Crain's New York - March 18, 2013 - (Page 15)

REPORT REAL ESTATE DEALS Financial firm ups its footprint I n recent months,most financial firms have either been in shrink mode or stasis when it comes to their Manhattan real estate portfolios. Not financial services company Sterne Agee. The Birmingham, Ala.based firm has just upped its footprint at 277 Park Ave. by 50%, taking it to a total of about 60,000 square feet at the 50-story tower. “At this point, we’re doing everything we can to grow,” William Holbrook, Sterne Agee’s chief operating officer, said. “This opportunity came up and we took it.” Sterne Agee initially took space at 277 Park Ave. in August 2011, leasing the entire 24th and 25th floors in the nearly 2 million-square-foot building.The current expansion deal is for the entire 26th floor.The lease stretches about 10 years. Asking rents at the property, which is owned and largely occupied by JPMorgan Chase & Co., are in the $60s and $70s per square foot, depending on the floor. Andrew Sachs, a broker at Cushman & Wakefield, represented Sterne Agee in the transaction. Deals at 277 Park Ave. are arranged by a team of leasing agents from brokerage firm Cassidy Turley on behalf of JPMorgan Chase. —daniel geiger Jeans designer fits in on W. 39th Los Angeles-based designer Hudson Jeans has found the perfect fit at 231 W. 39th St. In the five years since it moved into its first New York City outpost, located in the garment district, it has expanded twice. In its latest growth spurt, Hudson has taken on an additional 2,700 square feet, boosting its total presence to 7,000 square feet on the property’s fourth floor. “They’re very happy there,” said Adams & Co. broker Jeff Buslik, who represented both Hudson, which also renewed its lease,and the landlord, 231 and 249 West 39 Street Associates. The term of the lease is five years, and the asking rent was $35 per square foot. “Their business is growing, and they’re growing with us,” Mr. Buslik said. While many designers have left the district and many buildings along the avenues have shifted to office use, Mr. Buslik said buildings on West 39th Street have benefited—231 W. 39th St. chief among them. “It’s become a real showroom hub,” he said. Supporting that very point is another deal Mr. Buslik recently closed in the property: a five-year renewal by Hard Tail, a maker of women’s clothes. Recently, the brand expanded into yoga clothes that are on display in its 5,500square-foot showroom on the 11th floor. The space had an asking rent of $40 per square foot for a fouryear lease, owing to the superior views. “It’s like my wife’s closet in there,” Mr. Buslik said of 231 W. 39th St. —matt chaban BARE BONES 911 BROADWAY 498 SEVENTH AVE. 345 HUDSON ST. ASKING RENT; TERM: $270 per square foot; 10 years ASKING RENT; TERM: Undisclosed; six years ASKING RENT; TERM: Low $60s per square foot; 13 years SQUARE FEET: 29,400 SQUARE FEET: 2,500 TENANT; REPS: Jacadi; David Baker and Julie Louzon of Isaacs & Co. LANDLORD; REP: RJR Realty; Michelle Ball of Rudd Realty BACK STORY: The highend French childrenswear brand signed a lease for space in the Flatiron district, its fourth Manhattan location and first below 60th Street. SQUARE FEET: 50,000 TENANT; REPS: Alloy Digital; Alexander Chudnoff and Dan Turkewitz of Jones Lang LaSalle TENANT; REPS: iN Demand; Eric Deutsch, Jared Freede and Jason Pollen of CBRE Group Inc. SUBLANDLORD; REPS: Liquidnet Holdings Inc.; Howard Fiddle and Joe Mangiacotti of CBRE Group Inc. LANDLORD; REPS: Trinity Real Estate; in-house representation by Tom Lynch and Jason Pizer BACK STORY: The digital media firm will take the entire 19th floor in the 880,000-square-foot building, according to The Commercial Observer. BACK STORY: The television entertainment company renewed its lease for the full top floor of the building in Hudson Square, according to The Commercial Observer. March 18, 2013 | Crain’s New York Business | 15 http://crainsnewyork.com/events-stringer

Table of Contents for the Digital Edition of Crain's New York - March 18, 2013

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
OPINION
STEVE HINDY
GREG DAVID
REPORT: REAL ESTATE
real estate deals
THE LIST
FOR THE RECORD
CLASSIFIEDS
SMALL BUSINESS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crain's New York - March 18, 2013