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Category ArchiveLeases

Regus Renews 60K-SF at 5 Penn Plaza

Office provider Regus has signed a renewal for 60,000 square feet at 5 Penn Plaza, Commercial Observer has learned.

Regus, which occupies the entire 19th and 23rd floors, of the 26-story building on Eighth Avenue between West 33rd and West 34th Streets will continue to operate in that space for 10 years. The asking rent in the transaction was $68 per square foot, according to information provided by CBRE, the building’s leasing and managing agent.

CBRE’s Peter Turchin, who represented landlord Haymes Investment Company in the deal, said Regus wanted to re-up in the building, because the area is attracting creative companies, Regus’ target market.

“With the ongoing revitalization of Penn Station and the Farley Building directly across the street, 5 Penn Plaza has emerged as a premier leasing option for creative and tech firms,” Turchin said in a prepared statement.

Turchin’s team on the deal included Jason Pollen, Dave Caperna and Hilary Whittier. JLL’s Jim Wenk and Patrick Heeg (now at Transwestern) represented Regus in the transaction.

“It’s a great location because of its proximity to Penn Station,” Wenk said via a spokesman.

Earlier this year, Remedy Partners, which develops and manages bundled payments programs for health insurers, signed a 28,640 square feet of space for pre-built space at 5 Penn Plaza, as CO previously reported. Other tenants at the building include Thomasnet and the Visiting Nurse Service.


Source: commercial

Top 10 Leases of the Month: September

Earlier this year there were a number of prominent openings of movie theaters in Manhattan, and it looks as if Queens has finally gotten in on the action: The South Korean cinema chain—CJ CGV—announced that it’s opening a seven-auditorium 4D multiplex at the 1.2-million-square-foot mixed-use development Tangram in Flushing. (The 34,000-square-foot movie theater will be the first in the neighborhood in 30 years!)

But movie theaters are nothing in comparison to fast food, which seems to be making an unheard of push into New York (see our video on Taco Bell here). Shake Shack continued to vie for supremacy, with a 27,000-square-foot lease for a new headquarters and flagship in the West Village at 225 Varick Street.

Hot on the heels of the opening of its Brooklyn digs, the Japanese clothing and home goods chain, Muji, picked up a 13,000-square-foot lease at 127 East 59th Street (its eighth location in the five boroughs).

Beer lovers had much to toast: a new beer hall—Knickerbocker Social—took over an entire 12,776-square-foot building at 240 West 52nd Street in the Theater District, as the broker of the deal, Victor Menkin, told Commercial Observer. And Mikkeller NYC, a microbrewery with an outpost in Citi Field, also signed a 7,500-square-foot lease at 51-40 58th Place in nearby Woodside, Queens. And while, yes, we recognize the differences between cider and beer, Wilklow Orchards—an orchard in upstate New York—signed an 1,100-square-foot deal for a Bad Seed Cider Company at 585 Franklin Avenue in Crown Heights.

A little farther uptown from Knickerbocker, there was two pieces of interesting restaurant news at Time Warner Center. First, Bluebird, a West London restaurant, was opening its first New York City outpost in the 10,000-square-foot space vacated by the Italian restaurant A Voce. Separately, David Chang’s Momofuku signed a lease for a 4,000-square-foot noodle bar on the complex’s third floor. Downtown, a Canadian hospitality group took 10,000 square feet at the space vacated by Florian at 233 Park Avenue South, but as yet we have no word who will move in.

All that food and beer will no doubt induce the disciplined among us to head to the gym afterwards, and, fortunately, there were two pieces of fitness news: ClassPass just opened a 7,000-square-foot fitness studio in Industry City, at 80 39th Street, and the cycling company Peloton opened its first standalone showroom (and second store) on the Upper East Side at 1156 Madison Avenue, taking 3,165 square feet.


Source: commercial

Retail Details: Run for the Boroughs!

Last month, fast food purveyor Taco Bell announced it was going to hit urban markets hard, including Gotham, with an announced 50 new locations in New York City.

Commercial Observer spoke to a representative from the eatery (as well as a few customers) to explain what to expect and why it’s making a run on the boroughs (and Manhattan, of course).


Source: commercial

E-commerce Company Bluefly Shrinking HQ in West 39th Street Building

Bluefly, a high-end discount retailer, is consolidating its headquarters at 42 West 39th Street as part of a brand repositioning, Commercial Observer has learned.

After 20 years in 17,000 square feet on the ninth and 10th floors of the property between Fifth Avenue and Avenue of the Americas, Bluefly has signed a new lease for just the 9,585-square-foot ninth floor, according to a release from Adams & Co.

“To continue to stay competitive, Bluefly is focusing on expanding internationally; the company is opening pop-up locations across the globe, starting with a location in Manhattan on 45th Street, just east of Fifth Avenue,” David Levy, a principal of Adams & Co., said in prepared remarks. “This shift in strategy resulted in a need for an updated installation, where employees can work more efficiently as a team.”

Levy and Adams & Co.’s Brett Maslin represented the tenant and the landlord, an LLC affiliated with Adams & Co., in the transaction.

Bluefly plans to completely renovate the space, creating a flexible office format.

Built in 1927, 42 West 39th Street, is an 18-story, 157,748-square-foot commercial office building with tenants like Spanx, Magnusson Architectural and Planning, Fragments Holdings, Wear First and Castlewood Apparel.


Source: commercial

South Korean Cinema Chain Bringing 4D Multiplex to Flushing’s Tangram

CJ CGV, a South Korean cinema chain, will open a seven-auditorium 4D-movie multiplex in the 1.2-million-square-foot Tangram, a mixed-use development under construction in Flushing, Queens.

The company signed a lease at Tangram, at 133-15 39th Avenue between College Boulevard and Prince Street (the retail portion is at 37-09 College Point Boulevard), a spokeswoman for the project told Commercial Observer. The asking rent was $65 per square foot, Geoff Bailey of SCG Retail, who represented both sides in the deal, told CO. Regarding the length of the lease, signed last week, Bailey would only say it was “long term,” but a source said it is 20 years with options.

Last November, CO was the first to report that developers F&T Group and SCG America’s project would be home to a 34,000-square-foot movie theater, the first one in the neighborhood in 30 years.

CGV Tangram Flushing will include the first 4DX location—which includes motion vibration and environmental effects such as wind and rain—in Queens, and the first ScreenX auditorium—described as providing a “270-degree panoramic theater experience, extending the screen visuals to the left and right” in the city. The Flushing theater will be the third CGV Cinemas (the name used in the U.S.) location in the country, and the first in New York City when it opens in late 2018.

conway tangram 07 interiorretailarea cam03 02 South Korean Cinema Chain Bringing 4D Multiplex to Flushings Tangram
Rendering of the inside of the retail atrium at Tangram. Image: F&T Group and SCG America

“Movie theater is a very complicated use because it’s a big-box,” said Bailey, the exclusive agent for Tangram’s 275,000-square-foot retail component. “They need high ceilings [some as high as 40 feet]. They have all sorts of egress issues. There are FAR [floor area ratio] issues that we needed to overcome.”

“When we discovered the opportunity to be an integral part of Tangram, we knew being in this economically vibrant and evolving neighborhood was where our first East Coast movie theater had to be,” Paul Richardson, the chief operating officer of CJ CGV, said in a prepared statement.

tangram 08 39th ave 014 03 South Korean Cinema Chain Bringing 4D Multiplex to Flushings Tangram
Rendering of the retail portion at Tangram. Photo: F&T Group and SCG America

SCG America Executive Vice President Thunder Zhou noted: “CJ CGV has over 1,000 movie screens in Korea alone, and now they’re a part of Tangram.” (CJ CGV operated 3,120 screens at 412 locations in seven countries.)

The Wall Street Journal identified CJ CGV as the movie theater tenant in a story this week about the project, which is also will be home to two condominium buildings (with 317 residences) and a 85,000-square-foot office condo (with 48 units). The 275,000-square-foot two-story retail podium—which includes a 24,000-square-foot predominantly Asia food hall—is slated to be delivered first, in third-quarter 2018, the developers said.


Source: commercial

Squarespace Grows to 143,000 SF at 225 Varick Street

Hosting platform and website builder Squarespace has leased two more floors at 225 Varick Street in Hudson Square.

Squarespace inked a 12-year deal for 49,700 square feet on the fifth and sixth floors of the building, where it already leased 93,000 square feet on the 10th through 12th floors in 2014. Asking rent on the new lease was in the high $70s per square foot, according to The Real Deal, which was the first to write about the transaction.

The tech firm is expected to move into its new space in April 2018, according to CoStar Group.

Shake Shack also signed on for 27,000 square feet of office and retail space in the property between Clarkson and West Houston Streets last month. The upscale burger spot will open a flagship restaurant in the ground-floor retail space and a test kitchen on the lower level in mid-2018. It will also move its offices, which are currently located in Union Square, into part of the third floor in the spring of 2018.

Rocco Laginestra and Paul Myers of CBRE represented Squarespace in the deal, and CBRE’s Howard Fiddle, Paul Amrich and Neil King represented landlords Trinity Real Estate, Norges Bank Real Estate Management and Hines. A spokeswoman for CBRE declined to comment.


Source: commercial

Fujitsu America, Two Other Tenants Renew at Durst’s 733 Third Avenue

Three tenants—Fujitsu America, Marwood Group and Continental Industries Group—have signed leases to remain at 733 Third Avenue between East 45th and East 46th Streets, Commercial Observer has learned. The 10-year deals were all negotiated in the last few few weeks, with an asking rent of $68 per square foot, according to the landlord, the Durst Organization.

In the largest of the latest transactions, Fujitsu America, which provides a portfolio of business technology services, computing platforms and industry solutions, has renewed a deal to remain in 10,964 square feet on the 17th floor at the Midtown building, as per information from Durst.

Fujitsu, a tenant in the building since 2004, is renovating its suite to accommodate the digital team’s need for an open-concept floor plan, the landlord indicated. Brian Cohen of Newmark Knight Frank represented Fujitsu in the deal. A NKF spokesman didn’t respond with a comment.

Marwood Group, a health care-focused advisory and consulting firm, will continue leasing the 25,438-square-foot 11th floor.

“Marwood has been at 733 Third for almost 10 years,” emailed Dennis Someck of Lee & Associates NYC, Marwood’s long-time exclusive broker. “The building has worked well for them and Durst has been a terrific landlord. After reviewing and evaluating all other options Marwood decided that it made sense to remain in their current location. The Durst team…was terrific to deal with and structured an economically attractive deal to retain Marwood as their tenant.”

And Continental Industries, a global sales and distribution company of chemicals and polymers, will be relocating from the 20th floor to the 7,442-square-foot 21st floor. Michael Joseph of Colliers International represented Continental Industries, a Colliers spokeswoman confirmed, saying that the broker declined to comment.

Durst’s Ashley Gee represented Durst in-house in all three deals.

“We are thrilled to have Fujitsu, Marwood and Continental Industries renew their leases at 733 Third Avenue,” Jonathan “Jody” Durst, the president of the Durst Organization, said in a prepare statement. “It is a great compliment when a tenant stays in our portfolio. We look forward continuing our relationships with these stellar companies.”

Durst erected the Emery Roth & Sons-designed building in 1961. The 24-story, 445,000-square-foot structure is 98.3 percent occupied, Durst’s spokesman said. Major tenants include National Multiple Sclerosis Society, Rodale and Rosenberg & Estis.


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

Lemonade Is Taking Everything You Hate About Insurance and Throwing it Out the Window

At Stonehenge NYC, we’re all about elevating Manhattan living. Thanks to our excellent amenities and lifestyle events, our fleet of luxury apartment buildings attract some of the trendiest and most hardworking New Yorkers.

From rooftop parties with breathtaking views to live comedy performances, it’s impossible to find yourself bored as a member of the Stonehenge community. We also provide exclusive discounts and services to make the Stonehenge living experience second to none.

Stonehenge NYC is passionate about discovering new and better ways to live in the world’s greatest city. Our unending mission is to make every aspect of our residents’ lives more enjoyable, less frustrating and as easy as possible. For us, that’s what luxury is all about; which is why we love Lemonade.

Lemonade is taking everything you hate about insurance and throwing it out the window.

Their simple, streamlined app hides a surprisingly complex and groundbreaking insurance system. There’s no paperwork to shuffle through, no fine print to strain your eyes on, and, most importantly, no hassle! Simply tell Lemonade’s app where you live, breeze through a few simple questions and choose the policy that works for your life and your wallet.

The folks at Lemonade believe that running an insurance company is less about making big bucks and more about fostering a safe community and promoting peace of mind. Lemonade doesn’t use brokers or salespersons so you pay a straightforward, flat rate with no hidden fees. You’ll easily be able to choose what you want insured and how much you want to pay for it. If you’ve already got home insurance, Lemonade can even help you cancel your old plan.

Lemonade’s flat fee structure allows them to take their vision a step further. Any leftover money from your monthly payment is donated to nonprofits and charities.

This altruistic philosophy is one of many reasons Stonehenge NYC is proud to offer Lemonade to our residents. Lemonade has customized their policies to include Cycle for Survival, a wonderful movement which uses cycling events to raise money in the ongoing battle against rare forms of cancer.

We’re excited about our future with Lemonade. They’re not only reinventing the way we do insurance: They’re changing the course of the whole industry. It’s no longer just about maximizing profits. It’s about creating a better world for everyone. That’s something we can all get behind.


Source: commercial

Bustle Parent Company Expands HQ to 51K SF in Midtown South

BDG Media, the parent company of online publications Bustle and Romper, is expanding its headquarters at Columbia Property Trust’s 315 Park Avenue South by an additional 17,050 square feet, Commercial Observer has learned.

The company currently houses Bustle and Romper’s employees in 34,100 square feet—comprising the entire 10th and 11th floors—of the Midtown South building between East 23rd and East 24th Streets. The new lease will give BDG Media the entire 12th floor, bringing BDG’s footprint in the 20-story, 331,000-square-foot building to 51,150 square feet, according to information provided by the landlord.

BDG moved into the building last year, as CO reported at the time. The asking rent for the 12th floor space was $80s per square foot, according to a source with knowledge of the deal. BDG’s new lease runs concurrent with the old and both are set to expire in 2028.

“BDG Media’s expansion serves as further validation of our efforts to reposition 315 Park Avenue South as the premier Midtown South office destination for New York’s most cutting-edge creative companies,” Adam Popper, a senior vice president at Columbia Property Trust, said in a prepared statement.

Andrew Wiener and David Berkey of L&L Holding Company, which leases and manages the property for Columbia Property Trust, handled the deal for the landlord. Transwestern’s Rory Murphy, Lindsay Orenstein and Jonathan Tootell brokered the transaction for BDG. A spokeswoman for Transwestern did not immediately return a request for comment.

Columbia Property Trust, a publicly traded real estate investment trust based in Atlanta, purchased 315 Park Avenue South for $353.9 million in January 2015, as CO previously reported.

The landlord is currently finishing a renovation of the building that includes an updated lobby, upgrades to the facade and the construction of a separate entrance on East 24th Street for Equinox. A spokeswoman for Columbia Property Trust declined to disclose the price of the renovation, which is expected to be completed by the end of the year.


Source: commercial