Crains New York - January 21, 2013 - (Page 12)

IN THE BOROUGHS MANHATTAN 7-Eleven irks LES Mr. Hollander, who is seeking a them former bodega owners. grant from the city’s Citizens Com“We say, give us a chance,” said a mittee to fund the opposition effort. spokeswoman for the chain. Already, he and other activists Some residents say that might be have done everything from chalking easier if the 86-year-old company anti-7-Eleven signs up and down would bend a bit and follow the lead Avenue A to pasting bumper stickers of big chains including Starbucks on lampposts. Meanwhile, the block and Duane Reade,which have made association is creating a website dedan effort to blend their 201 icated to the cause. The acand 167 Manhattan loca- 7-ELEVEN IN tivists have also begun asktions, respectively, into the MANHATTAN ing residents what kind of urban environment. Dubusiness they would prefer ane Reade, in fact, has won to see in the space. So far, kudos for its tasteful adap- CURRENT the leading contenders are a tations of historic banks store count yoga studio, a toy store and and other locations. a cheese shop. Should the 7-Eleven Moving ahead arrive, opponents are vowSTORES to open Despite the mounting this year ing to organize a boycott. protests, 7-Eleven is “This is a moment of charging ahead with plans pulling together,” said Mr. to open four new ManhatHolman, who hopes to tan locations by the spring DOZEN at take the effort citywide. attendees on Fulton Street, West recent meeting to The chain has been Third Street and the Upper block chain down this road before, acEast Side, in addition to cording to the 7-Eleven the one on Avenue A. spokeswoman, who is quick to add “We’re losing so much of New that the community usually comes York’s character, our ethnic commu- around.Such is already the case with nities, our affordable housing, our the brand’s year-old St. Mark’s artists—and here, we’re losing the Place location, she said. In some character of our commerce,” said cases, the chain has signed on bode- 32 20 3 buck ennis Continued from Page 3 that has begun to change as owners join with their neighbors to create bigger spaces that can often accommodate 7-Eleven’s typical 1,500-squarefoot footprint. Opponents’ efforts may also be undermined by residents who might prefer a 7Eleven to all the noise and rowdiness generated by the Lower East Side’s bevy of bars and clubs. In fact, the previous occupant of the Avenue A space was Bar on A, a busi7-ELEVEN’S 351 Bowery location is one of 32 in Manhattan. ness that sparked numerous complaints ga owners who have converted their from neighbors, according to Susan Stetzer, district manager of Comstores to 7-Elevens. “Most people don’t like change, munity Board 3. She said that a bar owner applybut we want to make sure we have a very attractive location that is ing for a liquor license recently used friendly and that we offer what the 7-Eleven as a scare tactic. “We had an applicant come to us consumers want,” said the spokesand say, ‘If you don’t approve my liwoman. cense, I know the landlord is also Bigger spaces talking to 7-Eleven,’ ” she reported. For Lower East Siders, the chain The application was denied, and the invasion is a relatively new threat be- space became a deli. Ⅲ cause the bulk of the storefronts are LISTEN to a discussion at small and are better suited to a jewelCrainsNewYork.com/podcasts er or a tattoo parlor. In recent years, FROM AROUND THE CITY QUEENS Locals vent on jets Southeast Queens residents insist that JFK International Airport generates more than billions of dollars in economic activity.It also produces all too much noise. At a meeting with the Federal Aviation Administration in December, they were told all those decibels aren’t going away. “The noise, the constant vibrations, being awakened during the middle of the night—it sounds like nothing is going to change,”said Barbara Brown, chairperson of the Eastern Queens Alliance, a group of civic organizations based in the area surrounding the airport. While jet engines will get quieter in the future,FAA officials said, air traffic will likely double over the next 20 years. Meanwhile, near La Guardia Airport, northeast Queens residents gathered recently in the nearby Bayside neighborhood to protest new procedures that they say will mean more low-flying planes above their houses. —ken christensen REAL ESTATE DEALS Asian bank opts for Madison Ave. T he Bank of East Asia is the latest in a growing number of financial institutions from the Far East to land in Manhattan. The institution, which is the third-largest Hong Kongbased bank, committed to the entire 10th floor of 540 Madison Ave., a 10,900-square-foot space, for 15 years. The asking rent for the space was $78 per square foot. The deal is at least the second by an Asian financial institution in that part of the Plaza district in recent months. Last year, East West Bank opened a 14,400-square-foot office in the neighboring office tower, 535 Madison Ave. “We have seen more Asian financial institutions come into the Manhattan market,”said Cynthia Wasserberger,a broker at Jones Lang LaSalle,who represents 540 Madison Ave. in leasing deals. Other foreign financial institutions have sought out space in the Plaza district as well. Brazilian banks Banco Itaú and Banco Pine, for instance, have both opened offices in the neighborhood, paying top-dollar rents to do so. —daniel geiger Social Apparel swallows BK Prom season is still a few months away, but party-dress seller Social Apparel is bulking up its presence. The six-year-old company recently signed a 13-year lease for retail and office space totaling 10,000 square feet at 255 W. 34th St. The company plans to use 1,800 square feet on the ground floor as well as a mezzanine as retail space. The remaining 8,200 square feet in the five-story building will be used for storage and offices. The asking rent was $60 per square foot, al- though the deal closed near $50 per square foot. Social Apparel already has a store nearby at the Manhattan Mall, but the lease there terminates at the end of the year, according to the company’s broker,Young Byunn of Winick Realty Group. “The Herald Square area is a very important market for them—the people who shop there are their main clientele,” Mr. Byunn said, noting that Joon Kim, Social Apparel’s owner, has not yet decided if he will close the Manhattan Mall store later this year or operate both locations. Mr. Byunn is in the process of 12 | Crain’s New York Business | January 21, 2013 seeking out additional outposts in Union Square and on Fulton Street in Brooklyn for the clothier. It currently operates four stores, including locations in Queens, West Nyack and White Plains. Social Apparel is subleasing the retail space from Burger King, which is closing its location as part of a nationwide reduction in its number of restaurants. The clothier plans to open for business by April. Jason Pruger and Aaron Cukier of Newmark Grubb Knight Frank represented Burger King in negotiations. The building is owned by David Maleh. —adrianne pasquarelli Construction firm jumps eastward Longtime downtown tenant Hunter Roberts is moving, but despite Superstorm Sandy, the construction management and consulting firm is sticking with lower Manhattan. The company will jump over to 32 Old Slip, a 36-story office tower on the east side of the neighborhood, from its current home at 2 World Financial Center, overlooking the Hudson. The firm is taking 32 Old Slip’s entire 10th floor in the deal, a roughly 37,000-square-foot space with rent in the $40s per square foot. The 1.1 million-square-foot 32 Old Slip property is located in an area that was walloped by Sandy. Fourteen-foot storm surges inundated several major office buildings BARE BONES 545 MADISON AVE. 520 BROADWAY 450 LEXINGTON AVE. ASKING RENT; TERM: Undisclosed; 10 years ASKING RENT; TERM: $300 per square foot; 15 years ASKING RENT; TERM: Undisclosed; short-term lease SQUARE FEET: 15,000 SQUARE FEET: 13,000 TENANT; REPS: Michael Kors; Gary Dana and Rick Dana of Douglas Elliman TENANT; REP: Cresa New York; in-house representation LANDLORD; REPS: LCOR; Gregg Rothkin and Paul Milunec of CBRE Group Inc. LANDLORD; REP: The Propp Family; in-house representation by Rodney Propp LANDLORD; REP: RXR Realty; in-house representation BACK STORY: The financial-services firm doubled its lease at the 17-story building, where it will occupy space on the 15th and 16th floors, according to The Commercial Observer. BACK STORY: The fashion retailer will open a new flagship store at the three-story space in SoHo, according to The Commercial Observer. SQUARE FEET: 13,800 TENANT; REP: Strike Holdings Group; Daniel Fiskus of Norman Bobrow & Co. along neighboring Water and Front streets, knocking out power in many properties for weeks and ruining electrical equipment, building systems and other key infrastructure. The damage left several build- BACK STORY: The tenantrepresentation real estate firm will move from its headquarters at 100 Park Ave. to sublet space on the top floor of the 32story tower. ings uninhabitable for weeks or longer and raised questions about the neighborhood’s future, including whether office tenants would want to be in an area so prone to flooding in an era of rising seas. —daniel geiger http://www.CrainsNewYork.com/podcasts

Table of Contents for the Digital Edition of Crains New York - January 21, 2013

Crains New York - January 21, 2013
In the Boroughs
In the Markets
The Insider
Business People
Corporate Ladder
Opinion
Greg David
Real Estate Deals
Report: Small Business
Classifieds
New York, New York
Source Lunch
Out and About
Snaps

Crains New York - January 21, 2013