SL Green Realty Trust is preparing another of its noncore assets for market.
We’ve learned the real estate investment trust, or REIT, should pull in well over $300 million from a sale of 1372 Broadway as they have just retained the King of the Trophies, investment broker Douglas Harmon of Eastdil Secured, to market the 21-story tower.
Built in 1914 and renovated in 1999, the 550,000-foot Fashion Center building is 100 percent leased to Ann Taylor, Ross Stores, Li & Fung and others.
The building, which is at the northwest corner of 37th Street and Broadway, sits solidly between Times Square and Herald Square and has over 40,000 retail feet.
Area rents are escalating and as leases expire the next owner will get the upside by being able to reset rents to market rates.
No comments all around.
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After getting a taste of Big Apple trophies with its $1.8 billion purchase of 666 Fifth Ave., Kushner Cos. has decided to cash out of the majority of its residential portfolio to amass a $2 billion war chest for future office building purchases.
The Florham Park, N.J.-based Kushner, which is led by Charles Kushner and his son, New York Observer Publisher Jared Kushner, is selling multi-family properties in New Jersey, Pennsylvania, Delaware and New York state totaling 18,500 units. CB Richard Ellis’ Darcy Stacom and Bill Shanahan, along with Goldman Sachs, are handling the sale.
Kushner is keeping 6,500 residential units plus 6.5 million feet of office, industrial, hotel and retail facilities.
Last year, we exclusively reported that Kushner hired Goldman to peddle the portfolio to institutions as a financial play but the family decided not to sell.
“Last year, we weren’t sure we could find a 1031 [tax-free exchange property] and now we are seeing such an unbelievable deal flow that it won’t be an obstacle,” said Jared Kushner.
How to accomplish winning the deal? “You have to pay a little bit more than the next person,” he said.
This time around, Stacom says multifamily owners will be targeted and CBRE will facilitate organizing local buyers to bid for naturally grouping subportfolios.
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The 139 rental apartments at 530 Park Ave. and 61st Street are going on the market at Cushman & Wakefield, which expects it to rake in between $150 million and $200 million.
The building was previously home to Bianca Jagger, who sued the Katz family trust ownership when she claimed a substantial problem with mold forced her to move.
Expect record pricing per foot and per unit for this property that could be turned into condos or upgraded to become a top grade rental.
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After years of circling Manhattan, Shangri-La Hotels has landed in Aby Rosen and Michael Fuchs‘s building at 610 Lexington Ave.
The Slatin Report said yesterday the hotel company bought a 25 percent stake with Abu Dhabi currency through ING bank to build 207 rooms in the Norman Foster-designed condo tower that Rosen and Fuchs’ RFR Holdings is developing on the former YWCA site.
A Shangri-La spokesperson said they were not ready to make an announcement and Rosen offered no comment. Other sources confirmed they brought in Shangri-La as a joint venture partner.
Papers filed with the city on Monday also show that air rights were acquired and merged with 600 Lexington Ave.; a new corporate hotel acquisition entity took over the deed for $110.1 million, and mortgages were consolidated with Lehman Brothers for $145 million. RFR paid a mere $31.5 million to the YWCA in March of 2005.
“There are a whole host of overseas hotel companies that desperately are trying to get into major gateway cities with New York at the top of the list,” said hotel broker Daniel Lesser of CB Richard Ellis. “The fundamentals are superb and most of the developments have a residential component to them.”
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Greenhouse 26 will become the first green boutique hotel in the city when it opens next spring at 132 W. 26th St. with an expected Gold Leadership in Energy and Environmental Design or LEED rating. Other earth-friendly amenities include geothermal heating.
The 28-room, 19-story hotel is being developed by Jack Ancona and Flatiron Real Estate Advisors.
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Forest City Ratner’s MetroTech in Brooklyn is undergoing a renaissance as available space is starting to attract Manhattanites bouncing from sky-high office rents.
“For the first time since its inception, as the large leases roll over, the 10,000- to 20,000-foot user can be part of the MetroTech fabric,” said Glenn Markman, a Cushman & Wakefield broker who specializes in Brooklyn. “Those who live in Williamsburg and Dumbo are the people who are becoming the decision makers or are the vibe of the company.”
The Bruce Ratner-led FCRC has fed into the art world by continuously bringing in sculptures, art projects and concerts to the MetroTech Commons and it’s now paying off.
Rents are ranging from the high $20s a foot for 275,000 feet of sublease space at 4 MetroTech, which is being offered by J.P. Morgan Chase, to the high $30s in the newly built 12 MetroTech, above the floors housing the State Supreme Court, where deals for four out of five floors are pending.
There is also interest on 105,000 feet at 15 MetroTech. Among those searching are fashion forward and indie record labels, Markman said, noting that the firms also get the REAP benefit of a $3,000 per employee tax credit for 12 years worth about $15 a foot in rent.
