Crains New York - April 15, 2013 - (Page 12)

REAL ESTATE DEALS 125 Broad becomes a downtown darling I n recent months, downtown Manhattan has seen an influx of tenants from the pricier uptown latitudes of midtown, and more recently midtown south, who are eager to take advantage of downtown’s lower rents. At the same time,as the case of Loeb Holding Corp.demonstrates, many downtown tenants are keen to stay put for much the same reason.The financial firm recently inked a lease for 22,000 square feet, half of the 40story tower’s 14th floor, at 125 Broad St. Under the lease, Loeb will move in for 15 years and 10 months at rents in the $30s per square foot. The firm will move over from 61 Broadway. The deal is notable for Mack-Cali, the New Jersey-based REIT that owns nearly half of the 1.3 millionsquare-foot tower. Law firm Sullivan & Cromwell owns the bulk of the remainder. The new lease fills the final pocket of the roughly 580,000 square feet that Mack-Cali controls at the property. During the recession in 2009 and 2010, all of the space became vacant when leases expired for several longtime tenants, including Citibank, which left behind 385,000 square feet. But as interest has picked up in lower Manhattan, occupancy has Looks still count at Chrysler bold statement. In opening its first New York office, the D.C.based law firm Lewis Baach, however, managed to get both great transit links and a bold address. The firm has inked a fouryear lease for 3,900 square feet on The tried-and-true blocks around Grand Central Terminal have long drawn tenants looking for great transportation links—more than those looking to make any sort of 12 | Crain’s New York Business | April 15, 2013 bounced back dramatically at 125 Broad St. Mark Ravesloot, a broker at CBRE Group Inc.who has handled deals in the building for Mack-Cali, has filled the space during the past year and a half with tenants including AXA Insurance and Continental Casualty Co. Mr. Ravesloot attributed the activity not only to the building’s low rents, but also other perks offered by Mack-Cali. “One of the advantages that we had was that Mack-Cali has the resources to take on the construction work for tenants and build great space,” he said. Mr. Ravesloot represented Mack-Cali in the deal with Loeb, in partnership with CBRE broker Pete Turchin. Bob Savitt, chief executive of the real estate brokerage and ownership company Savitt Partners, worked with CBRE broker Scott Bogetti to represent Loeb. —daniel geiger the 32nd floor of the Chrysler Building, where asking rents are in the $60s per square foot. For the newcomer, the silver-topped, 83year-old Art Deco spire was the perfect choice. “Optics were important to them,” BARE BONES 425 LEXINGTON AVE. 28 & 40 W. 23RD ST. 277 BLEECKER ST. ASKING RENT; TERM: Undisclosed; 20 years ASKING RENT; TERM: $64 per square foot; 10 years ASKING RENT; TERM: $300 per square foot; 10 years SQUARE FEET: 220,000 SQUARE FEET: 630 TENANT; REPS: AppNexus; Mark Weiss and Rob Eisenberg of Newmark Grubb Knight Frank TENANT; REP: Studio Manhattan; Ava Kim of Oxford Property Group SQUARE FEET: 595,000 TENANT; REPS: Simpson Thacher & Bartlett; Lewis Miller and Ken Rapp of CBRE Group Inc. LANDLORD; REP: Hines U.S. Core Office Fund; inhouse representation BACK STORY: The international law firm renewed its lease for 26 floors in the 31-story building across East 43rd Street from the Chrysler Building. LANDLORD; REPS: 23rd Street Properties; Michael Cohen and Andrew Roos of Colliers International BACK STORY: The digital firm extended its lease and added 130,000 square feet. It will move into the new space in the third quarter. said Scott Galin, a principal at Handler Real Estate Organization who, along with colleague Darell Handler, represented Lewis Baach in the lease. Gregory Conen, a leasing exec- LANDLORD; REP: 277 Bleecker; Steve Rappaport of Sinvin Real Estate BACK STORY: The leather-goods store will decamp to the West Village from South Street Seaport, where the site of its old store will be redeveloped. utive at Tishman Speyer, the owner of the Chrysler Building, arranged the deal in-house on behalf of the landlord. —daniel geiger

Table of Contents for the Digital Edition of Crains New York - April 15, 2013

IN THE BOROUGHS
IN THE MARKETS
THE INSIDER
BUSINESS PEOPLE
CORPORATE LADDER
OPINION
STEVE HINDY
GREG DAVID
REAL ESTATE DEALS
REPORT: SMALL BUSINESS
THE LISTS
CLASSIFIEDS
NEW YORK, NEW YORK
SOURCE LUNCH
OUT AND ABOUT
SNAPS

Crains New York - April 15, 2013