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Category ArchiveKushner Companies

Kushner Leases Gallery Space for Jay Street Resi Project in Dumbo

Kushner Companies and partners CIM Group and LIVWRK will soon be opening a 4,0470-square-foot sales gallery for their residential project at 85 Jay Street between Front and York Streets in Dumbo, Brooklyn, Commercial Observer has learned.

The trio has leased ground-floor retail space at nearby 10 Jay Street, a 10-story, 250,000-square-foot former warehouse, via a four-year lease, according to Benjamin Stavrach, the director of leasing and property management at Triangle Assets, which owns the property with Glacier Global Partners. The asking rent, Stavrach said, was $150 per square foot.

The deal closed last Friday, and the tenants will be moving in “shortly,” said Stavrach, who represented the owners in the transaction. From the sales gallery, Kushner, CIM and LIVWRK will be able to showcase their upcoming 21-story residential project on the old Jehovah’s Witnesses site.

Triangle Assets bought 10 Jay Street between John Street and Brooklyn Bridge Park in 1991, bringing Glacier on board in 2014. The building, which is the only privately owned building in Brooklyn Bridge Park, will open in 30 days following a $70 million renovation, Stavrach said.The first floor is dedicated to retail and floors two through 10 are for offices. Office tenants include marketing agency Translation, which last September increased its space at the property to 46,000 square feet, and Nuxeo in 12,560 square feet, as per a previous CO story.

Raphael Schwartz of Kushner represented the tenants in-house. A spokeswoman for Kushner didn’t respond to a request for comment.

Source: commercial

CO’s ‘Women in Construction & Design’ Event Celebrates Breaking the Glass Ceiling

Some of the most accomplished women working in the fields of construction, architecture and development gathered at Commercial Observer’s “Breaking the Glass Ceiling: Leading Women in Construction & Design” event on Tuesday, where the conversation revolved around both the challenges facing, and the opportunities available to, women in a traditionally male-dominated field.

The morning was anchored by CO’s presentation of its 2017 Women in Construction Awards to six individuals who have made a mark upon their respective industries over the course of their careers.

The “Barrier-Breaker Award,” honoring women who have set a precedent in their fields, were presented to Aine Brazil, vice chairman at engineering firm Thornton Tomasetti; Jan Hilgeman, vice president of construction at Hines; and Carol Patterson, a senior partner at law firm Zetlin & De Chiara.

The “Woman on the Rise Award,” celebrating some of the most promising individuals working in the industry today, were given to Pascale Sablan, a senior associate at S9 Architecture, and Margaret Wrzos, an assistant project manager at AECOM Tishman.

And the “Innovative Designer/Engineer Award” was presented to Marianne Kwok, a senior designer at Kohn Pedersen Fox.

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Keynote speaker Linda Chiarelli at CO’s “Women in Construction & Design” event. Photo: Aaron Adler

But the day also featured three broad-ranging panel discussions and a keynote address from Linda Chiarelli, vice president for capital projects and facilities at New York University. Chiarelli, who served as deputy director of construction for Forest City Ratner Companies before joining NYU, noted that women make up only 9 percent of the construction industry’s workforce—with many of those jobs in administrative and non-construction-related roles.

But she also cited progress from the days when job interviewers would ask “if I planned to have kids,” and urged attendees to be aware of the city’s new law prohibiting employers from inquiring about job applicants’ previous salaries—a regulation designed to lessen the pay gap faced by women and people of color. “You should all be aware [of the law],” Chiarelli said.

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(From left) Karla Pascarella, Marissa Kelly, Stacey Dackson, Megumi Brod, Maey Khaled and Anita Woolley at CO’s “Women in Construction & Design” event. Photo: Aaron Adler

She was followed by the morning’s first panel, “Challenges and Opportunities for Women—Fostering a Culture of Diversity from the Field to the Boardroom.” Anita Woolley, first vice president of strategy and communications for AECOM’s construction services group, noted the benefits of “having people of different backgrounds” on staff, citing studies indicating that “diverse teams are more successful.”

Maey Khaled, director of technical services at NYU’s Tandon School of Engineering, recalled engineering courses where she’d frequently “be the only woman in the class” and stressed the need to foster industry participation from women at an earlier age group. Stacey Dackson, a project manager at Structure Tone, echoed that sentiment and the need to educate young women about the career opportunities available in the construction industry, citing the field’s “tremendous economic viability.”

Marissa Kelly, a project executive at Cauldwell Wingate Company, said that there is still the flawed perception that “women are too emotional to be in leadership positions” at a corporate level—a notion that “holds women back” in the industry, she said—while Megumi Brod, senior vice president and Northeast regional development officer for Rockefeller Group, urged attendees to both “be a mentor” to other women in their fields and also “make a mentor” who can help guide them through their career paths.

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(From left) Melissa Grzymala, Helena Durst and Jane Smith at CO’s “Women in Construction & Design” event. Photo: Aaron Adler

The second panel of the day, “Women Leaders in Construction & Design—How They Paved the Way,” included the likes of Kimberly Steimle Vaughan, chief marketing officer and chief people officer at construction firm Suffolk, who cited her company’s efforts to “create a culture of inclusion” and “infuse people in the organization from different backgrounds.” Vaughan said that while roughly a third of the firm’s workforce is comprised of women, she had been to job sites where there were more women at work than men, and that diversity had become a key tenant of Suffolk’s corporate philosophy.

Melissa Grzymala, an executive project manager at Faithful+Gould, recalled a high school guidance counselor’s incredulity at her career goal of becoming an engineer, while Elisabeth Malsch, a principal at Thornton Tomasetti, noted the importance of hiring women given how they occupy a roughly equal share of the graduating classes at most higher education institutions. “If you’re not hiring women, you’re not hiring the top of the class,” Malsch said.

Jane Smith, a partner at architecture and interior design firm Spacesmith, said that “obviously things have changed [in the industry]” since she first started, and urged the conversation away from the obstacles facing women. “The women in this room shouldn’t need to worry about whether they’re women or men,” Smith said. “Let’s talk about how we can succeed.”

Helena Durst, a principal at the Durst Organization, agreed with Smith’s argument, noting that the principles being discussed on the panel “are not male or female values; they’re hirable values…. We shouldn’t be talking about maternity or paternity leave; we should be talking about child care.”

But Durst also acknowledged that her own company “has a lot to learn” and is “far from perfect” as far as gender equity in the workforce, adding that the effort to improve “starts with awareness” and “talking about biases,” as well as “looking at policies that are [both] written and unwritten.”

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(From left) Susan Radin, Jan Hilgeman and Jennifer Bernell at CO’s “Women in Construction & Design” event. Photo: Aaron Adler

The morning’s third and final panel, “Creating the Next Generation of Women in Construction & Design,” featured Gilbane Building Company’s Brennan Gilbane Koch noting how the four previous generations of Gilbanes who led the family-led construction firm were almost entirely men—a state of affairs that has changed, given her current role as Gilbane’s business development manager. Anne Fletcher, a principal at architecture giant HOK, said that when she started in the industry she found herself not only doing “everything my male colleagues did,” but also “arrang[ing] shipping” and “answer[ing] the phone because I had the best phone voice.”

While Fletcher was recently named the new managing principal of HOK’s Los Angeles office, she also noted that she’s one of only six women on HOK’s 34-member board of directors—indicating the progress that remains to be seen in the industry.

Jennifer Bernell, executive vice president of development for Kushner Companies, discussed the challenges of balancing her role at Kushner with her responsibilities as the mother of four young boys—adding that she has been “fortunate” to have the support of her company, as far as maintaining a flexible schedule allowing her to meet the demands of being both an executive and a parent.

Susan Radin, a senior project manager at Turner Construction Company, cited progress as far as work-life balance expectations that are no longer exclusively faced by women—noting that in previous years, she “never heard from male colleagues that they had to [leave work early to] take care of their kids.”

Hines’ Hilgeman, who in addition to receiving the “Barrier-Breaker Award” also spoke on the panel, added that in her own career, she has stories about workplace harassment “not unlike what’s [been] in the news today.”

“We all have those stories, and we’re going to have them no matter what industry we’re in,” she said. “I think it’s a much broader, underlying cultural issue.”


Source: commercial

Owners Magazine 2017: Interviews with NYC’s Top Landlords

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At the risk of stating the forehead-slapping obvious, it’s been a strange 12 months.

There’s been a mixture of good and bad real estate news that can paint a picture of continued stability or darkening clouds on the horizon, depending on your point of view.

By October, the vacancy rate in all three major Manhattan markets for office space appeared to be falling, per Cushman & Wakefield data. Hundreds of thousands of square feet have been leased by Spotify, GroupM, Amazon and others. All of that is inarguably good news.

However, a year ago, few people knew that we were sitting on a retail powder keg ready to blow and take some of the biggest names in the industry with it, like Toys “R” Us, Aerosoles, Payless, Radio Shack…you get the idea. This is inarguably bad.

This is one of the reasons why it’s important to have a magazine like this one.

Yes, the data, the deals and the numbers are critical to understanding the state of real estate. But it’s also important to get a sense of what the key players are thinking right now. That’s why we asked 36 of the biggest names in the business what their vision of the market looks like.

We’ve supplemented these questionnaires with our own reported features.

Last year, New York was considered immune to the vicissitudes of the world economy because we were always a safe, stable place to park cash. That looked like less of a sure bet when China announced new outbound investment rules. Lauren Elkies Schram examines the topic in her story in this issue.

Some in the real estate community long hoped for a challenge to Mayor Bill de Blasio in this year’s mayoral election and put substantial money behind Paul Massey (one of their own) to take the reins of City Hall before that fizzled out. At the risk of propagating a Dewey-Truman blooper (we ship this magazine before Election Day), Aaron Short reported what developers are expecting and hoping for in de Blasio’s second term.

While many developers have spent the last few years touting the Far West Side of Manhattan, there is actually quite a bit of activity on the East River, something that Rey Mashayekhi examines in depth.

Finally, Liam La Guerre looked at something that’s always been written off as anathema to real estate developers: technology. It turns out, the shrewd owners are not only interested in tech, but they’re also developing their own. — Max Gross 


Source: commercial

What’s Happening With Chinese Investment in New York City Commercial Real Estate?

There was a lot of nail-biting from the New York real estate community heading into this year after hearing that the biggest whale in terms of investment might not be allowed to swim in our waters. We’re talking, of course, about China.

With China’s capital controls in place, the country was expected to tamp down outbound investment in 2017. While the number of New York City investment sales deals involving the country has dwindled significantly this year, China still represents the biggest cross-border player, according to Cushman & Wakefield.

Chinese investments dropped to 16 percent, or six, of the 38 foreign capital deals (excluding debt deals) in New York City in the first three quarters of the year, versus 28 percent, or 16, of 58 acquisitions at the same time last year, C&W data indicates.

Francis Greenburger, the chairman and chief executive officer of Time Equities, explained the issue in Commercial Observer’s survey for this year’s Owners Magazine: “Although there are exceptions, Chinese investors are subject to government restraints in arranging to transfer funds out of China. This has caused a reduction in transactions by one of the most active group of New York City buyers.”

But in terms of dollar volume the dip in Chinese investment in New York City hasn’t been dramatic, and the country still has spent more than its competitors. Chinese investments made up 11 percent of the $24.51 billion spent on commercial real estate in New York City this year through September compared with last year’s 13 percent of $45.87 billion.

Despite a slowdown in deal flow and a reduction in investment sums, the Chinese have been going for big deals in New York City.

“Starting in 2016 through the first half of 2017, China surpassed Canada as the largest foreign investor in New York City,” said investment sales broker Douglas Harmon of C&W. “Capital controls caused Chinese buyers to participate in less transactions, but the capital was consolidated into the larger deals.”

Harmon and colleague Adam Spies are representing SL Green Realty Corp. in the sale of a 49 percent stake in a 54-story office tower at 1515 Broadway between West 44th and West 45th Streets to China Investment Corporation (CIC), a Chinese sovereign wealth fund. It is a property valued at $2 billion. A spokesman for SL Green said the deal has not closed.

In the priciest foreign property acquisition of the 12 months ending in October, Chinese conglomerate HNA Group paid $2.21 billion for 245 Park Avenue between East 46th and East 47th Streets. The sellers were Canada-based Brookfield Property Partners and the New York State Teachers’ Retirement System. The deal represents one of the highest prices ever paid for a Manhattan office property. (HNA also bought a mansion at 19-21 East 64th Street for $79.5 million this year.)

At the end of last year, CIC bought a 45 percent interest in the former McGraw-Hill Building at 1221 Avenue of the Americas between West 48th and West 49th Streets from Canada Pension Plan Investment Board. The property was valued at $2.29 billion.

Two other large Chinese acquisitions in the last year include WanXin Media’s $68 million buy of an office building and vacant lot at 7-15 West 44th Street and office developer Soho China picking up the landmarked John Pierce Residence at 11 East 51st Street for $30 million.

Alex Foshay, a senior managing director in Newmark Knight Frank’s capital markets division, said the Chinese government’s restrictions have “really strangled all major investment out of mainland China.”

Foshay cited as an example, China’s Anbang Insurance Group’s pulling out of an investment in 666 Fifth Avenue. Kushner Companies was planning to redevelop its flagship New York office tower with Anbang but talks terminated in March.

Terrence Oved, the head of the real estate department and a partner in the law firm Oved & Oved, said he has seen the drop off in acquisitions generally, and those that are closing are taking longer to complete.

“That rapid-fire tennis-match-like quality that we saw in 2016 [between players] is glaringly absent in the foreign transactions in 2017,” Oved said. “The perception of foreign money is that New York is in the later stage of the cycle.”

Also, Oved said, New York City is facing global competition from other world cities that weren’t as competitive the last few years. He pointed to Silicon Valley’s appeal to the tech company likes of Amazon, Facebook and Microsoft.

HFF’s Andrew Scandalios said that deal flow is down this year because properties are overpriced.

“Buyers are less enthusiastic to pay 2015 prices, and the sellers aren’t going to move [them],” he said. “We haven’t seen the offshore capital abate. It’s just they’re waiting for better pricing opportunities.”

Scandalios worked on the deal in which Singaporean sovereign wealth fund GIC picked up a 95 percent stake in the 50-story office tower at 60 Wall Street from Paramount Group and Morgan Stanley with a $1.1 billion valuation. (He also helped secure GIC’s $550 million acquisition loan from German bank Aareal Capital.)

In the summer, Germany-headquartered Allianz SE contributed the 18-story, 352,000-square-foot office building at 114 Fifth Avenue (which it acquired in 2015 with L&L Holding Company) into a then-new joint venture with Columbia Property Trust to buy and manage U.S. trophy properties. Columbia contributed a Palo Alto and San Francisco property to the venture. The three properties were valued at $1.3 billion and HFF negotiated the deal.

Commercial real estate deal volume is down this year for all foreign buyers in New York City as of the third quarter to 28 percent of all investment sales, C&W found, from 34 percent a year prior. (A look at foreign investment in New York City is limited to investment sales deals because debt and equity transactions are harder to track.) The findings parallel the nationwide trend. As of mid-2017, foreign investors represented 13 percent of all U.S. transactions by volume versus 16 at the same point in 2016, Real Capital Analytics data indicate.

Foshay said that a number of overseas buyers are “skeptical” about plunking down large sums of money (over $150 million) in the U.S., out of concern about “where we are in the cycle.”

This doesn’t mean, of course, that foreign investors aren’t seeking out deals nationwide. And Canada heads the procession.

Canada has sealed 255 U.S. commercial real estate acquisitions in the last year, followed relatively closely by China with 215 before dropping off significantly with Singapore and its 36 deals, RCA data show.

In the last year, Canadian entities have closed some notable purchases in New York City. Oxford contributed $65 million in a $130 million deal for 427 10th Avenue and Brookfield Property Partners input $185 million of $370 million for 1100 Avenue of the Americas. In addition, Canadian pension fund Ivanhoé Cambridge and Chicago-based Callahan Capital Properties paid $652 million for Goldman Sachs’ former headquarters at 85 Broad Street (Ivanhoé Cambridge invested $326 million in the deal).

Finally, Canada-based Oxford Properties Group is in the process of purchasing the St. John’s Terminal site at 550 Washington Street from Westbrook Partners and Atlas Capital for $700 million.

In New York City specifically, foreign investment has been dropping because of a dearth of trophy property on the market, according to a couple of brokers.

“There just wasn’t as much property available this year as there was last year,” said CBRE’s William Shanahan, who along with CBRE’s Darcy Stacom brokered the 245 Park Avenue deal.

The duo also sold the 31-story office building at 685 Third Avenue for TH Real Estate and Australian sovereign wealth fund the Future Fund, to Japanese real estate firm Unizo Holdings for $467.5 million.

Foshay concurred about the lack of inventory.

“I would say there has been a lack of trophy product to be purchased,” he said, but “there’s been quite a lot of availability in investment sales of non-trophy assets, meaning Class B product, and it is that trophy investment product that particularly appeals to overseas investors.”

Going forward, Shanahan expects to see “more participation” from Japanese investors.

Harmon said, “We think Chinese investment should pick back up in the first quarter of 2018. Additionally, South Korea, Japan, Norway, Saudi Arabia and Canada make for plenty of competition for domestic investors in 2018.”


Source: commercial

Why Columbia Property Trust’s Nelson Mills Is Bullish on Midtown South

Nelson Mills, the president and chief executive officer of the Atlanta-based publicly traded real estate investment trust Columbia Property Trust, has the excitement of a first-timer when he talks about New York.

“Every day we are discovering something new about the city,” the Southern-born Mills gushed to Commercial Observer from his offices on the fourth floor at 315 Park Avenue South, a property Columbia owns between East 23rd and East 24th Streets. “I had another [discovery] last night. I walked past Teddy Roosevelt’s birthplace [at 28 East 20th Street]. That’s New York. Every corner that you turn, there is some interesting bit of history or culture. It is just a fascinating place.”

Mills, 57, and his wife Judy moved to a rental near East 26th Street and Madison Avenue in April from Atlanta, not just for the nightlife but to be closer to his company’s new main market. On New Year’s Day 2015, Columbia had just one property in the city, and today more than one-third of its 19-building portfolio is here.

That’s because under Mills’ leadership Columbia has unloaded 58 properties valued at $3.6 billion since 2012 and shrank its holdings to just seven markets from 32, while it spent $2.8 billion acquiring 10 buildings in its now core markets: San Francisco, Washington, D.C., and New York City.

Its portfolio spans about 9 million square feet across the country. Columbia’s biggest market is now Manhattan, where the company owns seven properties spanning 2.6 million square feet (one of them is still under contract). Five of the seven assets are within walking distance from his apartment. (The company doesn’t have any properties in the outer boroughs.)

Why such a focus on Midtown South? Columbia is simply following demand.

“We think much of the demand in the last few years, and we think in the near future, is going to be driven largely by the [technology, advertising, media and information] sector,” Mills said. “And this has been, we think, the most successful market in attracting those type of tenants. It’s evidenced in the occupancy, the rate and so forth.”

Among recent acquisitions since dumping non-core properties is the purchase of 245-249 West 17th Street and 218 West 18th Street for $514 million from New York REIT in October. Twitter is the major tenant at the 281,294-square-foot West 17th Street building, while Red Bull is the anchor tenant at the 165,670-square-foot West 18th Street property.

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114 Fifth Avenue. Photo: CoStar Group

And in July, Columbia entered into a joint venture with Allianz Real Estate to acquire and manage office buildings in gateway markets in the country. The companies each contributed properties to the joint venture. Allianz took a 45 percent interest in two of Columbia’s buildings in California, while Columbia gained 49.5 percent in the 352,000-square-foot 114 Fifth Avenue between West 16th and West 17th Streets (in Midtown South). L&L Holding Company has a 1 percent equity stake and handles leasing and managing for the Manhattan property.

Last month, the JV purchased a 581,000-square-foot office property in Washington, D.C., for $421 million.

“We at Allianz and Columbia share a similar strategy—acquire core assets in prime locations within 24/7 global cities and own them over the long-term,” Gary Phillips, the managing director and head of acquisitions for Allianz, said in a statement to CO. “Strategic alignment between joint venture partners is paramount to our long-term success so aligning shoulder to shoulder with operating partners that have a shared vision makes a lot of sense for us.”

The 19-story building recently went through a $45 million renovation and features large floor plates. Allianz actually outbid Columbia for the property when it acquired a majority stake in the building in 2015 for $209 million, according to property records. “[We] got outbid by Allianz, but we liked the property,” Mills said.

The resolve to not give up on a property—even when getting outbid—reveals something about Mills.

“[Mills] is a strategic thinker, is very well-respected by his peers and colleagues, and he understands the spirit of partnership,” Phillips said. “I have enjoyed working with Nelson personally and hope to continue to develop what I believe will be a prosperous and active relationship for many years to come.”

Columbia’s foray into Midtown South began with 315 Park Avenue South. The company bought the building on Jan. 7, 2015, for $353.9 million with the knowledge that roughly 80 percent of the building was going to be vacant as tenants’ leases expired over the following two to three years. The largest tenant, Credit Suisse, which left in April 2017, had already announced it was departing for 11 Madison Avenue.

In the real estate world, this is called opportunity. The plan was simple: As the tenants leave, upgrade the building and refill it with higher rents, aiming again for TAMI tenants.

They spent approximately $10 million to renovate the 331,000-square-foot building, which included a new lobby and entrance on East 24th Street as well as a facade restoration and upgraded elevator cabs. The renovations are expected to be completed in two months.

Columbia hired L&L as the manager and leasing agent for the building, as Midtown South is L&L’s pedigree. The 20-story building is fully leased or under contract but for the 14th through 16th floors.

London-based investment management firm Winton Capital Management took the top two floors, amassing 34,844 square feet last year. Also in 2016, high-end fitness concept Equinox took 44,458 square feet on the entire second and third floors as well as part of the fourth floor. And media company BDG Media, the parent of Bustle, Elite Daily and Romper, signed a 34,100-square-foot deal last year and has since expanded to 51,150 square feet.

“At the time when we bought it, we knew that 80 percent of the floors would be rolling,” Mills said. “We are right on pace with our expectations when we bought the property. And we are exceeding our rent levels by a bit.”

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315 Park Avenue South. Photo: Alan Schindler

When it underwrote the property, Columbia executives figured they’d be able to get rents in the $80s per square foot, but in fact they have signed tenants in the $90s per square foot, according to Mills. (The asking rent in the Winton Capital deal was $105 per square foot, as CO previously reported.)

“He came into the position when his firm owned a bunch of real estate in places that are not your top 10 markets,” said L&L President and Chief Investment Officer Robert Lapidus. “And he said he wanted to transform the portfolio. He executed his strategy [as] he told his board he would do. When you say something is one thing and when you actually do it, your credibility goes up.”

Mills, who has three adult children (ages 32, 29 and 28), has been married to his college sweetheart for 33 years. He was born on a farm outside of Memphis to parents who were teachers. He graduated from the University of Tennessee in 1983 with a degree in accounting and then went to work for KPMG in Nashville, focusing on tax advisory services for the real estate industry.

After a dozen years there, he became a partner in the firm’s Atlanta office. He remained there for another three years before moving to Lendlease to be the chief financial officer. From 2005 to 2009, he became the president and chief operating officer for Williams Realty Advisors, the manager and adviser of real estate investment funds.

Mills joined Columbia’s board in 2007 but was not appointed the president of the company until 2010. The company at the time was part of Wells Real Estate Investment Trust, a real estate investment trust whose shares were not traded publicly. It had roughly 130,000 investors. The company owned a diverse portfolio of more than 80 properties around the country, which for the most part were single-tenant commercial assets with high-capitalization rates. This strategy helped the company have stable and high yields for its investors. But to grow, they needed to go public. So in 2012 it split from Wells and officially listed in 2013, and Mills became the CEO.

“We decided [in order] to take it public to attract a broader range of investors, including institutional investors, we needed to reposition the portfolio—fewer markets, better long-term markets, more growth opportunities and build teams in those markets to be able to compete in those markets,” Mills said. “Diversification does mitigate risk to a point, but you don’t need 32 markets.”

Since the selloff, Columbia has just two properties remaining in its headquartered city of Atlanta. The properties each have single-tenant users, with short terms remaining on their leases. Mills said Columbia executives will look to renew the leases before selling the properties. But “there are no immediate plans to sell them.”

And while Columbia has plans to exit the Atlanta market, Mills stopped short of saying that it would relocate the company’s headquarters to New York City. With only 12 of the company’s 98 employees in New York City, it would put a lot of workers out of a job in the Peach State.

“We have a terrific corporate team based in Atlanta,” Mills said. “Many of them have been with the company from the beginning. Atlanta is a great place to live for this team.”

The strategy shift came with many challenges, such as competing with more established office REITs—like Boston Properties, SL Green Realty Corp., Empire State Realty Trust and Vornado Realty Trust—and standing out.

In the third quarter of 2017, Columbia’s net income soared to $101.5 million from $36.9 million during the same three-month period last year with the increase coming from the sale of real estate. But at the same time, the company’s revenue was roughly $60.4 million, a significant drop from $111.3 million in the same period last year. (Again, Mills said, because they’ve sold off so many properties.)

Mills promised that the rents will return once Columbia leases up new properties in its portfolio and free rent periods end. Experts are praising his moves.

Following the recent third quarter earnings results, analysts from JMP Securities and Evercore Group both expect Columbia’s shares to “outperform” the market, citing its transformed portfolio, which will produce earnings growth, and the leasing up of its new properties. Columbia’s current portfolio is 95 percent leased with average terms of seven-and-a-half years remaining.

And his board is buying it if his income is any indication. Including salary, stock, benefits and nonequity plans, Nelson’s compensation has risen from $3 million in 2014 to $3.7 million in 2015 and $4.4 million in 2016, according to the most recent filings.

“We are understand that we are in a very competitive field,” Mills said. “We have chosen some of the most competitive [markets]. We are going head to head with well-established companies with great reputations, but I think we are delivering on it.”

Under Mills, Columbia has had a simple plan with acquiring new properties and leasing them to multiple tenants. A case and point is with the old New York Times building at 229 West 43rd Street. The company bought the upper portion of the building, a 12-story office condo in July 2015 for $516 million. (Kushner Companies owns the four retail floors.)

Yahoo (now part of Oath) is the anchor tenant at the property with 193,000 square feet, and in April 2017, Snapchat parent Snap Inc. signed 26,000 square feet to expand its headquarters to 121,000 square feet at the tower.

primaryphoto6 Why Columbia Property Trusts Nelson Mills Is Bullish on Midtown South
149 Madison Avenue. Photo: CoStar Group

Sometimes, though, Columbia’s old strategy of a single-tenant occupant has become the best option. The company’s first property in the city was the 25-story building at 222 East 41st Street, at which it acquired the ground lease for nearly $320 million in 2007. The building was leased almost entirely to law firm Jones Day. (Columbia had an office for itself on the 24th story.)

Jones Day signed a lease in Brookfield Place to relocate from Midtown in 2013 before the lease expired earlier this year, so Columbia had a four-year window to lease new tenants to the entire 390,000-square-foot building. It was set to do so with multiple tenants, but then NYU Langone Health approached the landlord for the entire building. It helped fill a giant gap, and NYU Langone’s lease will keep it there for 31 years, ensuring that Columbia continues to generate revenue from the building for decades to come.

“[Columbia] understood our needs and priorities and worked with us to achieve a long lease that gave us the control and flexibility we needed for the future,” Vicki Match Suna, a senior vice president and the vice dean for real estate development and facilities at NYU Langone, said in a prepared statement to CO. “They timely completed their demolition work and turned over the site for our tenant work on schedule.”

Up next is closing the Midtown South deal. Soon the company will own the 127,000-square-foot property at 149 Madison Avenue between East 31st and East 32nd Streets. It’s another Midtown South-style building with 14-foot ceiling heights and large windows.

This deal has required creativity; Columbia is actually in contract to buy the land under the building for $88 million (the lease for the building expires in January). The company expects the deal to close in mere weeks, after which it plans to revamp the entire building with new windows, elevators, lobby, facade restoration and building systems upgrades. And Columbia has assembled a team of architects and project managers for the work. Following the renovation the team plans to lease up the property at higher rents.

The current tenants “are welcome to stay if they can meet the rents, but it is likely that we will be looking at new tenants, probably multitenants,” Mills said, before adding, “I mean there’s always a chance that a single tenant emerges.”


Source: commercial

Vornado Talks Up Moynihan Train Hall for Amazon HQ2

Vornado Realty Trust’s redevelopment of the James A. Farley Post Office Building into the new Moynihan Train Hall is “front and center” in New York City’s bid to house Amazon’s new HQ2 headquarters, Vornado said on its third-quarter earnings call today.

Vornado, which is redeveloping the former post office building with partners Related Companies and Skanska, cited the project’s 730,000 square feet of office space and 120,000 square feet of retail offerings as key facets of its pitch to host Amazon—which has sent municipalities across the country into a sweepstakes to host the Seattle-based e-commerce giant’s second headquarters complex.

Steven Roth, Vornado’s chairman and chief executive officer, said the company was “pleased” to see Manhattan’s West Side included in the New York City Economic Development Corporation’s proposal to Amazon as one of four city neighborhoods that could accommodate HQ2 (the other three being Lower Manhattan, Downtown Brooklyn and Long Island City), with the city touting the area’s robust transit offerings and ample office space in the Hudson Yards, Penn Plaza and Midtown West areas.

Roth noted that Moynihan Train Hall would be able to meet Amazon’s “near-term needs” for roughly 500,000 square feet of office space—though whether it would be able to provide that space by next year, as indicated by Amazon, is uncertain given the Moynihan project’s 2020 targeted completion date. (Amazon will eventually require up to 8 million square feet of office space for HQ2.)

But Roth and other Vornado executives noted that the project’s large, 250,000-square-foot office floor plates would be “extraordinarily attractive” to a company used to the sprawling, campus-like headquarters occupied by many major West Coast-based tech conglomerates.

They noted how Vornado’s senior management team visited Silicon Valley this past summer “to understand the nature of what these campuses are”—citing Facebook’s Frank Gehry-designed, roughly 10-acre headquarters as a “one-story building [with a] 450,000-square-foot footprint,” as well as the 820,000-square-foot floor plates at Apple’s headquarters. Both facilities also feature sizable outdoor, park-like amenities.

Moynihan Train Hall, they said on the call, is “truly unique” in its “ability to deliver a horizontal campus in New York, with great roof deck space in the heart of the city with views all around.”

But Roth added that regardless of “whether New York wins the HQ2 race or not, Amazon will have a long-term significant presence” in the West Side “for years to come,” with the company having committed to large blocks of space at Vornado’s 7 West 34th Street as well as Brookfield Property Partners’ Manhattan West development.

On a broader scale, Vornado reported a bullish outlook for its core New York City office and retail assets. It cited more than 450,000 square feet of office leases across 33 separate transactions signed at “record-breaking” average starting rents of $83 per square foot, as well as 97 percent occupancy across its city office portfolio.

Roth described demand for New York City office space as “robust” and coming from a diverse cross-section of industries. David Greenbaum, the real estate investment trust’s New York division president, noted that office-using employment in the city remains strong and will be able to “absorb the new supply coming online in the next five years,” with the financial services sector having “finally reached its pre-financial crisis level” of employment in the third quarter.

Greenbaum said Vornado has a “negligible amount” of office lease expirations planned over the remainder of the year, with the REIT’s 1 Penn Plaza comprising “over a third of our lease expirations over the next two years.” The company is currently “finalizing our plans” for an ambitious repositioning of the office tower, which Greenbaum said is expected to commence next summer.

Roth also discussed 666 Fifth Avenue in Midtown, which Vornado co-owns with Kushner Companies and which has drawn much attention this year due to the property’s uncertain financial future (as well as its ties to former Kushner Companies head and now-Trump administration senior adviser Jared Kushner).

The building, while located on a “very attractive piece of real estate,” is “over-leveraged,” Roth said, acknowledging rumors “about tearing the building down and doing all manner of fairly grand development schemes.” But he labeled such ambitious plans as likely “not feasible,” adding that the property will probably remain in its current state as an office building via capital improvement plans that he described as “a work in process.”

Vornado also leased around 38,000 square feet of retail space across its Manhattan portfolio in the third quarter, with the most notable deal being Sephora’s 16,000-square-foot relocation to 1535 Broadway in Times Square. Greenbaum said the company is also in talks “for another flagship lease, with a major national retailer, for the remaining 12,000 square feet” of retail space at the property’s base.

“Our upper Fifth Avenue and Times Square [retail] assets are buttoned up for term with great credit tenants,” Roth said, noting that the company has only one lease expiry in its Manhattan high street retail portfolio coming in the next five years—fashion retailer Massimo Dutti’s location at 689 Fifth Avenue, which is due to expire in 2019 “at below market rent.”

Vornado has also identified roughly $1 billion in assets that it plans to sell in the coming years, excluding residential condominium sales at its 220 Central Park South tower in Midtown, Roth said.

The 75-year-old Roth also acknowledged that he had heart bypass surgery in August—a procedure that raised questions about the publicly traded company’s future leadership and succession plan.

But the Vornado head attempted to dispel concerns about his health and the company’s leadership, saying that he is “now better than new, and back to work.”


Source: commercial

Under Construction: Inside the Renovation of 101 Greenwich Street

A few years ago, Kushner Companies and CIM Group were considering transforming the U-shaped Beaux Arts office building at 2 Rector Street into a residential tower. Plans never materialized.

Last March, Cove Property Group and Bentall Kennedy stepped in and purchased the Financial District property for $225 million. The new owners decided to keep 2 Rector Street (now 101 Greenwich Street) at the corner of Greenwich Street as an office building with it being nearby the World Trade Center site and high-profile companies like Condé Nast flocking Downtown.

“We very much belief in the longevity of Downtown,” Kevin Hoo, the managing partner and founder of Cove, told Commercial Observer. “And we believe that this will be a very significant building for a long time Downtown.”

Cove and Bentall are spending an estimated $70 million to renovate the 480,000-square-foot structure, which is 40 percent occupied, to bring the 1907-tower into the 21st century. The construction will be completed in early November.

The property will have some prebuilt floors with units that range from 3,100 square feet to 6,600 square feet. Plus there will some full floors spanning 19,000 square feet with light from six sides. Sweet Construction workers have already built out the 11th-floor prebuilts designed by Fogarty Finger Architecture.

The renovation calls for a new lobby with reclaimed white oak walls from Vermont and marble floors from Georgia. Workers have already stripped and exposed the steel beams in the building’s double-height glass lobby. Sweet Construction is replacing the 11 elevators, which will have the same marble floors as the lobby and white oak ceilings. The building’s bathrooms have been custom-designed and will feature limestone countertops and wood walls.   

The landlords have installed backup generators and relocated the building’s systems on the second floor for flood prevention and placed new sprinklers throughout the building. They are also installing variable refrigerant flow technology, so tenants can self-adjust temperatures.

The renovation will help the building achieve WiredScore Platinum status (giving it the highest level of broadband connectivity) as well as Leadership in Energy and Environmental Design (LEED) Silver certification.

“The sustainability side of it is important to us,” said Jeanette Flory, a senior vice president at Bentall Kennedy. “We feel like it is important to do things and look at things with a long-term view. And, how does what we do impact our immediate area? How can we do this to have the least amount of [negative] impact to society?”

To beef up the building’s amenities, Cove and Bentall are partnering with meeting space provider Convene, which has signed a 15-year lease for 58,000 square feet at the property, as CO reported earlier this week. In March 2018, Convene will use 2,500 square feet on the ground floor for a café and the entire second through fourth floors for meeting spaces, a game room and a kitchen as well as programing for yoga and meditation classes for tenants (at a discount) and Convene members.

Tenants will use the Convene app to gain entry to the building and access to their own offices, as well as order food from the café (run by For Five Coffee Roasters) and the kitchen (operated by Convene chefs).

Convene’s floors will feature the building’s originally exposed brick walls juxtaposed with glass, wood and clean concrete floors. The flexible office spaces will be open plan, and there will be an infusion of green moss-like plants to integrate a touch of nature.

“This building is a long-term asset for us and with that purview you want to look 20 years into the future and say what are some of the things that would exist in 20 years?” Hoo said. “Tenants will need to have amenities.”


Source: commercial

Convene Takes 58K SF for Largest Location at 101 Greenwich Street

Meeting space provider Convene has signed a lease for a 58,000-square-foot space at 101 Greenwich Street in the Financial District to relocate its headquarters and establish its 11th New York City location and largest in the country, Commercial Observer has learned.

The company is planning to occupy 2,500 square feet on the ground floor, which will house a coffee shop run by high-end purveyor For Five Coffee Roasters, and the entire second through fourth floors of the 26-story building (formerly 2 Rector Street) at the intersection of Rector and Greenwich Streets.

The second floor will feature a kitchen and a mix of meeting spaces, in which tenants in the building as well as other companies can rent on demand, and the third and fourth floors will house coworking spaces.

Convene is planning to move its headquarters from a 6,000-square-foot space at 366 Madison Avenue between East 45th and East 46th Streets to a 4,000-square-foot section on the fourth floor. The company will move its 75 corporate employees into the space in March next year, which will be designed more efficiently so that more workers can fit in less space, Convene Chief Executive Officer and co-Founder Ryan Simonetti told CO. And, of course, its employees will have access to the café, meeting and shared office spaces. A Convene spokeswoman declined to disclose the rents in the 15-year deal.

“As an organization we are building what we believe will be the future of workspaces,” Simonetti said. “And to be able to move out of a five-year, prebuilt space and into what is a best-in-class experience, we think our entire organization is excited to get a chance walk the walk.”

Convene is partnering with landlords Cove Property Group and pension fund investment manager Bentall Kennedy to improve the experience of the building. The meeting space provider will offer discounts for tenants for meeting spaces and the ability for tenants to order catered food from Convene’s kitchen or the café via a mobile app.

“In Convene, what we see is basically unparalleled enterprise in this kind of market,” Kevin Hoo, the founder and managing partner of Cove, told CO.  Convene “has very keen insight into how an amenitized building should run.”

The landlords are spending an estimated $70 million to transform the building into a mix of modern office spaces, after purchasing the building in March 2016 from Kushner Companies and CIM Group for $225 million, as CO reported at the time.

The renovation, which will be completed in November, will include upgrades to the building’s mechanical systems, as well as a new lobby, refreshed common spaces, and new elevators and prebuilt spaces.

Convene currently has 10 locations around the city, including an outpost in 1 World Trade Center. The company also has three in Philadelphia, one in Washington, D.C. and one in Boston. It expects to open two more in Los Angeles early next year.

CBRE’s Rocco laginestra, Jared Freede and Michael Wellen represented Convene in the transaction, while JLL’s Mitch Konsker, Scott Cahaly, Clayton Kline and Kyle Young handled the deal for landlords Cove and Bentall Kennedy. Spokesmen for the brokerages did not immediately return requests for comment.


Source: commercial

Kushner Companies Turns to NKF to Finish Dumbo Heights Office, Retail Leasing

Early last year, Kushner Companies tapped a CBRE team to lease up the remaining 350,000 square feet of office space at the 1.2-million-square-foot, five-building Dumbo Heights campus along the Brooklyn waterfront. Now, with 100,000 square feet remaining in two of the buildings, Kushner has replaced CBRE with Newmark Knight Frank, Commercial Observer has learned.

The largest available block, 75,000 square feet, is in 77 Sands Street, according to information provided by NKF, with the remainder at 55 Prospect Street. Leases will be for two years or longer.

“It is clear why Dumbo Heights is rapidly becoming the area’s most sought-after destination,” NKF’s Whitten Morris, who will head the leasing efforts with colleague Joseph Sipala, said in prepared remarks. “This campus offers exciting conveniences with its office, retail and lifestyle amenities while offering a collaborative work environment that cutting-edge companies are seeking. With the added benefit of its modern amenities, any tenant would thrive in this environment.”

Office tenants in the Dumbo complex, which Kushner owns with LIVWRK and RFR Realty, include WeWork, 2U, Etsy, Prolific Interactive and Frog Design.

In February 2016, Kushner hired CBRE’s Sacha Zarba and Jeffrey Fischer to lease up 350,000 square feet of office space at the property, as CO reported at the time, while RKF was elected to market the retail portion.

Retail tenants include Yoga Vida, Shadowbox, Bluestone Lane, Untamed Sandwiches, Taco Dumbo and Randolph Beer.

NKF’s Harrison Abramowitz is now assuming the retail assignment, which includes 18,525 square feet, according to a spokesman for the landlords, who declined to comment on the retail brokerage change. A spokeswoman for RKF confirmed the retail-focused brokerage was no longer on the project, but didn’t immediately respond to an inquiry for a comment beyond that.

“CBRE did a great job of helping to establish Dumbo Heights as a thriving, collaborative office campus that some of New York City’s most cutting-edge creative firms now call home,” Asher Abehsera, the chief executive officer and founder of LIVWRK, said in a statement provided to CO. “The NKF team currently occupies space on the campus and represents a new iteration for the project, bringing a fresh, on-the-ground perspective and understanding of tenant needs.” (NKF occupies space at 55 Prospect Street for a full-service office dedicated to the Brooklyn commercial market.)

Spokesmen for the owners and NKF declined to provide asking rents. A spokeswoman for CBRE said the brokers declined to comment.


Source: commercial

Christopher DeCrosta Sees Apple, Tesla and J. Crew as Just the Beginning for Brooklyn

It’s hard to imagine a day when every brand isn’t in Brooklyn. It’s crazy to think that a city as big as Brooklyn doesn’t already have all of the big brands.”

So said Crown Retail Services broker Christopher DeCrosta.

The broker is a firm believer in the church of Brooklyn and has long been a high priest in the effort. He (alongside colleague Hank O’Donnell) helped J. Crew find its first Brooklyn location at 234-236 Wythe Avenue in Williamsburg in 2014. When Elon Musk’s Tesla needed a showroom, it was DeCosta who inked the deal for a space in Red Hook. And one shouldn’t forget Apple—DeCrosta had a hand in getting the tech giant its Williamsburg locale.

Brooklyn may have been a transient place even a decade ago, DeCrosta said.

“Brooklyn was always a means of servicing Manhattan,” DeCrosta, 37, said. “If you lived in Brooklyn, you went to work in Manhattan and then you went back to Brooklyn. You shopped in Manhattan. If you made a little money, you left Brooklyn.”

Not any more. Today, tenants want to be in Kings County, and DeCrosta’s job is more about education—ideal neighborhoods and buildings—and less about convincing. 

buildingphoto12 Christopher DeCrosta Sees Apple, Tesla and J. Crew as Just the Beginning for Brooklyn
Tesla’s building at 160 Van Brunt Street in Red Hook.

Tesla is a good case in point. “They knew they needed a place to get cars serviced,” DeCrosta said. “They needed a place to have a showroom. And they knew they wanted to be in an area that was convenient to Manhattan and that could also capture the Brooklyn market.”

They just didn’t know where in Brooklyn all these needs could be met. DeCrosta found the electric carmaker a 40,000-square-foot service and showroom at LIVWRK’s 160 Van Brunt Street between Summit and Bowne Street in March of last year.

Then DeCrosta and O’Donnell worked with Johnny Siegel of Open Realty Advisors to represent Apple and find its first Brooklyn location at 247 Bedford Avenue in Williamsburg, a property owned by RedSky Capital. Lee & Associates NYC represented the landlord in the 20,000-square-foot transaction. The store opened in July last year, around the same time as the Williamsburg Whole Foods across the street at 238 Bedford Avenue.

“He was instrumental, truthfully,” said Benjamin Bernstein, a principal and co-founder of developer RedSky Capital. “We had a unique asset on Bedford Avenue. We showed it to him and his team. He believed it was perfect for Apple. We had a great first meeting. He brought the national representatives. And they loved our real estate. We were lucky we had the same vision for our asset that they did.”

DeCrosta has been on something of a Williamsburg kick lately—he and O’Donnell recently represented two companies in their entrée to the borough—British skin care brand Rituals Cosmetics at 117 North 6th Street and Flywheel, a growing fitness concept, at 173 North 3rd Street, both in July 2016.

“I think he developed relationships with specific tenants that really are on the cutting edge of cool,” Bernstein said. “The brands he focuses on and chases, they are not just paying attention to Brooklyn. Their head of marketing [and] their head of design lives in Brooklyn. So he comes off as genuine. He lives in Carroll Gardens, [Brooklyn].”

It almost feels blasphemous that DeCrosta’s operations at Crown Retail are run out of Manhattan offices, where he has been since 2012 and specializes in representing retailers. He runs a team of four brokers, including O’Donnell.

gettyimages 5841720101 Christopher DeCrosta Sees Apple, Tesla and J. Crew as Just the Beginning for Brooklyn
Williamsburg Apple Store. Photo: Kena Betancur/Getty Images

Working in an office on the 24th floor of the GM Building at 767 Fifth Avenue between East 58th and East 59th Streets, DeCrosta was the only employee that Commercial Observer spotted without a tie, without his shirt tucked in and without dress shoes (he was wearing burnt orange loafers).

A native of New Haven, Conn., DeCrosta went to Kenyon College, a liberal arts college of roughly 1,500 students, in the small town of Gambier, Ohio. He earned an English degree and took off for New York City after graduating in 2001.

“I fell in love with Brooklyn right after 9/11,” DeCrosta said. “I had moved to Lower Manhattan-post 9/11, and because Lower Manhattan was in the process of being rebuilt and low on amenities, half of the time I went out, I would end up in Brooklyn. That was 2001 to 2002. It’s when a lot of the restaurants started popping up [and] good bars. It’s when the Brooklyn culture as we know it started.”

He moved to Brooklyn in 2005. Today, he lives with his wife Luciana Francese, a director of leasing at Acadia Realty Trust who oversees transactions at City Point for the landlord. DeCrosta and Francese first met at the annual International Council of Shopping Centers event in Las Vegas in 2012 and have been married for more than two years. They have not done deals together—except if you count the couple’s 1-year-old daughter.

DeCrosta and his wife are extremely enthusiastic cooks, and he is an avowed non-jock. (Asked if he runs or exercises, he dead-panned Kenny Powers: “I’m not trying to be the best at exercising.”)

“Our idea of a good Saturday is going to local shops—like The Meat Hook in Williamsburg, go to our local produce guys and then we cook a big meal,” DeCrosta said. “Traditional Italian stuff. And we try to incorporate new recipes.” 

“He’s really into food, and that’s one of the things that we bonded over,” said Cushman & Wakefield Executive Managing Director Steven Soutendijk, a friend of nearly a decade. Soutendijk and DeCrosta have worked on opposite sides of deals in the past, such as one for cosmetics retailer L’Occitane on the Upper West Side.

DeCrosta’s foray into real estate started shortly after graduating college and moving to New York City with just $700. He became a canvasser for Madison Retail Group, which was being run by industry veteran Virginia Pittarelli. He met Pittarelli, who is currently a principal at Crown Retail, through a mutual friend, and she hired him in June of that year.

Later in 2001, he took continuing education courses at New York University to earn his broker’s license.

“I knew he had great potential,” Pittarelli said. “He was a very bright young man. He had a wonderful work ethic. He wanted to learn and he wanted to succeed. And he did something that a lot for young people find challenging: he made it a point to learn and understand the business, because he wanted to provide the best advice to his clients. Not just for the retail estate perspective, but from a retail point of view.”

DeCrosta’s first deal came in the spring of 2002. He represented a store called Saigon East on 237 Mulberry Street in Nolita, which sold Vietnamese products, such as vases, plates, lamps and other household items.

“I’ve always been attracted to the emerging markets,” DeCrosta said. “They always seem more interesting than the more established ones.” (Back then, Nolita was nowhere close to as pricey and yuppified as it is now.)

Indeed, Brooklyn was hardly his first rodeo. The Financial District was first. He worked to bring Tiffany & Co. to FiDi in 2006, when the area was going through a transformation with new retail. The company signed a 7,700-square-foot lease at 37 Wall Street.

In January of that year, French leather goods dealer Hermès, signed a deal at 15 Broad Street.

Tiffany’s representative, the late broker Ray Carew of GCD Consultants, was a mentor to DeCrosta. Carew mentioned to DeCrosta that Tiffany may be interested in Downtown as well, although it would be a “long shot.”

At the time, DeCrosta was living Downtown and saw a vacated space near his apartment at 37 Wall Street. He showed the space to Carew, who told Tiffany and weeks later the deal was signed in June.

Tiffany was interested in having a store Downtown “post 9/11 to be part of that rebuilding there,” DeCrosta said, and to tap into population of office workers and residents living there. Plus the rents were nothing like Fifth Avenue, where the jeweler with the iconic blue box has a flagship.

“You have to remember to the rents [Downtown] at that point were $100 a foot,” DeCrosta said. “It was certainly a risk but less so than a $1,000-a-foot gamble.”  

DeCrosta left Madison Retail Group in 2011 for a stint with Thor Equities but departed from that firm the following year for a bigger role at Crown Retail, where he has been since.

One recent notable transaction was last November, DeCrosta represented Apple in a deal for its second store in Brooklyn, a 12,000-square-foot space at Two Trees Management Company’s 300 Ashland Place between Lafayette Avenue and Hanson Place in Fort Greene, as CO previously reported. (Due to nondisclosure agreements with Apple, DeCrosta could not even confirm the deal.)

buildingphoto2 Christopher DeCrosta Sees Apple, Tesla and J. Crew as Just the Beginning for Brooklyn
One Hanson Place.

As Apple is expanding in the borough, DeCrosta believes there are “special” spaces  planned for development that will attract other bigger retailers and brands because of the size and high-foot traffic of the neighborhoods. He counts Kushner Companies’ 85 Jay Street development site in DUMBO and RedSky Capital’s full block assemblage at Fulton Street, Flatbush Avenue Extension and DeKalb Avenue in Downtown Brooklyn among those.

One such space already existing that he foresees drawing a big brand, he is currently marketing. It’s the 40,000-square-foot retail portion of One Hanson Place, a converted residential condominium that is currently Brooklyn’s tallest building.

The retail base has three levels—the lower level, ground floor and mezzanine space—and DeCrosta and O’Donnell are targeting one user.

DeCrosta is hoping for a Nike, Samsung or Google. (If Google or Samsung took the space, it would be the first Brooklyn location for either; it would be Nike’s second.) It has 60-foot ceilings on the ground floor. And it has a vault on the lower level (the building was once the headquarters of the Williamsburgh Savings Bank.)

“When you walk into One Hanson Place,” DeCrosta said. “It’s an absolutely gorgeous landmarked interior. It’s a glaring hole in the market for a brand.”


Source: commercial