taking four of Forest City’s top executives, Jeffrey Rosen, Susi Yu, Adam Greene and Ashley Cotton, with her. Rosen will be the managing director of development and capital markets, and Yu will be a managing director and head of development. Greene will become a managing director of construction and development, and Cotton will serve as the managing director of communications and marketing.

The time is ripe for Gilmartin to leave Forest City. The company stands at a crossroads after transitioning from privately held developer to publicly held real estate investment trust two years ago. Forest City Realty Trust, along with its local arm, Forest City New York, are shifting away from ground-up development and focusing more on investing in and operating office and multifamily properties, she explained. Yesterday, The New York Post reported that Forest City is selling all but 5 percent of Pacific Park,  the 22-acre megaproject rising atop the Long Island Railroad yards formerly known as Atlantic Yards, to its partner on the project, Greenland USA.

Gilmartin and her crew have a services agreement with Forest City to finish the remaining work on Pacific Park. The developer has only completed four out of 15 planned buildings and 800 affordable apartments, with an approaching deadline in 2025 to complete 2,250 affordable units. The developer hasn’t started construction on any new buildings since 2016, but it has continued work on buildings that were already underway.

But Gilmartin, who is arguably one of the most powerful women in New York real estate, wants to stay in the development game. She also sees the L&L venture as a unique opportunity to start her own company, rather than run someone else’s.

“I’m first and foremost a developer,” she told CO. “It’s what I love. Dave Levinson and Rob Lapidus know how to raise capital, they love the urban landscape and they enjoy challenging projects. I’m taking the people I love at Forest City and doing more of the stuff I think is super challenging and rewarding.”

The 53-year-old executive added that she’ll miss Forest City, but that, “I think there’s a recognition that there isn’t a job big enough at the company to keep me challenged and keep me happy for the next decade.”

In her time at Forest City, Gilmartin has overseen the development of the $5 billion Pacific Park project, the New York Times Building at 620 Eighth Avenue, the Tata Innovation Center at the Cornell Tech campus on Roosevelt Island and the Frank Gehry-designed 8 Spruce Street.

L&L MAG will bring together Lapidus and Levinson’s talents for developing office buildings with Gilmartin’s ability to build residential, office, hotel and cultural properties, she said. They hope to work on a variety of projects, both in the city and elsewhere. The team will split its time between a redeveloped office space at 594 Dean Street in Prospect Heights and L&L’s 142 West 57th Street in Midtown.

“We are constantly on the lookout for the next big project, even in the midst of the most active phase in our history. This partnership with MaryAnne Gilmartin, who has been the driving force behind some of New York’s most transformative developments in a generation, is the ideal vehicle to further those ambitions,” Levinson said in prepared remarks. “New York City is long overdue for a woman to serve as co-founder and CEO of a major development company, and MaryAnne has more than demonstrated her unique combination of vision, perseverance and leadership throughout her remarkable tenure at Forest City.”

L&L’s current portfolio of commercial properties and development projects will continue to be owned and operated via its existing ownership structures and management teams, according to a press release.

Forest City’s spokesman didn’t immediately respond to a request for comment on Gilmartin’s departure.

Source: commercial

Colliers Senior Director Joins JEMB to Oversee DoBro Office Tower Development

JEMB Realty has snatched up Dennis Rauchet, a senior director in Colliers International’s project management group, Commercial Observer has learned.

Rauchet, a construction and development veteran of more than two decades, is now the senior director of development for JEMB. He is overseeing the ground-up, 500,000-square-foot office tower One Willoughby Square in Downtown Brooklyn and the redevelopment of the 1 million-square-foot, 26-story Herald Towers rental building in Midtown. He officially started his new post at JEMB on July 24.

Rauchet, 45, said he made the switch because he missed working on new developments rather than just consulting on deals at Colliers.

As a “third party you are always helping developers make decisions. You feel disconnected from the projects,” Rauchet told CO. “Part of my role here is not only to manage the two big projects that we have in New York, but to go out and run the numbers and find new deals.”

Rauchet said JEMB is planning to break ground on One Willoughby Square (which has an alternate address of 420 Albee Square) in early 2018. The developer recently completed an 87,000-square-foot lease with the city for a new 300-seat school, as CO recently reported. The building is still undergoing various design tweaks and JEMB is talking to a variety of potential tenants.

The other major project on Rauchet’s agenda is the upgrade of Herald Towers, a prewar residential building at 50 West 34th Street between Avenue of the Americas and Fifth Avenue. It includes modernization of the building’s systems, and addition of new penthouse apartments and amenities, such as lounges and outdoor space. JEMB is still planning the redesign and the project is expected to start in a year. Built in 1912 as a hotel, the Herald Towers was converted to a 690-unit rental in 1980. It has 112,000-square-foot of retail space.

“With his resume and experience, he will be an asset to our company and take charge of our ongoing One Willoughby development in Brooklyn as well as Herald Towers redevelopment,” Joseph Jerome, president of JEMB, said in a prepared statement.

Rauchet started working at Colliers in 2012; he consulted on the development of a variety of large-scale projects, including the 62-story condominium at 45 East 22nd Street, the 22-story condo at 55 West 21st Street and the renovation of the St. Regis New York hotel. Prior to that he was a vice president at Forest City New York (formerly Forest City Ratner Companies) from 2004 to 2012, where he worked on projects such as The New York Times Building at 620 Eighth Avenue between West 40th and West 41st Streets and the rental building at 80 Dekalb Avenue between Hudson Avenue and Rockwell Place in Downtown Brooklyn.

Before that he oversaw projects for Goldman Sachs’ real estate operations group for three years, and he also worked as a project manager for Skanska from 1995 to late 2001.

Rauchet, a father of three, who lives in Jersey City, N.J. received an MBA in finance from Pace University in 1998. He also has a certificate in real estate finance and investment from New York University and a bachelor’s degree from Syracuse University in civil engineering, and he grew up in Flatbush, Brooklyn.

“It really is great to be a part of that,” Rauchet said. “I haven’t seen a new commercial building pop-up up [in Downtown Brooklyn] in decades. We are going to take it to the next level now and have some great commercial space to the area.”

Source: commercial