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Category ArchiveRetail

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

Dollar Stores Likely to Benefit Big From Toys ‘R’ Us Closures

Dollar stores could “benefit” from Toys “R” Us closures, according to a new research survey by Coresight Research, formerly Fung Global Retail & Technology.

With the New Jersey chain shutting down, Amazon, Walmart and Target are the big retail giants who will be duking it out for the $7 billion in annual toy sales that are up for grabs, as per the Coresight data. But, the survey concludes, “dollar stores…could also benefit from Toys ‘R’ Us closures.”

Looking at where shoppers have browsed and bought children’s toys and games in the past 12 months, excluding Toys “R” Us (which placed fourth in the rankings), Coresight found that Amazon led the pack (63.8 percent browsed and 53.7 percent bought) followed by Walmart (54.7 percent browsed and 45.5 percent bought) and then Target (50.4 percent browsed and 38.6 bought). Dollar stores came in fourth (25.3 browsed and 21.4 bought).

“On a percentage basis, they may see the biggest boost to their sales [of all toy sellers],” said Timothy King, the managing partner of CPEX Real Estate.

Toys “R” Us announced this month that it is closing its 800-plus U.S. Toys “R” Us and Babies “R” Us stores, six months after filing for bankruptcy protection. When surveying Toys “R” Us shoppers to find out where else they browsed for toys and games in the past year, Coresight, which provides future-focused analysis to organizations at the intersection of retail, technology and fashion, found Walmart and Amazon tied at 65.4 percent and Target was close behind at 63.6 percent. Dollar stores ranked fourth at 29.8 percent.

“For most consumers, low price and convenience are paramount features,” King said. “Dollar stores offer both low prices and ease of shopping. Smaller stores in more locations make them easy to get to and easy to shop at. A trip to Costco is time consuming and tiring—at least for me. Targets are large stores as well. A dollar store is like the 7-Eleven of retail—convenient locations and easy in and out.”

Retail consultant Kate Newlin said of dollar stores: They are “okay and cheap. They have a good enough selection and the prices are low. I believe some great portion of the stock is close-out and remainders, but for some kid you don’t know’s fifth birthday a bright and shiny something is the price of admission to the party.”

One retail broker, Eastern Consolidated‘s Robin Abrams said that while her mother loves to buy her great-grandchildren toys at the local dollar store, and dollar stores “will get a share of the business,” she can’t “imagine [it] will have a huge impact unless they greatly broaden their product offering to embrace some higher price points.”

Source: commercial

Bandier Inks 28K-SF Lease at 0 Bond Street in Noho

Women’s activewear retailer Bandier has reportedly signed a 27,500-square-foot lease for a flagship retail location and offices at Paramount Group’s 0 Bond Street in Noho.

The company has agreed to take several floors at the five-story, 77,500-square-foot building at the northeast corner of Broadway, The Real Deal reported on Tuesday. Bandier will occupy 4,500 square feet of ground-floor retail space and 10,000 square feet of lower-level basement space, as well as 13,000 square feet on the fourth floor that will house offices and the brand’s Studio B fitness studio.

Asking rent at the property, also known as 670-674 Broadway, was $300 per square foot for the ground-floor retail space and $110 per square foot for the fourth-floor office space, according to TRD. The length of the lease was not disclosed.

Brandon Charnas and Adam Henick of Warwick Capital Management represented Bandier in the transaction, while landlord Paramount Group’s representation was not immediately clear. Representatives for both Paramount and Warwick declined to comment.

Bandier currently has retail stores at 164 Fifth Avenue in the Flatiron District and 150 East 72nd Street on the Upper East Side, as well as Long Island locations in Southampton and Manhasset and a store in Dallas, Texas.

The company will share 0 Bond Street with another fitness-oriented brand—luxury gym (and Related Companies subsidiary) Equinox Fitness, which took 29,000 square feet across multiple floors at the building in 2016.

Source: commercial

Wells Fargo Renews Flagship Branch Lease in Midtown East

Wells Fargo has renewed its lease for its long-time flagship location at 437 Madison Avenue, Commercial Observer can first report.

The bank signed a five-year renewal for its 7,206-square-foot space at the William Kaufman Organization building, which spans the blockfront between East 49th and East 50th Streets. The lease includes 4,328 square feet of retail space on the ground floor and 2,878 square feet for offices on the lower level. The asking rent was $500 per square foot for the ground-floor space, a WKO press release indicates.

Wells Fargo has been a tenant in the 40-story, 850,000-square-foot building since 2003.

Michael Lenchner of Sage Realty Corporation, the leasing and management division of WKO, represented the landlord in the deal. In a prepared statement, Lenchner touted the building’s “visibility, high foot traffic and the convenience of being in close proximity to Rockefeller Center and Grand Central Terminal.” CBRE’s Annette Healey represented Wells Fargo. A CBRE spokeswoman said the broker declined to comment.

In 2016, Sage Realty completed a $60 million building-wide redevelopment of the property, which includes a redesigned lobby and arcade area, a new plaza, renovated elevators, upgraded building systems and a 15th-floor “sky lounge” with outdoor conference rooms and sunrise yoga classes.

WKO owns the building with Travelers Companies (the former developed the property and Travelers has been a partner since 1994). Tenants include Mitchell Silberberg & Knupp, which signed a lease for more than 18,500 square feet last month, as well as Citizens Bank, Omnicom Group, Medallion Financial, Kekst and Company and Carnegie Corporation of New York.

Source: commercial

British Haute Couture Fashion House Ralph & Russo Opening First NYC Store on UES

Ralph & Russo, a British haute couture fashion house, is opening its first New York City store at 680 Madison Avenue on the Upper East Side.

The company yesterday leased 5,800 square feet of retail space at the base of the property between East 61st and East 62nd Streets, a spokesman for the landlord, Thor Equities, told Commercial Observer. The space comprised 2,300 square feet on the ground and 3,500 square feet on the second floor, he noted.

The deal is for 15 years with an asking rent of $1,500 per square foot on the ground, the spokesman said.

“This favored brand of royalty, Hollywood stars and A-listers is the ideal fit for 680 Madison Avenue, a premier retail building located on the city’s most upscale shopping corridor,” Joseph Sitt, the CEO of Thor Equities, said in prepared remarks.

Ralph & Russo’s new space will be a flagship, according to WWD, which broke the news of the lease.

Thor’s Sam Polese, Albert Dayan and Alexandra Frangos represented the landlord in-house in the deal. David Baker of Isaacs and Company represented the tenant. Baker didn’t immediately respond to a request for comment.

Luxury fashion designer Tom Ford occupies 12,300 square feet in the building for its flagship Manhattan store, luxury men’s brand Brioni is in 7,000 square feet and eyewear collection Morgenthal Frederics has 650 square feet. Art gallery Barrington Fine Arts occupies 4,000 square feet of the space that Ralph & Russo has leased and will relocate to 4,250 square feet within the building, the Thor spokesman said.

Thor bought the leasehold for the 35,526-square-foot retail condo on the first two floors of Extell Development’s luxury residential tower for $277 million in 2013, according to The Real Deal, and pays $3.5 million in annual ground rent. Last year, Thor secured a $310 million financing package for the property, comprising a $215 million senior loan from J.P. Morgan Chase, and a $95 million mezzanine piece, as CO reported in August 2017.

Source: commercial

Owners of ForGround Opening ‘High-End All-Day Café’ in Tribeca

The folks behind ForGround café in Midtown are opening a 1,234-square-foot ground-floor café at 112 Hudson Street in Tribeca, Commercial Observer has learned. An 832-square-foot basement space will be used for kitchen prep, storage and an office, according to Eastern Consolidated’s James Famularo who represented the landlord, Hudson Street Retail, with Eastern’s Clayton Traynham.

This will be “a first location from the same owner as ForGround, rather the a second ForGround location,” noted George Wlodarczyk of Douglas Elliman. Called Noted Tribeca, the new venue will be a “high-end all-day café and cocktail bar,” he said. Wlodarczyk along with Elliman’s Peter Gross represented the tenant in the deal.

ForGround is a café at 8 East 41st Street with ground coffee and a farm-to-table menu.

The asking rent in the 10-year deal was $150 per square foot, according to Famularo and the marketing materials for the property, which is between North Moore and Franklin Streets. The tenant will open in the next three or four months, Famularo said.

This is the second tenant the landlords’ brokers nailed down in the space within a six-month period.

“The space had sat empty since the new owners bought the retail condo from Robert De Niro five years ago, but within six months my team brought two tenants,” Famularo said in prepared remarks. He originally arranged a lease with Le Du’s Wines, but the wine shop’s relocation wasn’t approved by the New York State Liquor Authority last fall. The café deal was signed last Thursday.

Source: commercial

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

Retail Details: The Dollars & Scents of Giving a Store an Aroma

Back in the day, “fragrance branding” or “scent branding” started in casinos and hotels as a way to combat the smell of cigarettes and cigars that was more or less everywhere, according to Scenterprises’ Sue Phillips. But while smoking has certainly gotten less ubiquitous over the years, designing a scent for a hotel or a retail space has gone the opposite way.

In the swimwear department of big retailers like Bloomingdales, the smell of coconut gently envelopes the customers so they’ll already envision themselves on vacation, as Douglas Elliman’s Faith Hope Consolo told Commercial Observer. Basking in the comforting smells, customers linger, return and spend.

But we should let these two pros explain why giving a store its own unique aroma has become more in demand, and why it can keep shoppers in stores longer.

Source: commercial

BFC Partners Bags Samsonite for Staten Island’s Empire Outlets

Luggage manufacturer and retailer Samsonite has signed a lease for space in  Empire Outlets, the outdoor shopping center that is under development on the North Shore of Staten Island, Commercial Observer has learned.

Samsonite has taken 1,924 square feet next to Banana Republic Factory, according to information provided by the developer, BFC Partners. The lease is for seven years, and the developer declined to provide the asking rent. (In April 2016, the asking rent was $125 per square foot, CO previously reported.)

“We’re very excited to be a part of this new outlet development in New York City,” John Mullins, a vice president and general manager of Samsonite Retail U.S., said in prepared remarks. “This unique shopping experience close to the Staten Island Ferry terminal should attract many tourists and locals that will make this project a success.”

James Prendamano of Casandra Properties brokered the deal for both sides.

“Samsonite has set the benchmark for excellence in their category,” Prendamano emailed CO. “Considering the droves of anticipated tourists to the center, we could not imagine a better fit to suit the travelers needs. Additionally, Staten Island as a whole, 500,000-people strong, yearns for access to brands currently not available on the island. It’s estimated 46 percent of SI shoppers leave the state to achieve their shopping goals. Empire Outlets [will] become a mainstay for not only tourists, but locals alike keeping those tax dollars and jobs in the local economy.”

BFC broke ground for Empire Outlets at 55 Richmond Terrace in April 2015, and upon completion it will be home to more than 100 designer outlet retailers. It is part of BFC’s $352 million, 1-million-square-foot development at the site, comprising a hotel and a 1,250-vehicle parking garage. Retail tenants include H&M, Nordstrom Rack, Gap Factory and Columbia Sporting Goods. Eateries signed on for Empire Outlet’s 40,000-square-foot food and beverage deck are Shake Shack, Artichoke Basille’s Pizza and MRKTPL, the borough’s first artisanal food hall.

Tenants will assume their spaces this spring with openings slated for the fall, an Empire Outlets spokesman said. The project’s opening was delayed to this March from Black Friday 2017, the Staten Island Advance noted, as BFC was trying to coordinate the timing with the opening of the adjacent New York Wheel. (That project has faced setbacks.) A BFC spokesman explained the most recent delay to the Advance this way: “In order to effectively manage the increased demand for the remaining space at Empire Outlets, and to ensure that all tenants, including our new prospects, benefit from a single grand opening, we are shifting the opening date to fall 2018.”

Source: commercial