The Middle East investment group that has been renovating the Argonaut Building at 224 W. 57 St. under a 99-year lease is now in contract to buy it.
No price is available, but it would likely be between $50 million and $100 million for the vacant, 164,800 square-foot landmark building.
An affiliate of the Beirut-based M1 Group signed a contract at the end of June with the Hearst Corp., which had previously transferred control through the long-term ground lease in 2008. This was M1’s first US investment. E-mails to M1 were not returned and as a private company, Hearst declined comment.
Since the ground lease in 2008, the 1909 building, designed by Francis H. Kimball, has been undergoing a complete $45 million renovation. Architects Gensler are targeting an energy-efficient LEED gold certification.
Colliers International is overseeing leasing on the 10-story European-style classical building. Some retail space is currently occupied by TD Bank. A 6,000-square-foot store on the ground floor has an asking rent of $225 a square foot and can be combined at lower rents with 10,000 square feet on the lower level and 13,000 square feet on the second floor.
Upstairs, seven 18,000 square-foot floors can be combined with a 4,800-square-foot penthouse to create a block of 130,800 square feet of office space.
Brokers at Colliers International did not return calls for comment.
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The rain in Spain was made of confetti on Sunday as the country celebrated its first World Cup victory. To spread the goodwill and increase visitors, the Tourist Office of Spain is now moving from its current location at 666 Fifth Ave. to the 53rd floor at One Grand Central Place at 60 E. 42 Street.
The former Helmsley office floor is nearly 8,500 square feet, said Fred Posniack of W&H Properties — the “H” standing for the Helmsley partners — the owners of the building along with the Wien and Malkin families.
Ira Rovitz of Grubb & Ellis was rooting for Spain while William Cohen, Ryan Kass and Alison Coffey of Newmark Knight Frank handled the work for W&H, which had a $60 a square foot asking rent for the space.
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In a 15-year, four-party deal, the United Nations Population Fund leased just under 131,000 square feet at 605 Third Ave. The turnkey space encompasses the fourth through sixth floors. The UN was represented by Andy Roos at Colliers International, who said the complicated transaction took 18 months to complete.
While the UN insisted on a longer direct deal with the Fisher Bros. ownership — represented in-house by Jack Whalen — eight years were left on an original lease to Nielsen, which had then subleased to Pfizer. The drugmaker, which was represented by Pat Murphy and James Ackerson of CB Richard Ellis — who declined comment — agreed to leave the entire installation including furniture and phones.
And since Pfizer wanted out of the floors, they worked cooperatively with the Fisher Bros. This enabled the UN to get a break with a lower blended rent that balanced the mid-$30s a square foot Pfizer rent with the mid-$50s a foot market rent needed by the Fishers.
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The New York State Office of General Services signed a nearly 38,000-square-foot 10-year lease for the entire eighth floor and a portion of the ninth floor at 501 Seventh Ave. Previously, OGS had subleased space from the New York Power Authority which renewed its own 15,000 square feet on the ninth floor.
Jonathan Fales of CB Richard Ellis handled the work for the W&H Properties, which is asking $45 a foot for the remaining 9,000 square feet on the ninth floor.
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Chelsea Star, a quirky hostel that also has private boutique rooms for those on tight budgets, is for sale for those with budgets north of $20 million. The 44-room hotel is on the southwest corner of Eighth Avenue and W. 30th Street right near Madison Square Garden and Penn Station. The three-building hotel includes 155 square feet of retail frontage with a current Subway eatery and three other tenants.
Robert Garrish and Sauders Ketcham of the CB Richard Ellis Private Client Group are handling the marketing. “It’s a solid hotel that’s performing strongly and you have 40,000 feet of air rights so there is a lot of future flexibility,” said Garrish.
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After closing stores a few years ago, contemporary furniture retailer Straight From the Crate is expanding again, leasing what is now its second Manhattan store at 295 Park Ave. South near E. 23 Street. The store will open in the fall. Its original store is at 1114 First Ave. at 61 Street.
Hal Shapiro of Winick Realty Group represented the tenant while Winick President Steven E. Baker and Michael Gleicher represented the ownership, Abington Holding, in the 3,100 square foot lease.
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Global law firm Shearman & Sterling renewed a secondary lease for 38,745 square feet on the third floor of 850 Third Ave. for the next five years. The bulk of the lawyers are docked in nearly 500,000 square feet at 599 Lexington, which is just down the E. 52 Street block.
Franklin Speyer, Amy Fox, William Fressle, Robert Gastel and Jonathan Luttwak of Cushman & Wakefield represented Shearman & Sterling in negotiations with Shorenstein Properties, the owner of 850 Third Ave., which was represented by C&W colleagues, Matthew Astrachan and Robert Galluci. Shorenstein Properties’ Kevin Kuzemchak worked on the deal in house.
Shearman & Sterling partner Chris M. Smith along with Ruth Lipshitz oversaw the lease negotiations while Robin Levitt Topol of Butzel Long represented the ownership. [email protected]
