Crains New York - July 30, 2012 - (Page 9)

REAL ESTATE DEALS C Modeling agency owner sitting pretty reative World Management has inked a two-year sublease for space at 41 Madison Ave., across from Madison Square Park. The owner of modeling agencies will take 6,100 square feet, about half the 41st floor, from Water Island Capital. Brokers declined to give the rent, but the building is in midtown south, the hottest office market in the city. Asking rents in the area averaged $49.43 a square foot in the second quarter, up 11% from the year-earlier period, according to Cushman & Wakefield Inc. Water Island leased the entire 42nd floor of the building in 2010, and the asking rent was $49 a square foot. Two months ago, Water Island added the space on the 41st floor, knowing it would be subleased for a while, according to Jeffrey Peck of Studley, who represented the company with his colleague Christopher Foerch. Typically in a sublease deal, the sublandlord must rent at a discount and take a loss. But midtown south is so desirable that Water Island could rent out the space at a rate that will allow it to break even, Mr. Peck said. Rudin Management Co. owns the building, and Mr. Peck said that both Water Island and Creative are impressed with how the landlord runs the property. Creative has been located in temporary space since it was forced to move out of 404 Park Ave. South, which is being redeveloped. It plans to move into the new space by the end of the month. “The building is one of the best in the area,” said Peter Gross, a managing director at Williamson Picket Gross Inc., who represented Creative with his father, Jim Gross. They are owners of the firm. —theresa agovino BARE BONES 101 SIXTH AVE. ASKING RENT; TERM: Undisclosed; undisclosed SQUARE FEET: 150,000 on seven floors TENANT; REP: The New York Genome Center; undisclosed LANDLORD; REP: Edward Minskoff; undisclosed BACK STORY: The center was founded by a partnership of large medical and academic institutions, including New York University, North Shore-LIJ and Cornell. 27-01 QUEENS PLAZA NORTH ASKING RENT; TERM: Around $40 a square foot for sublease; 10.5 years SQUARE FEET: 100,000 on third floor TENANT; REP: Publicis; Gordon Odgen of Byrnam Wood LANDLORD; REPS: MetLife; Lloyd Desatnick and Erika McNeil of Jones Lang LaSalle BACK STORY: MetLife leases the entire building but has sublet large portions of it, including 200,000 square feet to JetBlue. 55 E. 52ND ST. ASKING RENT; TERM: Undisclosed; undisclosed SQUARE FEET: 90,000 TENANT; REPS: Intercontinental Exchange; Rocco Laginestra and Paul Myers of CBRE Group Inc. LANDLORD; REP: Fisher Brothers represented itself BACK STORY: The financial services company will take space left empty by MF Global last year, according to Commercial Observer, which first reported the deal. Salon nails new digs A new tenant is taking up retail space in the Hudson Square neighborhood. Nail Spa & Beyond, which boasts two other locations,has signed a 10-year lease for 900 square feet at 66 Downing St. The deal closed at the asking rent of $110 a square foot. The nail salon brings new life to the street, according to Steve Rappaport, the Sinvin Real Estate broker who, along with colleague Kristin McCann, represented landlord the Gottlieb Organization. In the past two years, Mr. Rappaport has added a number of eateries to the strip, including the Brooklyneer at 220 West Houston. “Before, it was just desolate office space,”Mr.Rappaport said.“But now the neighborhood is exploding.” Rents reflect that change. The Brooklyneer deal of 2010 carried an asking rent of $70 a square foot— 40% below current asking prices.Mr. Rappaport is currently marketing a 3,500-square-foot space on the corner of Varick and King streets with an asking rent of $125 a square foot. Jared Jasinski of New York Commercial Real Estate Services represented Nail Spa & Beyond in negotiations. —adrianne pasquarelli You expect an expert in capital markets and also in your market. That’s Key, where you get the best of both worlds. We are KeyBank, the community bank you know with local knowledge and expertise. We are also KeyBanc Capital Markets Inc., a full service investment bank that in 2011 raised over $125 billion in the capital markets, including debt, equity, and M&A advisory. Together, we have the experience and the capabilities to help you succeed. We’re not just the expert you deserve. We’re what you expect. To learn more, visit key.com/whatyouexpect. July 30, 2012 | Crain’s New York Business | 9 http://www.key.com/whatyouexpect http://www.key.com/whatyouexpect

Table of Contents for the Digital Edition of Crains New York - July 30, 2012

Crains New York - July 30, 2012
Contents
In the Markets
The Insider
Business People
Real Estate Deals
Opinion
Alair Townsend
Greg David
Small Business
Corporate Finance
Classifieds
For the Record
From Around the City
New York, New York
Source Lunch
Out and About

Crains New York - July 30, 2012