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Category ArchiveLeases

Martial Arts Academy Takes Space at Park & Tilford Building on UWS

Renzo Gracie Martial Arts Academy has taken space for a new facility on the lower level at the Park & Tilford Building on the Upper West Side, Commercial Observer has learned.

The company, which specializes in Brazilian Jiu Jitsu and Muay Thai, signed a deal for 5,000 square feet at 246 Columbus Avenue between West 71st and West 72nd Streets. The lease is for seven years and the asking rent was $55 per square foot, according to Rafe Evans of Walker Malloy & Company, who represented the property owner 100 West 72nd Street Associates, LLC in the deal.

Renzo Gracie’s new space had been storage for a basement nightclub for decades and “required extensive fit-up to make it usable, including two new elevators and digging out the floor to increase ceiling clearance,” Evans said. Those clubs included Baja, Columbus72, Flipside and Cream.

Renzo Gracie, which has schools in Midtown, Brooklyn and Middletown, N.J., will be moving into the Upper West Side digs imminently, Evans said.

Independent real estate broker Harry Delany represented the tenant in the deal. He declined to comment.

The Park & Tilford building is an 1892 Renaissance Revival-style building designed by McKim, Mead & White as a retail emporium, and was converted into a mixed-use co-op in the 1970s. Retail tenants include Swatch, Olive & Bette’s, Z’Baby Company and Jeffrey Stein Salon.

Source: commercial

Premium Merchant Funding Leaving Trump Building for 16K SF at 55 Water

A financial institution for small businesses, Premium Merchant Funding, has sub-subleased 15,965 square feet from foreign exchange trading firm Forex Capital Markets in the Financial District, Commercial Observer has learned.

Premium Merchant Funding will occupy 15,965 square feet on the 50th floor at 55 Water Street via an eight-year sub-sublease, as per a source. The asking rents were in the mid-$50s per square foot. Premium Merchant Funding will relocate from the Trump Organization‘s Trump Building at 40 Wall Street next month.

Forex took the 60,000-square-foot 50th floor in the 52-story, 3.6-million-square-foot building between Old Slip and Coenties Alley in a 2011 sublease, according to Real Estate Weekly at the time. At this juncture, Forex had excess space to give up, and Premium Merchant Funding had grown out of its 10,000 square feet at 40 Wall Street. The new sub-sublease transaction closed last week.

David Ofman of the Lawrence Group represented Forex in the deal. Newmark Knight Frank’s Paul Ippolito and Cushman & Wakefield’s Stephen Burke represented Premium Merchant Funding. Ofman and a spokeswoman for NKF didn’t immediately respond to a request for comment, and Burke declined to comment via a spokesman.

The Class-A office building is owned by Retirement Systems of Alabama. Tenants include S&P Global, New York City Department of Transportation and Teachers’ Retirement System.

Source: commercial

Eikon Group Leases 20K SF in Former Lockheed-Martin Facility in Burbank

Eikon Group, a post-production company headquartered in London and known for its technical work on films such as Blade Runner 2049 and Spider Man: Homecoming, is relocating its Burbank, Calif. office.

Eikon signed a 10-plus-year lease for 20,000 square feet at 2777 North Ontario Street near the Hollywood-Burbank Airport for a total rent of $8.1 million, according Kyle Stanich, an associate vice president at Colliers International, who along with Nico Vilgiate represented EIKON and the property owner, SSV Properties, in the deal. While Stanich wouldn’t disclose the exact price per square foot, he said it is in line with market comps for the area, which range from $3 to $3.35 per square foot.

Currently located at 306 East Alameda Avenue in Burbank, Eikon is expected to make the move by September.

El Segundo, L.A.-based SSV Properties purchased the property, a former Lockheed-Martin facility, in 2007 for an undisclosed sum and recapitalized the property in 2015. SSV sunk $5 million of renovations into the 132,000-square-foot property to turn the former industrial building into a creative office space that appeals to an influx of media and entertainment clients in the Los Angeles market, David Jordon, CEO of SSVP told Commercial Observer, following the departure of two long-term tenants, Point 360 and Reliance Media. Property upgrades included repositioning the outdoor courtyard, entryway, lobby, elevator, bathrooms and building exterior, as well as updating the HVAC and building systems and installing skylights and operable windows. In addition, SSVP is working with Eikon, which will occupy space on the ground level, to remove part of the mezzanine to create a state-of-the-art theater.

“Everyone thinks Hollywood is the entertainment capital of the world, but in our opinion and as time has told, Burbank definitely is,” Stanich said. “There’s attractive business incentives that operate in Burbank. There are no gross receipts taxes so it’s cheaper to operate your business in Burbank than it is in Los Angeles or Culver City.” (A gross receipts tax is levied against the receipts of a sale that results in a change of ownership.)

Eikon is the first company to lease at the property since the property upgrades. Stanich, who said major studios and gaming companies have expressed interest in taking space in the building, anticipates that his company will lease the remaining space by the end of the year.

Eikon did not return calls for comment.

Source: commercial

Morton Williams Taking Old Talbots Space on UES

Supermarket chain Morton Williams has signed a 30-year lease at 1251 Third Avenue on the Upper East Side for its 17th grocery store.

The family-owned supermarket company, which has been around since the 1950s, will occupy 13,000 square feet amassing the entire ground floor and lower level of the building between East 72nd and East 73rd Streets, owners of the supermarket confirmed to Commercial Observer. The space was formerly home to sportswear store Talbots, which vacated the space two years ago. The asking rent in the transaction was just under $2 million per year.

“We have a number of stores on the Upper East Side already, so we understand consumer needs and we are able to cater to them effectively,” Avi Kaner, a co-owner of Morton Williams, told CO. “This Third Avenue corridor is one we have been looking at for a while, because of its residential density.”

Morton Williams’ newest location at 1251 Third Avenue will be just a few blocks over from an existing store at 1331 First Avenue between East 71st and East 72nd Streets.

The company doesn’t appear to be concerned about the two stores cannibalizing each other.

This Third Avenue “location is ideally situated to provide services to customers coming from the west—from Park Avenue and Madison Avenue—as well as the North,” Kaner said. “We already have a store on 72nd [Street] and First  [Avenue], which caters to customers from the east.”

Construction has begun on the new supermarket, which is expected to open in October. The New York Post was first to report news of the deal.

Perry Rothenberg of Creative Leasing Concepts represented Morton Williams. Douglas Elliman’s Faith Hope Consolo handled the deal for the landlord, 203 East 72nd Street Corp. Consolo did not immediately return a request for comment.

Traditional supermarkets had been getting squeezed by specialty stores and ecommerce, as CO previously reported, but Morton Williams seems to be unaffected and is steadily growing.

Morton Williams currently has 12 supermarket locations in Manhattan, two in the Bronx and one in Jersey City, N.J. It also signed a 29,400-square-foot lease for space at One West End Avenue on the Upper West Side last December, as CO previously reported, for its 16th store. Construction is about to begin on that location.

Source: commercial

E-Commerce Brand Parachute Home Opening First NYC Store in Soho

Online linens brand Parachute Home is opening its first brick-and-mortar store in New York City at 129 Grand Street in Soho, Commercial Observer has learned.

Parachute Home is taking the ground-floor retail space at the five-story residential condominium building at the southwest corner of Grand and Crosby Streets, according to sources with knowledge of the transaction. The company signed a two-year deal, with an option for an additional five-year term.

The bedding and bath goods retailer will occupy 1,140 square feet of street-level space and an additional 900 square feet of basement space, for a total of 2,040 square feet. Parachute Home recently took possession of the location and has started work on its buildout with a view to opening in May, sources said.

Asking rent in the off-market transaction was not immediately clear. Matthew Girard of Sinvin Real Estate represented Parachute Home, while Twenty Nine Great Jones Street Corp., the owner of the retail condo unit, had no broker.

The store at 129 Grand Street will be Parachute Home’s first location in the city. The e-commerce brand, founded in 2013, has two other physical stores nationally: a showroom attached to its Venice, Calif., corporate headquarters and another outpost in Portland, Ore.

In a statement, Sinvin said Parachute Home “joins the list of e-commerce brands that understand the symbiotic relationship between brick-and-mortar and online retailing,” adding that the brand “identified Soho as the perfect landing place” for its first New York City store. The retail space at 129 Grand Street features “15-foot pressed-tin ceilings, cast iron columns and oversized display windows,” Sinvin added.

Representatives for Parachute Home did not immediately return a request for comment. The landlord could not immediately be reached.

Source: commercial

Industrious Moving HQ to Union Square From Brooklyn With 14K-SF Deal

Bye bye, Brooklyn!

Flexible office space provider Industrious has signed a 14,484-square-foot lease at SL Green Realty Corp.’s 215 Park Avenue South to relocate its headquarters to the same building where it has its only Manhattan location, Commercial Observer has learned.

The company will move to the entire 13th floor of the 20-story property between East 17th and East 18th Streets, according to a spokeswoman for Industrious. It already leased the entire 17,500-square-foot 11th and 17,255-square-foot 12th floors in the building for roughly 35,000 square feet for shared offices for its members, as CO previously reported. All told, Industrious will occupy more than 49,000 square feet of the 330,000-square-foot property.

The new transaction is for three years and the asking rent was $70 per square foot.

Industrious has been growing rapidly and the company recently landed $80 million in a Series C funding led by Fifth Wall Ventures and Riverwood Capital, as CO reported last month.  

“We’ve had a very busy year and are excited to continue our momentum coming out of our $80 milion funding news a few weeks ago,” Industrious President Justin Stewart said in a prepared statement to CO. “To date, our national team has worked out of the Industrious Brooklyn space, but at the beginning of this year we outgrew our space there.”

The majority of Industrious’ 80 employees will relocate from the headquarters at
594 Dean Street between Carlton and Vanderbilt Avenues in Prospect Heights where it has just under 2,000 square feet for its corporate offices, according to a spokeswoman for the company.

Industrious has 35 locations across the country, and recently reached a milestone with a total of 1 million square feet of space.

CBRE’s Sacha Zarba and Alice Fair handled the deal for the tenant with Katharine Lau, the director of real estate for Industrious, . A spokeswoman for the brokerage did not immediately return a request seeking comment from Zarba. Howard Tenenbaum and Gary Rosen represented SL Green in the transaction in-house.

A spokesman for the landlord did not immediately provide a comment.

Source: commercial

Shared Office Provider Jay Suites Takes 90K-SF Sublease Near WeWork’s New HQ

Jay Suites, a shared office provider, has signed a 90,000-square-foot sublease for the entire 12-story building at 15 West 38th Street from sublandlord Hudson’s Bay Company for its eighth and largest location, according to a press release from Jay Suites.

The company will build a 22,000-square-foot conference center in part of the first floor and the entire second and third floors of the building between Fifth and Madison Avenues. And its first-ever branded Jay Café will be in roughly 600 square feet on the ground floor. Floors four through 12 will be 150 private offices.

The location will also have a rooftop terrace and Jay Suites is planning to relocate its headquarters with 25 employees to the building’s penthouse from its current offices at 369 Lexington Avenue between East 40th and East 41st Streets, where it launched its corporate offices and its first location in 2009.

Jay Suites’ new location is expected to open in the summer.

The tower is owned by Rosen Group. Hudson’s Bay—the parent of various brands such as Lord & Taylor and Saks Fifth Avenue—has 17 years left on its triple-net lease for the property. It was the Canadian company’s U.S. headquarters. Hudson’s Bay relocated to Brookfield Place after signing a lease there in 2014.

Sean Black of BLACKre represented Jay Suites in the deal while Cushman & Wakefield’s Laura Pomerantz and Maria Travlos handled the deal for Hudson’s Bay.

“This deal—with its below-market rent, location and footprint—will let Jay Suites offer its core private luxury office spaces with a full suite of amenities as well as flexible larger team and conference rooms to New York City companies for excellent value,” Jack Srour, the co-founder and COO of Jay Suites, said in a prepared statement. “The deal also benefits Hudson’s Bay Company as its need for underutilized space shifts.”

The asking rent was $45 per square foot, according to The Real Deal. The New York Post was the first to report on the news.

Going to 15 West 38th Street puts Jay Suites in a direct competition with rival WeWork. Nearby is the Lord & Taylor building at 424 Fifth Avenue, which WeWork and Rhône Capital purchased for $850 million last year, as Commercial Observer previously reported. The coworking giant plans to open a new share office location and its headquarters in 424 Fifth Avenue.

Jay Suites plans to spend $10 million to renovate the red terra cotta structure at 15 West 38th Street that was erected in 1909. Jay Suites will upgrade and modernize the technology, infrastructure, work, conference space and rooftop building.

Jay Suites has seven active locations all in New York City and 90 percent are occupied. It expects to have 5,000 members, factoring in the new eighth location. It’s previous largest shared office was at 1441 Broadway, where it leased 75,000 square feet.

A spokesman for C&W declined to comment.

Source: commercial

Fitness App Runs Over to 1 WTC

Another tech tenant has landed at 1 World Trade Center.

Digital workout app maker Aaptiv has inked a five-year lease for a 16,962-square-foot prebuilt space on the 49th floor of the 104-story tower, according to landlord Durst Organization. Asking rent in the deal was $73 a square foot. Durst manages, leases and operates the 3.5-million-square-foot building, and the Port Authority of New York & New Jersey owns it.

“We are excited to have Aaptiv join the 1 World Trade Center community,” said Jonathan “Jody” Durst, the president of Durst Organization, in prepared remarks. “Our prebuilt program has been a tremendous success over the past four years. We can offer tenants premium offices in a short period of time and flexible lease terms, which is requisite for rapidly growing companies.”

Aaptiv was represented by JLL’s Jason Schwartzenberg and Will Stark. Durst Organization’s Eric Engelhardt handled the deal for the landlord in-house, along with Tara Stacom, Justin Royce, Barry Zeller, Peter Trivelas and Connor Daugstrup of Cushman & Wakefield. Spokespeople for neither brokerage returned a request for comment.

Aaptiv will move from the eighth floor of 1140 Broadway between West 26th and West 27th Streets in NoMad, at the end of April. The company’s app provides audio-based fitness classes, including strength training, running and yoga, and pairs the workouts with playlists.

The prebuilt program at 1 World Trade spans 381,668 square feet and nine floors, and it’s now 72 percent leased.

Source: commercial

National Bank of Kuwait Renews 19K SF at 299 Park Avenue

The National Bank of Kuwait has agreed to extend its stay at 299 Park Avenue after inking a renewal for its 18,688 square feet of space at the Midtown office tower.

The bank signed a 10-year lease to keep its offices on part of the 17th floor at the 42-story, 1.2-million-square-foot building between East 48th and East 49th Streets, landlord Fisher Brothers announced today. The financial institution’s New York City branch has been located at 299 Park Avenue since 1993.

Asking rent in the deal was $95 per square foot. Fisher Brothers’ Marc Packman and Charles P. Laginestra represented the landlord in-house, while the tenant was also represented internally.

In a statement, Fisher Brothers Partner Ken Fisher called the National Bank of Kuwait “a valued tenant for nearly 25 years,” and said the bank was drawn to “Fisher Brothers’ legendary level of service as well as the tower’s premier address.”

The National Bank of Kuwait could not immediately be reached for comment.

Fisher Brothers has secured a slew of financial industry tenants to leases at 299 Park Avenue as of late. Financial services firm B. Riley Financial recently agreed to a 29,000-square-foot deal to relocate to a new floor within the building, as Commercial Observer reported last week, while the likes of commodities trader Traxys Group, hedge fund King Street Capital Management and asset manager Varagon Capital have all signed sizable leases in recent months. Other financial services tenants at the property include UBS and Capital One.

Work is slated to commence later this year on a $20 million capital improvement program at 299 Park Avenue; the Rockwell Group-helmed renovations are expected to yield a redesigned lobby and building entrance, as well as an illuminated plaza backed by a new exterior lighting system, according to Fisher Brothers.

Source: commercial

Knotel Continues to Expand, Takes Another Entire Soho Office Building

Office provider Knotel has inked a 14,000-square-foot lease for the entirety of the office space at 40 Wooster Street in Soho, the company announced yesterday.

Knotel signed a 10-year deal earlier this month to take the second through sixth floors at the six-story, 17,600-square-foot building between Grand and Broome Streets. The transaction is the latest instance of the office provider leasing out an entire Manhattan office property; in January, it announced a 14,000-square-foot deal for all of the office space at 521 Broadway, also in Soho, and last fall signed a lease for all 25,000 square feet of office space at The Moinian Group’s 55 West 21st Street in the Flatiron District.

Knotel declined to provide the asking rent in the transaction. The company had no broker in the direct lease, while it was not immediately clear who represented the landlord, real estate investor Ran Eliasaf‘s Northwind Group. Representatives for Northwind did not immediately return requests for comment.

Northwind acquired 40 Wooster Street for nearly $16.4 million in April 2014 and subsequently filed plans for a residential conversion the landmarked property, which was built in 1896. While those plans received approval by the city’s Landmarks Preservation Commission in 2015, the Knotel lease indicates that 40 Wooster Street will continue to operate as a commercial office building.

Startup Knotel, which provides office space to mostly small- to mid-sized businesses on flexible, short-term arrangements, has been among the most prolific consumers of Manhattan office space since sealing a $25 million Series A funding round in February 2017. (Disclosure: Observer Capital, led by Observer Media Chairman and Publisher Joseph Meyer, is among Knotel’s investors.)

The company now claims more than 700,000 square feet of space under lease across more than 40 locations in New York and San Francisco. It has said it expects to further grow that footprint to several million square feet before the end of 2018 and has drawn up plans for expansion into global markets like London.

Source: commercial