Crains New York - January 7, 2013 - (Page 16)

IN THE BOROUGHS MANHATTAN Tech campus tussle Continued from Page 3 Cornell NYC Tech, puts an altogether more positive gloss on the islanders’ odd ways. “The community is a wonderful and thoughtful group, and they have helped inform us,” she said. “They put together a list of concerns and issues, and we have been addressing them.” The school has agreed to consider getting construction materials delivered by barge to cut down on traffic and air pollution. Starting up a ferry service to Manhattan to ease crowding on the F train is also being explored,Ms.Dove said.In addition to the subway, the island is accessible via a short bridge from Queens and a tram that links Manhattan. Cornell will bring hundreds of new jobs to the island, as well as new meeting spaces, more cultural events and recreational sites. There will, however, be costs. If Cornell NYC Tech succeeds in turning city-owned Roosevelt into a Silicon Island, that could add pressure for more luxury housing. As it is, the bulk of the island’s housing was built in the 1970s, under the state’s Mitchell-Lama program, which was designed to spur con- struction of affordable housing. Properties received tax abatements and low-cost financing if they agreed to remain within the program. But some buildings have exited and are switching to market rents, a trend that could accelerate with Cornell’s pending arrival. “We want the housing to be available to everyone,” said Judith Berdy, who has lived on the island for 35 years and is president of the local historical society. She notes that most residents take pride in the community’s diversity. Many are foreign nationals working for the United Nations. Among them was Kofi Annan, who lived across the street from Mr. Katz until being named U.N. secretary-general, at which point Mr. Annan got better digs on Manhattan’s East Side. A thornier problem is the fate of hundreds of patients whom the city’s Health and Hospitals Corp. will begin moving out of the 75year-old Goldwater Hospital, the long-term-care facility slated for demolition in 2014 to make way for Cornell.Though the HHC has said the hospital was due to be razed anyway, Ms. Berdy points out that Goldwater is far from the oldest fa- FROM AROUND THE CITY BROOKLYN City officials insist that the proposed Citizens of the World school will help fill a half-empty, “underutilized” building and in the process diversify the academic options in the district. —ken m. christensen Charter-school controversy Williamsburg and Greenpoint may get what some are calling a new “charter school for gentrifiers.” The Department of Education touched off the furor in late October with its plan to have Los Angeles-based Citizens of the World open a charter school within John Ericsson Middle School 126. Protesters, who rallied outside the school, charged that the new institution will simply end up catering to wealthy newcomers. “They’re looking to capture the new demographic,” said 27-year resident Kate Yourke, a parent and member of the Southside Community Schools Coalition. She and others insist that instead of devoting time and resources to a new educational institution,more attention should be paid to John Ericsson. The troubled school was one of two dozen that an education panel voted to close and reopen with new names and staffs last spring. buck ennis STATEN ISLAND Mural messages are in vogue A graffiti-style spray painting of the words “Pillz Killz”on Staten Island’s north shore has proven popular. Since organizing the group of artists who painted the roughly 25- by 50foot mural on a blank wall at 821 Castleton Ave., NYCArtsCypher has been seeking its next site, according to Charlie Balducci, the nonprofit’s founder. Plans for two murals intended for school buildings on the south shore had to be tabled after Superstorm Sandy. Now cold temperatures—which can make a can of spray paint, the group’s medium of choice, act finicky—threaten to put off art-making until the spring. Their next project at Hylan Boulevard and Buel Avenue may incorporate an anti-bullying theme. “We use the murals as messages for anything that’s positive,” said Mr. —cara eisenpress Balducci. DOVES VS. HAWKS: Cornell’s Cathy Dove downplays any gripes aimed at the campus. cility in the city’s hospital system. “They could have rebuilt it,” said Ms. Berdy. Many of the patients are uninsured or are undocumented immigrants. Some of them have not lived anywhere else for many years. “We have some people who have been there since they got polio as teenagers in the 1950s, and it’s become their home,” she said. On balance, Mr. Katz said, residents are “cautiously optimistic” about their new neighbor. “They have been enormously cooperative, and we feel our opportunities for tweaking the plan are myriad,” he said. REAL ESTATE DEALS T Related nears artful Chelsea lease he Related Cos. may not have to look far to find a tenant for a 16,000-square-foot space at 511-541 W. 25th St. that it acquired last year.The Pace Gallery,which has space just across the street, is considering signing a lease for that square footage, possibly for use as both a gallery and office. “We have a lot of ideas for the space, although the plans are still fluid in terms of how much we would take and what we would have there,” said Christopher Harnden, the gallery’s chief operating officer, noting the deal was not yet signed. The Pace Gallery already occupies roughly 11,000 square feet at 534 W. 25th St. It is a well-known exhibition venue that represents a bevy of renowned artists, including painter Chuck Close. Mr. Harnden said the gallery is looking for more space on the block in order to relocate the staff it has in midtown at 32 E. 57th St., its New York headquarters. “The No. 1 driver is economics,” Mr. Harnden said. “Even with the growing popularity of the West Side and Chelsea, it’s a lot less expensive to take space there than on West 57th Street.” Other gallery tenants have sought space at 511-541 W.25th St.Last year, Babcock Galleries, another art dealer that has its headquarters near West 57th Street, signed on for 4,600 square feet at the 190,000-square-foot, nine-story building. The building’s retail space is also home to Tesla Motors, maker of exotic, electric-powered sports cars. Related bought the building for $93 million at the beginning of 2012 through a distressed real estate fund it raised. The company hired a team from CBRE to market the property, including Matthew Bergey, a broker who has expertise leasing space in midtown south to tech and art-related tenants. —daniel geiger Duane Reade, the homegrown pharmacy founded 52 years ago and bought by Deerfield, Ill.-based Walgreen Co. in 2010, signed a 20year deal for 18,000 square feet at 711 Third Ave., on the corner of East 44th Street. The deal includes roughly 7,000 square feet on the ground floor and an 11,000-squarefoot basement. The ground-floor asking rent for corners in the area is $175 per square foot. Duane Reade plans to move into the SL Green Realty Corp.-owned building in February, taking over from plus-size clothier Avenue. The 253-unit local drugstore chain may eventually shutter its outpost one block south in the Chrysler Center, where it has leased 20,000 square feet of space since 2000. Duane Reade did not return calls requesting comment. Jeff Winick of Winick Realty Group represented Duane Reade in negotiations. SL Green was represented in-house. —adrianne pasquarelli BARE BONES 315 HUDSON ST. ASKING RENT; TERM: $70 per square foot; undisclosed SQUARE FEET: 5,900 TENANT; REP: TED Conferences; Kim Skarvelis of Cast Iron Real Estate Co. LANDLORD; REP: Jack Resnick & Sons Inc.; inhouse broker Brett Greenberg BACK STORY: TED will take space across the street from its Hudson Square office. Source: The Commercial Observer 100 WALL ST. ASKING RENT; TERM: $38 per square foot; 10 years SQUARE FEET: 11,800 TENANT; REP: Schindler Cohen and Hochman; Brian Waterman, of Newmark Grubb Knight Frank LANDLORD; REP: Savanna; in-house broker Todd Korren BACK STORY: The law firm renewed lease at 100 Wall St. 80 BROAD ST. ASKING RENT; TERM: $32 per square foot; three years SQUARE FEET: 8,700 TENANT; REP: LearningExpress; Jordan Mandel of the Vortex Group LANDLORD; REP: Savanna; in-house broker Todd Korren BACK STORY: The online career and academic resource library will move into the space in the first quarter of 2013. Yogurt shop brings new culture The owners of the Red Mango frozen-yogurt chain are planning to bring a whole new kind of culture to a gallery-filled neighborhood. They’ve inked a 10-year lease for a 1,250-square-foot storefront at 55 W. 25th St., between Broadway and Sixth Avenue, in the Capitol, a luxury rental building. The asking rent was $150 per square foot. Owner Chelsea New York Realty Co. was represented by Bruce Spiegel and Bill Bergman of Rose Associates. Gary Alterman and Andrew Stern of RKF represented Red Mango. The space was previously occupied by a LensCrafters store. Duane Reade swallows spot The city’s biggest drugstore chain has signed on for another location. Red Mango will open this spring. The Dallas-based yogurt chain has more than 190 locations nationwide. In New York, however, it has found the going tough. Amid increasing competition, Red Mango shuttered several locations here early in 2011 because of rent increases. The business has since switched to a self-serve model. “I think that has enhanced their user-friendliness and is more in line with what consumers are looking for today,” he said. Mr. Spiegel said he believed the self-serve shop will be a success in Chelsea. There are no other yogurt shops in the vicinity. —ali elkin 16 | Crain’s New York Business | January 7, 2013

Table of Contents for the Digital Edition of Crains New York - January 7, 2013

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

Crains New York - January 7, 2013

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