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Category ArchiveNewmark Holdings

Irish Bar Tailor’s Inn Opening 13K-SF Joint in Garment District

Tailor’s Inn, a new Irish restaurant and bar concept, will be taking 12,700 square feet at GFP Real Estate’s 505 Eighth Avenue, Commercial Observer.  

The owner of the establishment signed a lease to occupy a 2,100-square-foot section of the ground floor, 1,400 square feet in the basement and 9,200 square feet on the mezzanine level of the 25-story building, located on the corner of West 35th Street. It will open in the next few weeks, the landlord confirmed to CO. The terms of the deal were not immediately clear.

Allen Gurevich of GFP (formerly known as Newmark Holdings) handed the deal for the developer and the property manager.

CO could not immediately reach the owner of Tailor’s Inn and the bar did not have a broker in the transaction.

Another recent deal at the building, Jumpstart for Young Children, a national education nonprofit, renewed and expanded its space. The organization signed a 4,632-square-foot lease for a part of the third floor, moving from a 3,500-square-foot space on the 11th floor. Gurevich, who was the only broker in this deal as well, represented the landlord in-house.

“We are delighted that Tailor’s Inn and Jumpstart for Young Children are part of our strong tenant mix at 505 Eighth Avenue,” Gurevich said in a prepared statement. “It’s not surprising to see this kind of leasing momentum at the well-located property [which] offers a host of tenant amenities.”

Other existing tenants in the 275,000-square-foot building, which was built in 1926, include nonprofit Cicatelli Associates, management and consulting firm Greystone Management Solutions and Biddle Sawyer Corporation, a supplier of chemical products.  

Source: commercial

Omnicom Renews 200K-SF Footprint at GFP’s 200 Varick Street

Advertising giant Omnicom Group has agreed to maintain its sizable footprint at GFP Real Estate’s 200 Varick Street after agreeing a 200,000-square-foot lease renewal at the Hudson Square office building, Commercial Observer has learned.

Omnicom inked a 10-year deal to remain at the 12-story, 410,000-square-foot property between West Houston and King Streets, where it has had a presence for more than 25 years and now occupies roughly half of the leasable space across seven floors, according to sources with knowledge of the transaction.

The advertising and public relations firm will retain its existing footprint on the second through fourth, sixth and 10th through 12th floors. Asking rent in the deal was in the $60s per square foot. GFP, until recently known as Newmark Holdings, was represented in-house by Jeffrey Gural, Eric Gural and Donna Vogel, while Lee Feld of Feld Real Estate represented Omnicom.

“Maintaining our existing tenant roster is important to us and we’re pleased that the building’s amenities and location within the vibrant Hudson Square neighborhood in Lower Manhattan remains an attractive draw for a world-renowned company such as Omnicom,” Jeffrey Gural said in a statement announcing the renewal.

Feld could not immediately be reached for comment.

Various Omnicom subsidiaries including Doremus, Merkley + Partners and CDM occupy space at the property, which was built in 1926. Other tenants include nonprofit cinema Film Forum, which renewed its 10,500-square-foot ground-floor space in May.

Source: commercial

Knotel Scoops Up 28K SF in Chelsea, Nabs Other Manhattan Leases

As it continues to rapidly expand its footprint across the Manhattan office market, startup office provider Knotel is taking nearly 28,000 square feet of office space at 114 West 26th Street in Chelsea, Commercial Observer has learned—one of several new leases in the borough that the company announced this week.

Knotel has agreed a 10-year lease for 27,900 square feet comprising the entire second through fourth floors at the 13-story, 111,600-square-foot office building between Avenue of the Americas and Seventh Avenue, Eugene Lee, Knotel’s head of property acquisition and business development, told CO. The company expects to occupy the space before the end of the year.

While Lee declined to provide the asking rent in the transaction, other sources with knowledge of the deal said asking rents in the building are in the low to-mid-$50s per square foot. Elie Reiss of Skylight Leasing represented Knotel, while David Levy and Jeff Buslik of Adams & Co. and Michael Beyda of Benchmark Properties worked on behalf of the landlord Delta Enterprise Corp.

Knotel—which provides short-term and rolling office lease agreements to small and midsized businesses which in effect sublease their space from the company—has particularly looked to grow its presence in the Midtown South office market, which is popular with the technology, advertising, media and information, or TAMI, tenants.

The office provider recently signed a lease for 17,464 square feet at 373 Park Avenue South in NoMad, as CO first reported last week, further adding to its office inventory in the area surrounding Madison Square Park.

“We certainly have been focused on Midtown South,” Lee said, noting that the market’s ample food offerings and various “social” amenities have made it attractive to “high-growth companies that want to be in these parts of town.”

The New York Post reported this week that Knotel has agreed to take 29,171 square feet comprising the entire third and eighth floors at 137 Varick Street in Hudson Square, which falls within Midtown South. Asking rent is $45 per square foot at the eight-story, 125,000-square-foot property on the corner of Spring Street, according to the Post, with Peter Fontanetta and Harrison Katzman of Savitt Partners representing the tenant and landlord Trinity Real Estate represented in-house by Matthew Fox and John Franqui.

But Lee added that Knotel is also planning to expand in the “traditional Midtown” and Downtown office markets—with the latter, in particular, proving more appealing to TAMI tenants. “I’d expect that between now and the end of the year we’ll have more [locations] Midtown as well as Downtown,” he said.

Indeed, Knotel has nabbed 27,000 square feet across three floors at 40 Exchange Place in the Financial District, the Post also reported this week. Asking rent at the 20-story, 300,000-square-foot office building between William and Broad Streets is in the low to mid-$50s per square foot, the Post said. Michael Morris and Gregory DiGioia of Newmark Knight Frank represented Knotel in the transaction, while landlords Newmark Holdings and Northwind Group were represented in-house by Newmark’s Allen Gurevich.

Knotel now operates more than 20 locations across Manhattan and Brooklyn. Differing from coworking firms like WeWork, which provides users with monthly memberships and has become synonymous with the freelancers and startup firms that often occupy its spaces, Knotel secures short-term leases with “more mature, established business” seeking to avoid long-term lease commitments, Lee said.

“What we are not is coworking,” he said. “We are [leasing] to 50- to 100-person companies that stay with us for a year or more. The companies we’re working with are getting larger and larger, and staying with us longer and longer.”

Lee added that Knotel’s current New York City office footprint stands at “just around 400,000 square feet,” with the office provider having tripled in size since the beginning of the year on the back of a $25 million Series A funding round and still looking to expand. (Disclosure: Observer Capital, led by Observer Media Publisher, Chairman and Chief Executive Officer Joseph Meyer, is among Knotel’s investors.)

“We’ve been busy,” Lee said. “We are obviously taking a lot of space and growing fast. We continue to speak with many owners about [taking] additional space and I think we will probably double our square footage again this year.”

Source: commercial

Under Construction: Inside the Redevelopment of 40 Exchange Place

A crack running down the side of a building should give any buyer pause.

Yet the joint venture of Newmark Holdings and Northwind Group acquired 40 Exchange Place in the Financial District in 2015 from Weiss Realty for $115 million, while the building had two pretty visible fault lines running vertically down the façade.

That wasn’t the only flaw. The 20-story, 300,000-square-foot structure at the corner of Exchange Place and William Street didn’t have sprinklers, something that’s kinda important. (According to Local Law 26, all buildings in the city over 10 stories will need to have sprinklers by July 2019.)

“We like the things that have more dirt on them,” Brian Steinwurtzel, a co-chief executive officer of Newmark Holdings, said during a tour of the building. “We want to find buildings that have really under-market rents, that need capital and need hands-on ownership. We apply the capital and our hands-on ownership style, and then we find tenants that are willing to pay market rents.”

The landlords began a makeover—a gut rehab costing upward of $20 million—a year ago to bring the building up to code, and they intend to complete the renovation in the next few weeks.

The exterior has already been renovated, as most of the common areas (hallways and bathrooms), and the buildings systems have been upgraded, including fire alarms, heating, ventilation, air-conditioning and its seven elevator cabs. And they added sprinklers. They’ve also prebuilt some floors into sleek offices with glassed conference rooms and open-floor workstations. Asking rents are approximately $50 per square foot for new space.

Construction workers are completing the remodeling of the lobby, hammering away at the remaining vacant 72,000 square feet in the building and rebuilding the sidewalks.

In the case of the lobby on Exchange Place, the width was tripled by the removal of two retail spaces. The contractor—Stepping Stone Construction Management—also peeled off drop ceilings to reveal nearly 15-foot-high ceilings. A temporary lobby was established at William Street, which will be converted to a retail space following the renovation.

Wood is a central theme in the design of the makeover to give the building a warmer feel; a decorative checkered square with five types of wood graces elevator cabs and landing spaces. And workers are installing wavy redwood panels in the lobby, creating a kind of art installation including reclaimed wood from old New York City water towers along with antique telephones, stock tickers, typewriters and cash registers from the early 1900s, which Steinwurtzel found by scouring the internet. The idea was to make it “period appropriate.” And although walls in the lobby and common areas have been outfitted with what seems like stone tiles, the material is called Asian wood.

Newmark even opted for oak floors in the lobby over polished concrete throughout the building.

“It has a residential feel. It’s nicer [than concrete],” Steinwurtzel said. “Concrete has that great industrial feel to it, but this is warm. So you can still have that open tech look with a warmer feel. I think it looks better.”

Though most of the historic features of the building have been damaged beyond repair due to a lack of upkeep, Newmark and Northwind plans to save the brass elevator doors with their distinct pattern that date the building.

“Pretty much the only thing we found that we could restore and keep were the elevator doors,” Steinwurtzel said. “It was the only thing that was in good enough state and wasn’t falling apart or partially destroyed.”

Source: commercial

Pelli Clarke Pelli, Young Women’s Leadership Network Renew in Chelsea Building

Pelli Clarke Pelli Architects and the Young Women’s Leadership Network have inked deals totalling 22,200 square feet to remain at Newmark Holding’s 322 Eighth Avenue between West 26th and West 27th Streets, Commercial Observer can first report.

The international architecture firm, known for its designs of the World Financial Center (now Brookfield Place) and Malaysia’s Petronas Towers, has signed an 11,100-square-foot renewal lease, according to a spokeswoman for the landlord. The company will continue to operate on the entire 11th floor of the 21-story building. The asking rent in the 10-year deal was $55 per square foot.

Allen Gurevich of Newmark Holdings represented the landlord in-house in the transaction, while Michael McKenna of Cresa New York brokered the deal for Pelli Clarke Pelli, which has its main offices in New Haven, Conn. The company also has outposts in San Francisco, Tokyo, Shanghai and Abu Dhabi. McKenna didn’t reply to a request for comment.

In a separate deal at the building, the Young Women’s Leadership Network has signed an early renewal and expansion for 10 years. It had 7,000 square feet on part of the 14th floor. Now it will relocate to the entire 11,100-square-foot fourth floor. The asking rent was also $55 per square foot.

The nonprofit founded in 1996 by Ann and Andrew Tisch, the co-chairman of Loews Corporation, operates five all-girls public schools in New York City called The Young Women’s Leadership Schools with a total of more than 2,400 students. It also has nearly 8,000 students through 14 national affiliates outside the city. The organization also operates the CollegeBound Initiative program, which helps low-income students go to college.

Brian Dooley of CBRE along with Alan Grossman of ARG Realty Consultants represented Young Women’s Leadership Network. Gurevich also handled this deal for the landlord in-house.

“It’s not surprising to see this kind of commitment at 322 Eighth Avenue, which is indicative of the ownership’s continued investment in the asset,” Gurevich said in a prepared statement. “The Eighth Avenue corridor has become incredibly popular, with new developments, hotels and luxury residential buildings cropping up almost weekly, which has fueled interest in the area and the property.”

A spokeswoman for CBRE did not immediately return a request for comment.

Newmark Holdings recently completed a $4 million renovation of the 175,000-square-foot property at 322 Eighth Avenue. The remodeling included  a redesign of the façade of the first two stories with an all glass storefront and the addition of a canopy at the main entrance.

The property’s existing tenants include advertising agency Juice Pharma Worldwide, environmental advocacy nonprofit organization The Nature Conservancy and Kliment Halsband Architects.

Source: commercial

Film Forum Will Keep Showing Indie Flicks in Hudson Square

Long-running nonprofit movie theater Film Forum has renewed its lease at Newmark Holdings200 Varick Street, on the border between Hudson Square and the West Village.

The cinema will remain in a 10,500-square-foot ground-floor space along West Houston Street that it has occupied since 1990, according to a release from the landlord. The asking rent was $200 a square foot.

Film Forum began in 1970 as an alternative space for screening independent films on the Upper West Side. The organization moved to 15 Vandam Street (now the Soho Playhouse) in Hudson Square in 1975 and then inhabited a two-screen theater at 57 Watts Street from 1980 to 1989. It has since grown into a three-screen theater that plays indie and art films, documentaries, and foreign and American classics.

Donna Vogel represented Newmark in-house during the transaction.

“We are thrilled that longtime tenant Film Forum has chosen to continue calling 200 Varick Street its home,” said Brian Steinwurtzel, co-chief executive officer at Newmark Holdings. “This commitment is a testament to the property’s superior location and strong amenities package as well as the outstanding management team.”

Other tenants in the 410,000-square-foot, 12-story loft building include Citibank, the New York City Board of Elections, homeless nonprofit Project Renewal, music venue S.O.B.’s, Chipotle and ad agency Merkley+Partners.

Source: commercial