Major Developments:
Several New York landlords have resisted leasing large chunks of their buildings to co-working tenants. One prominent owner is Empire State Realty Trust who will not lease to WeWork. The Durst Organization rejected WeWork’s offer to lease 12 floors at the World Trade Center in hopes that there were better offers.Oscar Health is doubling it spaced in Hudson Square and signed a sublease for the fourth floor at One Hudson Square, bringing its total presence to 160,000 square feet. The asking rent was around $80 per square foot.
Barneys luxury fashion is reportedly weighing a second bankruptcy, after the retailer’s $16 million annual rent jumped to $30 million at its Madison Avenue flagship location. The move comes after a city arbitrator decided to allow Ben Ashkenazy to nearly double the rent on the 275,000-square-foot store. About one-third of Barneys’ revenues comes from that store.
Blackstone Group’s earnings declined over the past three months as distributable earnings from the firm’s real estate segment fell by nearly a quarter from the same time last year. The firm’s overall net income for the second quarter of the year fell to $305.8 million, or 45 cents per share, a significant decline from the $742 million a year ago.
Deutsche Bank exercised an option to return two floors 60,000 RSF at Time Warner building to the Related Companies. Out of the company’s 1.1 million-square-foot lease, further cutbacks through subleasing may be on the way. Deutsche’s had already dowsized from the bank’s current 1.6-million-square-foot footprint at 60 Wall Street.
Developers are continuing to plan larger hotel projects at a rate comparable to historical levels, however new plans for smaller hotels have suddenly become rare. In fact, for the first five months of 2019, not one new hotel plan was submitted with fewer than 70 rooms.
Related Companies celebrated their grand opening of Hudson Yards but the observation deck, resting 1,100 feet above Manhattan’s West Side, doesn’t open to the public until 2020. The deck spans 7,500 square feet and stretches 65 feet out from the 101st floor of 30 Hudson Yards. Its height makes it the tallest outdoor deck in the Western Hemisphere and the fifth tallest in the world.
The owners of the commercial component of the Crown Building are in advanced talks with a pair of lenders to refinance the Fifth Avenue property. Wharton Properties and Brookfield Asset Management have signed a term sheet with French lender Natixis and Apollo Global Management for a $900 million loan to refinance the 92,000-square-foot retail condominium at the building.
The largest project filed for New York was JPMorgan Chase’s new Midtown East headquarters for 270 Park Avenue. The City Council unanimously approved plans for the project, and the finance company filed plans with the Department of Buildings. The development will cover around 1.9 million square feet and stand 57 stories tall. It is the first project to take advantage of the city’s Midtown East rezoning.
The project at 451 10th Avenue will span around 415,000 square feet, split between 268,000 square feet of residential space, 33,000 square feet of commercial space and 114,000 square feet of community space. It will stand 44 stories tall with 526 residential units, including 126 units for senior housing.
L+M Development firm is planning a 358,000-square-foot project at 121 West 125th Street, split between 137,000 square feet of residential space, 25,000 square feet of community space and 195,000 square feet of commercial space. It will stand 205 feet and 17 stories tall with 171 residential units.
Gordon Ramsay is partnering with a private equity firm to open 100 new restaurants across the U.S. within the next five years. Ramsay’s equity partner in his restaurant business is Lion Capital. They will invest $100 million over the next five years in restaurants with Ramsay’s name. Lion has acquired 50% of Gordon Ramsay North America, and Ramsay himself has retained the other 50%.
As it explores a potential sale or spinoff, the Howard Hughes Corporation locked down $250 million in financing for its redevelopment of the Seaport District in Lower Manhattan. The interest-only term loan comes carries a rate of 6.1% for the first two years then will shift to LIBOR plus 4.1%.
The Laboz family is planning to build two office and retail buildings on Broadway sites in Soho. The United American Land will break ground on a 40,000-square-foot building at 419 Broadway in the first quarter of next year, and a second building the following quarter at 430 Broadway, which will span 45,000 square feet. The decision to move forward with the office buildings had been prompted by WeWork signing a 60,000-square-foot lease at his firm’s 408 Broadway last year.
Maddd Equities and Joy Construction have landed a $64 million construction loan for their affordable housing projects at 1159 and 1184 River Avenue. The project at 1159 River Avenue will include 250 affordable housing units with 200,000 square feet of retail space and parking. The project at 1184 River Avenue will span 548,000 square feet with 500 residential units, retail and community space.
Rabina Properties has closed on its joint-venture agreement with Ceruzzi Properties and SMI USA to develop a 76-story mixed-use project at 520 Fifth Avenue. The development just north of Bryant Park is now expected to have more office space and less retail than originally planned with luxury apartments at the top.
Lalezarian Properties plans to bring a 35-story, 386-foot-tall project to 509 Third Avenue. The site is zoned for a building with nearly 167,000 square feet. The project will have 229 apartments plus retail space. Amenities include a terrace, lounge and fitness center.
GNC plans to close 700 or more of its stores. The struggling retailer has already closed 200 stores and plans to close as many as 900.
Amazon is in search for a new office and shipping facility. The company is looking at Lord & Taylor’s former flagship store on Fifth Avenue, owned by the We Company. Amazon’s is also eyeing the Farley Post Office, which is being transformed into a transit hub.
Pi Capital Partners is planning to develop a 26-story building in Koreatown. The developer is planning a 67,000-square-foot mixed-use project at 335 Fifth Avenue. The project will contain 82 residential units, and will be split between about 56,000 square feet of residential space and 11,000 square feet of commercial space.
The Justice Department has approved the merger between Sprint and T-Mobile. The two companies made a number of concessions to get the deal through, including agreeing to sell off assets, along with spectrum and hundreds of retail locations. They also have to provide Dish with access to T-Mobile’s network for seven years while Dish builds out its own 5G network.
Chef Jean-Georges Vongerichten is planning to open a residents-only restaurant at 220 Central Park South. The 54-seat eatery will open on the second floor of the building.
Vornado has decided not to renew Forever 21’s lease at 4 Union Square, instead leasing part of its space to Whole Foods in a 70,000-square-foot, 20-year renewal deal.
Fast-fashion brand Topshop closed all U.S. stores in June, and Vornado was the landlord for both of its New York locations. This has put a dent in the firm’s second quarter earnings.
