The Hunts Point produce market in The Bronx is suddenly getting the red carpet treatment from New Jersey, which wants it to move to the Meadowlands.
The members of the Hunts Point Produce Cooperative Association Inc. have already received a couple of visits from New Jersey Lt. Gov. Kim Guadagno. The latest came on Feb. 8.
At that time, sources said, the Garden State’s No. 2 elected official told the group of food wholesalers — who ring the cash register to the tune of $2.3 billion a year — that if they didn’t think New Jersey was serious about having them relocate, she would “have Gov. Chris Christie pay them a visit.”
Last fall, Gov. Christie even established a Business Action Center just to help businesses relocate to his state.
“It’s very compelling,” said one market source on condition of anonymity. “We feel like the belle of the ball being chased around. When you compare the State and City of New York’s stance in the last 10 years, it is like a breath of fresh air from New Jersey. We have a real race here because there are many people that want flat out to leave (the Bronx).”
According to sources, New Jersey wants the market — a cooperative association made up of some 40-odd companies with about 80 owners — to move to a site at the Meadowlands, where they could develop a state-of-the art refrigerated facility. The location has easy access to the highways, railcars and the air cargo needed to bring in and redistribute the majority of the fresh fruits and vegetables for the entire tri-state region.
The market moved from Manhattan to the Bronx in 1967 and its long lease with New York City for 660,000 square feet expires in May. For several years, the market’s leadership has been negotiating with the city’s Economic Development Corp. to build a new $300-plus million facility on its current 105-acre site at Halleck and Spofford streets in the Hunts Point neighborhood of The Bronx.
The market, now the largest in the world, brings in produce 24/7 and opens to wholesale buyers nearly every night, employing many locals in its 3,000 person workforce.
But many of the buyers and delivery trucks must now trek over the George Washington Bridge, and a move to New Jersey would eliminate those trips and tolls.
Additionally, recently implemented onerous rules pushed on the market by the City’s Business Integrity Commission have rankled the wholesalers.
Currently at Hunts Point, produce sits in emission-spewing refrigerated trucks because there’s no room left in the old fashioned, low-ceilinged warehouses. Rail cars have to be moved out of the way several times a day to let tractor-trailers make deliveries, while buyers may stack their purchases for hours on un-refrigerated loading docks. The market also never got the highway ramps it was promised, leaving large 18-wheelers prowling Bronx streets to find the site.
But talks about who will pay for the redevelopment have been slogging along for years, sending the market’s leaders to pursue other locations.
Newark Mayor Cory Booker has also made no secret of his desire to host the job-creating food market in an $800 million “Brick City” facility.
“It’s a real contest now,” said the market source.
Paul Mas of Jones Lang LaSalle who is advising the market on its search, and Matthew D’Arrigo, co-president of the co-op association, who heads his family company, D’Arrigo Bros., did not return calls for comment.
A spokesman for the market, Robert Leonard, confirmed Lt. Gov. Guadagno came to the market for a meeting. “We are in active discussions with New York and New Jersey to come up with the best deal both economically and in terms of infrastructure and facilities to help our members continue to deliver fresh produce to the region for decades to come,” Leonard said.
The market is also now seeking a new manager as J. R. McIntyre, who previously oversaw construction of the Atlanta airport, left early this month to pursue other opportunities.
Calls and e-mails to the New Jersey governor’s press office and its Business Action Center were not returned prior to press time.
Julie Wood, a spokeswoman for the city’s EDC, said, “We are continuing to work with our local, state and federal partners on a plan that will allow the produce market to grow and expand in the Bronx.”
*
Ocean Road Advisors, the investment and money management firm started by Edward Lee, the former CEO of Grey Global, has just renewed at the GM Building.
The firm added five years to its lease for 9,270 square feet that encompasses the entire 18th floor. The floor is the only one of its size in the building as it also houses mechanical space.
The tenant was represented by the CB Richard Ellis team of Keith Caggiano, Roshan Shah and Gregory Tosko. Owner Boston Properties was repped in-house by Andrew Levin. The building, one of the priciest in Manhattan, has asking rents of $125 to $200 a square foot.
We wonder, however, when and if Ocean Road will swap out the photo of the Chrysler Building on its Web site for its real office home.
*
In another high-rent-district lease, Pantheon, a private-equity fund of funds, will move into the newly renovated 1095 Ave. of the Americas on a portion of the 32nd floor. The floor has expansive city and river views and the 10-year deal for 9,380 square feet had an asking rent of $105 a square foot.
Pantheon, which will move from 245 Park Ave., was represented by CBRE’s Caggiano, Howard Fiddle and Arkady Smolyansky.
The Equity Office building owners were repped by another CBRE team of Chairman Robert Alexander, Scott Bogetti, Zach Freeman, Brian Hay and Robert Stillman.
*
In a SoHo deal, post production company Alanda is renewing and expanding from about 8,000 square feet at 530-532 Broadway to 13,573 square feet. The company, now situated on the entire fifth floor, will also take over the entire fourth floor.
Here, the CBRE team of Shah and Caggiano represented the tenant. Building owner Thor Equities had an asking rent of $60 a square foot and was represented by Christel Engel of Colliers International.
*
Italian fashion house Bosselli intends to make a city splash with a triplex flagship at 717 Fifth Ave. In a statement, CEO and Designer Vincenzo Francis Bosselli said the company intends to spend $40 million on the construction of a store and five-star restaurant. However, it is still negotiating with retail guru Jeff Sutton to seal the deal for the space that was formerly occu pied by Escada. Sutton could not be reached for comment.
Bosselli has celeb clients. “The new Fall 2011 luxury-priced Bosselli collections for men and women will include outerwear, custom suits, ready-to-wear, dresses, handbags & shoes, some with 14-carat gold trims, and eyewear,” its statement said. [email protected]
