The lead indicaTor

Sam chandan Parses
Mayor’s new Budget
leaSe BeaT
717 Fifth avenue
80 Pine Street ❯❯
May 11, 2010 The Weekly NeWspaper of NeW york’s CommerCial real esTaTe iNdusTry $7.00
Markets Move. Strength Endures. NEW YORK CITY’S LARGEST OWNER
212.594.2700 |
claSh oF The TiTanS
durst, Zuckerman and ross
Vie for Stake in 1 World Trade ❯❯
IN NEW YORK REAL ESTATE | the commercial observer 2 May 11, 2010
4 The Week in Real Estate
By Roland Li, Dana Rubinstein
and Eliot Brown
Three heavies vie for private
stake of One World Trade; SL
Green does two deals with the
12 Concrete Thoughts
By Robert Knakal
What’s been holding invest-
ment sales back, and where
they’re headed now.
14 The Lead Indicator
By Sam Chandan
The mayor’s released his bud-
get, complete with service cuts.
Now what?
16 The Op-Ed
By Steven Spinola
Be vigilant, real estate! A lot
ahead as government at all lev-
els tinkers.
18 Calendar
By Jotham Sederstrom
The week ahead in events.
19 Lease Beat
By Roland Li and Emily
* 717 Fifth Avenue
* 30 Orchard Street
* 655 Madison Avenue
And dozens more of the latest
commercial leases in New York.
26 Observer Power 100
Our annual list of the 100 most
powerful people in New York
real estate.
480 0ɒces - 6J CounIries - $2 Billion in Revenue - J5,000 Employees - 2.4 Billion SF Under HanagemenI
in this week’s issue Vol. 2, no. 18
Jody and Douglas Durst,
No. 8 in the Power 100.
ON THE COVER: Photo-illustration by Joe Zef Design.
the commercial observer | May 11, 2010 3
17,320sq. ft. FULL FLOORS
David A. Falk EVP and Principal 212-372-2271
Peter T. Shimkin Sr Managing Director 212-372-2150
Daniel L. Levine Managing Director 212-372-2319
Larry A. Swiger SVP 212-216-1628
Christopher A. Gulden VP 212-356-4105
Demandi ng Qual i t y.
Del i ver i ng Val ue. | the commercial observer 4 May 11, 2010


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Jared Kushner, Publisher
Robyn Weiss, Associate Publisher
Kyle Pope, Editorial Director
Tom Acitelli, Editor
Eliot Brown, Dana Rubinstein, Staf Writers
Robert Knakal, Sam Chandan, Columnists
Jotham Sederstrom, Emily Geminder, Roland Li Contributing Writers
Nancy Butkus, Art Director
Tyler Rush, Production Manager
Chris Cronis, Copy Editor
Peter Lettre, Photo Editor
Lisa Medchill, Advertising Production
Christopher Barnes, President, Observer Media Group
Barry Lewis, Exec. Vice President, Observer Media Group
Brian Cohen, General Counsel
Steve Goldberg, Senior Vice President Sales
Ken Newman, Director of Classifed Advertising
the week in real estate
may 3 - may 10
Clash of the titans
Over One world trade
In late April, the race to buy a
stake of One World Trade Center
narrowed to three old names in
New York real estate.
The trio left to fght it out, down
from an original six: Mort Zucker-
man, Douglas Durst and Stephen
Ross—the chairmen of Boston
Properties, the Durst Organiza-
tion and the Related Companies,
respectively. Each has amassed a
giant war chest intended to buy
up new properties, and each pro-
claims they covet the idea of being
the public face for what will be the
city’s tallest building.
The contest is less about the f-
nancials—each has ofered around
$100 million in a deal that could
bring a greater return than a stan-
dard equity stake—and more about
bringing in a big name with the ability to
score tenants and help guide construction
for the government-developed building still
largely known as the Freedom Tower.
According to multiple people familiar with
discussions between the Port Authority, the
tower’s developer, and the bidders, their respec-
tive pitches have highlighted the following:
• Mr. Ross, the builder of the Time War-
ner Center and owner of the Miami Dolphins,
has positioned himself as a seasoned builder
who works well with government and has an
international presence (Related
has noted that it has ofces in Chi-
na and the Middle East.) He has
partnered on the deal with David
Levinson, chairman of L&L Prop-
erties and a former ofce broker,
and people involved say Mr. Ross
has been an aggressive salesman.
• Mr. Zuckerman has pushed
his experience as a national ofce
developer and landlord, one who
works extensively with govern-
ment tenants—One World Trade
is slated to be more than one-
third flled with federal and state
ofces. He nearly put up a tower
on Eighth Avenue this past cycle
before one of the two anchor ten-
ants dropped out, and he has a
signifcant presence in Boston and
• Mr. Durst has advertised his
company’s recent successes. He
built and fully rented out two gi-
ant midtown ofce towers, most
recently the highly successful Bank of Amer-
ica tower in midtown. Mr. Durst tends not to
do layofs at his company, and thus the leas-
ing and construction team that worked on
Bank of America is still in place.
In efect, the Port Authority is looking for
a building manager with a small stake—a
household name in the real estate world who
will be able to draw both international and lo-
cal tenants.
“We really do want a private spokesper-
son for this project, and we want to know that
by rOland li
the commercial observer | May 11, 2010 5
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Rockefeller Center, New York | the commercial observer 6 May 11, 2010
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Accountants and Advisors to
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there’s going to be very signifcant allocation
of time from these developers,” said Tara Sta-
com, vice chairman at Cushman & Wakefeld,
the frm handling leasing for the tower and ad-
vising on the developer sale. “This is a global
icon, and we intend to brand it as such.”
For Messrs. Durst and Zuckerman, the re-
cent history of bidding on major public proj-
ects may be troubling: Mr. Ross tends to win.
Related, which seems to bid on most every
large development going on in the city, edged
out Mr. Durst to win control of the 26-acre
West Side rail yards in 2008, and then tried to
woo the tenant Mr. Durst had signed to his los-
ing bid: Condé Nast. In 2005, Mr. Ross bested a
bid by Mr. Zuckerman to expand Penn Station
into the Farley Post Ofce, a project that also
envisioned a new ofce tower.
The three also once courted a single tenant
in a contest a decade back, according to a New
York Times article then: All three ofered plans
to build a tower for Random House. Again, Mr.
Ross won.
Here, however, he has less experience than
the other two in building ofce towers—al-
though his partner, Mr. Levinson, owns sig-
nifcant ofce space—and he also has far more
going on elsewhere, which could prove a dis-
The next stop for the developers: the Port
Authority board. The authority, which expects
to take a loss on the tower given its tremen-
dous $3.2 billion cost, expects that the teams
will each present to board members before its
June meeting, when it hopes to make a selec-
tion. —Eliot Brown
SL Green Covers Deals with
Maple Leaf
SL Green, New York’s largest commer-
cial landlord, has found some deep-pocketed
funders north of the border.
The Canada Pension Plan Investment Board,
which manages a staggering $123.9 billion in
pension money, is SL Green’s joint investment
partner in two of the three signifcant transac-
tions that the REIT announced on May 10.
SL Green is selling a 45 percent interest
in 1221 Avenue of the Americas to the fund
for $576 million; and the fund is taking a 45
percent stake in 600 Lexington Avenue, the
scraper SL Green just bought from the Cali-
fornia-based Hines for $193 million. SL Green
also announced a deal to acquire from Shoren-
stein Properties 125 Park Avenue, overlooking
Grand Central, for $330 million.
The $500 million in net proceeds that SL
Green said it expects to make from the 1221
Avenue of the Americas interest sale will
be used in the purchases of 600 Lex and 125
In a statement, SL Green’s CEO Marc Holli-
day made a point of acknowledging the frm’s
new partnership with the Canadians: “In the
case of 600 Lexington Avenue, we hope that
this transaction marks the beginning of a long
and mutually benefcial relationship with CP-
The beginning of a beautiful friendship?
—Dana Rubinstein
the week in reaL eState
Stat of the Week

Echo in the Flatiron

With just under 40 million square feet of inventory, the Flatiron submarket is by far the
largest in Midtown South. With few Class A buildings, it has been the 25 million–square–
foot Class B segment (second largest of the 14 submarkets in Manhattan) that has been
the neighborhood’s engine. That engine has sputtered lately, with the Class B vacancy rate
climbing to 16.2 percent in April, up 100 basis points from March and the highest fgure in
15 years.
What’s responsible? Reed Elsevier adding 68,000 square feet of sublease space to the
113,000 feet it already had on the market at 360 Park Avenue South. The Class B Flatiron
asking rent, not surprisingly, has taken a nosedive, closing April at $39.60 a square foot,
27.1 percent of the record high of $54.30 set in June 2007.
—Robert Sammons of Cassidy Turley
the commercial observer | May 11, 2010 7
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2nd floor measuring 3,977 sf
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available November 1, 2010
Loeb, Block & Partners LLP
26,275 sf on the 7th and 8th floors
represented by
Chris Kraus and Robert Taylor
Jones Lang LaSalle
Montrose Accounting Company, LLC
5,743 sf on the 20th floor
represented by
Joel Burris
Brown Harris Stevens
Compass Global Investments, LLC
4,165 sf on the 4th floor
represented by
Ruth Colp-Haber
Wharton Property Advisors
Cushman & Wakefield, Inc.
is pleased to announce the following
transactions on behalf of
G.S. 505 Park, LLC, a member
of the Glorious Sun Group:
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T. 212.841.7843
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East Harlem
Project Under Way
Construction started on the frst phase of a
$700 million multiuse development in East Har-
lem, The Real Deal reports. The development, at
the corner of 125th Street and Third Avenue,
will include 800 housing units, 600 of which will
be for low- and middle-income families; 50,000
square feet of retail space; a 98,000-square-foot
hotel; and 250,000 square feet of ofce space.
The development has received funding from
private investors as well as from the city’s De-
partment of Housing Preservation and Develop-
ment and the State Department of Housing and
Community Renewal.
Report: Hotel Revpar Rising
Manhattan hotel occupancy will increase
to 84.4 percent in the next fve years, accord-
ing to a report by The Real Deal. Revenue per
available room, or revpar, will rise to $303 in
2015, after a decline of 6.5 percent this year
and 0.5 percent next year. The report used
data from the consultancy HVS.
Billy Macklowe Going Solo?
Billy Macklowe is reportedly planning to
leave his position running Macklowe Proper-
ties, the decades-old concern formed by his
father, Harry, that has experienced several
fnancial setbacks in recent years, including
the loss of the GM Building. Several sources
told Crain’s that the younger Mr. Macklowe
has been scouting ofce space and recently
reached a deal to rent at Tower 56 at 126 East
56th Street—a tower the Macklowes once
JLL Tapped for
350 Madison
Jones Lang LaSalle was selected as the
leasing agent for 350 Madison Avenue, a
400,000-square-foot ofce and retail tower.
Available spaces range from 70,000 to 7,000
square feet. Landlord Kenscio Properties is
renovating the property, adding a new exte-
rior curtain wall and a waterfall in the lobby.
Eric Reimer, Barbara Winter, Gregory Green
and Mercedes Fernandez of JLL will handle
the property.
J.F.K. Warehouse
Developer Vista Realty Partners is set to
break ground on the frst industrial ware-
house project at Kennedy Airport in more
than a decade, reports The New York Times.
The air cargo warehouse, which may include
ofce space, will be up to 110,000 square feet
on 5 acres on the northern edge of the airport.
Asking rents are around $13 per square foot.
The industrial market around Kennedy is one
of the strongest in the world, according to Co-
Star Group.
the commercial observer | May 11, 2010 9
For leasing information,
please contact:
Looking for a
Grab the Power Seat:
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Headquarters Available | the commercial observer 10 May 11, 2010
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We are a national team of dedicated commercial real estate professionals
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Midtown at No. 26
London’s West End remains the world’s
most expensive ofce market, but Hong
Kong’s Central Business District has risen
to second place, according to CB Richard El-
lis. Tokyo’s Inner Central is third, Mumbai is
fourth and Moscow is sixth. Midtown Man-
hattan is just 26th globally, with occupancy
costs at $64.51 per square foot. Overall, costs
are down 4.6 percent over the 12 months end-
ing on March 31. Latin America, led by Brazil,
was the only region to increase in costs over
that time period.
New School’s New Building
The New School will build a $353 million,
16-story building, the school’s largest con-
struction project in Greenwich Village, re-
ports The New York Times. The brass-and-
glass tower will be at Fifth Avenue, between
13th and 14th streets, with lecture halls, an
auditorium, academic spaces and a 600-bed
dormitory. The school does not expect much
opposition, since it is building on a site that
it owns and will not have to demolish private
Bonds for Harlem Hotel
Former NFL star Emmitt Smith plans to
build a hotel in Harlem, and city ofcials sup-
port awarding $19.8 million in federal tax-ex-
empt bonds to fund the project, reports The
Wall Street Journal. The project, a 200-room
luxury hotel and retail project at 125th Street
and Lenox Avenue, would cost $80 million.
The New York City Capital Resource Corp.,
controlled by Mayor Bloomberg, concluded
the development team should get fnancing. A
hearing will be held in June, followed by a for-
mal vote. Construction must being by the end
of the year to qualify.
Gosin Buys Hauspurgs’
Newmark Knight Frank principal and CEO
Barry Gosin bought the Westchester estate of
Eastern Consolidated’s founders, Peter Haus-
purg and Daun Paris, for $9.4 million, reports
The Real Deal. The 26-acre parcel includes three
residential buildings, a pool and a two-story
pool house at 617 Croton Lake Road in Bedford
Corners. Mr. Hauspurg said the property was
too big for him and his wife after their children
moved out. The deal closed on April 8.
JLL Poaches Cushman
The top Cushman & Wakefeld investment
sales team of Richard Baxter, Scott Latham,
Ron Cohen and Jon Caplan (pictured l-r)
jumped to a similar role at Jones Lang La-
Salle. At the same time, Cushman announced
that Andrew Merin, a vice chairman of the
frm and one of its leading investment sales
brokers, would expand his team’s coverage
into Manhattan.
tHE wEEk iN rEaL EStatE

City Sees
Ofce rents
through ’11
Within the
Bloomberg admin-
istration’s proposed
budget, released May
6 for the fscal year
starting July 1, there
are some prognostica-
tions about the ofce
market for the next
year: Rents have hit
bottom and will stay
fat, as vacancy will
rise and then fall.
From the budget summary, created by the Ofce of Management and Budget:
“While employment losses are expected to subside in 2010, there is signifcant risk that
additional supply will cause the market to stay soft. As a result, vacancy rates will average
12.9 percent in 2010 and only gradually improve in 2011, remaining at an elevated level in
the out-years as new supply comes on line. The increased vacancy rate has already caused
asking rents across the primary market to fall from an average of $85 per square foot in
mid-2008 to $62 per square foot in the frst quarter of 2010.
“As vacancy rates stabilize in 2010, asking rents are not expected to fall signifcantly go-
ing forward, but increases are not likely either. Even though the commercial rental market
appears to be nearing its trough, commercial sales are expected to improve only slightly
compared to the dismal performance in 2009, when only fve transactions valued at over
$100 million were recorded. Weak credit markets and a general aversion to commercial
real estate investment will keep investors at bay in the near term.” —Eliot Brown
the commercial observer | May 11, 2010 11
Two Contiguous
Full Floors of
30,000sf Each
Pre-builts from
3,900 to 15,600 sf
Paul N. Glickman
Steven S. Bauer
Andrew F. Wiener
Matthew R. Astrachan
Barry J. Zeller
LAST BUT NOT LEASED. | the commercial observer 12 May 11, 2010
Robert Knakal
ExEcutivE Summary
➤ Sales decline was caused by sup-
ply constraint as discretionary sellers
➤They’re returning as advantageous
loan terms for distressed properties
burn of or mature.
➤The volume of 1031 exchange pur-
chases is increasing—another sign of
sales volume rising.
➤Sales activity could increase by at
least 40 percent this year.
e in the investment-sales sec-
tor are painfully aware of the
anemic sales volume our mar-
ket experienced in 2009. The number
of sales diminished from its peak by
74 percent, and the total dollar vol-
ume of sales was of by 91 percent. By
any measure, these fgures represent-
ed record lows for at least 26 years
and, perhaps, longer. The perception
held by many observers was that this
lack of volume was caused by either
a lack of demand or a very wide “bid-
ask spread,” indicating that the level
of expectation of buyers and sellers
was sufciently far apart to bring a
halt to trading activity.
It has been my opinion, however,
that this lack of volume was caused
more by supply constraint than a
lack of demand or the oft-mentioned
bid–ask spread. There were simply
not many properties for sale. Nor-
mally, the supply of available prop-
erties for sale is fed by discretion-
ary sellers. As value began to drop
in 2007, these discretionary sellers
withdrew from the market. When
this happens, distressed sellers usu-
ally swoop in to fll the void and add
supply to the market. This did not
happen in numbers anywhere near
what most participants in the mar-
ket were expecting.
Fortunately, today we are seeing
a loosening in the supply of prop-
erties for sale, as distressed assets
are beginning to fow in a tangible
way, and discretionary sellers are
returning to the market. In order
to understand why this dynamic is
occurring, we should take a look at
what caused the supply constraint.
here was never a doubt in any-
one’s mind that New York City
was chock-full of investment
properties that were fundamentally
underwater. These properties had
mortgage-debt balances in excess of
their value. Based upon the average
reduction in value, from the 2007
peak, of 32 percent and the very
high total loan-to-value ratios that
were obtainable in 2005 through
2007, in both the sales and ref-
nancing markets, Massey
Knakal estimated that ap-
proximately 15,000 prop-
erties were in this nega-
tive equity or distressed
position. This total repre-
sented about 9 percent of
the stock of 165,000 New
York City properties we
track on an annual basis.
On these 15,000 dis-
tressed properties, there
was approximately $165
billion of mortgage debt,
we estimated. Based upon
current standards, with
today’s values and loan-to-value ra-
tios, a conservatively underwritten
market would have only $65 billion
in debt on these properties. While
this may be reality, it is clear that
$100 billion will not come out of the
market in the form of losses.
The reasons for this include the
facts that (1) some of these proper-
ties can still cash-fow at 110 percent
or 120 percent loan-to-value ratios;
(2) some owners have alternative
sources of capital and, if they want
to own the asset on a long-term ba-
sis, can feed a property that is in a
negative cash-fow position; and (3)
some lenders will modify loans to al-
low the existing owners to hold on.
Because of these possibilities, we
expect total losses to reach $30 bil-
lion to $40 billion. About $15 billion
in losses have already been realized,
so we should have $15 billion to $25
billion to go.
So why haven’t we seen a more
signifcant fow of these distressed
assets in the market? The answer:
Everything that has happened from
a regulatory perspective has al-
lowed lenders and special servicers
(who are the primary holders of dis-
tressed assets) to avoid having to
deal with their problem properties.
Changes to FASB’s mark-to-market
accounting rules are one of the is-
sues; another is signifcant modifca-
tions to REMIC guidelines that pro-
vide servicers and special servicers
much more latitude in dealing with
underwater CMBS loans. Bank regu-
lators are allowing portfolio lenders
to hold loans on their balance sheets
at par even if they know the collater-
al for the loan is worth only 60 cents
on the dollar. And many transac-
tions that are fundamentally under-
water are still hanging on
by a thread due to advan-
tageous mortgage terms.
These include interest-
only periods during which
no amortization is added
to the debt service pay-
ment; interest reserves
upon which distressed as-
sets can stay current even
without sufcient current
net income; and interest
rates foating over LIBOR,
which opened the morn-
ing of May 10 at 34 basis
For example, I analyzed a portfo-
lio for a client of mine last week who
paid about $100 million for a port-
folio a few years ago. The total debt
is about $85 million and, today, the
properties are worth about $65 mil-
lion. Even with a $20 million nega-
tive-equity position, the portfolio
is cash-fowing because the debt is
foating at 150 over LIBOR. Consid-
ering the mortgage rate is 1.84 per-
cent, it is not difcult to see how pos-
itive cash fow is obtained. Mortgage
maturity becomes a critical factor in
the fate of these properties. At ma-
turity, no lender will extend and pre-
tend at such a low interest rate.
As these advantageous loan terms
burn of or these loans mature, it
will trigger steps likely to bring dis-
tressed assets to market. We are al-
ready seeing this occur in a substan-
tial way.
Consider that Massey Knakal’s
Special Assets Group has completed
the valuation of nearly 1,200 pieces
of underlying collateral for suspect
loans on behalf of lenders and spe-
cial servicers thus far in this cycle.
From September 2008 through Sep-
tember 2009, we obtained just 12
disposition assignments within this
sector. Since then, we have been re-
tained to sell 78 distressed assets.
These assignments have included
note sales, short sales and REO sales.
Clearly, this increase in distressed-
asset fow is palpable.
he reasons for this increased
fow are numerous. Profts at
banks have been enormous,
as the Fed’s highly accommodative
monetary policy is allowing for the
recapitalization of the banking in-
dustry. These profts have allowed
lenders to incrementally write
down bad loans, making it less pain-
ful to dispose of distressed assets.
As we have been in the downswing
of the cycle for more than two years
now, we are seeing advantageous
loan terms burning of, prompting
action. Many foreclosure actions are
beginning to run their course, allow-
ing lenders to ofer deeds on their
distressed assets. Note sales are also
gaining in popularity, as lenders and
special servicers are becoming in-
creasingly frustrated with the cum-
bersome foreclosure process in New
York. This can take two, three or
even four years to complete. Lenders
and special servicers that operate in
states like Texas and Georgia, where
the foreclosure process can be com-
pleted in 30 to 90 days, can’t fathom
the length of the process here. When
they become aware of the signifcant
recoveries possible relative to col-
lateral value, a note sale becomes an
easy decision.
While we are seeing a solid in-
crease in the supply of distressed
assets, we believe this fow could in-
crease substantially if interest rates
rise. Many economists argue that
the Fed’s exit from the marketplace
would increase rates. When the Fed
ceased its asset-buying program,
which created $1.25 trillion of mort-
gage-backed securities and treasury
sales, we saw the 10-year T-bill rise
from about 3.5 percent to more than
4 percent. About two weeks ago, the
Fed announced that a second meth-
od of exit would begin soon, as it em-
barks on a program to sell nearly $1
trillion of assets over an extended pe-
riod. This would normally exert up-
ward pressure on rates.
Today, the 10-year has settled back
down at 3.6 percent, as the turmoil
overseas in Portugal, Ireland, Italy,
Greece and Spain has created a fight
to safety, and the U.S. T-bill is at the
top of that list. It will be interesting
to see if the recent announcement of
an E.U. bailout abates some of this de-
mand for quality and safety.
The fundamentals within the mar-
ket appear to be improving, as posi-
tive absorption in residential and
commercial buildings have caused
concessions to be reduced, and rents
have appeared to stabilize. These
improving fundamentals have cre-
ated incentive for some discretion-
ary sellers to add to the supply of
available properties for sale. We are
seeing the results of this discretion-
ary selling refected in the increase
in 1031 exchange activity. Distressed
selling produces no 1031 activity,
as there is simply no equity to rein-
vest. Discretionary selling produces
residual equity, which produces ex-
change transactions. This activity
had all but evaporated over the past
couple of years, but has come roar-
ing back based upon the return of
discretionary sellers to the market.
The increases in the supply of
properties available for sale, from
both distressed and discretionary
sellers, have thus far been met step-
for-step by the excessive demand
present in the market. New York
families and high-net-worth inves-
tors, both domestic and foreign,
have been joined by a resurgence of
institutional capital, creating tre-
mendous demand. Now, 1031 buyers
have joined the party.
These dynamics bode well for the
balance of 2010 and substantiates
the projection we made at the end
of last year, that sales activity would
increase by at least 40 percent this
year. This would be a welcome oc-
currence for those of us who lived
through 2009 and rely on transaction
volume for our livelihood.
Robert Knakal is the chairman and
founding partner of Massey Knakal
Realty Services and has brokered the
sale of more than 1,050 properties in
his career.
Discretionary sellers return! Sales activity picks up;
further evidence: 1031 exchanges
Spring Thaw
Today, the 10-year T-bill has
settled back down at 3.6 per-
cent, as the turmoil overseas
in Portugal, Ireland, Italy,
Greece and Spain has cre-
ated a fight to safety.
concreTe ThoughTS
the commercial observer | May 11, 2010 13
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ExEcutivE Summary
➤ Mayor’s proposed $62.9 B. FY 2011
budget included cuts and higher fees
for services.
➤ City expenses for the current year
projected to be $523 million lower
than forecast.
➤ The mayor has not pushed for tar-
geted tax increases on higher incomes
to go along with the cuts.
➤ He’s right to have not: High-income
New Yorkers can split the city.
he dramatic and often trag-
ic events unfolding in Greece
have highlighted that the cur-
rent debt crisis is not isolated to the
world’s private borrowers.
In Europe and in the United
States, governments at all
levels are having to grap-
ple with the consequences
of long-standing fscal mis-
management just as house-
holds and commercial real
estate investors are ad-
justing their own balance
While recent weeks’ at-
tention has been focused
on Europe and the poten-
tial for the Olive Belt’s cri-
sis to spill over into global fnancial
markets, our own fscal challeng-
es have been coming to a head on a
smaller scale here at home. In the
shadows of Greek protests and the
stock market roller-coaster ride, the
budgetary hurdles still facing New
York City were made apparent last
week, when the mayor kicked of the
next fscal year’s budget debate.
Our city faces a defcit for the up-
coming fscal year, and our elected
ofcials must determine how to close
the gap. And so the mayor’s $62.9
billion fscal year 2011 budget pro-
posal, unveiled May 6, includes myr-
iad cuts to city services and higher
fees for a host of public services.
The city’s teaching rolls may lose as
many as 6,400 educators through a
combination of attrition and layofs.
In sum total, the budget proposal re-
duces city expenditures by just over
$600 million, or 1 percent of current
As the mayor’s ofce has been
quick to point out, the city’s pre-
dicament follows in part from even
deeper cuts in Albany. Grappling
with a gaping $9 billion budget
shortfall, the governor has proposed
a $1.3 billion reduction in state sup-
port for the city. The state’s new fs-
cal year began on April 1, but dis-
agreements in the state capital have
precluded passage of a budget in the
Legislature. The state has been op-
erating under emergency spending
bills since the March 31 deadline for
a formal budget. Governor Paterson
has threatened to furlough state em-
Governor Paterson’s ofce has
questioned whether the mayor’s pro-
posed cutbacks are necessary. Hard
hit by the downturn on Wall Street,
and as a result of the proposed state
funding cut, the city would face an
even larger spending pullback were
it not for its relatively more disci-
plined management of the public f-
nances to date. In 2008, the city had
a cumulative surplus of $8 billion,
built up during six years when city
operations were in the black.
Although not meeting
the requests of every con-
stituency, the mayor has
been a very able steward of
our public purse when few
others can say the same.
And he has remained pru-
dent through the down-
turn: Total city expenses
for the current year are
projected to be $523 mil-
lion lower than forecast in
January. The city is in im-
measurably better health
than during the fscal crisis
of 1975 and the creation of the Mu-
nicipal Finance Assistance Corpora-
tion (MAC).
o ensure that the city can ulti-
mately return to fscal balance,
the mayor has had to embrace
politically unpalatable reductions
in services, including the aforemen-
tioned pruning of the teaching ranks.
And while cuts to libraries, seniors
centers and fre companies have
served to contain the city’s shortfall,
they have not been matched with
corresponding tax increases.
Given the current political cli-
mate, the absence of targeted tax in-
creases for high-income earners and
proftable fnancial-services frms
has prompted suggestions of bias.
On Friday, The Wall Street Journal
quoted City Councilman Brad Land-
er as saying that “the mayor is ask-
ing children, seniors and families
to do all the sacrifcing. … The only
people the mayor is not asking to
share in the sacrifce are the Wall
Street banks and hedge funds that
cause[d] the economic mess to be-
gin with—he’s taking great pains to
defend them.”
Mr. Lander’s viewpoint is not
unique to this cycle. In his trea-
tise on local public fnance, “How
to Have a Fiscal Crisis,” eminent
Wharton fnance professor Robert
Inman described a recurring theme
in the life of our nation’s most ven-
erable cities: “Stagnant or declin-
ing private economies create unique
pressures on local public ofcials:
hard-pressed taxpayers, concerned
investors, worried public employ-
ees, and needy residents each make
their claim to a share of the shrink-
ing real resource base.”
But the mayor is right to avoid
seeking an increase in taxes on the
city’s highest income earners. While
it may seem intuitive that our most
well-heeled citizens should contrib-
ute even more to the public purse,
economics and history show us that
following this intuition will under-
mine the city and its tax base. Even
when imperfectly mobile, house-
holds and frms respond to increases
in local taxes by locating to other ju-
risdictions. Redistributive taxes can-
not be implemented at the local lev-
el without some loss of the tax base.
Mayor Bloomberg describes this
readily observable economic phe-
nomenon in clear terms: “At some
point, you drive them out.”
The New York Fed’s Andrew
Haughwout, along with Professor
Inman and other colleagues, de-
scribes the need for forethought in
considering tax increases for high
income earners, pointing out that “…
elected state and city ofcials must
recognize the reality of city revenue
constraints. A city’s revenue capac-
ity is limited by the mobility of its
residents and frms.”
In New York City, the mobility
of wealthy households is very high
given a plethora of options—from
Westchester to Connecticut to New
Jersey—where the tax-for-service
trade-of may be more favorable giv-
en any family’s particular circum-
And so in their analysis of the re-
lationship between taxes and rev-
enues in New York City, Philadel-
phia, Houston and Minneapolis, Mr.
Haughwout and his colleagues con-
clude that “tax increases unmatched
by tax-fnanced, compensating ser-
vice benefts for taxpayers—wheth-
er property owners, consumers,
or frms—will drive those taxpay-
ers from the city. Property values
fall, business sales decline and the
city’s job base shrinks. To protect
city economies, a dollar of taxes paid
must be matched by a compensating
dollar of public services received.”
At least at the local level, taking
from Peter to give to Paul may leave
us all wanting.
Sam Chandan, Ph.D., is global chief
economist and executive vice presi-
dent of Real Capital Analytics and
an adjunct professor of real estate at
Service cuts abound—understandably—in Bloomberg’s $62.9 B. proposal
The Mayor’s New Budget and the Next Moves
At least at the local level, tak-
ing from Peter to give to Paul
may leave us all wanting.
THE lEad iNdicaTor
Sam Chandan
Michael Bloomberg.
the commercial observer | May 11, 2010 15
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212.758.0430 x402 | the commercial observer 16 May 11, 2010
ExEcutivE Summary
➤There are signs of recovery in the New York
real estate market.
➤But there are still signs of strug-
gle, including higher vacancies and
a dearth in fnancing.
➤Government actions on FIRPTA,
421a and wages could hinder or
help nascent recovery.
ew York City’s real estate
market has shown signs of
recovery from the global
economic crisis that rocked our
city and industry at the end of
2008. However, our return to the
prosperity of a few years ago fac-
es serious challenges, as the failed
bombing in Times Square and the
Dow’s nearly 1,000-point plunge
last week should remind us.
Government actions in our
control, from tax policy to business regula-
tions, could propel or derail our recovery. It
is essential that our industry continues to be
vigilant—in Washington, in Albany and in
City Hall—on legislative matters to promote
a business climate that encourages
new investment and economic ac-
New York City’s unemployment
rate declined in March to 10 percent
from 10.2 percent, and job losses ap-
pear to have abated. Further, our job
losses (169,000, according to New
York City’s Ofce of Management
and Budget) were signifcantly low-
er than the 250,000 projected last
year, resulting in a less signifcant
impact on our local economy.
According to the New York City
Independent Budget Ofce (IBO),
these fewer job losses are partly the
result of structural changes in the
composition of our local employ-
ment. Health and education com-
prise a larger share of our city’s employment
and appear comparatively recession-proof.
Industry must watch actions in D.C.,
Albany and downtown
How Government Could
Muck Up the Recovery
tHe op-ed paGe
Steven Spinola
tweet week
By RolaNd li
t’s all about the numbers this week: world-
wide ofce rents, listings, housing permits
and employment.
CB Richard ellis (@cbrenyc) ranks the
world’s ofce properties.
Ofce Rents survey: Midtown Manhattan is
North America’s most expensive ofce market;
ranks 26th worldwide
7:22 AM May 5th via TweetDeck
Cushman & wakefeld (@Cushwak-
eNyC) refnanced a hotel.
CWSG has arranged a $212M ref for a
9-hotel portfolio
7:03 AM May 5th via web
Massey knakal (@masseknakal) has
new listings.
Listing: 111 Fulton Street, New York, NY -
Vacant Financial District commercial condo
with 19,102 SF...
10:42 AM May 7th via web
Check out the video tour of 198 W.10th St. - a
Greek revival brownstone located in the heart
of the West Village...
8:24 AM May 7th via web
ReBNy (@rebny)
looks at housing per-
Manhattan’s 326 new housing permits
issued in March is the borough’s highest
monthly total in the past 9 months.
11:30 AM May 7th via HootSuite
Only 1,005 new housing permits were issued
in 1Q10, it seems unlikely that new housing per-
mits will match last year’s annual total of 5,953.
8:30 AM May 7th via HootSuite
eastern Consolidated (@eastern-
consol) sees sublease space disappearing.
More than 1.1 million square feet of sublease
space was removed from Manhattan’s ofce
market in the frst quarter
7:23 AM May 4th via web
Newmark knight Frank (@New-
markkF) tackles unemployment.
USDOL reported 444,000 initial #unemploy-
ment claims for week ending May 1, a decrease
of 7,000 from last week.
7:28 AM May 6th via web
Follow us on Twitter @commercial_nyo.
the commercial observer | May 11, 2010 17
Our economy and the real
estate market are still frag-
ile. Many parts of our econ-
omy are still suffering from
devastating impacts of the
national recession. We are
not expected to return to the
employment levels of 2008
for another three years.
Also, the Federal Reserve’s fnancial-
stabilization package has lessened
the recession’s impact on New York.
Modest job growth is returning
to our city. Employment fgures for
March indicate a growth of 28,000
jobs (not seasonally adjusted), the
second month in a row of growth.
The positive change in employment
will slowly trickle through our local
economy. An important indicator of
an improving ofce market has been
the steady decline of available sub-
let space. This has helped stabilize
the vacancy rate (13.5 percent) and
the average asking rent ($50.41) in
Manhattan. We have begun to see
some owners increase asking rents
for high-end space. However, we will
need sustained employment growth
for more signifcant ofce leasing
and rent increases to occur. New
York’s ofce market remains the
strongest in the nation, according to
the mayor’s executive budget docu-
ments released last week.
As tourists continue to fock to
our city, hotel occupancy levels re-
main high, and leisure and hospi-
tality employment continue to rise.
These visitors and an improving
economy have contributed to the
improvement we are seeing in the
retail market. In March, national re-
tail sales were up 7.6 percent over
last year and up 1.6 percent month
on month. New York City retail em-
ployment in March was up 1.4 per-
cent year on year. Similarly, April’s
consumer confdence index was at
its highest since September 2008.
As a result, REBNY’s Spring Re-
tail Report notes that average ask-
ing rents have started to increase in
most of the retail corridors we sur-
veyed. Likewise, homes sales in New
York City in the frst quarter of 2010
are up 52 percent over the past year,
signaling that economic activity is
ur economy and the real estate
market are still fragile. Many
parts of our economy are still
sufering from the devastating im-
pacts of the national recession. We
are not expected to return to the em-
ployment levels of 2008 for anoth-
er three years. The budget defcits
at the national, state and local level
and the prospect of higher taxes are
casting a cloud over our recovery.
Ofce rents are down 25 percent
from the peak, and vacancy rates are
nearly twice as high today from the
peak of the market, in 2008. Large of-
fce-building sales have been virtual-
ly nonexistent for the most part since
2008, and fnancing has been largely
unavailable for these transactions,
which have in the past generated
signifcant transaction tax revenue.
In 2009, New York City transaction
(transfer and mortgage recording)
tax revenue was $1.25 billion, down
$2 billion (62 percent) from 2007.
To avoid losing the momentum
we are generating, we need to make
sure that government proposals to
address budget defcits do not de-
press our nascent recovery. REBNY
has been engaged in a wide range of
legislative matters to sustain eco-
nomic growth.
In Washington, we have called for
amendments to the Foreign Invest-
ment in Real Property Tax Act (FIRP-
TA), which imposes a gains tax on
non-U.S. buyers of real estate. Elimi-
nating the gains tax on such transac-
tions would provide more liquidity
in the market. The proposal to tax
the profts distributed to the entity
that arranges funding and manages
a real estate project, usually the gen-
eral partner, at the ordinary income
tax rate, not at the capital-gains rate,
would impose higher taxes on this
crucial real-estate–related activity.
This proposed change in the “car-
ried interest tax” would weaken our
In Albany, as part of the budget
negotiations, the governor has pro-
posed legislation that would de-
fer 50 percent of certain tax credits
that would be used or refunded over
the next three years. This deferral
would apply to almost all tax cred-
its, including brownfelds, rehabili-
tation of historic properties, green
buildings and low-income housing.
This deferral is efectively a tax in-
crease and could jeopardize the de-
velopment of numerous projects
whose funding has been contingent
on the receipt of the credits. We also
need Albany to extend the 421a par-
tial tax exemption program for new
residential construction. We are rec-
ommending modest amendments to
provide a catalyst for developments
stalled since 2008; to induce the con-
version of obsolete ofce buildings
to residential use; and to ofer build-
ing owners a reduction in taxes for
keeping low-income units in 80/20
projects permanently afordable.
At City Hall, the City Council in-
troduced a bill that would mandate
the payment of a prevailing wage to
building workers if a developer re-
ceives any tax beneft from the city.
This bill would seriously undermine
the value of the tax exemption that is
critical to new development and ma-
jor renovation projects.
As the real estate market slowly
improves, it will continue to need the
help of government to lower taxes,
remove restrictions for investment
and provide the needed stimulus for
the economic activity that does so
much to fund the services that are
crucial to our city’s future.
Steven Spinola is the president of the
Real Estate Board of New York.
the Op-ed page | the commercial observer 18 May 11, 2010
; j
By Jotham SederStrom
WedNeSday, may 12
Even fve years ago, hauling a
gaggle of successful real estate pro-
fessionals to an abandoned elevat-
ed freight railroad would’ve been
a recipe for disaster. But when the
New York Commercial Real Estate
Women descend on the High Line
for a private tour of Manhattan’s
newest park, expect nothing short of
glamour. … With most brokers pub-
licly acknowledging that the worst
of the recession is behind them, it
seems a bit odd that yet another real
estate group is hosting yet another
forum about the downturn. But give
the folks at the B’nai B’rith Real Es-
tate Unit a break when they host its
“Surviving and Flourishing in the
Downturn” seminar. After all, it’s the
only thing anybody really wants to
talk about, right? … Referrals, short
sales and getting more bang from
your listings will be discussed—by
real estate trainer Debra Asher, no
less—during this seminar hosted
by Charles Rutenberg Realty and
Continental Home Loans as part
of its Professional Education series.
… When, in 1975, the New York
State Supreme Court struck
down Grand Central’s landmark
status, the Municipal Art So-
ciety and Jacqueline Kenne-
dy Onassis went into action,
sparking a campaign that would
eventually save the vaunted ter-
minal from becoming an ofce
tower for Penn Central Railroad.
So it’s no surprise that each
Wednesday the talented MAS
guides return to the scene of
near disaster for an informative
tour of the terminal’s magnif-
cent Beaux-Arts interiors.
[New York Commercial Real
Estate Women High Line tour,
Ganesevoort Entrance at Wash-
ington Street, 6 p.m., register at; B’nai B’rith
“Surviving and Flourishing in the
Downtown” seminar, Cornell Club, 6
East 44th Street, noon, call Aracelis
Kuilan at 212-885-7239 or email her
at for more info;
Continental Home Loans “Real Es-
tate Professional Education” series,
Holiday Inn at MacArthur Airport,
3845 Veterans Memorial Highway,
Ronkonkoma, N.Y., 8:30 a.m., call
516-575-7500 for more info; Munic-
ipal Art Society Grand Cen-
tral walking tour, meet at
info booth, main concourse,
Grand Central Terminal,
12:30 p.m.,]
thUrSday, may 13
What do Six Flags Amuse-
ment Park and the entire
country of Greece have
in common, besides be-
ing tourist magnets? Well,
for starters, both entities
know a little bit about bankruptcy,
which is among the subjects to be
discussed when the New York Soci-
ety of Security Analysts convenes
for a mirth-flled seminar on invest-
ing in distressed and defaulted debt
and the basics of bankruptcy. Pull
up a chair, Greek President Karolos
Papoulias! … Juicy nuggets abound
when the Real Estate Board of New
York hosts its regular “Inside Se-
crets of Top Brokers” seminar. …
Apparently the frst glimpse of sun-
light inspired not a few ofce-dwell-
ing real estate professionals to train
their eyes on the High Line, Manhat-
tan’s newest park. Indeed, not only
are the women of NYCREW hosting
an event at the elevated park, but so,
too, are the gents and damsels of the
National Arts Club. The only difer-
ence is that the National Arts Club
folks will discuss the spot from the
comfort of their ofce. … The Real
Estate Academy, the storied private
boys school that inspired Dead Po-
et’s Society and most of the flms by
John Hughes, (pictured) is hosting
a “continuing education conference”
in which current real estate trends
will be discussed. Expect laughs,
followed by deep and profound in-
sight, when the group meets today
at Touro College in Lower Manhat-
tan and again on May 17 and 19. …
Afterward, stick around the school,
grab a cup of cofee and check your
Facebook page for
a few hours un-
til a free semi-
nar, “Using
and Social
ing to Mar-
ket Your-
self,” begins where
the continuing education confer-
ence left of. Later, you’ll be able to
tweet about it on your smart phone.
… Dig out your cummerbunds and
dinner jackets from the closet when
the New York Building Congress
honors Douglas Durst, Matthew
Goldstein of CUNY and godfather
of mouthpieces Howard Ruben-
stein at its 89th Annual Leadership
Awards. Mr. Rubenstein, we pre-
sume, will do most of the speaking,
considering that he reps most of the
people in attendance. … And fnally,
after a day spent gallivanting, do
something good for a change by at-
tending the ffth annual beneft for
“Matt’s Promise,” a charity working
to fnd a cure for Duchenne muscular
dystrophy. If being good isn’t reason
enough, then go just to see Platinum-
selling rockers the Fray perform at
the event.
[New York Society of Security
Analysts seminar, 1540 Broadway,
1 p.m., register at;
Real Estate Board of New York “In-
side Secrets of Top Brokers” series,
Mendik Education Center, 570 Lex-
ington Avenue, call 212-532-3100 for
more info; National Arts Club High
Line discussion, National Arts Club,
15 Gramercy Park South, 8 p.m., log
on to
for more info; Real Estate Academy
“continuing education” conference,
the Graduate School of Business at
Touro College, 65 Broadway, 9 a.m.,
call Edreana at 212-262-2662 or
email Edreana@realestateacade- for more info; Touro College
“Using Technology and Social Net-
working to Market Yourself” semi-
nar, Touro College, 65 Broadway, 6
p.m., call Michael Spampinato at 212-
742-8770, ext. 2439, for more info;
New York Building Congress 89th
Annual Leadership Awards, Hilton
New York, 1335 Avenue of the Ameri-
cas, 11:30 a.m., call 212-481-9099 or
for more info; “Matt’s Promise” ffth
annual beneft, Cipriani Wall Street,
7 p.m. log on to www.mattspromise.
org for more info]
SatUrday, may 15
How better to enjoy a Saturday
afternoon than with a tour of the
Greenwich Village townhouse acci-
dentally blown up by members of the
radical Weather Underground and
the popular bars where leading art-
ists of the ’50s and ’60s shared their
venereal diseases? If that’s your poi-
son, then the radical tour guides of
the Municipal Art Society are at the
ready with a “Radical Greenwich Vil-
lage” walking tour.
[Municipal Art Society “Radical
Greenwich Village” walking tour, meet
under the arch at Washington Square
Park, 11 a.m., call 212-935-2075 or log
on to for more info]
SUNday, may 16
If beat poetry and abstract art
isn’t your thing, the guides at the
Municipal Art Society have an alter-
native in its tour of Staten Island’s
historic St. George neighborhood.
With monumental Beaux-Arts Stat-
en Island Borough Hall and nearby
Richmond County Courthouse, at-
tendees will be forgetting that bad
acid in no time.
[Municipal Art Society “Sunday in
St. George” walking tour, meet at the
top of the escalators at Staten Island
Ferry Terminal in Battery Park, 12:45
p.m., call 212-935-2075 or log on to for more info]
moNday, may 17
Real Estate lenders will be do-
ing what they do best—shmoozing,
presumably—when members of the
Real Estate Lenders Association
tee up at the group’s annual golf out-
ing. Caddies, be warned: That tip
may actually be a high-interest loan.
… Meanwhile, those persistent folks
at the Appraisal Institute are at
it again, this time with a course on
General Demonstration Appraisal
Writing. Have fun with that.
[Real Estate Lenders Associa-
tion Golf Outing, Metropolis Country
Club, 289 Dobbs Ferry Road, White
Plains, N.Y., 9:30 a.m., email head- for more info;
Appraisal Institute “General Demon-
stration Appraisal Writing” course,
Marriott Residence Inn, 9 Gerhard
Road, Plainview, N.Y., 8 a.m., call
516-248-8964 for more info]
tUeSday, may 18
Members of the Port Author-
ity and Regional Plan Association
will discuss fndings in the recently
released Urban Land Institute-Ernst
and Young 2010 Report. They’ll also
be discussing updates on the New
York Regional Infrastructure Proj-
ects report when the Urban Land In-
stitute hosts its “Laying the Founda-
tion for Growth” seminar… The Real
Estate Board of New York will be dis-
cussing lease renewal negotiations,
which, as any skilled broker knows is
the bread and butter for any success-
ful real estate professional. Steve
Durels of SL Green and Mitch Kon-
sker of Cushman & Wakefeld will
speak alongside others… The Na-
tional Realty Club will hold its reg-
ular luncheon as it welcomes TBD
Holdings… To understand New York
City, one might reason, you need to
start with Lower Manhattan. With
that in mind, the guides of the Mu-
nicipal Art Society are continuing
the non-proft’s weekly Downtown
walking tour, which will most def-
nitely include visits to Wall Street
and at least a few old churches.
[Urban Land Institute “Laying the
Foundation for Growth” seminar,
the Yale Club, 50 Vanderbilt Avenue,
log on to for
more info; Real Estate Board of New
York “Lease Renewal Negotiations”
seminar, Mendik Education Center,
570 Lexington Avenue, 8 a.m., www.; National Realty Club lun-
cheon, the Friars Club, 57 East 55th
Street, noon, log on to www.nation- for more
info; Municipal Art Society “Down-
town, Where New York Began” walk-
ing tour, meet at the Downtown Info
Center, 55 Exchange Place, Suite 401,
12:30 p.m.,]
Calendar items can be sent to Jotham
Sederstrom at jsederstrom@observ-
the commercial observer | May 11, 2010 19
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Lease Beat by roland li
717 Fifth Avenue
A trio of hedge funds have signed leases
at 717 Fifth Avenue, each taking prebuilt
spaces with asking rents
of $75 per square foot.
All will have relocat-
ed by May to the tower
controlled by the Black-
stone Group (an SL
Green partnership owns
an interest in foors one
through four).
Boston Provident
took 4,346 square feet
for fve years on the 12th
foor. The frm will move
from 600 Madison Av-
enue this month. Chris
Whitman of Lincoln
Properties represented
the tenant.
Berchwood Part-
ners signed a lease for fve years for
4,177 square feet on the 14th foor. Gary
Kamenetsky of CB Richard Ellis rep-
resented the tenant,
which last leased at
599 Lexington Avenue.
Berens Capital took
8,476 square feet on
the 12th foor for seven
years. Brad Needle-
man and Ben Fried-
land of CB Richard Ellis
represented the ten-
ant, which moved from
1 Rockefeller Plaza.
Zachary Freeman,
Brian Hay, Robert
Stillman and Robert
Alexander of CB Rich-
ard Ellis represented
the landlord in all three
three Hedge Funds take Prebuilt
spaces at Blackstone’s 717 Fifth
11 Times Square
The law frm Proskauer Rose is poised to be-
come the frst tenant in the empty 1.1 million–
square–foot tower built on spec by Steve Pozy-
cki’s SJP Properties at 11 Times Square, taking
380,000 square feet, or about 40 percent of the
building. Other companies want to build an aquar-
ium as a tourist attraction in the lower foors.
Proskauer is currently at 1585 Broadway, at
Morgan Stanley’s world headquarters, and the
bank is ofering Proskauer a subsidy to vacate that
building’s 12th foor.
CB Richard Ellis is representing both the land-
lord and the tenant.
The New York Times’ Charles Bagli reported the
pending lease on May 7.
salad Wizard Chop’t taking space at
Rudin’s 80 Pine
80 Pine Street
In yet another step in the Financial Dis-
trict’s transformation into a foodie desti-
nation, the salad specialist Chop’t is taking
3,340 square feet of ground-foor space at
80 Pine Street. The 38-story ofce tower is
owned by the Rudins and occupies a block
bounded by Pine Street, Pearl Street, Maiden
Lane and Water Street. The site is the chain’s
sixth Manhattan location.
Craig Hantgan of Esquire Properties
represented the tenant. Samantha Rudin
and Lou Somoza of Rudin Management
Company represented the landlord.
11 times square Nears First Major
Lease: Proskauer Rose | the commercial observer 20 May 11, 2010
; p
; c
1140 Sixth Avenue
OfceLinks, deliverer of furnished ofc-
es and meeting rooms, took 24,000 square
feet at Stellar Management and Rockpoint
Group’s 1140 Sixth Avenue, its fourth Man-
hattan location. The lease is for the 9th and
10th foors in the 22-story building, and is the
company’s second midtown location.
Steven Strati and Phil Amarante of Cush-
man & Wakefeld represented the tenant.
“OfceLinks has been very strategic and
selective on a location and property-specifc
basis,” said Mr. Amarante, who described the
deal as adding “another premier property to
the frm’s portfolio, boasting quality ofce
space in the heart of midtown with direct ac-
cess to all mass transit, restaurants and pub-
lic amenities like Bryant Park.”
Ofce Furnisher Gets New Ofce;
Takes Two Floors
at 1140 Sixth
681 Fifth Avenue
Global Thematic Partners, a spinof of
Deutsche Asset Management, signed the frst lease
at the newly renovated 681 Fifth Avenue. The frm
will occupy 5,835 square feet, the entire 12th foor
of the 18-story property owned by Metropole Re-
alty Advisors. Tommy Hilfger occupies the bot-
tom six stories of the building.
Mitchell Konsker, Matthew Astrachan, Robert
Gallucci and Scott Silverstein of Cushman & Wake-
feld represented the landlord. Michael Movshovich
of CB Richard Ellis represented the tenant.
Deutsche Spinof
Signs First Lease
Since 681 Fifth
30 Orchard Street
Rental Art Gallery took the 2,175-square-
foot commercial ground space at 30 Orchard
Street, a new condo building on the Lower
East Side. The space will feature 20-foot ceil-
ings, skylights and bare walls to display art-
work. The rent is $76 per square foot.
Tony Gaskin and Lesley Steiner of Cen-
tury 21 NY Metro represented the tenant.
Joshua John of 8x8 Construction repre-
sented the landlord.
Art Gallery Grows
in Orchard Street
Condo for $76 a
655 Madison Avenue
The Swiss jewelry designer—and, for
those who care, Phil Collins’ ex—Ori-
anne Collins will open her frst U.S. re-
tail store at 655 Madison Avenue. Ms.
Collins’ company has signed a long-term
lease for 3,400 square feet, including
two levels of retail space that will house
the “O.C. Concept Store.”
The store is slated to open in the fall,
across the street from Barneys New
“We were pleased to help secure the
perfect location for Orianne Collins’ U.S.
retail debut,” said Dan Harroch, direc-
tor of PBS Real Estate, which represent-
ed the tenant. “As designers look to real
estate as a means to build brand image,
neighboring retailers such as Barneys,
Baccarat, Hermés and the Pierre Hotel
make this an excellent opportunity to
market to the savvy luxury consumer.”
The building is owned by a partner-
ship of the principals of the old First-
Service Williams, according to the Post’s
Steve Cuozzo, who had news of a lease
last month.
Orianne Collins
Picks 655 Madison for
First U.S. Store
55 East Eighth Street
Washington Square Park is about to get
sweeter. Häagen-Dazs will occupy 1,824
square feet, split between the ground foor
and the lower
level, on 55
East Eighth Street. The building, along a retail strip between
University Place and Broadway, already has a Chipotle and a
Cosi inside.
The ice cream chain will open during the summer, and faces
competition from the nearby Coldstone Brewery on Broadway,
as well as from Ben & Jerry’s on Third Avenue.
Beth Rosen and Ross Berkowitz of Robert K. Futterman
& Associates, with Jennifer Watson and Phil Baugh of Baum
Realty, represented the tenant. Bruce Spiegel and William
Bergman of Rose Associates represented the landlord, Uni-
way Partners.
Scoop! Häagen-
Dazs Comes to
N.Y.U.-Ville With
Two-Floor Spot
LeASe BeAT by roland li
the commercial observer | May 11, 2010 21
lease Beat by emily geminder
40 West 57th street 44,034 elliott associates sl Green
Elliott Associates signed a 15-year lease, according to Crain’s. Newmark Knight Frank’s Chris Mongeluzo represented
the tenant. Landlord the LeFrak Organization was repped by Howard Fiddle and Zachary Freeman of CB Richard Ellis.
100 Broadway 48,213
Parsons transpor-
tation Group Hiro Real estate
Parsons Transportation Group signed a 10-year lease. John Maher and Gerry Miovski of CB Richard Ellis represented
the tenant. Patrick Dugan, Edward Goldman, Scott Gottlieb, and Scott Sloves, also of CB Richard Ellis, repped landlord
Hiro Real Estate.
475 10th avenue 18,500 livePerson, Inc. n/a
LivePerson, Inc. signed a 10-year lease. The asking rent was $35 a square foot. Michael Kaufman and Grant Greenspan
of the Kaufman Organization represented the tenant; Kristin Fisher of the Adler Group represented the landlord.
1407 Broadway 18,000
KBl Group Interna-
tional limited
1407 Broadway
Real estate llC
KBLGroup International Limited signed a six-year lease, according to Crain’s. Savitt Partners’ Marc Schoen represent-
ed the tenant. Landlord 1407 Broadway Real Estate LLC was repped by the Kaufman Organization’s Grant Greenspan
and Sommer Scafdi.
11 east 26th street 12,000 Bluewolf Inc. n/a
Bluewolf Inc. signed a 12-year lease, according to Crain’s. Adams & Co’s James Buslik and Jeffrey Schwartz represent-
ed both the landlord and the tenant.
461 Fifth avenue 7,134
U.s. Bank National
association sl Green
U.S. Bank National Association signed a seven-month lease for the entire 16th foor. Michael Burlant of Cushman &
Wakefeld represented the tenant.
540 Madison avenue 6,950 sK telecom Boston Properties
SK Telecom signed a fve-year lease. The tenant was represented by Matt Leon of Newmark Knight Frank. Cynthia Was-
serberger, Randy Abend and Amanda Saltzman of Jones Lang LaSalle represented building owner Boston Properties.
540 Madison avenue 6,950 Molo lamken llP Boston Properties Molo Lamken LLP signed a fve-year lease. The tenant was represented by Jarod Stern of Studley. Cynthia Wasserberg-
er, Randy Abend and Amanda Saltzman of Jones Lang LaSalle represented building owner Boston Properties.
655 Madison avenue 6,800 Kayne anderson
Capital advisors
Plaza Madison as-
Kayne Anderson Capital Advisors signed a 10-year lease. David Rosenbloom of Cushman & Wakefeld represented the
tenant; landlord Plaza Madison Associates was repped by Colliers International.
885 second avenue 6,150 World Health Orga-
Ruben Cos. The World Health Organization signed a 10-year lease. Cassidy Turley represented the tenant. Landlord the Ruben Cos.
was represented in-house.
681 Fifth avenue 5,835
Global thematic
Metropole Realty
Global Thematic Partners, an investment management frm, signed a lease for the entire 12th foor. The tenant was
represented by Michael Movshovich of CB Richard Ellis. Cushman & Wakefeld’s Mitchell Konsker, Matthew Astrachan,
Robert Gallucci and Scott Silverstein repped the owner.
49 West 23rd street 5,594
Bloomsburg Carpet
Industries Inc.
twenty three R.P.
Bloomsburg Carpet Industries Inc. signed a fve-year lease. The asking rent was $30 a square foot. James Buslik and
Alan Bonett of Adams & Co represented both the tenant and the landlord.
75 Worth street 5,500
the New York eye
and ear Infrmary Jodi Richard
The New York Eye and Ear Infrmary signed a 15-year lease, according to Crain’s. Ripco Real Estate Corp’s Brad Cohen
represented the tenant; the landlord was repped by Sinvin Realty’s Michelle Stone.
248 West 35th street 4,500
Christopher spitz-
miller Inc.
abraham + Martin
Midtown Manage-
Christopher Spitzmiller Inc. signed a 10-year lease.
231 West 39th street 4,000 Cullen, Inc. 23149 West 39
street associates
Cullen, Inc. signed a seven-year lease. The asking rent was $35 a square foot. James Buslik and Jeffrey Buslik of Ad-
ams & Co represented both the tenant and the landlord.
540 Madison avenue 3,200
edelman Financial
services llC Boston Properties
Edelman Financial Services LLC signed a fve-year lease for 3,200 square feet. The tenant was represented by John
Termini with CB Richard Ellis. Cynthia Wasserberger, Randy Abend and Amanda Saltzman of Jones Lang LaSalle repre-
sented the landlord.
10 West 33rd street 3,016 Hosiery Network,
ten West thirty
third associates
Hosiery Network, Inc. signed a 10-year lease. The asking rent was $36 a square foot. David Levy of Adams & Co. repre-
sented both the tenant and the landlord.
750 lexington avenue 3,000 Bryan, Garnier &
Cohen Brothers
Realty Corp.
Bryan, Garnier & Co. signed a four-year lease, according to Crain’s. Prudential Douglas Elliman’s Amy Murawski repre-
sented the tenant. Landlord Cohen Brothers Realty Corp. was repped by Adam Karafol in-house.
sq. Feet teNaNt laNdlORd BROKeRs | the commercial observer 22 May 11, 2010
lease Beat by emily geminder
401 Broadway 2,349
eisenman associ-
ates n/a
Eisenman Associates signed a lease on the 22nd foor. Michael Rouzenrouch of Myriad Realty represented the tenant;
ABS Partners repped the landlord.
680 Fifth avenue 2,300
the Confdas
Group Usa
680 Fifth avenue
The Confdas Group USA signed a 10-year lease. Byrnam Wood’s Benjamin Mohr and Gordon Ogden represented the
tenant. The landlord was repped by Brian Gell and Brian Hay of CB Richard Ellis.
291 Broadway 2,100 lattice engines n/a
Software frm Lattice Engines signed a three-year lease. David Gomez of GlenMark Realty represented both the land-
lord and the tenant.
450 seventh avenue 1,600 MaRV Capital
the Kaufman Or-
MARV Capital signed a three-year lease on the sixth foor. Brendan Mahoney of CSCommercial Group represented the
tenant. Landlord the Kaufman Organization was repped in-house by Barbara Raskob.
10 West 33rd street 1,334
Charmed acces-
ten West thirty
third associates
Charmed Accessories signed a six-year lease. The asking rent was $36 a square foot. David Levy of Adams & Co. repre-
sented both the tenant and the landlord.
401 Broadway 782 Barbara Probst n/a
Photographer Barbara Probst signed a lease on the 11th foor. Adams & Co. represented the tenant. ABS Partners
repped the landlord.
85 Wythe street (Brook-
lyn) 7,500
Colossal Media
Group Wythe, llC
Colossal Media Group, a hand-paint advertising company, signed a seven-year lease. Jacques Wadler and Vincent Lo-
pez of Kalmon Dolgin Affliates represented both the owner and the tenant.
55 Washington street
(Brooklyn) 1,258
the International
legal Foundation
two trees Man-
Jennifer Rhodes of Ideal Properties Group represented the tenant. Landlord Two Trees Management was repped in-
house by Natalie Ungari.
55 Washington street
(Brooklyn) 1,253
Ferreira Construc-
tion Co. Inc.
two trees Man-
agement Elizabeth Cottrill of Two Trees Management brokered the deal.
55 Washington street
(Brooklyn) 1,093 Quint & Quint
two trees Man-
Quint & Quint, a direct marketing design studio, signed a three-year lease. Caroline Pardo repped landlord Two Trees
Management in-house.
55 Washington street
1,072 Rubber Band Inter-
national llC
two trees Man-
Rubber Band International LLC, a real estate management and development company, signed a lease. Chris Havens of
Creative Real Estate Group represented the tenant. Landlord Two Trees Management was repped in-house by Caroline
55 Washington street
(Brooklyn) 1,072 erminio Olivi lucci
two trees Man-
agement Erminio Olivi Lucci, a photographer, signed a lease. Caroline Pardo repped landlord Two Trees Management in-house.
sQ. Feet tenant landlORd BROKeRs
sQ. Feet tenant landlORd BROKeRs
Reach the people who own, manage, lease and sell space in
the city by advertising your deals in the
Contact Robyn Weiss, Associate Publisher, for more information:
212.407.9382 or
the commercial observer | May 11, 2010 23
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lease Beat by emily geminder
310 lenox avenue 7,300
Marcus samuels-
Home Court Man-
Marcus Samuelsson signed a 15-year lease for a new restaurant, according to Crain’s. Ripco Real Estate Corp.’s Brad
Cohen represented the tenant. Landlord Home Court Management was repped by SLGreen’s Gary Rosen.
939 eighth avenue 5,000 Food World Harry eisenstein
Food World signed a 15-year lease, according to Crain’s. Prudential Douglas Elliman’s Gary Dana and Rick Dana repre-
sented both the tenant and the landlord.
49 West 24th street 4,200
Nesso Manage-
ment n/a Nesso Management signed a 15-year lease. Olga Ousmanova of CSCommercial Group represented the tenant.
30 Orchard street 2,175 Rental art Gallery 30 Orchard llC
The asking rent was $76 a square foot. Tony Gaskin and Lesley Steiner of Century 21 NYMetro represented the tenant.
The landlord was repped by Joshua John of 8x8 Construction.
13 West 18th street 2,000 Uni.K.Wax
11 West Commer-
cial Corp.
Uni.K.Wax signed a 10-year lease. Josh Gunsberger of JG Realty Associates represented the tenant. Landlord 11 West
Commercial Corp. was repped by Sinvin Realty.
66 Madison avenue 1,800 Pallatte
66 Madison av-
enue apartment
New eatery Pallatte signed a 15-year lease. Sinvin Realty represented both the landlord and the tenant.
189 east 79th street 1,500 MaxWax east llC
Friedland Proper-
ties MaxWax East LLC signed a lease. Ripco Real Estate represented the tenant.
264 Bleecker street 1,300 Binn On Bleecker
n/a Binn On Bleecker LLC signed a 15-year lease. Steve Rappaport of Sinvin Realty represented both the landlord and the
1035 third avenue n/a Jimmy’s Custom
Framing Gallery
n/a Jimmy’s Custom Framing Gallery signed a lease. Faith Hope Consolo and Joseph A. Aquino of Prudential Douglas Elli-
man represented both the landlord and the tenant.
1605 avenue M (Brooklyn) 17,400 amazing savings n/a
Amazing Savings signed a 10-year lease, according to Crain’s. William P. O’Brien and Karen Cohen of M.C. O’Brien Inc.
represented both the landlord and the tenant.
1305 Kings Highway
3,500 BBs Beauty sys-
tems Inc.
1305 Properties
BBS Beauty Systems Inc. signed a lease. M.C. O’Brien represented both the tenant and the landlord.
sq. Feet teNaNt laNdlORd BROKeRs
sq. Feet teNaNt laNdlORd BROKeRs
Reach the people who own, manage,
lease and sell space in the city by advertising your
deals in the Commercial Observer.
Contact Robyn Weiss, Associate Publisher, for more information:
212.407.9382 or
the commercial observer | May 11, 2010 25 | the commercial observer 26 May 11, 2010
wo years ago, in the months before the fall of Lehman Broth-
ers, when New York’s economic lily was still contentedly
gilded, crafting a list of real estate’s biggest machers was
pretty easy: Moguls X, Y and Z had done deals A, B and C, and
the business of real estate ticked along.
Then came the bust, and the list was notable more for who
had fallen of than for who had stayed on. Last year’s tally
was demarcated by government—President Obama was No.
1—and by those adapting to survive. The phrase “money on
the sidelines” made numerous appearances.
This year, the list, like the industry it chronicles, is very much in motion. Pinning
down who is up, if anybody, and who is down the most changes by the day. This repre-
sents our take on the most powerful people in New York real estate right now.
And yet about three-fourths of the people here are returnees, which says something
about the closed club that is New York real estate. Old money is heavily represented,
able as it has been to weather the recession—even when it has botched deals epically,
such as Jerry and Rob Speyer (No. 11) with Stuy Town. The Speyers join old money like
Douglas and Jody Durst (No. 8); Richard LeFrak (No. 10); Peter and Anthony Malkin (No.
18); Howard and Edward Milstein (No. 38); and Bill Rudin (No. 24).
There are new people. Carlos Slim—according to some, the world’s richest person—
clocks an appearance (No. 13), having just made a sudden splash in the biz. Another for-
eigner with billions to immolate: Mihkail Prokorov (No. 43), erstwhile Nets owner and
would-be Nets arena developer. And, speaking of Stuy Town and the Speyers, Charles
Spetka (No. 32) chairs the distress-hungry frm overseeing that most historic of foreclo-
sures. Also, welcome media enthusiast Sam Zell (No. 19), reluctant heir Stefan Solow (No.
56), M.T.A. chairman Jay Walder (No. 64) and Israeli magnate Nochi Dankner (No. 88).
While Mr. Obama did not make the list this year, government is represented fairly
strongly, with perennial fower Michael Bloomberg hitting the top 10 again. Looming
six spots behind him is probably the soon-to-be most infuential public fgure in New
York State: Andrew Cuomo (No. 15). Other apparatchiks and pols include Deputy Mayor
Robert Lieber and Economic Development Corp. president Seth Pinsky (together at No.
73); Parks Commissioner Adrian Benepe (No. 87); and Transportation Commissioner Ja-
nette Sadik-Khan (No. 95).
As usual, the list remains arctic white and terminally male. (How does this keep hap-
pening in the world’s most diverse city? Even the suites of Wall Street—and of the White
House—claim more diversity.) There are 12 women—the most ever—with CBRE tristate
chief and REBNY chair Mary Ann Tighe the highest ranked at No. 7, and the chair of City
Planning, Amanda Burden, in a distant second at No. 34. Nonwhites? Governor Paterson
(No. 55), who, dear reader, will likely not make it next year, and Korean-American devel-
oper Young Woo (No. 94)—and that’s just about it.
Brokers, the middlemen (and, on occasion, middlewomen) of the city’s deals, are less
represented than landlords and investors—there has just been less work to go around.
Brokerages themselves are amply represented, in the form of their chief executives or
chairs. These include residential ones like Pam Liebman (No. 66) of the Corcoran Group;
Howard Lorber and Dottie Herman (No. 63) of Prudential Douglas Elliman; and an en-
gorging number on the commercial side, including the boys from Newmark Knight
Frank (No. 26), Peter Riguardi from Jones Lang LaSalle (No. 27) and Mitchell Steir and
Michael Colacino from Studley (No. 28).
Institutionally, the same names showed up as in previous years, such as Lee Bollinger
(No. 90) of Columbia; John Sexton (No. 78) of N.Y.U.; Timothy Dolan (No. 76) of the Ro-
man Catholic Archdiocese; and James Cooper (No. 79), the Episcopalian rector of Hud-
son Square–controlling Trinity Church.
The No. 1 spot, supplanting the president, belongs to Stephen Ross, chairman of Re-
lated Companies. His frm seems to be everywhere about New York, particularly on the
far West Side. There are train tracks there now, slightly below ground level, in an area
to be avoided after dark—or in broadest daylight. But Mr. Ross envisions 13 towers on
two platforms producing 5,000 apartments and 6 million square feet of ofce and retail
space—a city within a city, 50 percent bigger than Rockefeller Center.
That’s some change right there. Vision, too.
A fnal few notes on the list. There are 138 names amid the 100 slots. Of those, more
than 25 percent are new; the rest are returnees. If someone made the list last year, that
ranking is next to their entry in parentheses. The list was chosen by The Observer, and is
subjective. Feedback can be given in the comments section of
The Most Powerful People in New York Real Estate
the commercial observer | May 11, 2010 27 | the commercial observer 28 May 11, 2010 the commercial observer | May 11, 2010 29
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for better worker productivity and retention, all at prices competitive to other,
less advanced properties. Our comprehensive suite of “green” practices
comprises tenant waste and construction debris recycling, the use of non-
contaminating cleaning luids and pest control solutions, recycled content
in carpets, and low off-gassing paints, adhesives, and wall coverings. ESB
operations are healthier, the ESB work environment is healthier, the ESB
impact on the environment is healthier.
To what extent can ESB’s emphasis on sustainability actually help a
tenant reduce its costs and improve its work environment? In our next
publication, we will outline in detail the experiences of one tenant, Skanska
USA, who reduced their energy consumption by 57 percent from their prior
oice during its irst year of occupancy at the
building. (Note: The reduction represents a
comparison which takes into account changes
in size and employee density.)
Consider the advantages: New, modern
base building systems and a groundbreaking
energy retroit program that is setting a new
world-wide standard for eiciency; advanced
tools and support from the nation’s leading
experts for controlling tenant electricity con-
sumption and oice climate; unparalleled access
to natural light; a full suite of “green” applications
to reduce exposure to toxins and allergens – all
of it at a Pre-War Trophy price, typically half the
price of modern buildings offering less than
half of our competitive, productivity-enhancing,
cost-containing advantages.
Try some of these thoughts out on
your important tenant clients. Bring them to
the Empire State Building’s world-class address right in Midtown Manhattan,
conveniently located near virtually every major subway line and PATH train,
and virtually equidistant from Grand Central Terminal, Penn Station, and
the Port Authority Bus Terminal in the heart of the revitalized 34th Street
shopping and services Corridor.
Standing behind all of this is the inancial strength of the Empire
State Building Company. As with other properties supervised by Malkin
Holdings, our generations of prudent investment and management provide
tenants with the peace of mind that comes from a inancially stable landlord
who is fully capable of fulilling all obligations for the entire lease term. In
the meantime, more information on our groundbreaking program can be
found at, or visit
The Empire State Building
Takes Leadership Role In Energy
and Cost Savings for Tenants
On April 5, 2009, President Bill Clinton, New York Mayor Michael Bloomberg, and W&H Properties’ Empire State Building (ESB)
unveiled a new model for economically viable, replicable energy retroits in the existing built environment to reduce
materially energy consumption, operating costs, and carbon footprint. In this, our second of four publications, we would like
to explain the impact of this work on our tenants and the brokers who serve them.
What Brokers Need to Know
How ESB Helps Tenants
Look back a decade ago ... had anyone ever heard of the corporate
position, “Chief Sustainability Oicer”... very few companies were even
focused on subjects like energy eiciency and carbon footprint reduction.
Today, these subjects have become commonplace. The larger and more
successful the company, the more focus there is on reducing exposure to
energy costs and incorporating sustainability practices in everyday business
activities and long-term planning.
Business leaders realize they have the ability to improve bottom lines
and protect against risk by reducing energy consumption. Think about it:
the three highest costs of
occupancy for a tenant in
New York City are salaries,
rent, and utilities – in that
order. Through a combination
of payment for utilities for
space under lease and the
inclusion of utility charges in
the calculation of escalation
charges for operating expenses, for most tenants, energy costs often
end up being the biggest variable of the three. Over the life of a lease, these
energy costs can grow tremendously.
Many corporations, government agencies, and non-proits have
introduced voluntary corporate mandates to reduce their carbon footprints.
As evidenced by the Greener Greater Building Code in New York and similar
legislated requirements around the country, legally imposed mandates are
coming. How can a broker assist clients in addressing this new challenge and
in the process demonstrate awareness of the cutting-edge concerns of one of
today’s leading issues? Consider ESB a forward looking, long-term solution
for your tenants here today.
Everyone needs to see ESB, not just for the visible results of our
ongoing $550 million top-to-bottom upgrading ... our fully restored lobby
with new oice-only areas on 34th and 33rd Streets, new elevators, common-
area hallways, bathrooms, and more ... our unsurpassed array of tools and
resources to assist tenants with achieving their corporate sustainability
objectives. Signing a lease at ESB provides tenants improved energy
eiciency to reduce overall operating expenses and provide a healthier,
more productive work environment for their employees as well ... all at
unmatchable Pre-War Trophy rents.
The Empire State Building is undergoing a groundbreaking
energy reduction program. In addition to tools which support our tenants
in achieving high performance build outs, the energy retroit program
consists of eight rigorously evaluated and proven cost-reduction initiatives
that will reduce the building’s energy consumption by 38 percent. This is
not “future-ware,” but here today in our retroitted windows, perimeter
insulation, networked digital controls of every steam valve, air damper, fan,
and pump throughout the entire building. This allows us unprecedented
control over our HVAC system as well as unprecedented real-time
monitoring and commissioning of our systems; if one damper is not
functioning as designed, we know immediately.
Additionally, we give tenants a framework through which they can
control, measure and reduce their own operating costs and carbon footprints,
using ESB’s new modeling, measurement, and projection tools to implement
cost-saving and short payback measures to optimize tenant space
performance. We provide, as part of our new tenant “onboarding,” a suite of
tenant services unlike any other landlord. Our guidelines provide a clear set
of implementable solutions for a high performance space - from lighting
and HVAC to layout. We are incorporating what we have learned in our
pre-builts to build new small and large spaces and demonstrate the
At ESB, weoffer tenants
proven pathways to
reduce current costs
and exposure to
escalating costs over
the lease term.
100% COMMISSION ON SIGNING William G. Cohen, Executive Vice President
212-372-2233 •
Supervised by
Thank you for giving us the chance to compete for your business. At W&H Properties, tenant satisfaction is our number one priority.
(And remember, brokers always receive 100 percent of their commissions on lease signing.)
Publication 2 of 4: May 11th, 2010 | the commercial observer 30 May 11, 2010
Stephen Ross (2)
Chairman of the Related Companies
Recession be
damned. As
proliferate and
new construc-
tion is mostly
halted citywide,
Mr. Ross, also
the owner of
the Miami
Dolphins, is not slowing down. To
name a few of the items that take up
his days: He is mid-construction on
a hotel and apartment tower on
42nd Street; he has amassed a large
acquisition fund to scoop up
distressed assets; he has started a
bank with his partners at Related,
looking to buy a failed bank; he is
negotiating with the New Jersey
governor about taking over the
giant Xanadu mega-mall; and he
constantly has executives at
Related’s doorstep, looking to a man
with money.
Marc Holliday and Andrew
Mathias (7)
CEO and president–chief investment
ofcer, respectively, of SLGreen
It’s hard to
overstate this
one. Messrs.
(pictured) and
control SL
Green, which is
the single
largest commercial landlord in New
York City, controlling 23.2 million
square feet in 29 ofce buildings. If
SL Green’s battles at 100 Church and
510 Madison—and its recent buys of
600 Lexington and 125 Park—are
any indication, the REIT has every
intention of further expanding its
New York empire.
Stephen Ross
the commercial observer | May 11, 2010 31
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Mort Zuckerman (3)
chairman-ceO of Boston Properties
Not only does Mr.
Zuckerman’s Boston
Properties control 8.88
million square feet of
ofce property in New
York City, including the
GM Building, but he’s on
the prowl for more, one
of three runners-up,
along with Douglas
Durst (No. 8) and Stephen Ross (No. 1), to
buy an equity stake in the building formerly
known as the Freedom Tower.
Steve Roth and Michael Fascitelli
chairman and president, ceO and Trustee, respec-
tively, of Vornado Realty Trust
The bluntly spoken yet
oddly press-shy Mr.
Roth (pictured), with his
right-hand-man, Mr.
Fascitelli, together
control the second-larg-
est ofce landlord in
New York, their REIT
owning 22 million feet
in more than 50 Manhat-
tan properties. These include several around
Penn Station, including the Hotel Pennsylva-
nia, which Vornado would turn into the city’s
third-tallest ofce tower.

Jonathan Gray (14)
Senior managing director and Real estate
group co-head of Blackstone
Mr. Gray has shepherded
some of the company’s
biggest deals, including
the privatization of
nearly a dozen real
estate companies and,
most notably, Hilton
Hotels (including the
Waldorf-Astoria), which
rebounded last month
after Blackstone bought back $1.8 billion in
Barry Sternlicht (65)
ceO of Starwood capital group
Few chief executives
have enjoyed such
success during this
Great Recession as Mr.
Sternlicht, who
managed to drive up
Starwood’s total equity
by a whopping $3 billion
since last year. His
capital-raising skills go a
long way in explaining why, just last month,
he and a group of investors shoveled $905
million into fnancially troubled Extended
Stay Hotels, a company that boasted among
the largest debt loads in hotel history.

Mort Zuckerman
the commercial observer | May 11, 2010 33

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Mary Ann Tighe (22)
CEO of CB richard Ellis’ new york tri-state
Feared and admired in
equal measure, Ms.
Tighe has completed
millions of square feet
of leasing transactions.
Also, as the chairman of
the Real Estate Board of
New York since January,
she has the ear of
countless landlords and
policy makers as REBNY pursues what for it
is a rather well-publicized political agenda.
Doug and Jody Durst (6)
Co-presidents of the durst Organization
stalwarts, cousins
and keepers of the
family fortune,
Messrs. Durst
control an empire
of commercial and
residential real
estate that
encompasses the
fabulously successful new One Bryant Park,
the Helena, 4 Times Square and, if they have
their way with the Port Authority, a piece of
One World Trade Center.
Michael Bloomberg (4)
Mayor of new york
His main rezonings are
done; his legacy projects
were announced years
ago; and he has few
distinct plans for the
third term. Still, our
Medici wields power
over anyone seeking to
build anything large,
and he and Deputy
Mayor Bob Lieber (No. 73) have shown an
eagerness to take assets from the state.
They’ve now grabbed Governors Island and
Brooklyn Bridge Park, and are eyeing Battery
Park City.
Richard LeFrak (18)
Chairman, president and CEO of the Le-
Frak Organization
His personal wealth estimated at $4 billion,
Mr. LeFrak controls the New York empire
founded by his grandfather Harry, which
includes 40 West 57th Street and, in Queens,
the eponymous LeFrak City, the Brussels and
the Marseille. The empire is also pursuing
Stuyvesant Town in a partnership with Wil-
bur Ross.
Jerry and Rob Speyer (pictured)
Chairman and co-CEOs of tishman speyer
While the father-son
duo has distressed prop-
erties around the
country, vestiges of a
buying spree at the peak
of the market, they still
are at the head of one of
the more dominant
families in New York
City. Among their
holdings: Rockefeller Center, the Chrysler
Building and the MetLife building, all of
which are surely worth far more than when
they purchased them.
Andrew Farkas
CEO of island Capital Group
An heir whose surname
literally means “wolf,”
Mr. Farkas is nothing if
not aggressive when it
comes to investing.
Years after making a
name for himself by
snatching up a dis-
tressed real estate
partnership in circa
1990s Manhattan, he returned to the front
pages of the business trades in March after
acquiring Centerline Holding, a bankrupt
group that restructures troubled mortgages.
When he’s not picking through real estate
carcasses, Mr. Farkas is said to cheer on his
former employee, governor-in-waiting
Andrew Cuomo.
Carlos and Tony Slim
Chairman-CEO of telmex; head of real
Estate investments
Mexican telecom mogul
Carlos Slim Helú
(pictured), the world’s
richest person,
according to Forbes
(estimated wealth:
$53.5 billion), bought
the plain vanilla ofce
building at 417 Fifth
Avenue, owns a note
backing The New York Times’ former
headquarters and is said to be searching for
more such investments—with son Tony—in
Manhattan. Carlos Slim, budding New York
real estate mogul? Puede ser?
Craig Newmark (15)
Founder of Craigslist
On his Twitter bio (he
has a loyal 21,899
followers) the classi-
feds caliph humbly
describes himself as
“customer service rep
and founder for
craigslist.” He does not
mention the company’s
ongoing legal battles
the commercial observer | May 11, 2010 35
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Jefrey Gural, Barry
Gosin, Jimmy Kuhn
and David Falk (39)
Chairman, Ceo, president and regional
president, respectively, of newmark
Knight Frank
Messrs. Gural,
Gosin and Kuhn
have trans-
Knight Frank
into a top-fight
brokerage by
cultivating both young talent and an
enviable work environment. (Mr.
Falk, pictured, is being groomed to
take it all over.) In so doing, they’ve
scored countless prime tenants,
from Claremont Prep to Orrick
Peter Riguardi (34)
President, jones lang lasalle
new York Region
Mr. Riguardi is
one of the more
dominant ofce
brokers in
town, repre-
banks and
buildings and
playing both sides of big deals (like
in a large lease at One World Trade
Center, for instance). His frm is
charged with fnding tenants for
Goldman Sach’s old headquarters,
at 85 Broad Street, as well as at 1285
Avenue of the Americas, among
with eBay or the fact that his
international classifeds purveyor,
which began as a personal email list
15 years ago, has more than 20
billion page views per month, many
of which service a DIY-hungry real
estate community.
Andrew Cuomo
attorney general of new York
Despite no
of his inten-
tions, much of
the New York
political world
views Mr.
Cuomo as the
waiting. He’s
expected to control the state in
eight months, and his campaign
cofers are fush with real estate
contributions. He also has a history
in the housing world: He was HUD
secretary in the late 1990s, in
President Clinton’s cabinet; and his
current ofce approves or rejects
condo ofering plans.
Donald Trump (16)
Ceo of the trump organization
To a younger
generation, the
Donald may be
best known for
fring up-and-
comers and
boldface names
alike on The
Apprentice. But
buried deep his
colorful Google results, Mr. Trump,
it seems, is still a developer at heart.
To wit: After years of playing
Goliath to neighborhood groups, the
Trump Soho Hotel Condominium
fnally opened in Manhattan last
month, atop an ancient burial
ground, no less.
Sheldon Silver (10)
speaker of the state assembly
With a
governor and a
slim Democrat-
ic majority in
the Senate, Mr.
Silver is often
referred to as
the de facto
governor. He
has strong control over his
conference, and anything going
through the Legislature must
receive his nod. For real estate, the
object of much of his afection is his
Lower Manhattan district, which he
has helped shower with tax breaks
and infrastructure.
Peter and Anthony
Malkin (50)
Chairman and president, respectively, of
malkin holdings
The Malkins are
a multigenera-
tional New York
real estate
family, with
ofce holdings
throughout the
region. Most
notably, they
are co-owners
of the Empire State Building, which
has been going through a much-bal-
lyhooed green upgrade—Peter
Malkin (pictured) announced it last
year with Bill Clinton at his side.
Speaking of last year, Malkin
Holdings leased more than 1.1
million square feet in 2009, of which
only about 400,000 involved
Sam Zell
Chairman of equity Group in-
Before this
year, Mr. Zell
was known
locally for
riding a
being delight-
fully crude in
public settings
and owning the
Tribune Company. But in March, he
gobbled up Harry Macklowe’s last
three apartment buildings for $475
million, following a $12 million deal
for a lot owned by Shaya Boymel-
green. Suddenly, he was all about
New York, or at least distressed
properties in it.
Chris Ward (48)
executive director of the Port
authority of new York and new jersey
After the
with developer
Larry Silver-
stein (No. 33), a
agreement is in
place at the World Trade Center for
two new private towers, thanks in
large part to the Port Authority’s
balance sheet. Taken with One
World Trade Center, which the
agency is developing itself, Mr.
Ward has his hands in 7 million
square feet downtown.
Barry Gosin
Howard Rubenstein (27)
Chairman, Rubenstein Communi-
cations, inc.
When some-
thing goes
Mr. Rubenstein,
the city’s
master, who
has been styled
“the dean of damage control” by
Rudolph Giuliani. His eponymous
frm, with more than 200 employ-
ees, represents a staggering roster
of clients, including SL Green,
Vornado Realty Trust, Tishman
Speyer and dozens of other real
estate players.
Steven Spinola (28)
President of the Real estate
Board of new York
The State
Senate may be
Democratic, but
Mr. Spinola has
managed to
help ward of
any legislation
that might hurt
bottom lines.
Now, he is using
his trade group and landlord cash to
mimic unions, better organizing
members on policy issues and
raising money for a political party
of sorts, tentatively using the
Independence Party line to push
pro-business candidates.
Jefrey Feil (37)
President-Ceo of the Feil or-
The multigenerational real estate
investment frm that bears his name
cast a wide net last year, to Herald
Square, where the group acquired
the 250,000-square-foot Herald
Center. The nine-story shopping
mall marks the Feil’s 19th shopping
center acquisition, but Mr. Feil, a
founding partner of the private-eq-
uity group Longview, didn’t pause
to enjoy the purchase. He was of
to oversee the acquisition of a re-
tail segment of the St. Regis Hotel,
which commands the highest retail
asking rents in the city.
Bill Rudin (12)
President of Rudin manage-
ment Company
Mr. Rudin may
be struggling to
get his St.
project under
way, now that
the hospital has
bankruptcy, but at least he has that
whole real estate empire thing
going for him: 15 ofce towers,
including 345 Park Avenue and 1675
Broadway, well over a dozen
residential properties and, of
course, the leadership of the
Association for a Better New York,
allowing him an infuential voice in
real-estate–related public policy.
Mitch Rudin (26)
President-Ceo of CB Richard
ellis’ new York tri-state Region
Mr. Rudin oversees the manage-
ment of the largest commercial real
estate brokerage in New York City.
It is 700 employees strong; given
the general broker personality type,
it cannot be easy to run. Still, CBRE
continues to dominate the city’s
ofce-leasing landscape, working on
more of 2009’s largest leases than
any other frm.
the commercial observer | May 11, 2010 37
count on 70,000 hard-working men and women to clean,
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101 Avenue of the Americas, New York, NY 10013 • 212.388.3800 •
The largest union in the real estate industry, 32BJ represents New York City office cleaners,
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Mitch Steir and
Mike Colacino (41)
Chairman-CeO and president, respective-
ly, of studley
Messrs. Steir
(pictured) and
Colacino lead
New York’s
tenant rep
brokerage, and
are doing so
during the most
ofce market in ages. It pays. Their
stable of brokers have won two of
the past three top REBNY awards,
and they continue to rake in the
clients. The latest coup? Negotiat-
ing Tifany’s new headquarters in
four-plus foors of 200 Fifth Avenue.
Ronald Kravit
managing director of
Cerberus Real estate
He’s known for conjuring innovative
investment deals, including land-
mark acquisitions of the discount
retailer Mervyns and grocery store
chain Albertsons. But what many
investment and real estate profes-
sionals talk about when they discuss
Mr. Kravit is how he helped put into
play the trend of hedge funds enter-
ing the private-equity sphere. In
these heady fnancial times, innova-
tion is key.
Keith Barket and
Adam Schwartz
senior managing director and head of
U.s. investment activities, respectively, of
angelo, gordon & Company
As head of real
estate acquisi-
tions at Angelo,
Gordon &
Company, Mr.
Barket and Mr.
Schwartz have
many of the
property buys in recent memory,
including the Chelsea Market in
1998 as part of a package deal of fve
buildings. After purchasing the
portfolio for a paltry $115 million,
the frm upgraded the buildings and
sold them individually for a
reported total of $1 billion. More
recently, the frm, in a partnership
with Extell, signed a deal to acquire
the Helmsley Carlton House hotel.
Adam and Amy Rose
Co-presidents of Rose associates
The cousins Rose, one arm of the
storied real estate family, are
amassing a greater portfolio these
days, due in large part to the mar-
ket crash. From Riverton House to
Stuyvesant Town (though not of-
fcially for Stuy Town), the company
has become the third-party man-
ager of choice for many of the larger
distressed assets, an area that is
most certainly a growth industry.
Charles Spetka
President of CW Capital asset
Slowly but
surely, CW
Capital is
taking control
of Manhattan’s
market. Under
Mr. Spetka, the
frm is the
servicer” charged with restructur-
ing or selling giant properties
bought at the market’s peak and
now in, or near, default. Among the
properties in the purview of the
relatively anonymous frm:
Stuyvesant Town, Riverton and the
W Hotel Downtown.
Larry Silverstein (29)
President of silverstein
After taking a
approach to
with the Port
Authority, Mr.
Silverstein now
is able to build
two ofce
towers at the World Trade Center
site, backed in large part by
public-sector subsidies. Should he
raise private capital, he will own
some of the only new ofce space in
the city starting in 2013, with large
blocks available for leasing.
Amanda Burden (8)
Chairwoman of the City
Planning Commission
The design-at-
tentive Ms.
Burden and her
have now
rezoned more
than one-ffth
of the city,
development in
side streets and allowing new
density near subways, in formerly
industrial areas along the water-
front; the major city-led rezonings
are now mostly fnished. Private
developers must frst gain her
stamp of approval on many large
Jef Horowitz
Head of Real estate invest-
ment Banking in the americas, Bank of
Among the Merrill Lynch employees
who joined B of A after the two com-
panies merged, shotgun-style, Mr.
Horowitz may be the new group’s
brightest star. Indeed, as the bank
seeks to entrench itself in a lucra-
tive bid to help fnancially strapped
private companies enter the public
markets, few individuals are bet-
ter positioned to contribute to the
bank’s bottom line than Mr. Horow-
itz, who as an investment banker in
the 1990s helped move fnancially
burdened private landlords to the
public sector and, subsequently,
helped rev up equity for the REIT
Lloyd Goldman (25)
President of BLDg
Heir to his uncle’s real estate throne,
the press-shy Mr. Goldman has be-
come probably the city’s biggest
private landlord, with an unknown
total of apartment and mixed-use
buildings under his purview that
likely totals in the hundreds.
Doug Shorenstein
CeO of the shorenstein Co.
It’s been only
about eight
years since the
San Francisco–
based real
estate frm
penetrated the
New York
markets in
earnest. Ever
since then, however, Mr. Shoren-
Ric Clark
the commercial observer | May 11, 2010 39 | the commercial observer 40 May 11, 2010
stein, who has been credited with
turning his long-established
family-run business into a national
player, has fnanced and invested in
properties here and elsewhere with
the zeal of a New Yorker.
Howard and Edward
Milstein (36)
Principals of Milstein Properties
Leaders of one
of the city’s
most powerful
real estate
(pictured) and
inherited the
company from father Paul and his
own brother, Seymour. Generally,
they try to stay afoat and under the
radar, due in part to a fraternal
power scufe several years back.
Milstein owns sizable Manhattan
square footage, but the recent
completion of two Battery Park City
condo towers marks the company’s
frst ground-up construction in
Ric Clark (49)
CEO of Brookfeld Properties
The largest
ofce landlord
in Lower
Manhattan, Mr.
Clark’s publicly
Brookfeld is
trying to buy
General Growth
Properties and
presumably is looking for other
acquisitions as well. His challenge:
fnding tenants to fll the World
Financial Center, as millions of
square feet are expiring by 2013.
Thomas Hughes
Chairman of Lnr

The former chief of Deutsche As-
set Management, Mr. Hughes took
charge of the Lennar real estate
fnance spinof LNR in July 2007.
Rumors have it that the fush frm
is circling the city, positioning Mr.
Hughes to be among the more rapa-
cious investors to come out of the
William Mack (pic-
tured), Lee Neibart and
Richard Mack (24)
Chairman, Global CEO and north ameri-
can CEO, respectively, of arEa Property
The real estate
and fund
manager has
made the
recession work
to its advan-
tage, soliciting
investors and
eagerly scooping up distressed
assets and bottomed-out hotels
around the city. The investment
locomotive, best known as co-devel-
oper of the Time Warner Center, is
optimistic about the return of the
corporate market, but Mr. Neibart
recently told The Observer that
investing in retail and ofce space is
still a ways of.
Darcy Stacom and
Bill Shanahan
Howard Lutnick,
Steve Kantor and
Anthony Orso
CEO, managing director and senior part-
ner, respectively, of Cantor Fitzgerald
Since 2008,
when Cantor
announced its
entry into the
real estate
investment and
market, the
fnancial group
has been on a hiring spree. Mr.
Lutnick (pictured) is at the helm of
the newest venture, Cantor Real
Estate, and has already announced
plans to bring on more than 130 new
professionals. Former Credit Suisse
stars, like Mr. Kantor and Mr. Orso,
fgure prominently in the new
Mikhail Prokhorov
Would-be owner of the
Brooklyn nets
Assuming the
NBA gives him
the thumbs-up,
Mr. Prokhorov,
a Russian
billionaire, is
slated to
become owner
of New York
City’s newest
professional sports team, as well as
a co-owner of the Barclays Center
now under construction in down-
town Brooklyn after seven years of
David Levinson and
Rob Lapidus
Chairman-CEO and president-CiO, re-
spectively, of L&Lholdings
In these
times, it’s hard
to blame the
landlord who
excitement for
Levinson (pictured) and Lapidus,
however, turned the tables when
they rejected numerous ofers at
200 Fifth Avenue and instead took
on Eataly, an ambitious, Turin-
based food emporium. Add to that
news last month that Tifany’s HQ
would be occupying four and a half
foors in the building, and it
becomes clear that the duo is
behind one of the fashiest projects
in years.
William and Arthur Zeck-
endorf (pictured) (31)
Co-chairmen of Zeckendorf realty and of
terra holdings
The urbane
who were
among the frst
developers to
bring condo-
miniums to
New York
recently, the
epically successful 15 Central Park
West, probably still the nation’s
most expensive condo, sales-wise—
spend their spare time controlling
Terra Holdings, the owner of
Halstead and Brown Harris Stevens,
the employer of more than 600
brokers and the manager of more
than 80 buildings.
Darcy Stacom and
Bill Shanahan (59)
vice chairmen of CB richard Ellis
If a building
got sold
during the
they sold it.
And now
that the
appears to
bottoming out, if not fnally lifting,
Ms. Stacom and Mr. Shanahan are
busy again. Recently, the duo helped
Hines sell 600 Lexington Avenue to
SL Green for $193 million.
Doug Harmon and
Adam Spies (71)
Senior managing directors of Eastdil
After advising Deutsche Bank in its
sale of the former Macklowe ofce
empire, Mr. Harmon continues to
be at the fulcrum of the investment
sales market, which today means
trading in mortgage notes. Most re-
cently, with fellow senior managing
director Mr. Spies, he’s been hired by
Royal Bank of Canada to sell the $210
million note on the Lipstick Building,
Scott Latham (pic-
tured), Richard Baxter,
Yaron Cohen and Jon Caplan
new york Capital Markets team for Jones
Lang LaSalle
Jones Lang
LaSalle just
poached these
four from
Cushman &
where they
spent the boom
time selling
billions of
dollars’ worth of real estate before
the bust rendered them idle. Now
they’re tasked with expanding JLL’s
share of the investment sales
the commercial observer | May 11, 2010 41
Newmark Knight Frank
is pleased to congratulate
jeĝrey k. CuraI
ßarry M. Cesin
james ß. kuhn
ßavid A. FaIk
President New York Tri-State Region, Principal
on being selected among the
in the New York Observer’s Annual “Power 100” Issue
"100 Mest PewerfuI IndividuaIs
in hew ¥erk keaI £state"
www.newmarkkf.cem North America
Latin America
Middle East | the commercial observer 42 May 11, 2010
Lenny Litwin and Gary
Jacob (13)
Chairman and executive vice president,
respectively, of Glenwood management
Long before it
or, to be more
focus on the
rental market,
the nonagenar-
ian Mr. Litwin (pictured) and Mr.
Jacob were doing just that. In a
down market, however, the duo’s
plans seem downright prescient.
And now as competitors rush to
convert unsold condos, Glenwood
Management is successfully leasing
Emerald Green, the 569-unit
residential complex on West 38th
Jay Sugarman
Ceo of istar Financial
Mr. Sugarman
runs a commer-
cial lender that
has fnanced
more than $28
billion in
Although its
clients have
included such
luminaries as Harry Macklowe and
Donald Trump, the company has
been hit hard by the downturn,
losing $24.2 million in the frst
quarter of 2010. Still, a recent $1.4
billion property sale to Dividend
Capital Realty Trust demonstrates
that iStar remains a hefty player.
Bruce Ratner (23)
Chairman of Forest City Ratner
For the past
seven years, Mr.
Ratner’s focus
has been on
Atlantic Yards,
the planned
home to a
Brooklyn Nets
arena and,
thousands of units of housing. This
spring, he fnally emerged the
winner of the fght with defant
landowners. He was clearly
wounded by delays and the
economic crash, but he is still
standing, and construction is under
Stephen Siegel (35)
Global Brokerage chairman of
CB Richard ellis
It’s hard to fnd
a real estate
without a kind
word to say
about Mr.
despite his
success in the
brokerage business. Now, Mr. Siegel,
who’s something of the wise
godfather of New York real estate, is
busy helping landlord Steve Pozycki
land Proskauer Rose for 11 Times
Square, in what will surely be one of
the biggest leases of the year.
David Paterson (9)
Governor of new York
He may be a
lame duck
under a cloud
of scandal with
almost no
supporters in
the Legislature.
But Mr.
Paterson is still
the governor
until the end of December (presum-
ably), with many of the powers that
come with that ofce, be it the
suspension of construction
contracts, vetoing legislation or
selecting a bidder to build a racino
at the Aqueduct racetrack.
Stefan Solow
heir to developer sheldon
Judging by a New York Times pro-
fle several years ago, Mr. Solow, 35,
may not yet be entirely comfortable
stepping into his father’s formi-
dable shoes. But when your father
is Sheldon Solow (No. 53 on our list
last year), and he’s named you as
his “heir apparent,” what do you ex-
pect? Indeed, Mr. Solow will be the
likely arbiter of his father’s massive,
6.1 million–square–feet develop-
ment near the East River—not to
mention 9 West 57th Street.
Avi Banyasz (20)
managing principal of West-
brook Partners
As head of the private-equity fund
Westbrook Partners, Mr. Banyasz
swooped in at the top of the market
to buy big-deal properties like the
Burberry Building, the Paramount
Hotel and 235 West 75th. Now that
the bubble has burst, he has set his
sights across the pond. Earlier this
month, it was announced that West-
brook Partners had invested in a joint
venture with an Irish investment
group to develop a 435-bed student
housing facility in North London.
Glenn Rufrano
Ceo of Cushman & Wakefeld
After Bruce
transitioned to
a chairmanship
at Cushman,
the brokerage
hired industry
veteran Glen
Rufrano, no
stranger to the
title. Before assuming the helm in
March, Mr. Rufrano was CEO of
Australia-based Centro Properties;
prior to that, he was CEO of New
Plan Excel Realty Trust Inc.
Robert Stuckey,
Mark Schoenfeld and
Andrew Chung (17)
managing directors of the Carlyle Group
With a focus on New York City
and Washington, Messrs. Stuckey,
Schoenfeld and Chung have been a
formidable trifecta for the Carlyle
Group for years. But plans to re-
tenant a swath running the entire
block of Fifth Avenue between 52nd
and 53rd streets with high-level
retailers could translate into even
more success for the team. Only
last month, Carlyle inked a whop-
ping $300 million lease at 666 Fifth
Avenue, the retail of which it partly
owns, for Japanese clothing retailer
Stephen Siegel
the commercial observer | May 11, 2010 43
Equal Housing Opportunity.
GLENWOOD Proudly Congratulates
320 West 38th Street,
Just West of 8th Avenue
LEONARD LITWIN, Chairman and
GARY JACOB, Executive Vice President
and all “The Power 100” honorees | the commercial observer 44 May 11, 2010
Gary Barnett (32)
President of extell
To say nothing
else of Mr.
Barnett, he has
stayed active in
the downturn.
One of the city’s
most prolifc
developers, he
is working on
foundations for
two midtown towers (sans full
fnancing, for now) and is bringing
plans for a giant, mixed-use
development on the West Side
through the public-approval
process this year.
Peter Duncan
President of George Comfort
& Sons
Mr. Duncan, as
president of the
frm, shepherd-
ed the pur-
side a number
of partners—of
Plaza, the last
of the Macklowe detritus. He did so
in the middle of the recession for a
bargain-basement $590 million,
thus conferring a certain patina and
added prestige to the company

Ray Kelly
new York police commis-
Under the
watchful eyes of
Mayor Mike
Bloomberg and
Mr. Kelly, New
York has
enjoyed record
lows in crime,
both nonviolent
and otherwise.
For this, property values have
remained relatively steady even in
the face of a global recession. But
with the downturn and a recent
uptick in crime, will the commish be
able to sustain the goodwill of
property owners? Only time—and, as
in the case of the would-be Times
Square bomber, a little luck—will tell.
Charles Bagli
Staf writer for The new York
In a world of
blogs, some-
times it takes
the most
infuential news
organization to
call the end of
an era. Mr.
Bagli (an
alumnus!) did just that in October
2008, in a story titled “Failed Deals
Replace Boom in New York Real
Estate.” Since then, he’s document-
ed every major development,
successful or struggling, from Stuy
Town to N.Y.U. to Atlantic Yards.
Dan Tishman (81)
Chairman-Ceo of Tishman
Amid much
and more PATH
rail lines, the
concern is
trucking away
at One World
Trade Center.
With the 700,000-square-foot
underground foundation structure
completed, Mr. Tishman’s frm
expects to fnish the erstwhile
Freedom Tower in 2013. The
company is also involved in a slew
of big-box hotels through its
subsidiary, the Tishman Hotel

Howard Lorber and
Dottie Herman (33)
Chairman and president, respectively, of
Prudential Douglas elliman
Talk about Iron
Man. Emperor
and Empress by
default, the duo
steering the
city’s largest
continue to fex
their iron
despite the downturn; they’ve
opened new ofces, inaugurated a
rental division and pirated talent
from recession-failed rivals,
bringing the monolith’s current
agent count to 3,800, a 15 percent
increase from two years ago.
Dottie Herman
the commercial observer | May 11, 2010 45
Jay Walder
Chairman of the Metropolitan Transpor-
tation Authority
Transit advocates like
to refer to the M.T.A. as
the lifeblood of the city.
New York owes its
density to the transit
system, and worsening
service would turn away
business. Particularly as
giant budget gaps loom,
Mr. Walder’s challenge
is to fnd savings (or more revenue) and keep
the trains running.
Peter Hauspurg and Daun
Paris (58)
Chairman-CEO and president, respectively, of East-
ern Consolidated
The best dressed of the
brokerage community
(and married to boot!),
Mr. Hauspurg and Ms.
Paris run a boutique
investment-sales frm
that specializes in
of-market deals. It has
pulled through the
worst real estate
recession in recent history swimmingly.
Pam Liebman (51)
CEO-president of the
Corcoran Group
“New York has had a
very good rebound,” Ms.
Liebman said recently,
and Corcoran’s hasn’t
been bad, either. A year
ago, the frm was
fghting shutter rumors,
now the city’s second-
largest residential
brokerage is back to
fercely competing with Goliath archrival
Elliman by adding agents and aggressively
launching the frst house-hunting iPhone
Stanley Chera (pictured) and
Haim Chera
Principals of Crown Acquisitions
Judging by recent deals,
the Cheras seem to take
just as much delight in
mining underdeveloped
gems as they do in
scooping up valuable
retail. With the Carlyle
Group, Crown last
month leased 90,000
square feet to clothing
retailer Uniqlo at 666 Fifth Avenue for an un-
1 Battery Park Plaza New York, NY 10004 | 212 972 3600 |
Meridian is proud to salute
our President and CEO,
Ralph Herzka, on being
recognized in The New
York Observer’s 100 Most
Powerful People in New
York Real Estate.
Meridian Congratulates
e 2010 Power 100 | the commercial observer 46 May 11, 2010
precedented $300 million over 15
years. Meanwhile, the group
announced last week that it was
setting its sights on Brooklyn’s
Fulton Mall, where they intend to
convert a former department store
into student housing for Long Island
Jonathan Mechanic and
Stephen Lefkowitz (54)
Chairman of the Real Estate Department
at Fried Frank; member of the Real Estate
If anyone buys
or sells a
building in New
York, or signs a
big lease in one,
(pictured) and
Lefkowitz are
bound to have a
hand in the deal. They are two of the
most successful—and discreet—
real estate attorneys in the industry.

Joe Ficalora (40)
CEO-chairman of New York
Community Bancorp
If you’re
seeking signs of
a sagging
economy, don’t
bother looking
to Mr. Ficalora,
whose bank
raised more
than $1 billion
in new capital
last year and rose to become the
country’s 22nd largest, asset-wise.
Meanwhile, the Westbury-based
bank has been aggressively
expanding its reach (six new
branches in Arizona in March, to
give one example) and gobbling up
failing regional banks in Phoenix,
Cleveland and back home in New
York State.
Robert Knakal and
Paul Massey Jr. (75)
Chairman and CEO, respectively, of
Massey Knakal
The founding
partners of New
York’s busiest
sales frm do
diferent things
within it—Mr.
Massey runs the
day-to-day operation, Mr. Knakal
(pictured) remains an inveterate
salesman—but they have both
helped it enjoy a plush run through
an investment desert. In January,
The Real Deal pronounced Massey
Knakal the top New York frm in
number of sales from 2007 through
the third quarter of 2009; and tied
for ffth in sales volume over that
span. Bring it.

Jef Sutton (52)
Founder and president of Whar-
ton Acquisitions Corp.
Mr. Sutton is a ball-busting real es-
tate player of the old school, with a
keen eye for acquisitions and retail
and more than 100 properties to his
name, including 717 and 609 Fifth
Avenue. His tenant roster reads
like a who’s who of Big Retail: from
American Eagle and Abercrombie
and Fitch to Armani and Escada.
Robert Ivanhoe (47)
Chairman of the New York of-
fce of Greenberg Traurig
Calling Mr.
Ivanhoe a real
estate lawyer is
like calling the
pope a Catholic.
Mr. Ivanhoe is
arguably New
York’s preeminent real estate
lawyer, with a client list that’s
pretty much a shorter version of
this one. Piloting deals from
Tishman Speyer’s acquisition of
Stuy Town to El-Ad’s purchase of
the Plaza, his frm is involved in
about one-third of the city’s
commercial deals.
Robert Lieber and Seth
Pinsky (43)
Deputy mayor for economic development
and president of the New York Economic
Development Corp., respectively
Mr. Lieber
(pictured) and
Mr. Pinsky lead
policy for the
pouring money
at big-ticket
projects like Coney Island and
Willets Point, along with new water-
front parks. The two recently were
mediators in a yearlong clash over
fnancing towers at the World Trade
Center, eventually brokering a plan
to give rise to two new ofce towers.
Philip Green
Owner of Arcadia Group Ltd.
Sir Philip
staged a British
invasion of
Soho with the
opening last
year of the
fagship store at
480 Broadway.
With a little
help from Kate Moss and in-store
roller-skating parties, he has
established the clothing retailer in
the city, and is reportedly eyeing
more local sites.
Arnold, Kenneth, Ste-
ven and Winston Fisher
(pictured) (45)
Partners in Fisher Brothers
With their
business, which
has “enjoyed
nearly a
century of
(according to
their Web site),
the Brothers Grimm of hefty
midtown real estate are staying the
course with their sky-happy empire,
which counts a bevy of buildings
Robert Knakal
the commercial observer | May 11, 2010 47
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with square footage over the 1
million mark, including Park Avenue
Plaza, 605 Third Avenue, 1345
Avenue of the Americas and 299
Park Avenue.
Timothy Dolan (79)
roman Catholic archbishop of
new York
It’s a thankless
task some-
times. Not only
is he surround-
ed by the
capital of
secularism, but
Timothy Dolan,
since early
2009, faces the same fnancial
problems as his predecessor,
Edward Egan, who made this list in
2008. These problems might very
well mean another round of parish
closings. Take heart, though,
Excellency. The archdiocese, which
includes Manhattan, Staten Island
and the Bronx, remains—for
now—one of the city’s biggest
Mike Fishman
President of SeiU 32bj
Mr. Fishman
picked well in
the fall
elections. In
addition to the
mayor, his
union support-
ed the eventual
winners of the
and public-advocate races, along
with six new members of the City
Council. Now he will be calling on
his new friends in government for
support, as he pushes a bill opposed
by landlords that would raise the
wages of building service workers
in subsidized developments.
John Sexton and
Mike Alfano
President and executive vice president,
respectively, of new York University
Messrs. Sexton
(pictured) and
Alfano’s recent
revealing of the
plans only
added to
resentment of what they view as the
school’s colonization of their
neighborhood. The 2031 expansion
plan, which includes suburban
“superblocks” in the Washington
Square Park area and a satellite
campus on Governors Island, hinges
on adding 240,000 square feet of
development per year.
James Cooper (82)
rector of Trinity Church
Along with the
resigned Carl
Weisbrod, Mr.
Cooper has
Trinity’s 6
million square
feet of
loft-heavy old
industrial buildings in Hudson
Square, bounded by the Avenue of
the Americas and Greenwich,
Houston and Canal streets, into
appealing ofce space for creative
tenants. In so doing, he helped
transform Trinity Church into a
landlord for the likes of Penguin
Putnam, WNYC, Lauder and Getty
Diane Ramirez
President of Halstead
The former
broker, who
began her
career almost
40 years ago in
Palm Beach, is
about the
future of her
brokerage (it’s owned, along with
BHS, by Terra Holdings), and from
the looks of things, she has reason
to be. Recruiting about two dozen
agents from the carnage of CBHK,
the Halstead honcho recently said
that her company’s seeing more and
more transactions over the $10
million mark.
Aby Rosen (91)
Principal of rfr realty
The suave Mr.
Rosen is an art
Building and
Lever House,
which hosts an
art gallery,
could be thought of as part of the
hobby, in fact. His RFR Realty is
shopping around leases at a slew of
some of the city’s most coveted and
high-end properties on the gilded
Park, Madison and Fifth avenues.
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the commercial observer | May 11, 2010 49
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David (pictured) and
Walentas (72)
Founder and vice president, respectively,
of two trees management
The tumble-
John Wayne
who decided
Dumbo was
dandy is still in
the saddle.
With the most
condo sale in
Brooklyn ($8.5 million at One
Brooklyn Bridge Park); Jay-Z and
Ralph Lauren rumored as house
hunters at the moguls’ $25 million
penthouse clock tower listing—by
far the borough’s priciest—and last
year’s legal victory regarding the
controversial Dock Street construc-
tion, the wily Walentases seem
primed to ride out the storm.
Hall Willkie (84)
President of Brown Harris
The boutique-style frm crafts a
carefully honed reputation for dis-
cretion and class, garnering some
of the glossiest, most privacy-de-
manding and largest listings, from
Gold Coast co-ops to Georgian bow-
front townhouses. The frm contin-
ues to add brokers, supplementing
last year’s assumption of Edward
Lee Cave’s boutique. Mr. Willkie
recently confessed, “I’m elated be-
cause a year ago I never thought we
could come to this level so quickly.”
Joseph Strasburg (63)
President of the Rent
stabilization association of new York
In 2008, the
recaptured the
State Senate
after decades in
the minority.
City landlords
burst into
sweat beads.
Would tenant
activists fnally get the decidedly
landlord-unfriendly changes to city
rent regulations that they’d fought
for forever? Mr. Strasburg sprung
into action. As the landlords’ top
representative in Albany, he pushed
back against the activists. For now,
it looks like he won; regulation
changes are dead in the political
Peter Ward
President of the Hotel & motel
trades Council
In the past few
years, Mr. Ward
has built up a
powerhouse of
a union. With
his political
director, Neal
Kwatra, he has
numerous actions that bring down
barriers to the unionization of
hotels, most recently through a
clause added to public authorities
legislation that passed last year.
Veronica Mainetti
U.s. activities head for the
sorgente Group
Don’t let her
eyes or her age
fool you. At 31,
Ms. Mainetti has
enough real
estate savvy to
fll the shoes of
dozens of her
aging male
competitors. Her seven-unit Soho
condo 34 Greene Street is now on the
market, and Sorgente acquired the
Flatiron Building last year. Plus!
Rumors are afoot that the group’s out
to buy the Woolworth Building, too.

Adrian Benepe (99)
Parks commissioner
Despite the
Tavern on the
Green hullaba-
loo and
crises (Hudson
River Park),
this biker boy
keeps green
space on the
brain, stalwartly forging ahead with
the mayor’s PlaNYC project, which
plans to have all New Yorkers living
within 10 minutes of a park by 2030.
With the weather warming and
Brooklyn Bridge Park heralded as
“the most important public space of
the century,” Mr. Benepe is in the
spotlight, or sunlight, rather.
Nochi Dankner
owner, chairman and Ceo of
iDB Group
The investment
magnate blew
into town from
Ben Gurion last
October in a
big, big way:
His frm agreed
to buy the
HSBC tower at
452 Fifth Avenue for $330 million—
cash. It’s very likely Mr. Dankner’s
frst major foray into New York real
estate, though likely not the last.
With a corporate CV too long to list
here, he has mammoth capital—and
access to more—to sink into
similarly 2007-like deals.
Dolly Lenz (89)
Vice chairman of Prudential
Douglas elliman
Ms. Lenz’s
Elliman’s top
sales award is
about as
surprising as
Tiki Barber’s
cheating: It’s
getting to be a
bore. But the
super-agent, who claims, “It’s not
work; it’s a passion,” has sold more
than $7 billion in New York real
estate, and there’s nothing boring
about that. With her sales coup at
the Apthorp (she had to fnd 25
buyers in a pinch) and continued
boldface listings, no one is saying
“Goodbye, Dolly” just yet.
Lee Bollinger (57)
President of Columbia
called “Prezbo”
by students, Mr.
Bollinger has a
full schedule.
On June 1, the
Court of
Appeals will
make a decision
on the use of
eminent domain for Columbia’s
17-acre West Harlem expansion;
and, this fall, the controversial
Rafael Moneo–designed science
center, which incidentally cost lots
of moneo ($200 million), is slated to
open—oh, but frst, there’s
John Burger
senior vice president and man-
aging director at Brown Harris stevens
Forget Ghostbusters. John Burger is
the one to watch out for on Central
Park West, with current listings (all
over $10 million) at the San Remo,
Dakota and Majestic, including Co-
nan O’Brien’s $29.5 million duplex.
Reliably ofering “no comment” to
the press, the BHS powerhouse has
made a name for himself in discre-
tion, which might explain his recent
$22 million sale with Jamie Tisch at
720 Park and the 778 Park Avenue
Buckley listing he shares with Paula
Del Nunzio (No. 99).
Dolly Lenz
the commercial observer | May 11, 2010 51
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and
marketing program in which there are no barriers to obtaining housing because of race, color, religion, sex, handicap, familial status or national origin.
A TOTAL VALUE OF OVER $650,000,000
445 Park Avenue
New York, NY 10022
70s/Park Ave. Excl. Private address, elegant entertaining,
duplex, 4 bedrooms, 5.5 baths plus maid’s. Unprecedented
prewar scale. A piece of New York’s intellectual history.
$12M. WEB# 1103462.
70s/Madison Ave. Exclusive. Rothschild Mansion. 28 feet wide,
33 feet deep garden, elev. Windows on 3 sides. Excellent block.
Restore to rare grand residence at last. $25.5M. WEB# 272151.
70s/Madison Ave. Excl. William Lescaze townhouse with
incredible interior light. Lovely outdoor space, 20 feet wide,
elevator, 6,800 square feet. Top floor atelier has views of
Whitney Museum. $14M. WEB# 1115779 .
Midtown West. Exclusive. Restored and renovated co-op. 13’6”
ceilings and dramatic windows in living room, 4 wood-burning
fireplaces, Poggenpohl chef’s kitchen, CAC. 2 bedrooms, library,
3.5 baths. Expertly finished. $6.9M. WEB# 1067608.
40s/Third Ave. Excl. Set on historic Turtle Bay Gardens,
approximately 3,900 square feet. 4 bedrooms, 2 offices, high
ceilings, original detail, planted garden. Outstanding.
$6.25M. WEB# 961042.
Gramercy Park. Excl. Sunny, approximately 6,000 square foot,
21 foot wide, high ceilings, 3 outdoor spaces, finished basement,
great condition. Steps to Gramercy and Stuvesant Parks. Truly
exceptional. $7.5M. WEB# 1110759.
70s/Park Ave. Excl. Exquisite garden and terrace. Bright with
elegant stair, 4 bedroom, 5.5 baths, staff suite, elevator. Grand
and charming.
$8.5M. WEB# 995082.
Greenwich Village. Excl. Approximately 4,535square feet, 36’ x
20’ living room, 16 windows, 5 bedroom, 4.5 baths, high ceilings.
Meticulous renovation inspired by villa La Rotonda. Full-service
condo in prime Greenwich Village locale. $10.995M. WEB# 1039452
60s/E. Excl. Renovated Treadwell Farms townhouse. 4 outdoor
spaces. 5 bedrooms, 6.5 baths plus+ staff suite. 12’3” ceilings in
living room. Warm and elegant home.
$10.25M. WEB# 1084987. | the commercial observer 52 May 11, 2010
Robert LiMandri (87)
Commissioner of the Depart-
ment of Buildings
The city’s
site chaperone
currently faces
the challenge of
making his
force more
efcient in an environment ofering
curbed spending. In the past year,
Mr. LiMandri has shown he means
business with bold (and possibly
PR-motivated) moves, such as
bringing the whip down on divisive
Brooklyn architect Robert Scarano
and, most recently, demanding that
Shepherd Fairey’s apparently illegal
mural on Houston Street be
Lockhart Steele (95)
publisher of Curbed network
According to a
recent deifying
profle in The
Times Maga-
zine, Curbed
postings cover
“anything a
New Yorker
might do with
square footage,
a lease and a dream.” It sounds like
the premise of a Frank Capra flm.
And yet the “Curbediverse” is a bit
of an optimist anomaly, with
voyeurs and vendors coexisting in
the darkest downturns. In fact, the
digital conglomerate, which also
includes Racked and Eater, began
making a proft mid-2009.
Young Woo
principal of Young Woo &
Hailed as the
new nice guy in
town, the
bold aspira-
tions for AIG’s
70 Pine Street
and 72 Wall
Street, which
he acquired for
a cool $150 million combined last
summer (he plans to sell condos in
70 Pine for $2,000 per square foot),
make him the new go-to guy as well.
Mr. Woo’s frm also won the
development rights to Pier 57, and
he already owns the Chelsea Arts
Tower and the automobile-elevator-
ed 200 11th Avenue.
Janette Sadik-Khan
transportation commissioner
Not only does
Ms. Sadik-Khan
manage the
city’s 4,000
DOT workers,
5,800 miles of
streets and
sidewalks, 789
bridges and 1.3
million street
signs, but she has been one of
Mayor Bloomberg’s most innovative
and sometimes controversial
deputies, building miles of bike
lanes and transforming Broadway in
Times Square into a pedestrian
plaza, with plans to do the same at
Union Square and on 34th Street.
Kirk Henckels (83)
executive vice president and
director of stribling private Brokerage
Mr. Henckels
takes tea at the
Carlyle, neatly
and always
bow-tied. It is
no accident
that the
former banker began his tenure in
the business at Edward Lee Cave’s
aristocratic boutique. The plume in
Stribling’s cap, Mr. Henckels
seemed a natural choice for the
famed 778 Park Avenue duplex—a
choice Mrs. Astor certainly would
not regret.
Joel Seiden and Ofer
principals of stonehenge partners
As owners of Stonehenge, Mr. Se-
iden and his Israeli-born partner,
Mr. Yardeni, have acquired upward
of 15 properties in New York. The
power duo owns and manages
assets valued in excess of $700
million, and with a portfolio that
has included the Pennmark, it’s
easy to see why. Purchased at the
top of the market, the 33-story,
600,000-square-foot space cost Mr.
Seiden and Mr. Yardani a reported
$244 million, among the highest
prices paid for property in 2005.
Young Woo
the commercial observer | May 11, 2010 53 Attorney Advertising.
Fried Frank Real Estate
Where major real estate transactions happen
Winner of the 2009
Chambers USA Awards
for Excellence – Real Estate
“The Chambers USA Awards for Excellence are
based on client recommendation and recognise
innovation and impressive performance. ”
Chambers and Partners
New York
Washington DC
Hong Kong
The Yankees
Representation of the New York Yankees in the development
of the new Yankee Stadium in the Bronx, NY
Atlantic Yards
Representation of Forest City Ratner Companies in the US$4b
mixed-use development project of Atlantic Yards in Brooklyn, NY
Chicago Mercantile Exchange
Represented Tishman Speyer Properties in the acquisition and leasing
of the Chicago Mercantile Exchange Center
West Side Property Development
Representation of Brookfield Properties Corporation in connection
with the development and financing of the ‘superblock’ at
West 33rd Street and 9th Avenue in New York, NY
GM Building
Representation of Macklowe Properties in connection with the
sale of the General Motors building and three other office towers
in New York, NY
Columbia University
Representing Columbia University as environmental counsel in
connection with the approvals for the creation of a new
17-acre campus in West Harlem in New York, NY
West Side Rail Yards
Representation of The Related Companies in connection with
the development of West Side Rail Yards in New York, NY
Polo Ralph Lauren
Representation of Ashkenazy/Carlyle in connection with the lease of
space at 650 Madison Avenue in New York, NY to Polo Ralph Lauren
World Financial Center
Representing Brookfield Properties in connection with infrastructure
projects at The World Financial Center in New York, NY
Pier 92, 94
Representation of Vornado Realty Trust and Merchandise Mart
in the development of Hudson River Piers 92, 94 to a
400,000 square foot trade show facility
Chelsea Market
Representing Jamestown Properties on the rezoning and redevelopment
of Chelsea Market in West Chelsea in New York, NY
Representation of AIG in connection with the sale and leaseback of its
world headquarters in New York, NY
Represented UBS AG in connection with the sale of its interest in
299 Park Avenue in New York, NY, a 1.1 million square foot office
building, to Rockpoint Group, LLC
HSBC Bank Buildings
Representation of subsidiaries of IDB Holding Corp.
in the acquisition and lease back of the HSBC Bank
buildings at 425 Fifth Avenue and
1 West 39th Street in New York, NY,
a total of 865,000 square feet | the commercial observer 54 May 11, 2010
Mark Jaccom
Ceo of Colliers
international tri-state Division
When it was
announced in
January that
First Service
Real Estate
Advisors would
merge with
thus creating
what could be the world’s third-
largest commercial frm, nobody
was happier than Mr. Jaccom, the
newly named chief executive of
Colliers International’s tristate hub.
Paula Del Nunzio (74)
senior vice president and
managing director at Brown harris
Ms. Del Nunzio,
townhouse Her-
cules, with the
$50 million
Mansion on the
docket and the
Mansion under
her belt, is taking the torch as
genteel but power-savvy dame du
jour. Her current listings total more
than $241 million combined, and
there are only 17 of them! She also
shares the newly launched Buckley
listing at 778 Park with John Burger
(No. 91).
Veronica Hackett
managing partner of the
Clarett Group
As any real
estate honcho
will advise,
there’s no surer
way of sending
a message than
by building the
tallest tower.
For Clarett,
that superlative
became a reality last year, when the
company completed the Brooklyner,
a 51-story residential tower in
downtown Brooklyn that now bests
the borough’s former tallest by two
feet. And business, reportedly, has
been brisk, even with studios
starting at $1,550.
Veronica Hackett
the commercial observer | May 11, 2010 55
thousands of no-fee apartments, direct from owners | the commercial observer 56 May 11, 2010
Global intelligence.
Innovative advice.
Flawless execution.
An Ingenious Collaboration
Cushman & Wakefield is pleased to receive one of REBNY’s Most Ingenious
Deal of the Year Awards for the sale-leaseback of a portion of The New York
Times headquarters in Manhattan.
This transaction, and its award-winning results, would not have been possible
without the vision of our client and the collaboration of our Corporate
Investment Banking Group and New York Brokerage Services professionals.
Bringing the full complement of real estate Capital Markets expertise
to our clients in New York... We’re There.
SIGNOF THE TIMES: The team of Cushman & Wakefield's Corporate Investment Banking Group based in New York and New York Brokerage Services,
pose with REBNY’s Most Ingenious Deal of the Year Award for the sale-leaseback of a $225 million condominium interest in The New York Times head-
quarters building in Manhattan. Front row (left to right): Andrew Sachs, Michael Rotchford, Louis Wolfowitz. Back row (left to right), Jessica Lowery, Anna Mori,
Richard Chun, Robert Elms.