Crains New York - May 27, 2013 - (Page 4)
IN THE
Facebook friends the Village MARKETS
BY DANIEL GEIGER
Facebook, the social-networking
company with more than 1 billion
users worldwide and $60 billion in
market value, is considering taking
160,000 additional square feet of office space in Manhattan, according
to sources.
The company is negotiating to
lease the entire seventh and eighth
floors at 770 Broadway, a 15-story
building that occupies the full block
between East Eighth and East Ninth
streets. Real estate investment trust
Vornado Realty Trust owns the space.
Facebook, which went public last
year in a record-setting IPO, is looking at space in the 1.1 million-squarefoot building, which served as home
to Nielsen before the media company
relocated to lower Manhattan last
year.Clothing retailer J.Crew also has
its headquarters in the building.
Facebook’s New York office is
currently at 335 Madison Ave., between East 43rd and East 44th
streets, where it leased 150,000
square feet in late 2010. That office
is home to advertising
and sales staff, but according to written reports last year, Facebook had also started
bringing on programmers and engineers,
competing with other
tech companies and
Wall Street for talent.
It was not clear
whether
Facebook
would continue to occupy that space or sublease it to another tenant if it completes the deal at 770
Broadway, where asking rents are in
the $70s per square foot.
However, the deal is not yet done,
and Facebook could decide to go elsewhere, said people familiar with the
company’s real estate search. Executives at Vornado would not comment,
and Facebook did not respond immediately to a request for comment.
Several sources say Facebook has
been looking for expansion space in
Manhattan for months and that executives wanted an outpost in Silicon
Alley, the nickname
given to midtown
south, which has attracted dozens of tech
companies and startups in recent years.
If Facebook completes the deal,it would
come at a time when
other tech companies
have begun to flee midtown south, as occupancy levels and rents
have risen precipitously there. Yahoo, for instance, just signed a large lease to
move into the old New York Times
Building on West 43rd Street. Microsoft earlier this year committed to
a deal to relocate its headquarters
from 1290 Sixth Ave., another tower
owned by Vornado, to 11 Times
Square. Ⅲ
by Aaron Elstein
More space
for its
growing
ranks of
engineers
hreo.com
Social-networking
giant mulls adding
two floors on B’way
FOR RENT: This 18,000-square-foot Southampton mansion is available for nearly $1 million.
Hedgies returning
to the hedgerows
N
ever mind that the Dow Jones industrial average is at
record highs or bonds trade at nosebleed levels, the
market watchers at securities firm ConvergEx Group
have discovered a sight to truly behold: a summer house in
the Hamptons with an asking rent of nearly $1 million.
The property, as you surely want to know, is a “world
fabulous” Southampton estate built in 1915 and recently
restored to its original grandeur, according to HREO.com. The
ample abode measures 18,000 square feet and features 12
bedrooms, 12.5 baths, indoor and outdoor swimming pools,
and so on. All this can be yours, for a few months anyway, for
$900,000. If that seems a bit steep for a summer house, you
cohnreznick.com/think
What does
CohnReznick
think?
Game-changing insight can guide your
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can rent the property for the full
year for $1.2 million.
Truth be told, this property may
not fetch a record rental price for
the Hamptons. A 2008 Newsday
article said someone was seeking $1
million for a house in Sagaponack
for the summer before Lehman
Brothers collapsed, but it’s unclear
if anyone actually hit that bid.
If $900,000 is out of your price
range, the folks at ConvergEx
Group found more than 70 properties renting for at least $500,000
from Shinnecock Canal to Amagansett. There are 400 properties
asking at least $250,000.
Some of these monster rents result from Superstorm Sandy devastating summer housing in Fire Island and other popular beachfront
areas. But the driving force is Wall
Street. Thanks to the Dow trading
at more than 15,000, many hedgefund managers are minting big
money again for the first time in
years. And these folks get compensated in cash, the form of payment
preferred by real estate agents, not
the deferred stock that their
brethren at the too-big-to-fail
banks tend to get nowadays.
Hedge-fund managers make
money two ways. First, they collect
a management fee, typically equal
to 2% of the money they’re entrusted to invest. Second, they collect a
big piece of any investment gains
they generate in a year,usually 20%.
But here’s a big qualifier: In order to pocket some of the profits,
hedge-fund managers usually must
first recover any investment losses
piled up in previous years. Inside
the industry, this is known as crossing the high-water mark. Hedgefund managers no better than average—and that describes most of
them—could be beating their
high-water marks for the first time
in years thanks to the market’s impressive rally (up about 15% so far
this year), putting them in position
to harvest the sorts of sums that
drive them to drop high six figures
for a Hamptons summer rental.
“The Philistines are clearly at
the hedgerows,” ConvergEx’s chief
market strategist, Nicholas Colas,
wrote, “and they have both money
to burn and the anticipation of being able to enjoy their summer.” Ⅲ
45%
CohnReznick is an independent
member of Nexia International
4 | Crain’s New York Business | May 27, 2013
PORTION OF FINANCIAL
SERVICES WORKERS IN THE
U.S. who report feeling “very or
fairly often stressed,” according to a survey by
eFinancialCareers.com. Interestingly, 60% of French
financial services employees report feeling that way.
http://www.hreo.com
http://www.cohnreznick.com/think
http://www.hreo.com
http://www.CohnReznick.com/think
http://www.CohnReznick.com/think
http://www.eFinancialCareers.com
Table of Contents for the Digital Edition of Crains New York - May 27, 2013
In the Boroughs
In the Markets
Small Business
The Insider
Business People
Opinion
Alair Townsend
Greg David
Steve Hindy
Report: Largest Companies
The List
Classifieds
For the Record
Real Estate Deals
New York, New York
Source Lunch
Out and About
Snaps
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