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Category ArchiveLord & Taylor

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

Scotiabank Subleases From Hudson’s Bay at Brookfield Place

Toronto-based financial institution Scotiabank has subleased 50,000 square feet at Brookfield Place from Canadian retail conglomerate Hudson’s Bay Company.

Scotiabank, also known as the Bank of Nova Scotia, took a full floor from Hudson’s Bay at 250 Vesey Street, where it already occupies 100,000 square feet on the 23rd and 24th floors. The new floor wasn’t immediately clear, but the 186-year-old firm took the space that is contiguous with its current offices, according to The Real Deal, which first reported news of the lease.

Asking rent was $60 a square foot, TRD reported, but the length of the lease wasn’t available.

Hudson’s Bay and Scotia Bank didn’t immediately return requests for comment.

Scotia Bank first moved into 250 Vesey Street in 2013, after decamping from another Brookfield Property Partners-owned office tower, 1 Liberty Plaza.

Hudson’s Bay, which is the parent company of Lord & Taylor and Saks Fifth Avenue, signed on for 166,000 square feet at 250 Vesey and 233,000 at 225 Liberty Street in 2014. However, it has been quietly shopping four floors at 250 Vesey after announcing plans to lay off 2,000 employees, TRD noted.

Source: commercial

WeWork Inks 177K-SF Deal for New Chelsea Location Near Its HQ

WeWork, the Chelsea-based coworking giant, has signed a roughly 177,000-square-foot lease for a new location at 18 West 18th Street a block from its current headquarters, Commercial Observer has learned.

The company will occupy the entire office portion of the 11-story building between Avenue of the Americas and Fifth Avenue. WeWork will open the location in stages, with the first encompassing the fifth through 11th floors, or approximately 117,000 square feet, this summer, according to information provided by the landlord’s broker, Cushman & Wakefield.

Then it will occupy about 50,000 square feet in the second through fourth floors. Those floors are currently occupied by the Association for Autistic Children, and WeWork will assume the space in a few years, according to C&W’s David E. Green.

“The property is a classic Chelsea loft building with great light and air,” Green, an executive director at C&W, told CO.

Green and colleagues Tara Stacom and Connor Daugstrap handled the deal for 17-18 Management Company LLC, owned by a partnership led by the Schaffer family.

CBRE’s Derrick Ades, Timothy Dempsey and Brett Shannon represented WeWork in the transaction. They declined to comment via a spokeswoman.

Green declined to provide the terms of the deal, and a spokesman for WeWork did not immediately return a request for comment.

WeWork’s current headquarters is located at 115 West 18th Street between Avenue of the Americas and Seventh Avenue. But, the company plans to move its corporate offices to the Lord & Taylor building at 424 Fifth Avenue between West 38th and West 39th Streets. In a joint venture with Rhône Capital, WeWork announced last October a deal to purchase the 676,000-square-foot building from the store’s parent company Hudson’s Bay Company for $850 million, as CO previously reported.

Source: commercial

Dress Designer Moving HQ Within Garment District With 21K-SF Lease


Source: commercial

What Retail Meltdown?

New York City is defying the downturn. Despite all the handwringing, Gotham’s favorite corridors are still attracting fabulous brands. Even newbies like Billionaire’s Row are welcoming an exciting line-up of shops. The phenomenon goes up and down Manhattan. Online and brick-and-mortar are working together, many pop-ups are testing the waters, and major holes are now being filled. Forget those doomsday prophecies: Retail in our chic city is here to stay.

Of course, every broker says this. Don’t just take my word for it. Let’s examine the relevant neighborhoods, one by one.

 Herald Square. Herald Square is moving in the right direction with retailers jostling for the prime spaces as the biggest brands in retail move in. Target has taken a megastore at 112 West 34th Street, opening in October, joining Sephora and Foot Locker, directly across from Macy’s. (When Macy’s announced that it was closing stores last year, the Herald Square flagship was notably spared.) Sephora recently moved from a few doors down, showcasing their latest retail concept Beauty T.I.P. Workshop, a technology lover’s temple to all things beauty. Amazon Books continues to roll out its bricks-and-mortar stores, opening this summer at 7 W. 34th Street, in addition to their location set to open at The Shops at Columbus Circle this Spring.

Fifth Avenue. New York’s ritzy thoroughfare is embracing “shop-in-shops” plus a surge of beauty brands, jewelry and watches. Lord & Taylor has debuted the Dress Address with the city’s largest dress selection ever. The newly relocated Sephora is a visionary concept at 580 Fifth Avenue. French apothecary brand L’Officine Universelle Buly is reconnecting to its art deco roots with a shop-in-shop at Bergdorf Goodman. Boutique Cartier NYC Central Park has decided to stay on permanently. Tag Heuer joins the Avenue alongside Coach House and Stuart Weitzman at 685 Fifth Avenue.

Madison Avenue. Elie Saab’s boutique is now open at 860 Madison Avenue while Balenciaga is soon to debut at 840 Madison Avenue. Robert Clergerie Paris is building their new flagship store at 901 Madison Avenue. Meanwhile, the Louis Vuitton-Jeff Koons creative collaboration is located, for the coming weeks, at 655 Madison Avenue. 

Billionaires’ Row. On East 57th Street, a prominent Park Avenue corner that has been vacant for six years is coming back to life with the arrival of London-based men’s clothier Richard James at 465 Park Avenue. Swiss watchmaker Richard Mille will finally have its East Coast boutique at 46 East 57th Street, the retail side of 432 Park Avenue, the single tallest residential building in the western hemisphere.

Hudson SquareDowntown shouldn’t get lost in the pack. In Hudson Square, the home furnishings sector is going strong, combining clicks with bricks for an even greater impact. Bed Bath & Beyond and its born-online design subsidiary, One Kings Lane, have signed on Hudson Street.

Pop-ups continue to test the market at the same time, with established designers are trying new corridors. The Upper East Side has seen Doob at 980 Lexington Avenue and Bandier at 150 East 72nd Street; Nora Gardner popped up in Midtown South at 13 West 38th Street; Flatiron got Gwynnie Bee at 134 Fifth Avenue; and the West Village saw Sunni Spencer at 371 Bleecker Street. Soho got Daniel Wellington at 444 Broome Street and the Vintage Twin at 543 Broadway; French brand 13 Bonaparte is launching a pop-up shop on Rivington Street in the Lower East Side to test the U.S. market before its permanent opening in Los Angeles.

Retail is resilient, and New York City is where shopping always shines. Never mind the headlines that paint everything in dour tones; it’s the bright colors of window displays, dazzling new awnings and products that we need to touch, feel and experience that matter. More stores, more brands, higher quality and better service continue to redefine retail. Add the melding of online and off and so many choices from our seasonal pop-ups, and New York City shopping will always have something for everyone. Happy Shopping!


Source: commercial