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Category ArchiveDavid Falk

Liquor Maker Pernod Ricard Subleases 18K SF to Legal Tech Firm

Legal-services technology company Complete Discovery Source has found a new home for its headquarters.

The company has completed an 18,803-square-foot sublease with wines and spirits maker Pernod Ricard USA at 250 Park Avenue, according to a news release from Complete Discovery’s broker, Kaufman Organization.

The tech firm plans to relocate later this month and will occupy a portion of the 18th floor of the 21-story building between East 46th and East 47th Streets and owned by AEW Capital Management. The asking rent in the five-year deal was not immediately clear.  

“CDS needed a strong level of security for its high-tech and sensitive legal operations,” Kaufman Organization’s Arthur Spitalnick, who handled the deal for CDS, said in a prepared statement. “250 Park Avenue met this need while also offering the firm a modern, furnished space that allows for the seamless occupancy that is essential for tech tenants.”

CDS, which has additional offices in Chicago and Washington, D.C., is relocating from 345 Park Avenue between East 51st and East 52nd Streets, according to The New York Post, which first reported news of the deal.

The company offers a variety of software to help law firms during the discovery process of litigation (the pre-trial phase).  

David Falk, Alex Leopold and Gregory Frisoli of Newmark Knight Frank represented Pernod Ricard USA, a subsidiary of Paris-based Pernod Ricard, in the deal. The Newmark brokers did not immediately respond to request for comment via a spokesman.

The liquor company recently remodeled its offices into an open-floor plan, shrinking the amount of space that it needed for its employees, so Pernod Ricard USA decided to sublease out the excess space, according to the Kaufman news release.

Pernod Ricard USA signed a deal for 82,300 square feet at the building for the entire 16th,17th and 18th floors, and a portion of the 20th floor in 2012, as CO reported at the time.  

The 543,000-square-foot building is also home to law firm Epstein Becker & Green, office space provider Regus and investment banking and asset management firm Needham & Company, a subsidiary of The Needham Group.

Source: commercial

EDC Inks 220K-SF Lease at One Liberty Plaza

The New York City Economic Development Corporation and the Department of Small Business Services have signed on for five floors of office space at Brookfield Property PartnersOne Liberty Plaza, according to a release from the landlord.

The agencies inked a 20-year, 222,137-square-foot lease on the 10th through 14th floors of the 54-story office tower. The asking rent in the deal wasn’t disclosed.

Neil L. Goldmacher, Christopher Mongeluzo and Howard Kesseler of Newmark  Knight Frank represented EDC. Brookfield was represented in-house by Mikael Nahmias and by NKF’s David Falk, Pete Shimkin and Hal Stein. A spokesman for NKF didn’t immediately respond to a request for comment.

“Brookfield is excited to welcome the New York City Economic Development Corporation and Department of Small Business Services to One Liberty Plaza,” said David Cheikin, an executive vice president in Brookfield’s New York office division. “Located in the heart of Lower Manhattan, One Liberty Plaza offers unparalleled commuting patterns for employees and access to the best amenities in Lower Manhattan.”

EDC’s lease comes on the heels of several other major tenants leasing space at One Liberty Plaza. Insurance giant Aon expanded its footprint to 237,000 square feet in August, and Business Insider took 88,000 square feet there in June.

Source: commercial

Golf Apparel Maker Relocating Within Midtown

Summit Golf Brands, a designer, manufacturer and distributor of golf sportswear, has signed a 7,300-square-foot lease for its showroom and office space at 437 Fifth Avenue, Commercial Observer has learned.

The company will occupy the entire ninth floor of Joseph P. Day Realty Corp.’s 11-story building between East 38th and East 39th Streets. The asking rent in the 10-year deal was $57 per square foot.

“The cachet of Fifth Avenue, paired with the appeal of our modernized office space, continues to attract top international companies like Summit Golf Brands looking to expand and evolve its presence in the heart of New York City,” Joseph P. Day’s Richard Brickell, who handled the deal for the landlord in-house, said in prepared remarks.

Summit Golf Brands is relocating Sept. 1 from 8 West 40th Street between Fifth Avenue and Avenue of the Americas. Alex Leopold and David Falk of Newmark Knight Frank represented Summit Golf Brands. Leopold and Falk did not immediately respond to a request for comment via a spokesman.

“Our growth over the last couple of years caused us to need more space than our existing lease provided,” Chad Delp, Summit Golf Brands’ president and chief executive officer, said in a statement. “In addition to a larger space, we wanted to remain in the heart of Manhattan because of its proximity to the Garment District, fashion trends and the convenience it provides to customers visiting our showroom.”

Source: commercial

Brooklyn Nets’ Parent Company Moving to 70K SF at Industry City

Brooklyn Sports & Entertainment, which owns and manages Barclays Center and the Brooklyn Nets, is moving its corporate offices to the 6-million-square-foot Industry City, according to a Brooklyn Sports news release today.

The sports company, owned by Russian billionaire and politician Mikhail Prokhorov, has leased 70,000 square feet for the entire seventh floor of 168 39th Street in the Sunset Park section of Brooklyn, directly one floor below the HSS Training Center where the Brooklyn Nets practice. (The Nets opened the nearly $50 million practice facility in early 2016.)

TPG Architecture is designing the new digs at the building between First and Second Avenues, which will accommodate 350 employees. The space will undergo a full renovation and feature an open-floor plan. A Brooklyn Sports spokesman declined to disclose the terms of the lease, but said he expects the company will move into the new space in June 2018 from its 47,000-square-foot offices at 15 MetroTech Center at the corner of Myrtle Avenue and Flatbush Avenue Extension in Downtown Brooklyn.

Cushman & Wakefield’s Bruce Mosler and Joseph Cirone handled the deal for Brooklyn Sports, while a Newmark Knight Frank of David Falk, Kyle Ciminelli and Whitten Morris negotiated the lease for the landlord, a partnership led by Jamestown and Belvedere Capital. Spokesmen for C&W and Newmark did not immediately respond with a comment from the brokers.

“Since 2012, our company has nearly doubled in size and we are looking forward to having these new corporate offices in order to support our continued growth,” Brett Yormark, the chief executive officer of Brooklyn Sports, said in prepared remarks. “Additionally, with Brooklyn Nets business and basketball united under one roof, we will further build a collaborative work environment that encourages innovation and teamwork.”

Since Brooklyn Sports launched five years ago it has grown to include the NYCB LIVE, which is the Nassau Veterans Memorial Coliseum in Uniondale, N.Y., and the business operations for the New York Islanders. It plans to add additional venues as well.

“It says a lot that after nearly two years of experiencing all that Industry City has to offer, the Brooklyn Nets chose to locate their corporate offices here, when they could have gone anywhere,” Kathe Chase, the director of leasing at Industry City, said in a statement.  

In a separate transaction, Brooklyn Sports announced that it was taking 3,400 square feet at SL Green Realty Corp.’s 125 Park Avenue between East 41st  and East 42nd Streets in Midtown East, for a sales and content development office. It will also help serve as meeting space for the company. That office will open in September.

Source: commercial

Aon Expanding at One Liberty Plaza to 237K Square Feet Before Moving In

Source: commercial

Grand Central Sleeper No More

Source: commercial

Shaving Startup Heads to One Hudson Square

Online men’s razor company Harry’s is packing up its headquarters and moving a few blocks within Hudson Square.

The four-year-old startup is relocating its offices to Trinity Real Estate’s 75 Varick Street, also known as One Hudson Square, according to a press release from the governor’s office.  

Harry’s inked a 10-year deal for 60,000 square feet on June 1. To incentivize their expansion, the Empire State Development Corporation offered the business $1.4 million in tax credits through the Excelsior Jobs Program. In exchange, they’ve pledged to create 188 new jobs over the next five years.

The company has occupied a 25,000-square-foot space at Stellar Management’s 161 Avenue of the Americas (now part of One Soho Square) since January 2016.

The subscription shave supply service reportedly has more than 2 million customers. Last year, it teamed up with Target to sell German-made razors and skincare products on the discount retailer’s website and in its stores.

“We’re extremely humbled by the growth we’ve seen over the past four years,” said Harry’s co-Founder and co-Chief Executive Officer Andy Katz Mayfield in prepared remarks. “This relocation symbolizes a major step in Harry’s journey. We’re thrilled to remain close to our roots, thankful for the support of the Excelsior Jobs Program, and we look forward to the continued expansion of our team under a new roof.”

Newmark Knight Frank’s David Falk, Pete Shimkin, and Kyle Ciminelli represented  Trinity in the deal. CBRE’s Sacha Zarba, Fredrick Fackelmayer and Chris Mansfield represented the tenant. Asking rents weren’t immediately available. A spokesman for NKF didn’t immediately respond to a request for comment.

“We were thrilled to assist Harry’s in finding a new home for their U.S. headquarters,” Zarba of CBRE said in a press release. “One Hudson Square allows Harry’s to remain in a vibrant neighborhood with the ability to scale and accommodate their long-term growth. The building’s terrific ownership and planned building improvements were important drivers toward the ultimate decision by Harry’s to relocate to One Hudson Square.”

Source: commercial

Business Insider Takes 88K Square Feet at Brookfield’s One Liberty Plaza

Business Insider has signed an 88,000-square-foot lease at Brookfield Property PartnersOne Liberty Plaza.

The business news website will occupy the entire eighth and ninth floors at Brookfield’s 2.3-million-square foot building between on Liberty Street between Church Street and Broadway. The asking rent in the deal was $53 per square foot, according to The Real Deal. The length of the deal was not immediately clear.

Business Insider plans to relocate from its current location at L&L Holding Company’s 150 Fifth Avenue between West 19th and West 20th Streets in the Flatiron District. There it is subleasing 46,000 square feet on the seventh and eighth floors from EMI Group, a music publishing company, according to CoStar Group.

A JLL team of Bill Peters, Derek Trulson, Mike Shenot represented Business Insider, while Newmark Knight Frank’s David Falk and Peter Shimkin handled the transaction for the landlord, TRD indicated. Spokesmen for NKF and JLL did not immediately return requests for comment.

Business Insider was priced out of Midtown South, a source told TRD. The company is planning to move into the building later this year. Business Insider has additional locations in San Francisco and London.

“Downtown is fast becoming an exciting place to be, so we’re thrilled to move to One Liberty later this year,” Rob Schoorl, a senior vice president at Business Insider who oversaw the search for the new office, said in a statement. “The neighborhood pulses with energy, so it’s no surprise that so many media companies are moving there. Not only will our new office be a convenient place to workwith lots of great dining, retail, and servicesbut its location near such a vibrant transit hub makes it an easy commute for our employees, especially those who live in Brooklyn.”

A spokesman for landlord Brookfield did not immediately respond to an inquiry seeking comment.

Source: commercial

Why Major Landlords Still Believe in Midtown

While the rise of shiny towers of the World Trade Center and Hudson Yards have turned a lot of heads, some of the top developers and real estate professionals who attended Commercial Observer’s “Midtown Means Business” panel yesterday are warning not to count the older Midtown out.

The event was at RXR Realty’s redesigned 75 Rockefeller Plaza, where industry experts said Midtown’s older stock of buildings needs to be modernized to compete with the towers in the rising other submarkets, but the demand for space is definitely there.

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Bruce Mosler, Jonathan Mechanic and Andrew Mathias. Photo: Jared Siskin/PMC

“Landlords who invest in this way will be winners in terms of the choices that tenants make,” said Cushman & Wakefield Chairman of Global Brokerage Bruce Mosler, a member of the first panel “Marketing Midtown Real Estate for Today’s Modern Tenant.” “Tenants are looking for a number of things, but mostly what are drawing tenants are column-free, efficient floors, great location and access.”

The first panel also included SL Green Realty Corp. President Andrew Mathias, UBS Managing Director Terry Goulard, RXR Chairman and Chief Executive Officer Scott Rechler and Fried, Frank, Harris, Shriver & Jacobson Real Estate Department Chairman Jonathan Mechanic, who moderated the panel (and plugged his own firm so many times Rechler described him as “shameless.”)

To illustrate Mosler’s point, Goulard explained that in 2010 UBS started to look at options as its 900,000-square-foot anchor lease at 1285 Avenue of the Americas between West 51st and West 52nd Streets, a building which RXR acquired with David Werner in 2016, was up for renewal.

“At the time [Rechler] stepped into the picture and sat down with us and said ‘Terry what do I need to do to keep you in the building,’ ” Goulard said. “We had a very open and honest dialogue. I came up with two pages of things that I needed to stay.”

Rechler said that Midtown will continue to be relevant if older buildings are redeveloped because of its centralized location and the iconic addresses that have an “irreplaceable” New York feeling, which younger workforces crave.

“[Millennials] appreciate authenticity and character,” Rechler said. “One of the things about buildings like [75 Rockefeller] or the Helmsley Building is that you can’t replace it. You can’t replace the authenticity or the character of New York that comes with that. That is a very unique factor.”

RXR completed the $150 million renovation of 75 Rockefeller in February, and signed a 185,343-square-foot lease with Bank of America and Merrill Lynch Wealth Management to anchor the office portion of the building. The landlord then signed a 40,000-square-foot lease with American Girl to anchor the retail part.

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The crowd at the event included brokers and developers from a wide variety of firms. Photo: Jared Siskin/PMC

Few of the panelists could better discuss how new construction will fit into the Midtown constellation than Mathias, whose company is designing One Vanderbilt, a 1.7-million-square-foot, 1,400-foot tall office building that is under construction across from Grand Central Terminal. And to a certain extent, SL Green will have the market of new Midtown buildings to itself, at least until some definitive answer is offered on the city’s proposed Midtown East rezoning.

“There is definitely a shortage of shovel-ready projects in Midtown,” Mathias said. “How many projects you’ll actually see get started right away under that rezoning it’s hard to see, because Midtown is thriving right now and generally buildings are [fully leased].”

In the second panel, “Keeping Midtown Competitive: Renovations, Infrastructure Upgrades & Tenant Amenities,” Fisher Brothers Partner Winston Fisher made the point that in order for Midtown to compete, it needs to do more than just focus on upgrading building.

“Midtown needs to reinvent itself with new restaurants, programming and bringing art into the streetscape,” he said. “There are a whole series of things that could make Midtown more dynamic. Why is the center of Park Avenue a bunch of crappy plantings? At this point you’d think you could do something better with it.”

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David Falk. Photo: Jared Siskin/PMC

Sitting with Fisher were Newmark Grubb Knight Frank New York Tri-State Region President David Falk, Take-Two Interactive Software Senior Director of Facilities Management Larry Charlip, Hines Senior Managing Director of New York Tommy Craig, Rockefeller Group Co-President and CEO Daniel Rashin and Zetlin & DeChiara Founder Michael Zetlin, who moderated the group.

The panelists agreed that transportation is the main reason why Midtown still thrives. However, Falk said that to increase its competitiveness the buildings there need better “first impressions.”

“You just can’t be good, you have to be great,” Falk said. “I think [owners of] Midtown buildings just need to try harder to say ‘what can we do better?’ ”

That’s why Rashin said Rockefeller Group revamped its 1221 Avenue of the Americas between West 48th  and West 49th Streets when Société Générale and McGraw Hill moved out recently.

“We had a building that had some very, very tired aspects to it,” Rashin said. “The experience of walking into a 1221 lobby was dreary [and] it was dark. We changed

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Dan Rashin. Photo: Jared Siskin/PMC

the lobby up, brightened it up, took non-structural columns out. It’s a change you experience when you walk in.”

In the case of the tenants themselves, Take-Two Interactive Software, which took a 61,383-square-foot lease at 1133 Avenue of the Americas last year, said that the key to its decision to relocate from Noho to Midtown (which was not necessarily the first choice of a tech company) was the centrality, large floor plates and nearness to Bryant Park

Charlip said that normal concessions like free rent are important but also, “Can my employees bring bikes into the building? Can my employees bring pets into the building?”

“One question I was asked over and over again when we announced to our employees that we are moving to Midtown was ‘Do we have to change the way we dress for work,’ ” Charlip said to audience laughter. (He was wearing a suit without a tie.) “Honestly, I never go to work dressed like this. I wear jeans and sneakers everyday—so I’m dressed up today. And if I go to the office, people are going to ask me if I had a job interview.”

Source: commercial