Crains New York - July 29, 2013 - (Page 22)

Court-Ordered Public Auction August 28 SALE OF 251 PARK AVENUE SOUTH Prime Prewar Commercial Property in Flatiron District REAL ESTATE DEALS Once-troubled tower reborn Ideo double-clicks on lower Broadway T Joshua Stein, as court-appointed referee (Index No. 651266/2012), will conduct a public auction sale of 251 Park Avenue South at 2:15 p.m., August 28, 2013. The sale will take place in Room 130, New York State Supreme Court, 60 Centre Street, New York, NY. For more information, visit www.251pas.com BRAND NEW RETAIL 3 WEST 36TH STREET 3,600 SF Ground 1,500 SF all windowed 2nd ﬂr 1,000 SF Bsmnt at base of new luxury residential tower Vented, Ideal Restaurant, any use Adjacent Setai, Empire State Bldg, Lord & Taylor Neil Polon · 212-686-5252 · neilempiremgt@hotmail.com Empire Management 22 | Crain’s New York Business | July 29, 2013 wo more financial firms are paying near triple-figure rents to take space at 510 Madison Ave. The pair of deals have brought the formerly distressed fouryear-old property to within a few floors of full occupancy. Canada Pension Plan Investment Board, one of the world’s largest pension funds, has taken the entire 11,500-square-foot 15th floor in the 31-story, 350,000-square-foot building. The office, which CPPIB will lease for 10 years, will be the first New York location for the $183 billion fund. Meanwhile, hedge fund 400 Capital Management has also signed on for the building’s full 11,500-square-foot 17th floor for 10 years. The asking rent for both floors was $100 per square foot, but the taking rent was slightly less. The transactions reflect the appeal 510 Madison has had among top-tier investment firms.“The boutique, high-end market is very strong right now,” said Paul Amrich, a broker at CBRE Group Inc., who represents the landlord, Boston Properties, at the tower. Mr. Amrich completed the deal with CPPIB in partnership with colleague Neil King.The two brokers represented both sides in that deal. David Hollander, who is also a broker at CBRE Group Inc., represented 400 Capital Management in its lease. Messrs. Amrich and King handled that transaction as well for Boston Properties. Occupancy has come a long way since the tower was finished in 2009. The father-and-son development team of Harry and Billy Macklowe built it but struggled to land tenants in the teeth of the recession.The Macklowes eventually sold the property to Boston Properties. —daniel geiger Gay bar out, Calif. pizza in A longtime west Chelsea nightlife institution, the gay bar Rawhide, is being replaced by a West Coast pizza chain, in another sign of the gentrification of the area around the popular High Line. Project Pie, a fast, casual pizza restaurant, leased the space at 212 Eighth Ave., between West 20th and 21st streets, for 15 years. The new tenant’s owner, James Markham, signed a lease with landlord ENS21 Management for 1,320 square feet of ground-floor space plus a basement of identical size. The asking rent was $228 per square foot. Alan Schmerzler and Christopher Schwart of Cushman & Wakefield represented the tenant. Peter Braus and J.P. Sutro of Lee & Associates represented the landlord. Project Pie, based in San Diego, had identified Chelsea as the ideal market for its first New York City location. Diners put together a custom, single-serve pizza by adding toppings assembly-line style, and it is then fast-baked in two minutes. Project Pie’s ambition is to become the Chipotle of pizza restaurants, imitating its quick, fresh and custom approach. “We feel like Manhattan is a market that we can expand in, and we are looking for more locations, especially in midtown,” said Mr. Schwart. Rawhide, a popular spot, had occupied the space for more than three decades and was known for its rough-around-the-edges appeal in a sea of more polished gay bars that opened in its wake. It closed in March after being hit with a big rent hike. Project Pie plans to open early next year. “The landlord liked their concept,” said Mr. Sutro, who represented ENS21 Management. —laura lorenzetti Innovation and design consultancy Ideo, which invented the computer mouse in the 1980s, has a reputation as a pioneer, and so it goes with its choice of locations for its new office. The company is moving to 408 Broadway, several blocks south of its current space in the heart of SoHo. Ideo has signed a 12-year lease for the top two floors, for a total of 28,500 square feet, in the five-story loft building half a block below Canal Street. The deal stretches the lower border of the wellestablished but increasingly pricey SoHo tech hub. The asking rent was $48 per square foot. United American Land bought the 1915 building two years ago in a $28 million sale in lieu of foreclosure. The new owners then worked with their Newmark Grubb Knight Frank broker, Justin DiMare, who oversaw the purchase, to reposition the building as a landing pad for tech firms. The Ideo deal is a major vindication of that strategy. “This deal continues the trend of creative and technology firms seeking loft product within downtown’s vibrant, 24/7 neighborhoods,” Mr. DiMare said. Spin Media, which published the magazine of the same name until last year, had occupied the fourth floor since 2008, but with business in doubt, the ownership team at 408 Broadway saw an opportunity for an early lease termination. Meanwhile, Ideo had outgrown its space at 451 Broadway, and its brokers, Michael Higgins and Mitti Libersohn of Jones Lang LaSalle, were shopping around in the neighborhood for an affordable upgrade. —matt chaban BARE BONES 609 FIFTH AVE. 2 PENN PLAZA 1132 THIRD AVE. ASKING RENT/TERM: $65-$75 per square foot; 10 years ASKING RENT/TERM: $35 per square foot; 2.5 years ASKING RENT/TERM: $250 per square foot; 10 years SQUARE FEET: 29,500 SQUARE FEET: 12,200 SQUARE FEET: 4,000 TENANT; REP: DZ Bank; Michael Burgio of Cushman & Wakefield SUBTENANT; REP: Jacobs Engineering Group Inc.; Michael Burlant of Cushman & Wakefield TENANT; REPS: Reebok Fit Hub; Yael Amron and Jeremy Ezra of RKF LANDLORD; REPS: SL Green Realty Corp.; inhouse representation by Gary Rosen and Howard Tenenbaum BACK STORY: The German bank extended its lease on the seventh and eighth floors of the 13-story building, according to The Commercial Observer. SUBLANDLORD; REP: Marks Paneth & Shron; Ted Rotante of Colliers International BACK STORY: The technical-services provider will sublease space on the fourth floor of the 32-story building. LANDLORD; REP: GID Advisors; Michael Kadosh of CBRE Group Inc. BACK STORY: The store, which sells fitness and training products, will move into its new groundfloor space immediately. http://www.251pas.com

Table of Contents for the Digital Edition of Crains New York - July 29, 2013

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
OPINION
ALAIR TOWNSEND
GREG DAVID
REPORT: FOOD BUSINESS
FOR THE RECORD
REAL ESTATE DEALS
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE BREAKFAST
OUT AND ABOUT
SNAPS

Crains New York - July 29, 2013