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Category ArchiveSCG Retail

Barneys Shuttering Upper West Side Store After More Than a Decade

Barneys New York is closing its Upper West Side store store on Feb. 18, a company spokeswoman confirmed to Commercial Observer.

“Barneys New York has enjoyed serving the community on the Upper West Side for over a decade. We sincerely appreciate the loyalty of our customers, and we look forward to continuing to serve them at our Madison, Downtown and Brooklyn locations,” the spokeswoman emailed.

West Side Rag first reported the news on Feb. 2 based on information provided by a manager.

The roughly 10,000-square-foot clothing store, which is on the ground and lower levels at 2151 Broadway between West 75th and West 76th Streets, opened in 2004, according to retail broker Faith Hope Consolo of Douglas Elliman Real Estate, who represented the landlord in the original lease negotiations with Barneys. The space underwent a renovation in July 2013, which included rebranding it from a Co-op store—selling lower-price fashion—to a Barneys New York. (The company has converted Co-ops stores to Barneys New York shops.) The lease is slated to expire at the end of 2023, according to CoStar Group.

Once it shutters, there will be two remaining Barneys stores in Manhattan: one at 660 Madison Avenue between East 60th and East 61st Streets and one at 101 Seventh Avenue between West 16th and West 17th Streets.

“This is a big loss for the Upper West Side,” Consolo said. The deal was unique at the time as most retailers were focused on Columbus Avenue, but Barneys took a Broadway space.

Broker John Brod, a partner at ABS Partners Real Estate, said the news is of no surprise.

“Customers can go on line at Bonobos, UNTUCKit, Allbirds, Amazon, Suitsupply and manufacturers’ own online e-commerce store to purchase the same merchandise so the need for Barneys to have a brick-and-mortar presence has past,” Brod emailed. “Specifically, Barneys is a multi-brand retailer and as such the need for a second store in a secondary market becomes redundant in today’s retail and shopping environment. The issues are further challenged by the general state of retail in this area—note that Sephora has opted to downsize from their 2162 Broadway location—they passed on their right to renew. Moreover, Anthropology who was negotiating to replace Sephora here after many months of negotiation, decided not to proceed. Additionally Eastern Mountain Sports vacated this area [at 2152 Broadway] as well. The fact is there is a very limited demand for large flagships in both primary and secondary markets. Clearly the Upper West Side is a secondary market.”

The market and neighborhood combined to hurt Barneys.

“Barneys closing is a reflection of the current market,” said SCG Retail Partner David Firestein. “With that said, they were never right for the neighborhood, in the mid 70s. A better fit would have been closer to Lincoln Center, near Century 21.”

And the popularity of online food shopping has impacted the area, including Barneys.

“That stretch of Broadway has always been local, and much of its traffic from shoppers that live or work outside the market area was based on the food anchors—Citerella, Fairway and Zabars—all on the west side of Broadway in a seven-block stretch,” said Robin Abrams, a vice president at Eastern Consolidated. “Once it became possible to get fresh produce and a wide array of prepared foods at the various Whole Foods [stores], Fairway’s other locations and a variety of other competitors, the pedestrian traffic on Broadway diminished. Now the retailers on Broadway must be strong to cater to local traffic, and even stronger if they are to pull from a broader customer base.”

Source: commercial

Japanese-Themed Market and Food Hall Heading to Industry City

The Land of the Rising Sun is coming to Sunset Park, Brooklyn.

A Japanese-themed market resembling Eataly is planning to open next year in Industry City, the 16-building complex on the Brooklyn waterfront, according to a release from the landlord.     

The food destination, called Japan Village, will feature a wide array of Japanese eateries, including an izakaya (Japanese gastropub), a noodle shop, a donburiya (rice bowl restaurant) and stands with Japanese street food. Speciality grocery store Sunrise Mart, which has three locations in Manhattan, will also open at an outlet in Japan Village, marking its foray into Kings County.

The market will encompass 20,000 square feet at Building 4, located on 35th Street between Second and Third Avenues. Japan Village will occupy part of the ground floor of the property, which is owned by a partnership led by Jamestown and Belvedere Capital.

Design and construction of Japan Village are currently underway and the project is expected to open in spring 2018. The market’s design will make customers feel as though they have been transported to the archipelago nation when they arrive, according to Takuya Yoshida, a managing partner of Japan Village. And the prices will not break the bank.

“The goal of Japan Village is to offer high-quality Japanese foods at affordable prices,”

Yoshida, who is also a Sunrise Mart executive, said in prepared remarks. “We are hoping to create a fun environment where visitors can explore the Japanese marketplace. We want you to come in and taste new things, then take them home with you to share with your family and friends.”

The asking rent in the deal was $50 per square foot, according to a source with intimate knowledge of the transaction. The length of the lease wasn’t immediately available.

Chase Welles of SCG Retail represented Industry City and Jim Somoza and Meredith Maltby worked on behalf of Industry City in-house. Welles declined to comment as did an Industry City spokesman.

Eastern Consolidated’s Harris Bulow and Arik Trakhtenberg handled the deal for Japan Village. A spokesman for the brokerage did not immediately return a request for comment.

Crain’s New York Business was first to report about the deal.

With additional reporting provided by Lauren Elkies Schram.

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

World’s Second-Ever Nutella Cafe Opening in Greenwich Village

At the end of May, the world’s first stand-alone Nutella Cafe opened in Chicago, featuring crêpes, croissants, waffles, pancakes and French toast—of course served with Nutella. And now for its second permanent cafe (Nutella has had popup cafes nationwide), Italian chocolate manufacturer Ferrero International S.A. will be opening a Nutella Cafe in Greenwich Village, Commercial Observer has learned.

The new cafe and coffee bar will occupy 2,200 square feet at the base of an under-construction residential condominium development at 116 University Place at East 13th Street, a source with knowledge of the deal said, via a 10-year lease. The asking rent wasn’t immediately available.

Ferrero, one of the world’s largest manufacturers of chocolates with global brands including Nutella, Ferrero RocherTic Tac and Kinder Surprise eggs, chose University Place for it “proximity to Union Square…colleges, office workers, [residents and] movie theater,” the source emailed. “[The] area bustles seven days a week and draws people from all over the city.”

Developers Ranger Properties and KD Sagamore Capital are erecting a seven-story, six-unit apartment building at 116 University Place. The Morris Adjmi-designed condo is slated for completion next year, and Nutella Cafe will be the only retailer in the building.

SCG Retail’s Jacqueline Klinger and Ian Rice represented Ferrero in deal. The brokers were not available for comment. Scott Kummings and Ben Daniels of KD Sagamore represented the developers in-house.

Ferrero made news at the end of last month when The Wall Street Journal reported that it would be opening a 4,200-square-foot innovation outpost in the Bridge at Cornell University’s technology campus on Roosevelt Island. Klinger and Rice represented Ferrero in this deal with Forest City New York, which developed and manages the building.

Source: commercial

Mitchell Gold + Bob Williams, Luxe Home Furnishings Retailer, Coming to Industry City

This October, luxury home furnishings retailer Mitchell Gold + Bob Williams will be opening a 10,000-square-foot store and upholstery repair shop in Sunset Park’s Industry City, Commercial Observer has learned.

The lease is for 10 years, and asking rents in the complex range from $15 to $35 per square foot, according to a spokesman for the landlords, a group led by Belvedere Capital and Jamestown. Mitchell Gold + Bob Williams’ space is on the first floor in Building 4, on Second Avenue between 34th and 35th Streets.

The company, founded in 1989 in rural North Carolina by Mitchell Gold and Bob Williams, manufactures and sells luxury home furnishings, including upholstery, lighting, rugs, accessories and wall art.

Chase Welles and Grant Holtan of SCG Retail represented IC in the deal and Jeremy Ezra of RKF represented the tenant. None of the brokers immediately responded to a request for comment.

“From design to production, retail to events, Industry City is a destination for all aspects of the home furnishings industry,” said Kathe Chase, the director of leasing at IC, in a prepared statement. “This dynamic mix makes for a creative environment not found elsewhere and is part of why Mitchell Gold + Bob Williams chose to be at Industry City.”

The 16-building, 6-million-square-foot group of warehouse structures on the waterfront, comprising IC, are home to a slew of designers including ABC Carpet & Home, Design Within Reach and West Elm.

Source: commercial

Think Coffee Likely to Replace Starbucks at 471 Broadway in Soho

Starbucks Coffee’s lease at 471 Broadway in Soho expires on Oct. 10, and the coffee giant has elected not to renew, the retail condominium unit’s owner told Commercial Observer.

Mordy Lipkis, the condo owner, said that he is “replacing [Starbucks] with Think Coffee,” which he believes “will do better than Starbucks did because it’ll be a larger location and be able to accommodate more people.” (The lease with Think Coffee hasn’t yet closed, Lipkis said.)

Starbucks has occupied 1,900 square feet at 471 Broadway, which is between Grand and Broome Streets, for the last 15 years. With the global chain out, Lipkis can tack back on the 600 square feet he combined with his Mercer Street space since Starbucks didn’t want such a large space, giving Think Coffee 2,500 square feet.

“I think it’s a good location for a coffee shop,” Lipkis said. “It gets a lot of foot traffic. There isn’t another coffee shop [in the immediate area] on Broadway.”

One retail broker said the coffee shop replacement could be a good thing.

“I honestly think no one will miss [Starbucks]; they’re a few blocks north and a few blocks south, both on Broadway,” said Eastern Consolidated’s James Famularo. “People prefer the boutique brands nowadays anyway. Have you seen Think Coffee’s newest location on Broadway and Leonard? It’s very nice. [Think Coffee is] definitely elevating the design lately.”

That location at Broadway and Leonard is Think Coffee’s newest shop at 350 Broadway in Tribeca, another of Lipkis’ spaces.

A representative for Starbucks didn’t respond to a request for comment and nor did Starbucks’ Manhattan broker, David Firestein of SCG Retail. No one was immediately reachable at Think Coffee.

Source: commercial

[Video] Scenes from Commercial Observer’s Power Gala

Source: commercial

ICSC ’17: Hot Takes From Retail Experts

Retail pooh-bahs get straight to the nitty gritty about the state of retail with Commercial Observer at this year’s International Council of Shopping Center‘s RECon event in Las Vegas last month.

Source: commercial

Power, Politics and a Martini Bar at the 10th Annual Power 100 Gala

Republican candidate for mayor, Paul Massey, kicked off Commercial Observer’s annual Power Gala event Wednesday at the Park Hyatt, celebrating the publication’s annual Power 100 and Power 50 lists, sniping at one of the honorees who wasn’t in attendance: Mayor Bill de Blasio (who ranked number 35 on the Power 100).

“You may have heard, I’m looking at a very interesting piece of real estate. It’s a big yellow mansion at [East] 88th and the East River,” Massey, the event’s keynote speaker, told the assembled crowd of some of the top real estate executives in the country (never mind the city). “The current tenant doesn’t want to leave. I plan of booting him out in November.”

But the discussion of politics at the gala was generally light. Throughout Massey’s speech and the honorees’ remarks, there was gentle but audible chatter from the crowd. The interest wasn’t fixed on the dais; after all, how often are this many bold-faced names (at least as far as the real estate industry is concerned) in the same place at the same time? Networking needed to be done.

Related Companies Stephen Ross and Bruce Beal, SL Green Realty Corp.’s Andrew Mathias and Marc Holliday, Blackstone Group’s Jonathan Gray, Cushman & Wakefield’s Bruce Mosler and John Santora, RXR Realty’s Scott Rechler, Avison Young’s Arthur Mirante and Mitti Liebersohn, Ackman-Ziff’s Simon Ziff, Starwood Property Trust’s Jeff DiModica, J.P. Morgan Chase’s Chad Tredway, Bank of China’s Raymond Qiao were just a few of the bigwigs found hobnobbing at the party, and drinking from the martini bar, which had been provided by Himmel + Meringoff. Naturally, company founders and Power 100 award recipients Leslie Himmel and Stephen Meringoff were there.

Taryn Brandes of SCG Retail received the Rising Star honor. Design of the Year went to Diller Scofidio + Renfro and the Rockwell Group for its movable building The Shed at Hudson Yards.

And the trio of C&W’s Joanne Podell, Wharton PropertiesJeff Sutton and Mathias of SL Green earned CO’s Deal of the Year award for the $700 million, nearly 70,000-square-foot lease Nike signed at 650 Fifth Avenue. The transaction, which also pulled in the Real Estate Board of New York’s “Most Ingenious Deal of the Year” award, involved office and retail tenant buyouts and negotiations with the governments of Iran the United States, Podell said.

The U.S. and Iran owns the building at 650 Fifth Avenue, and Sutton and SL Green have a leasehold on the retail portion of the tower, as CO previously reported.

Podell described how Sutton invited her to Shelter Island and on the back of the napkin from a chocolate sundae they hashed out the terms of the deal, which “never changed.”

“[Jeff] said you have to eat this chocolate sundae. I didn’t want to eat a chocolate sundae. But everyone else was,” Podell said. “Dealing with the government of Iran and the U.S. government? Not exactly on my resume, but thank goodness for these two guys.”

Source: commercial

Bertwood Realty Closes Shop in NYC, Owner Moves Back to Native France

Bertrand de Soultrait, the president of Bertwood Realty, has closed the brokerage’s New York City office at 146 East 46th Street and moved across the Atlantic Ocean to Paris after three years, Commercial Observer has learned.

De Soultrait, 32, relocated to Paris three weeks ago and intends to focus on acquisitions of properties in Europe from his native France through the same company name. Bertwood Realty will represent retailers in Paris on the brokerage side as well.

He had actually opened the Paris office last year and had been acquiring properties in France for a few years before committing to the move. Currently, de Soultrait said his company has a portfolio of 12 properties in France, 10 of which are residential buildings, and one that is a hotel and restaurant, and one retail condominium unit. In France he has just two staff employees, but no brokers.

“I’ve been wanted to move back to Europe for a few years. I took my time and worked as hard as I could,” de Soultrait told CO. “A new president was elected in France. And I have a lot of hope in him [for tax reform].”

Also, de Soultrait said the struggling New York City retail market marked a good time for him to leave retail brokerage here.

“The market in New York for retail is becoming very scary,” he said. “I’m not sure what will happen in retail in the next two years. It’s very challenging.”

De Soultrait worked for seven years as a broker in the United States, closing nearly 100 transactions, he said. That included two years at NYCRS and then two years at SCG Retail before he started Bertwood Realty in 2014, focusing on European retailers looking for space in the U.S. Bertwood Realty had three sales associates, one associate broker and one administrator in New York City, none of whom followed him to Europe.

Three of his latest deals last month were representing French retailers, including art gallery Carré d’Artistes in 1,200 square feet at 44 Prince Street between Mulberry and Mott Streets; eyewear store Anne et Valentin in a 600-square-foot spot at 1186 Madison Avenue between East 86th and East 87th Streets and female sportswear company Lilith in 1,000 square feet at 4 Prince Street between Elizabeth Street and the Bowery.  

Before closing the New York City office, de Soultrait established a partnership with Sinvin Real Estate so that some of Bertwood Realty’s clients in the United States can continue to receive services.

“Having known Bertrand for the past few years and developed a great respect for his business acumen and connections I’m excited for Sinvin to grow its relationship with Bertwood,” Christopher Owles, a principal at Sinvin, said in prepared remarks. “We are proud to be assisting his European clients in the U.S. and look forward to his assistance in securing international locations for our clients.”

With additional reporting provided by Lauren Elkies Schram.

Source: commercial