Count out AIG as a tenant for the top
- the dudes and dudettes are still working
on desks from the 1950's. "Are they
that new?," asked one AIG employee.
The company does not spend money but is
still trying to figure out how to get the
dollars out of its three valuable Downtown
buildings without spending more money. It
is also sprawled at several other leased
locations. These are candidates for taking
a block of space at some old, funky building
Downtown. i.e. they missed the early boat,
and even the one that left at high noon.
Likely candidate for the top, one of the
major financial services firms - Goldman,
Merrill, Salomon. It will take ego to sign
a $30 million a year deal for office space
on top of the Stock Exchange tower that
won't be completed for three or four years.
But think of the bragging and natural advertising
that can be garnered by using the tower
as an icon and proclaiming: "Who knows
the market better? We're the only firm that
covers it 24 hours a day."
Peter Grant in the Wall Street Journal
says Tishman Speyer has the winning horse.
We agree. Brookfield has embarrassed politicians
with an insistence on their control of a
site in Battery Park City. They also have
too many projects downtown while Tishman
Speyer has none - and Jerry Speyer is itching
to build with or without a tenant. Remember,
he is also working on a deal with Durst
to develop some property.
Port Authority is culling bids. Charles
Bagli reported in The New York Times
that Silverstein Properties, Vornado, Boston
Properties and Brookfield Properties are
left standing. "Who in their right
mind would bid for the World Trade Center?,"
quipped Larry Silverstein with a sly grin
to his NYU Real Estate Institute Class,
the day that appeared.
We've now learned that Silverstein, not
known for his agressive bids, does know
the Port Authority through his ownership
of 7 World Trade Center. He knows how they
think, what they need and above all, how
to make it work for all. Thus, he's now
the leader in that race.
list includes Equity Office and Vornado
but most money is on Boston Properties walking
away with Rockefeller Center. And now they're
getting the money. On October 26 the company
announced it sold 15 million shares of stock
for a $556 million net through Goldman Sachs
and Morgan Stanley Dean Witter. The proceeds
will be used to fund a portion of "development
pipeline" i.e. Times Square Tower if
need be, and "to fund other land and
RFR contracted for the Seagram Building
on Park Avenue for $380 million.
Closing is expected by mid-December.
Bruce Brickman closed on November 7 on his
purchase of 660 Madison i.e. the
office condo portion over Barney's. Isetan,
the Japanese owner of the retailer sold
the piece for $108 million through Scott
Latham of CB Richard Ellis.
The Sharpe pieces
of the Carlyle Hotel are being scrutinized
by folks like the Taj Hotel group of India.
The hotelier formerly owned the Lexington
Hotel but now does not have a New York base.
Its deal for the Rihga Royal was
dissed by Strategic Hotel Capital. There
is too much work to be done, says our Royal
Spy. [One day we'll learn how to spell it
- and remember it for the next time.]
Deutsche Bank, perennially on the
prowl for 1 million sf, may actually mean
it this time.
Exodus, the Left Coast based web hosters
of sites like Priceline.com and Rollingstone.com,
are seeking 1 million sf in Jersey. The
firm already has two data centers there
- one in Weehauken and the other in Jersey