BARNEYS may be returning to its downtown roots, eyeing space in the Meatpacking district.
Sources tell us the high-end retailer has a lease out with Romanoff Equities for about 50,000 feet on West 13th Street in what was an old warehouse.
The retailer has been touring downtown and Meatpacking locations for at least a year, according to our sources.
However, no one responded to our queries seeking additional comment on the retailer’s plans.
Barneys was begun in 1923 on West 17th Street and Seventh Avenue by Barney Pressman.
The flagship moved to its current location at East 60th Street and Madison Avenue in 1993, and closed its original – but by then very expanded – shop in 1996.
*
Ashkenazy Acquisitions is getting another Plaza District gem.
The company, led by Ben Ashkenazy and Michael Alpert, is in contract to buy the 44 years left on the ground lease for 635 Madison Ave. on the northeast corner of East 59th Street from West Land for slightly under $70 million.
The yearly rent is about $1 million and will be paid to L&L Holdings which bought the “fee” – i.e., the ground – last year for $110 million.
The 1957-era office building is cater-corner to the GM Building and opposite 650 Madison Ave. – which the duo just closed on for $680 million. They also own 660 Madison Ave., where Barneys occupies the nine-story retail condo.
While 635 Madison’s 144,075 feet are 99 percent filled, its current below market tenant roster consists primarily of medical and jewelry firms, and retailers Searle and Di Modolo.
“We’re excited about owning another great Madison Avenue property and being able to have an opportunity to reposition the property in part by changing the tenant mix,” said Alpert, who declined to discuss other details.
The closing will take place in the third quarter.
*
As the hospitality industry grapples with the impact of sky-high fuel costs and a swooning economy, hotel guru Barry Sternlicht says hotel investors have another worry.
While Sternlicht sees “great investment opportunities” and plenty of equity for deals, there is no debt available.
Speaking at the 30th annual NYU International Hospitality Industry Investment Conference at the Waldorf-Astoria, Sterlicht called the subprime crisis just the “opening act – it’s like the credits to the movie, we have a long way to go.”
He predicted the industry will soon be hearing about billions of dollars in write-offs on commercial loans from regional banks.
He also warned that the crisis will intensify when the last of the three-year loans with two one-year extension options come due around 2010, if refinancing is still not available.
Meanwhile, at the same conference Donald Trump proclaimed, “This is the time to invest in real estate.” For three years, he’s been warning folks not to buy, but now, good buys are available through the lenders.
The developer, who just returned from the Middle East, said Trump International Hotels has deals going in 73 countries, including the one on the Palm in Dubai that will be launched at an event here at the Seagram’s Building Plaza on June 23.
*
In its first city purchase of apartments, Fort Lee, NJ, developer Orbach Group yesterday closed on 13 walk-up buildings on West 49th Street for $70 million.
Orbach bought the portfolio of buildings from owner Nathan Halegua, with broker Aaron Jungreis of his new firm, Rosewood Realty, representing Orbach.
The buildings have 253 apartments, of which about 125 remain under rent regulation, and seven stores opposite Worldwide Plaza.
Jungreis said it took just 11 days to put the package into contract.
Buyer Meyer Orbach called us from the closing and said they will renovate and upgrade the apartments. He financed about 70 percent through the New York Community Bank.
“We’re long-time clients and have a dozen or so loans with them and so they bent over backwards for us,” Orbach said.
Ralph Herzka of Meridian Capital acted as mortgage broker.
Orbach already owns office buildings in the garment district and about 3,000 apartments in Jersey and Pennsylvania.
*
In another deal for a crea tive company, the PR firm The Morris + King Co. has expanded its 3,000 foot digs into the entire 7,200 foot eighth floor of 101 Fifth Ave. in the Flat iron District.
Louis Buffalino from CB Richard Ellis repped the firm, while building owner Abe Talass, represented himself.
