Last Updated: 9:27 AM, June 13, 2012
Posted: 11:21 PM, June 12, 2012
A deal announced last fall between Ian Schrager and Durst Fetner Residential to build a ground-up Public Hotel in Herald Square is kaput.
Before speaking at a Crain’s real estate event yesterday in Midtown, Schrager told us the deal was no longer going forward but did not provide any details.
“We couldn’t make the financials of the deal work,” said Jordan Barowitz, a spokesperson for Durst about the future 855 Sixth Ave. “We are talking and meeting with other [hotel] people, and have been for a while.” The building is not yet designed, Barowitz said, because it’s “program first, design second.”
Meanwhile, Schrager said he is in contract for another, undisclosed site.
While he didn’t say where, during the panel discussion, Schrager said he likes the Bowery, and that the bar and restaurant action there “bodes well” for hotels and residential.
He’s not targeting the luxury market now, he told us, because people don’t want to spend more than $250 to $300 a night for a hotel room. “My sweet spot is [spending] $400,000 to $500,000 per room,” he added. He’s also looking at the mid-range 3.5 stars and at upgrading the food.
Schrager and Marriott International are also moving ahead with the conversion of the top of the Madison Avenue Clock Tower to an Edition Hotel.
C. Bradley Mendelson and Alan Schmerzler of Cushman & Wakefield took home The Most Creative Deal in Manhattan award last night for their 2011 transaction “The Leasing of the Times Square Theatre.”
As has been reported extensively by Post colleague Steve Cuozzo, the net lease for Broadway 4D Theater NY with The New 42nd St., which oversees all the Deuce theaters, took two years of “due diligence, negotiations, delays, compromises and deal restructurings” and will combine the Broadway spirit with new technology.
At the same cocktail event at the 101 Club, the Real Estate Board of New York presented a second award, for The Retail Deal Which Most Significantly Benefits the Manhattan Retail Market, to Scott M. Bloom of Bloom Real Estate Group for “55 Fulton St.– Key Food.”
The small supermarket was expanded tenfold to 30,000 square feet and will operate 24/7 to serve the growing residential lower Manhattan community. Key Food will also control the loading dock and elevator for deliveries.
Also downtown, in a direct deal, the brand strategy and communications design firm Addison signed a lease for 27,300 square feet representing the eighth and ninth floors of 48 Wall St., where it will move from 24,600 square feet at 20 Exchange Place. The asking rent was $35 per square foot.
The 48 Wall tower also signed a 10-year renewal for the 8,000 square-foot 20th floor for the law firm Conway, Farrell, Curtin & Kelly, which is giving up the 19th floor and was represented by Patrick Heeg of Jones Lang LaSalle.
Building ownership, a venture of Swig Equities and MacDonald & Cie, were represented in both deals by Jonathan Dean of Swig, bringing the building to 90 percent occupancy.
Morgan Stanley has renewed leases for two Harborside Financial Center buildings in New Jersey that total about 370,000 square feet — but sources said the deals were for less than three years. They renewed for about a year in Harborside 2 for 300,000 square feet and in Plaza 3 for a short term for just under 70,000 square feet.
The financial giant wanted some time to make other real estate decisions that may include backfilling into One New York Plaza across the river, where it recently recast a long lease for 1.2 million square feet that included 337,000 square feet of growth.
Sources said Morgan Stanley was represented by Barry Gosin and Brian Waterman of Newmark Grubb Knight Frank in these deals but could not be reached for comment. Mack-Cali represented itself in-house; a spokeswoman was traveling and could not be reached before deadline. The asking rent was a bargain for Class A space — in the high $30s per square foot.
Last week, Bank of Tokyo-Mitsubishi UFJ signed a 17-year, 3-month 100,274 square-foot expansion at Harborside to total 261,957 square feet through Fred Smith and Curtis Foster of Cushman & Wakefield.
The children’s art and party studio, Kids at Art, is moving to 1,000 square feet at 1412 Second Ave. for the next 10 years.
The 12-year-old business will be relocating in the late summer or early fall from 431 E. 73rd St.
Victor Menkin, of Menkin Realty Services, represented both sides of the deal. “We’ve worked hard to create an orientation towards children and families,” Menkin said of the co-op board building ownership, which had an asking rent of $100 a square foot, reflective of the ongoing subway construction. “The stretch has been impacted [by the subway construction], but in spite of the interference, it is very viable and the space is in demand.”
Among the other tenants are Cozy Cuts haircuts, Naturino's kids shoes, Greenstone’s children’s wear and the Style-licious, a tween/teen fashion store.
We misheard the rent for Jeff Sutton’s grand orchestration at 100 W. 125th St., where Burlington Coat Factory’s 15-year deal will bring in $60 million in rent and not $16 million.