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Category ArchiveRetail

Van Leeuwen Artisan Ice Cream Scoops Up Soho Space

Van Leeuwen Artisan Ice Cream will be serving its ice cream in Soho, its first location in the Manhattan neighborhood, Commercial Observer has learned.

The ice cream company, which started in spring 2008 out of a truck on the streets of New York City, has leased 542 square feet at 145 Greene Street, also known as 160 Wooster Street, at the corner of Wooster and Houston Streets, according to Avi Akiva, a retail specialist at Kassin Sabbagh Realty. The lease is for 10 years and the asking rent was $500 per square foot, he said.

Van Leeuwen will occupy part of Ashkenazy Acquisition Corporation’s retail condominium at the building, which the investment firm acquired in October 2013 for $9.9 million. Akiva negotiated the deal for both sides, aided by Ashkenazy’s Daniel Iwanicki in-house.

“They’re one of the best ice creams around and they have a good following,” Akiva said. Van Leeuwen liked the location, the aesthetic of the building and the 30 feet of frontage on Houston Street, he added.

Upstairs are 18 residential condo units, according to CoStar Group.

Van Leeuwen has stores and trucks in the city as well as in Los Angeles, and sells its ice cream—made from scratch in Greenpoint, Brooklyn—in grocery stores.

Iwanicki didn’t respond to a request for comment and nor did anyone from Van Leeuwen.

Source: commercial

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

Video: Pop Damn! How Pop-Ups Are a Year-Long Phenomenon

It’s not just for the holiday season. Love ’em or hate ’em, pop-ups are here to stay. Retail Details looks at why they’re advantageous for tenants and landlords. We check in with Los Angeles’ jewelry retailer Vrai & Oro as they build out a space that they got on Mott Street via Appear Here.

Source: commercial

Café Metro Opening Newest Manhattan Location in Garment District [Updated]

Fast-casual restaurant chain Café Metro will open its newest New York City location at 240-246 West 35th Street in the Garment District, where it has agreed to take 5,181 square feet of ground-floor retail space, Commercial Observer has learned.

Café Metro signed a 12-year lease last month for the location at the base of the 18-story, 165,000-square-foot building between Seventh and Eighth Avenues, according to sources with knowledge of the deal. The new eatery is expected to open next month.

Asking rent in the deal was $140 per square foot, sources said. John Cinosky of ATCO Brokerage Services represented the landlord, ATCO Properties & Management, while Stu Morden and Lucas Kooyman of Newmark Knight Frank represented the tenant.

Neil Adamson, ATCO’s chief investment officer, said in a statement that the new Café Metro’s “close proximity to Penn Station and the 34th Street/Herald Square subway terminal make it an ideal location for our tenants, visitors and on-the-go commuters.” A spokesman for NKF did not immediately return a request for comment.

Café Metro is owned by ST Management, which also operates fast-casual brands Fresh&Co and Flavors. Between the three chains, the new Garment District eatery will be the restaurant group’s 20th Manhattan location and its 21st in the city overall (including a Café Metro at MetroTech Center in Downtown Brooklyn).

ATCO acquired 240-246 West 35th Street from Robert Weisz’s RPW Group for $108 million in December 2016. The landlord subsequently completed capital improvements to the building that included a lobby renovation, common corridor upgrades and sidewalk improvements, and is currently at work on upgrading its elevators.

Other tenants at the property include the Newsday-owned free daily newspaper amNewYork, foreign language school Spanish-American Institute, fashion designer Jason Wu, fashion and eyewear design Thom Browne and bridal designer Reem.

Update: A previous version of this article incorrectly identified the new Café Metro at 240-246 West 35th Street as the fast-casual chain’s 20th Manhattan location. It is actually restaurant owner ST Management’s 20th Manhattan location between its Café Metro, Fresh&Co and Flavors fast-casual brands.

Source: commercial

Burlington Inks 55K-SF Deal at Kings Plaza for Third BK Store

Burlington has signed a 55,000-square-foot deal at Kings Plaza Shopping Center in the Mill Basin section of Brooklyn for its third location in the borough.

The discount clothier, formerly known as Burlington Coat Factory, will occupy 52,915 square feet on the fourth floor of the mall at 5100 Kings Plaza at the intersection of Avenue U and Flatbush Avenue, which is owned by Macerich, as The Real Deal first reported. Another 2,163 square feet is on other floors of the shopping center.

The asking rent in the 10-year deal was not immediately clear. The transaction includes three five-year options to extend the lease, according to TRD.

A spokeswoman for Macerich did not return a request for comment on the deal. CNS Real Estate’s Cliff Simon, who brokered the deal for Burlington, did not return multiple inquiries seeking comment on the transaction.

The existing Brooklyn Burlington locations are at 625 Atlantic Avenue in Boerum Hill and 410 Gateway Drive in the Gateway Center in East New York. A spokeswoman for the company did not immediately return a request seeking comment.

Macerich purchased the 1.2-million-square-foot Brooklyn mall from Alexander’s Inc. for $751 million in 2012, according to public records.

Existing tenants at the shopping center include Macy’s, Best Buy, Old Navy, H&M and Forever 21. Last year, Sears shuttered after two decades years at the mall, as was widely reported at the time.

Source: commercial

NYC’s Retail Chains Feel Headwinds Despite Growing Presence: Report

Though national retail chains continued to strengthen their presence in New York City this year, most of that growth came from food and mobile phone stores like Dunkin’ Donuts and MetroPCS while apparel and electronics retailers continued to experience “significant contractions,” according to the Center for an Urban Future’s (CUF) annual “State of the Chains” report released today.

The 296 chain retailers tracked by the report grew their footprint to a total of 7,317 stores across the city in 2017, up nearly 2 percent from 7,223 stores last year. While that constitutes the ninth consecutive year of a net increase in the number of national chains in New York City, the CUF noted that the growth has been “limited to a relatively small number of retailers”—with more chains than ever feeling the market headwinds that have battered the brick-and-mortar retail sector this year.

Coffee-and-donut behemoth Dunkin’ Donuts continues to dominate the CUF’s ranking of national retailers with a presence in New York, topping the list for a ninth consecutive year and growing its footprint to 612 locations in the city from 596 stores last year. Prepaid wireless provider MetroPCS, fueled by its 2013 merger with T-Mobile, leaped Subway to become the city’s second-largest chain retailer with 445 stores across the five boroughs—an increase of 119 locations from 2016.

But while those companies joined the likes of Crumbs Bake Shop—which has reestablished itself at 22 locations after experiencing financial troubles that forced major closures in 2014—and Pret a Manger among chains that have expanded in New York in 2017, the CUF found more worrying trends across the industry at large. One-fifth of the city’s national retailers have closed stores in the past year (compared with one-seventh in 2016), while only one in seven chains tracked by the CUF actually grew their presence in 2017—the smallest share since the public policy think tank launched the “State of the Chains” report a decade ago

“Every single year we’ve done this [report], the number of chains stores in New York City has gone up, but I think this year we’re starting to see some new challenges,” Jonathan Bowles, the CUF’s executive director, told Commercial Observer.

Bowles noted that while Dunkin’ Donuts and MetroPCS together accounted for 135 new stores across the city in the past year, the other 294 national chains tracked by the report experienced a combined net loss of 41 retail locations across the five boroughs in 2017—statistics that depict “much more of a mixed picture for national retail in New York than has been in the past.”

Food-related chains have thrived over the last decade, alone responsible for more than 40 percent of the growth in national retailer locations in the city over the past 10 years, according to the CUF. The number of coffee chains like Dunkin’ Donuts and Starbucks have grown by 65 percent over the past decade, while fast-casual dining chains like Pret a Manger and Chipotle have more than doubled their presence in that time and fast-food restaurants like McDonald’s have grown 14 percent.

But the news has not been so good for retailers that “compete most directly with online outlets,” the report said, such as those in apparel, footwear, office supplies and electronics. Electronics retailers, in particular, have experienced the biggest drop of any national retailer category—with factors like RadioShack’s bankruptcy meaning there are now fewer than half as many electronics chain locations in New York than there were in 2008 (53 stores today, compared to 144 in 2008).

That dynamic hasn’t extended to mobile phone service chains like MetroPCS and T-Mobile, which in 2017 have surpassed clothing stores as the second-largest national retail chain category in the city, behind fast-food restaurants. Cell phone chains “have dominated the consumer electronics market in the decade since the iPhone was first released” in 2007, the CUF said, having grown to 854 stores across New York City from 233 locations in 2008.

Drugstore chains like CVS, Rite Aid, Walgreens and Duane Reade have struggled in comparison to recent years, losing a combined 53 locations across the city. Chain pharmacies now have a total of 558 locations across the city, up only 1 percent from their number in 2008, the CUF said—attributing the contraction in part to Duane Reade and Walgreens consolidating their locations since merging in 2010, as well as their closing of 600 stores nationwide ahead of a $4.38 billion acquisition of a portfolio of stores from Rite Aid.

Referring to the lukewarm environment for national chain retailers in New York City at large, Bowles cited “the combination of some of the highest rents in America and declining sales because of online competition.”

“A lot of retailers’ profit margins were already slim, and then you add in losses because of online shopping, and it’s not a surprise that a lot of these merchandise retailers are cutting back,” he said—adding that food establishments like Dunkin’ Donuts and Chipotle “aren’t facing that kind of online competition.”

While Manhattan continues to dominate the market among national retail chains with 2,734 locations, Brooklyn has seen the largest increase among New York City boroughs in the number of new chain locations in 2017—adding 47 new stores for a total of 1,587 locations, a 3.1 percent increase from last year.

After Dunkin’ Donuts (612 stores) MetroPCS (445) and Subway (433), the top 10 national retail chains with the most locations in the city are Starbucks (317), T-Mobile (236), Baskin-Robbins (221), McDonald’s (215), Duane Reade/Walgreens (260), Rite Aid (179) and CVS (149).

Source: commercial

Hyundai Luxury Car Division Taking 40K SF of Retail in Meatpacking District

Luxury car brand Genesis Motors has reportedly inked a lease for around 40,000 square feet of retail space at the Solar Carve Tower presently under construction at 40 10th Avenue in the Meatpacking District.

Genesis, a wholly owned subsidiary of South Korean automotive manufacturer Hyundai Motor Company, is said to be taking the space at the base of the 10-story, 139,000-square-foot office tower currently being built next to the High Line between West 13th and West 14th Streets, The Real Deal reported Wednesday.

The transaction ranks as one of the priciest retail leases of 2017, according to TRD, with Genesis paying an estimated annual rent of $11 million, or roughly $275 per square foot. The deal will likely see Genesis take all of the Solar Carve Tower’s roughly 27,700 square feet of ground-floor and lower-level retail space, according to property marketing materials, as well as additional office space (such as most or all of the building’s 13,700-square-foot second floor).

Jared Epstein of Aurora Capital Associates handles retail leasing at 40 10th Avenue on behalf of the landlord—a partnership between Aurora and William Gottlieb Real Estate—while Richard Nassimi and Michael Lohan of The Nassimi Group represented the tenant, according to TRD. Representatives for Aurora and The Nassimi Group did not return requests for comment.

Construction on the Studio Gang Architects-designed tower, notable for its gem-like glass facade, began earlier this year and is slated for completion in early 2019. The building will feature a 10,000-square-foot shared outdoor roof deck and 8,000 square feet of outdoor space on the second floor adjacent to the High Line, as well as private outdoor terraces on eight of the nine office floors.

In September, TRD reported that Aurora and William Gottlieb had secured $120 million in construction financing from Bank of the Ozarks for the project. A Cushman & Wakefield team led by Bruce Mosler is handling office leasing at 40 10th Avenue, though no office tenants have yet been announced.

Source: commercial

Crunch Gym at 4 Park Avenue Closing at End of Year

“It’s not goodbye, it’s see you soon.” So say signs posted throughout the Crunch gym at the Feil Organization’s 4 Park Avenue between East 33rd and East 34th Streets.

The posters indicate that the last day to workout at the gym is Dec. 30. But gym-goers are reassured that their memberships have been transferred—at the same rate, a gym employee told Commercial Observer—to the Crunch at 222 East 34th Street between Second and Third Avenues. Plus, a Crunch spokeswoman said, 4 Park Avenue memberships will now include access to all New York City Crunch locations.

Crunch’s 4 Park Avenue lease for the 21,646-square-foot space, which spans two floors, expires at the end of the year, and will not be renewed due to “long-planned renovations to the property,” according to a spokeswoman for Feil.

The retail space has had several fitness center iterations over the last nearly 30 years, first as Synergy Fitness, then as Boom Fitness, and then as a corporate-owned Crunch the last few years.

Other tenants that will be vacating their spaces include J & C Lamb Management Corporation and Charles H. Greenthal, a 30-year-tenant which will relocate to Feil’s 551 Fifth Avenue between East 45th and East 46th Streets. None of those tenants had the option to renew, the Feil spokeswoman said.

“The non-renewal and relocation of a few long-time tenants was necessitated by Feil’s planned complete rebranding of the commercial floors of 4 Park Avenue,” she said. “These floors will be recreated into an approximately 52,000-square-foot building within a building. Its commercial base will have its own separate entrance. It will be comprised of three floors and will include a new facade featuring a glass curtain wall and other modern design elements, including all new state-of-the-art mechanical systems. The lobby-level restaurant at the property, Wolfgang’s Steakhouse, also recently renewed their lease at 4 Park Avenue and will be reasonably unaffected by the construction that’s slated to be completed in the fall of 2018.” (Wolfgang’s renewed its lease in August for 15 years, the spokeswoman said.)

The asking rent for the newly created 51,305 square feet will be $65 per square foot.

Crunch has 17 New York City locations, including the one at 4 Park Avenue. In the Financial District, Crunch is relocating its health club at 90 John Street between Gold and Pearl Streets to 140 Broadway between Cedar  and Liberty Streets, the Crunch spokeswoman said, with the former closing at the beginning of 2018.

Source: commercial

FiDi Gristedes to Bite the Dust

Red Apple Group’s John Catsimatidis is looking to close his Gristedes in the Financial District, Commercial Observer has learned.

The 5,500-square-foot store (with 360 square feet below grade for storage) at 90 Maiden Lane near Pearl Street is available for a 10-year sublease, CPEX Real Estate marketing materials indicate. Catsimatidis said that Gristedes supermarket has been open for 30 or 40 years, but now it’s “a little too small for us.” A partnership led by Normandy Real Estate Partners owns the building. The asking rent is $165 per square foot, according to a spokesman for CPEX.

“After [Superstorm] Sandy [in October 2012], we lost power for a week,” Catsimatidis said. “We never really made a comeback.”

The supermarket magnate is also looking to lease the 7,793-square foot space occupied by a Gristedes (plus 1,870 square feet of storage space on the lower level), at 71 South End Avenue at West Thames Street in Battery Park City, as The Real Deal previously reported. The asking rent is $70 per square foot, the CPEX spokesman told CO. Catsimatidis said the supermarket has been open for about 20 years.

“We have two stores in Battery Park City,” Catsimatidis said. “We look at more efficiency. That one is not doing as well. And the other store will pick up the sales.” That other one is at 315 South End Avenue.

Timothy King of CPEX, who is marketing both properties for Catsimatidis along with CPEX’s Dimitri Venekas, questioned the logic of having two Gristedes so close to each other.

“I don’t quite know why he opened two,” King said. “They probably cannibalized each other. His desire there is to find a tenant who is not in direction competition [with his other market].” At the Maiden Lane location, King added, any type of tenant is welcome.

Between its Gristedes and D’Agostino markets, Red Apple today has about 35 stores, Catsimatidis told CO in June, when discussing why he was closing the last Red Apple Supermarket, in Downtown Brooklyn. The Red Apple head said the company is evaluating all of its leases, and previously he noted that his markets are functioning as convenience stores.

Source: commercial

Aussie Yoga Studio Humming Puppy Wags Tail in Midtown South

From the Down Under to Midtown South.

Australian yoga studio Humming Puppy has signed a deal to occupy 7,300 square feet at Stellar Management’s 119 West 23rd Street for its first location in the United States, Commercial Observer has learned.

The studio, which has locations in Sydney and Melbourne, will occupy the second floor of the 10-story building between Avenue of the Americas and Seventh Avenue. The asking rent in the 10-year lease was $50 per square foot. The studio will open in spring 2018.

“They liked this building because it’s a historic building and the ceiling heights are very high, and there are many windows facing the street,” said Stephan Brenot of Rice & Associates, who represented Humming Puppy.

The yoga studio follows other fitness concepts in the area such as Peloton, boxing studio Rumble and Mile High Run Club.

“We feel that this neighborhood, specifically this fitness-evolving area of [West] 23rd Street, makes 119 West 23rd Street the perfect location for us to begin sharing our yoga practice with the U.S.,” Jackie Alexander, a co-founder of Humming Puppy, said in prepared remarks.

Jonathan Bernstein of JBA Real Estate handled the deal for Stellar Management. 

Existing tenants at 119 West 23rd Street include Poster House Museum, Shadow Architect and Hawkins International Public Relations.

“Our property offers a prime location for the yoga studio to plant its flag in the U.S. and we’re thrilled to feature this added amenity to the area, as well as to our tenants,” said Paula Katz, co-owner and principal of Stellar Management, in a statement.

Source: commercial