Lease Beat 1330 sixth avenue 26 West 17th street

Week IN ReaL estate Midtown office Rents to Pre-Lehman Levels

stat of the Week Direct availability In the Near term

May 3, 2011

The Weekly NeWspaper of NeW york’s CommerCial real esTaTe iNdusTry




stat of the week
At the close of April, there was just under 54.8 million square feet of office space available (currently vacant or will be within the next six months) in Manhattan. To put that figure into perspective, the available space in Manhattan alone is greater than the entire inventory of metro Kansas City (47.7 million square feet) and not much less than that of metro Phoenix (67.6 million square feet)! But with 450 million square feet of office space from 62nd Street down to the Battery, that gives Manhattan an overall “vacancy rate” of 12.2 percent. Sublet availability has fallen sharply, down 38.2 percent since its last peak of 17.3 million square feet in May 2009. The drop in direct availability has not been as significant, falling just 3.3 percent from its peak of 45.6 million square feet in March 2010. And these direct and sublet trends have held true across all classes as well as across all three major Manhattan submarkets—midtown, midtown south and downtown. Two factors, however, may greatly increase the easing of direct availability in the near future: Much of the prime long-term sublet space has been leased and job growth has been on the increase, with 11,500 office jobs added in New York City in just the first quarter. —Robert Sammons of Cassidy Turley

Manhattan Overall Direct & Sublet Availability (Sq. Ft.)

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the commercial observer |

May 3, 2011


this week in commercial real estate
Apartment Towers Coming to Penn Wasteland?

April 25 - May 2

Thirty Bidders Later, Former Morgan Stanley Hub in Contract


ines Interests is in contract to sell the imposing hexagontopped former Morgan Stanley hub at 750 Seventh Avenue, multiple sources told The Commercial Observer on April 26. Interest from bidders was “through the roof,” according to one person involved in the process, with 20 to 30 prospective buyers, including a number foreigners from the Middle East and Asia. An offshore investor was the winner, taking home the 36-story, 600,000-square-foot Class A office tower at Seventh Avenue and 48th Street, according to sources familiar with the bidding but not directly involved in the deal. The Post reported April 29 that Kuwaiti investment firm Fosterlane Management was in contract for the building for $485 million. We reported in early March that the property was being qui-

etly shopped by CB Richard Ellis’ Darcy Stacom and Bill Shanahan (Ms. Stacom declined to comment). Hines, a Texas-based real estate investment firm, with $22.9 billion in assets worldwide, bought the 600,000-square-foot midtown prize in partnership with General Motors in 2000 for $150 million, or $260 a square foot. The city’s 74th-tallest building was completed in 1989 by Solomon Equities, featuring such dubious architectural features as a fake glass chimney, an uncanny resemblance to the neighboring Death Star and an unmistakable sway in a brisk fall wind. The victim of ’80s overbuilding, it was purchased shortly afterward by Morgan Stanley. The bank continues to occupy more than 300,000 square feet, or half the tower, and as of this fall was considering consolidating its back offices into a large block of vacant space in the building, across the street from its headquarters, Bloomberg reported. Other major tenants in the building include Mendes and Mount and Ernst & Young. —Laura Kusisto


garment district to allow for more office development has stalled. New apartment towers south of Penn Station could, however, create additional pressure to rezone the garment district, even as Brookfield is set to erect a massive mixed-use development at 33rd Street and rumblings of progress n a move that could help revive are also being felt at Hudson Yards— debate about the future of midall likely to bring an influx of residents town west’s grungy office stock, to surrounding areas. Edison Properties wants to build In an apparent effort to preempt a 407-unit residential tower in the some of that opposition, the proposal area directly south of Penn Station, requires developers to replace any ofcurrently a no man’s land of cheap fice space over 50,000 square feet that office lofts and questionable pizza is lost to demolition. Plus, a few more joints. well-moneyed condo and rental dwellThe New Jersey–based developers can only help the office market, er owns a parking lot at 249 West right? 28th Street, where it plans to build “Adding a measure of residential a large apartment tower with an New apartment towers development to these business disaffordable housing component, tricts,” said planning commissioner south of Penn Station but needs the area rezoned. EdiAmanda Burden in a statement, “can son and the Department of City could, however, create foster a more lively working environPlanning submitted concurrent preserving additional pressure to re- ment while office space and protectproposals to rezone the former fur ing existing and distincdistrict, spanning from Sixth to zone the garment district. tive building stock.” (The new zone Eighth avenues and 28th to 30th will also restrict development of hostreets to allow for some large restels with more than 100 rooms, a move idential development, while trying to preserve cheap that could rankle developers, who have targeted it as a office space and forestall new hotel development. prime hotel development area.) The proposal is likely to stir up a decades-old quesCommunity Board 5 will hold a meeting to discuss tions about the future of midtown west, an area once the rezoning proposal on May 4. Edison Properties has dominated by garment manufacturers and now dot- not yet prepared a statement or appointed a spokested with empty, cheap office lofts, with condos and person. —Laura Kusisto hotels in between. A previous proposal to rezone the slapping we’re used to at such panel events, the market talk was muted, and the high point came when each woman paid tribute to her mother. Ms. Durst recounted her mother’s advice: “Please be nice to Dad.” We did, however, hear that Silverstein Properties seems ready to move ahead with the swanky Four Seasons downtown. Ms. Durst also confessed that every tourist’s favorite water taxi was actually supposed to be the Durst Organization’s big dive into mass transit. But just as The Commercial Observer was musing rather smugly that real estate still seems all too much a patriarch’s game, Ms. Silverstein confessed that she wanted to be a journalist and travel the world, until she got pregnant at 23 and decided real estate would be better for raising a family. She warned this young scribe: “Enjoy it until you have kids.” —Laura Kusisto

First Daughters: Durst, Silverstein and Olshan


onnie Milstein was in a tough spot when once she was asked about the challenge of being part of a prominent real estate family. “A lot of what Connie said was not suitable for TV or radio or anywhere,” said Faith Hope Consolo, who recounted the story at “The Women Leading NY’s Real Estate Families” panel on the evening of April 28. But an entire table of Milsteins was hanging on the blunt blonde’s every word, so Ms. Milstein took a deep breath and uttered

these cryptic words: “Sometimes,” she said, “you gotta go along to get along.” Lisa Silverstein, Helena Durst and Andrea Olshan were similarly diplomatic, on everything but the touchy subject of Ms. Olshan’s shopping habits. “I hate shopping malls,” said Ms. Olshan, COO of her family’s Mall Properties. “Your retailers are a lot sexier,” she continued with a nod to Ms. Consolo. “I’m not going to say which ones I’m talking about, because some of you are probably wearing those labels tonight. I’m not into them, but women in Milwaukee are.” On plus-size fashion: “People always ask me, ‘What do you think of Lane Bryant?’ I’m not part of their target market, but thank you. … Women are not as tricked by the sexiness of the deal.” Indeed, compared to the back-

Glee in Midtown! Office Rents Rising


s hordes of teenagers gathered April 27 outside the New York Observer Building, complete with campy concession stand and various fan accessories, the only conclusion we could draw was that they must have heard about the same afternoon’s midtown west broker’s event. While the crowds might have had something to do with the Glee stars rumored to be stopping by the Intercontinental across the street, a crowd of 30 or so commercial brokers were no less gleeful to learn this piece of news: Midtown north asking rents could skyrocket past

321 West 44th street, 6th Floor, NeW York, NY 10036 Jared Kushner, Publisher Robyn Weiss, AssociAte Publisher Elizabeth Spiers, editoriAl director Tom Acitelli, editor
Matt Chaban, Laura Kusisto, stAff Writers Robert Knakal, Sam Chandan, columnists Jotham Sederstrom, Emily Geminder, contributing Writers 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 Ken Newman, director of clAssified Advertising

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May 3, 2011 | the commercial observer


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this week in commercial real estate
$100 a square foot as early as 2015. So said Peter Kozel, Colliers International’s economic whiz, who explained to the crowd that tourism and entertainment have created a boomlet in the office market on the West Side starting north of Times Square “This is a really a great opportunity because with that rebranding, and planned upgrades, the building offers some of the best views in the entire city,” said a CBRE spokesman. “You can see south all the way to the Statue of Liberty, and it also has river views.” Besides Messrs. Alexander and Stillman, the new leasing team includes CBRE brokers Bernard Weitzman, Zachary Freeman, Brian Hay and Evan Haskell. —Jotham Sederstrom

to Columbus Circle. In our own building, dear reader, Kushner Companies’ 321 West 44th Street, the asking rent is $38 a square foot, with deals being done in that range. Downstairs, a lease is also out for the retail space, said Jared Kushner (The Observer’s owner) during the event. Over sandwiches and cupcakes, one broker noted the large windows and high ceilings but lamented the lack of air conditioning and locked hallway bathrooms. Indeed. Perhaps he had not heard, however, of our favorite apocryphal tale about the building: John Lennon recorded “Walking on Thin Ice” here on Dec. 8, 1980—the day he was shot. The midtown north availability rate is likely to remain relatively high, around 10 percent, but that may not reflect the amount of desirable space that’s available. Add that good news to Boston Properties’ planned development at 250 West 55th Street, and it looks indeed like the (north)west may have won. —Laura Kusisto

SL Green Takes 1515 Broadway
SL Green, the city’s largest commercial landlord, has consolidated ownership of 1515 Broadway in Times Square. The transaction placed a $1.2 billion value on the 1.75 million–square–foot skyscraper, which is home to Viacom and MTV Studios. SL Green has purchased the 45 percent stake from an arm of Canadian pension fund manager Caisse de Depot et Placement du Quebec.

CBRE Wins 1411 Broadway

Brookfield and Broadway at 450 West 33rd
Broadway Partners and Brookfield Office Properties have agreed to form a joint venture to recapitalize 450 West 33rd Street. Broadway had been in an ownership position on the building since 2007, when they bought the property for $664 million. “Four Hundred and Fifty West 33rd Street, situated between Penn Station and the Hudson Yards redevelopment, is located in one of the most dynamic submarkets of Manhattan, and we expect the property to benefit from New York City’s office market recovery already under way,” Broadway CEO Scott Lawlor said in a release. —With Matt Coyne


starting as low as


he powerhouse CB Richard Ellis leasing team led by Robert Alexander and Robert Stillman has wrangled leasing duties at 1411 Broadway away from Cushman & Wakefield, The Commercial Observer has learned. The 1.3 million–square–foot building near West 39th Street currently has 177,000 feet of available space on seven tower floors, and the new team has been tapped to reposition the asset—once known primarily as a garment center hub—as a full-service property. Equity Office Properties and the Swig Company own the building, which boasts the United Hospital Fund and financial services firm Reich & Tang as recent tenants.

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$5 M. New High Line Sale
A pair of four-story, mixed-use buildings in West Chelsea sold for $5.15 million—just in time for the opening of the High Line’s long anticipated second section, brokers at Massey Knakal told The Commercial Observer. With a total 7,584 square feet, the two buildings at 252-254 10th Avenue boast four vacant retail spaces on the ground floor as well as six free-market, floor-through apartments, brokers said. The sales price equals $679 per square foot, said Brock Emmetsberger, the Massey broker who, along with James Nelson, exclusively handled the transaction. The High Line has boosted property values across the West Side and its second section will open later this year. —Jotham Sederstrom

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Pan Brothers Associates, a real estate firm with buildings in the Flatiron district and Chelsea, bought a mixed-use building at 25 West 23rd Street for $5.65 million. The building, between Fifth and Sixth avenues, includes ground-floor retail currently occupied by Chock-Full-o-Nuts coffee, a second-floor actors’ studio and a pair of apartments on the two floors above, brokers said. The broker Jasper Socia of Independent Properties represented the seller, Regal Investments; Anand Melwani of ARM Real Estate Group represented Pan Brothers in the deal. —Jotham Sederstrom | the commercial observer




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May 3, 2011 7

lease beat By Laura Kusisto

GroupMe Finds Friends in Flatiron

26 West 17th Street


ith tech companies popping up in new offices faster than tweets on our Twitter feed, it never occurred to us that it’s actually not easy for them to find space. But many landlords in the city were burned when the last tech boom went bust and dozens of tenants couldn’t pay their rent. So when GroupMe, a bunch of recent college grads who’ve just received more than $10 million in funding for a mobile app, went looking for more space, they had to sell landlords that their product had staying power. “We really had to pitch the landlord,” said Slater Traaen of the Kaufman Organization, who represented the tenant. “They said to me afterwards: ‘We had to go through a harder pitch than with strategic partners or VCs [venture capitalists].’” GroupMe has just leased 5,300 square feet in the Winter Organization’s 26 West 17th Street in the Flatiron District, a.k.a. Silicon Alley. The asking rent was $37 a square foot and terms of the deal weren’t disclosed. GroupMe currently has around 15 employees, and wants to double in size to 30 by the end of the year. They were subleasing some desks from another social media firm, but this is their first permanent space. So what was the hot app that ultimately persuaded the building’s, leasing director Robert Fink? Founded at a Hackathon in 2010, GroupMe allows you to text a group of friends at once, similar to reply all on an email. You can also save groups of contacts, like “family” or “soccer friends.” Even we Luddites clinging to our salmon-tinted pages can see how that might be useful.


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n a transaction that spanned three years, involved three agencies under the same international umbrella and culminated in an historic first, the newly formed United Nations Women has taken 85,000 square feet at the former Daily News building. Colliers International vice chairman Andrew Roos secured the deal at the SL Green–owned 220 East 42nd Street for the new agency, which will advocate for women’s rights around the world. The arrangement involved a game of musical chairs with other U.N. agencies, including the UNFPA and the UNDP, said Mr. Roos. Space first became available at the building when the UNFPA, one of Mr. Roos’ long-time tenants, relocated last year to 605 Third Avenue. With some 125,000 feet of newly vacant space, Mr. Roos tapped the UNDP to occupy a portion of that space on floors 21 through 23. The remainder, he leased earlier this year to the women’s group.

“Several United Nations agencies have occupied space in the building over many years,” said Mr. Roos, who represents the U.N. exclusively. “They are terrific tenants who bring the prestige of the U.N. to an already impressive tenant roster. SL Green worked diligently and creatively with us over several years to repopulate the building with multiple U.N. agencies—a big win for all involved.” —Jotham Sederstrom

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the commercial observer |

May 3, 2011


lease beat
Jiu Jitsu Joint in Williamsburg Studio
42 Dobbin Street

By Laura Kusisto
42 Dobbin Street, between Nassau and Norman avenues. The studio is run by professional fighter Roger Mamedov, who, judging by YouTube videos, enjoys a good grapple. Grant Dolgin of Kalmon Dolgin Affiliates represented the tenant and the landlord, Flour and Sugar LLC. The tenant is relocating from North 11th Street, also in Williamsburg, to the three-story, 88,000-square-foot building, where Vespa, Mariebelle Chocolates, SBK Florists, Blenderbox, City Aquarium and a new restaurant/bar by restaurateur Robert Shamliam are also located.


othing caps off a Saturday afternoon at the Brooklyn Flea like a round of Brazilian ground wrestling. Or so we gather given that Williamsburg Brazilian Jiu Jitsu has just signed a 2,800-square-foot lease at

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the commercial observer |

May 3, 2011


lease beat
Fashionable Four-Eyes in Meatpacking
805 Washington Street
a high-traffic area, and this was pretty much the area that they wanted to look,” said Winoker Realty’s Howard Epstein, who represented the tenant. “They weren’t interested in midtown.” Despite the trendy locale, the tenant managed to get a pretty good deal. The asking rent was $250 a square foot, and the deal closed near there. That still puts it well below the average asking rent in the area of $371 a square foot, according to REBNY’s fall 2010 retail report. Apparently spring gives fashionable four-eyes the itch for a new pair. “Timing was also a factor,” Mr. Epstein said. “More people will be outside. That put pressure on trying to get everything done by April 1.” Indeed, the seven-year deal has been signed, the store has been designed, and the build-out happened in “a very, very short period of time.” The new store will open in early May. Darryl Romanoff, of landlord Romanoff Equities, represented the firm in-house.


y now there is no better place than the Meatpacking District to ogle and be ogled. All the more reason, of course, to do so in some stylish eyewear. High-end Maxim Eyes Optical is opening a 1,400-square-foot, ground-floor shop at 805 Washington Street, just across the street from Intermix’s new digs and not too far from the soon-to-be blooming High Line. “They wanted to be in

Sign of the Financial Times! First New Lease at 1330 Sixth
1330 Sixth Avenue


o building has mirrored the economic ups and downs like the aptly named Financial Times Building. Now in a sign that a comeback may indeed be upon us, RXR Realty is about to score their first new deal since taking over 1330 Avenue of the Americas, The Commercial Observer has learned. Artisan Partners is in the final stages of signing a lease on the 31st floor, where 10,400 square

feet were available. The rent is said to be $100 a square foot, while other deals are also said to be near to closing in the building, at rents 30 percent above what the building was fetching just a couple of years ago. Recall, Harry Macklowe bought the 40-story tower for $498 million in December 2006, and spent $30 million renovating it. That could easily have turned it into one of the most coveted buildings in the Plaza district, but the financial collapse and Mr. Macklowe’s troubles drove

rents down to a mere $65 a foot. Heated bidding ensued in 2007, when a unit of the Canadian pension fund put 1330 Sixth up for sale—with bidders including SL Green, the city’s largest landlord. They were beat out by dark horse RXR Realty, which had previously sold off its business to SL Green a few years before, but came back on the Manhattan scene with the bold buy. Another former Macklowe holding, 510 Madison, is one of the few other buildings in the city said to be

fetching rent above $100 a foot. Also joining the club is 350 Park Avenue, where three $100 deals have recently been signed, The Commercial Observer has learned. Since taking over 1330 Sixth Avenue, RXR has managed to create quite a bit of buzz, with concierge service, an upcoming mobile app that helps tenants arrange car service and dry cleaning and a landlord that has offices on-site. RXR Realty’s William Elder could not, however, be reached for comment.

Google This! Experian Hitwise in Rockrose’s 300 Park South
300 Park Avenue


Confluences by Philippe Nigro.

othing enables procrastination like Experian Hitwise’s Web site, with its dissections of Internet searchitude. (What does the fact that the term “royal wedding” was five times more popular than “NFL draft” in the past few weeks say about the modern male?) But for your sake, dear reader, we’ll tear ourselves away long enough to report that the online marketing research firm has in fact renewed its 13,000-square-foot lease at Rockrose’s 300 Park Avenue South for five years. Perhaps Hitwise, which has 15,000 employees around the globe, was so busy tracking Internet searches that it had no time to search for new space of its own. But more likely they’ve managed to score themselves a spot in one of the city’s most-talked-about towers, a recently minted centurion no less. Eight floors have been taken in building in the past eight months, including space leased by the Whitney and the Leo Burnett Ad Agency. In this deal, John Peters, Andy Peretz and Mikael Nahmias of Cushman & Wakefield represented the landlord; Paul Formichelli of Jones Lang LaSalle represented the tenant. Asking rents in the building are around $50 a foot, according to 250 Park Avenue South (212) 375-1036 155 Wooster Street (212) 253-5629

MORE LEASE BEAT PAGES 16, 18, 20 | the commercial observer


May 3, 2011

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Handler Hire for Brokerage
Handler Real Estate Organization, the full-service real estate company, has hired industry veteran Peter Simel as a senior managing director. Mr. Simel, who worked as a vice president at CB Richard Ellis, will be responsible for the growth of Handler’s brokerage business. He will focus on both landlords and tenants with regard to their leasing and sales needs. Prior to his work at CB Richard Ellis, Mr. Simel was the founder and chief executive of PHD Inc., a multi-line fashion show room that imported and distributed leading fashion brands from Europe. He grew the business to more than $20 million. “Peter Simel is a respected real estate executive who also has an entrepreneurial background, a combination of skills and sophistication that will serve our clients well,” Scott Galin, a principal with Handler, said in a statement. “We are actively growing our brokerage division with best-in-class talent. Peter brings the level of expertise and business acumen we are looking for.”

Mr. DiResta, who formerly worked as a senior sales executive for Veracity Payment Solutions in Atlanta, will be headquartered in NCB’s New York office. Mr. Tunnell, who earlier worked as a vice president of cash management and commercial lending at FirstService Financial, will be based in the company’s Virginia operations center. “We are extremely fortunate to have two executives with such extensive background in cash management solutions leading this effort for the bank,” said Charles Snyder, the bank’s chairman, in a statement. “As always, our top priority remains providing the best, comprehensive banking products and services to our customers nationwide. This platform is our newest opportunity to do just that with a new, effective cost-saving banking solution.”


Cushman Poaches CBRE
Cushman & Wakefield hired Jonathan Fales as senior managing director in the firm’s Strategic Agency Services group. Mr. Fales, who worked as first vice president with CB Richard Ellis, will now be responsible for working with brokerage teams in pursuing new leasing agency business for Cushman, as well as overseeing the marketing and leasing programs for existing clients. He will be based in Manhattan. “We welcome Jon to Cushman & Wakefield as a valuable addition to our talented team of professionals who are active on many of Manhattan’s largest blocks of available space today,” said Suzy Reingold, an executive managing director and head of Cushman & Wakefield’s Manhattan offices. “Jon brings a wealth of knowledge to the group and his contributions will play an important role in advancing the strategy of our clients moving forward.”

NCB’s New VPs
NCB, the federally charted savings bank geared toward co-operatives, has hired Jay DiResta and Jared Tunnell as vice presidents. In their new roles, Messrs. DiResta and Tunnell will be responsible for leading the firm in new cash management for housing communities. Under the newly launched program, NCB will offer co-operative housing and community associations a new lockbox and payment processing options, as well as a full suite of banking services.
Correction from April 26

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11:26 AM

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May 3, 2011


lease beat Compiled by Emily Geminder
2 Park Avenue 141 West 36th Street One Bryant Park 158 West 27th Street 780 Third Avenue Sq. Feet tenant LandLord BroKerS 46,198 25,600 15,000 10,000 8,546 British Airways Camuto Group QFR Capital Management Gracious Home Interventure Capital Group, LLC Brandon Thomas Designs Inc. OHL USA, Inc. Twenty-First Securities Corp. BuzzLogic Inc. Insite123 Development Gerald E. Hespos, Esq. P.C. PPF OFF TWO PARK AVENUE OWNER, LLC n/a Durst Organization Himmel + Meringoff Properties TIAA-CREF

Email information on new leases to Emily Geminder at

The tenant was represented by Joan Meixner and Brad Needleman of CB Richard Ellis. Tara Stacom, David E. Green, Mitchell Arkin and Whitten Morris of Cushman & Wakefield represented the landlord. The New York Post first had news of the deal. Joseph Armano of CresaPartners represented the tenant in the expansion and renewal deal. Corey Abdo of Winoker Realty repped the landlord. The asking rent was $32 a square foot. Jared Horowitz of Cushman & Wakefield represented the tenant in the 10-year deal. Tom Bow represented the owner in-house. The asking rent was $125 per square foot. Josh Sands of ReCom acted on behalf of the tenant. Mark S. Stein and Jason Vacker repped the owner in-house. The asking rent was in the range of $36 to $43 per square foot. JRT Realty Group’s Greg Smith, Jodi Pulice and Kate Pezzolla represented the landlord.

1407 Broadway 780 Third Avenue 780 Third Avenue

8,375 4,766 4,278

1407 Broadway Real Estate LLC TIAA-CREF TIAA-CREF

CBC Hunter Realty represented the tenant. Robert Forman of Gettinger Associates repped the landlord. JRTRealty Group’s Greg Smith, Jodi Pulice and Kate Pezzolla represented the landlord. JRT Realty Group’s Greg Smith, Jodi Pulice and Kate Pezzolla represented the landlord. Loren Biller and Elliot Warren of the Kaufman Organization represented the tenant in the transaction, while Adam Maxson and John Gols of ABS Partners Real Estate represented the landlord. The asking rent was $33 per square foot. Aliza Weston of Legacy Real Estate represented the tenant in the five-year deal. Mark Furst of Cassidy Turley repped the landlord. David Levy and Brett Maslin of Adams & Co. represented both the tenant and the landlord in the fiveyear deal. The asking rent was $38 per square foot.

29 West 38th Street 45 West 21st Street 110 West 40th Street

3,600 2,880 2,637

n/a 45 West 21st Street Associates One Ten West Fortieth Associates

39 Broadway 260 West 39th Street 1350 Broadway 400 Madison Avenue

2,600 2,500 2,261 2,164

The Advance Group Berger & Stevens Associates Inc. CopCorp. Licensing Security Asset Management Inc. DA Global Group, Inc Broadway Sun Ben Trading, Inc. SA&E International Bag & Accessories, LLC Select Media

Cammeby’s ManAnnie Yao of Buchbinder & Warren Realty Group represented the tenant in the 10-year deal. The Lawagement Company rence Group repped the landlord. The asking rent was $30 a square foot. LLC n/a Sol Goldman Investments William Macklowe Company One Ten West Fortieth Associates Ten West Thirty Third Associates Ten West Thirty Third Associates Whitehall Storage Michael Heaner of the Kaufman Organization represented both landlord and tenant in the five-year deal. The asking rent was $32 a square foot. Richard Pugatch of CBC Hunter Realty represented the tenant. Jonathan Fanuzzi of Newmark Knight Frank repped the landlord. Jones Lang LaSalle represented the landlord.

110 West 40th Street 10 West 33rd Street 10 West 33rd Street 333 Hudson Street

2,012 1,645 1,527 1,300

Best One Realty represented the tenant in the five-year deal. David Levy and Brett Maslin of Adams & Co. represented the landlord. The asking rent was $38 per square foot. David Levy of Adams & Co. represented the tenant and the landlord in the four-year transaction. The asking rent was $36 per square foot. Hidrock Realty Inc. represented the tenant in the eight-year deal. David Levy of Adams & Co. represented the landlord. The asking rent was $36 per square foot. Chris Salizzoni of A.C. Lawrence Commercial represented the tenant in the five-year deal. The landlord was repped in-house. The asking rent was $32 a square foot. Aliza Weston of Legacy Real Estate represented the tenant in the three-year deal. The landlord was repped in-house. The asking rent was $45 a square foot. The landlord was represented in-house. NSNYRE LLC represented the tenant in the six-year deal. David Levy and Brett Maslin of Adams & Co. represented the landlord. The asking rent was $36 per square foot. David Levy of Adams & Co. represented the tenant and the landlord in the four-year transaction. The asking rent was $36 per square foot. The landlord was represented in-house.

1123 Broadway 40 West 29th Street 110 West 40th Street 10 West 33rd Street

1,149 1,100 1,010 988

The Lavin Agency Inc. Bolds Creative Corp. Glow Media and Marketing Inc. Buxton Acquisition LLC

Kew Management Kew Management One Ten West Fortieth Associates Ten West Thirty Third Associates Kew Management

1133 Broadway


Perform Media Inc.

2 16

May 3, 2011

As the foyer to the premier boutique office building in New York, 667 Madison Avenue’s lobby has seen its share of impressive leaders. But there was always something missing — the right tenant for our sculpture alcove. After 23 years, they have finally arrived.

667 Madison Avenue

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For more information, please contact The Hartz Group, Inc. 667 Madison Avenue, New York, NY 10021

the commercial observer |

May 3, 2011


Building ServiceS
Building ServiceS

lease beat Compiled by Emily Geminder

Email information on new leases to Emily Geminder at

Orion Elevator Inc.
Sq. Feet tenant LandLord 110 West 40th Street 10 West 33rd Street 648 450 410 170 157 1,801 Hattmanan Brook One Ten West Fortieth Associates


David Levy and Brett Maslin of Adams & Co. represented both the tenant and the landlord in the threeTHE EPIC BUILDING • 2067 BROADWAY • NYC 10023 year deal. The asking rent was $36 per square foot.
SERVING ALL 5 BOROUGHS & THE NY/NJ METRO AREA. David Levy of Adams & Co. represented the tenant and the landlord in the four-year transaction. The asking rent was $36 per square foot.

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Max Vizgalin of Own Manhattan represented the tenant. Thomas Hettler of the Lawrence Group repped the landlord. The landlord was represented in-house. The landlord was represented in-house. Caroline Pardo represented the landlord in-house.

1123 Broadway VIOLATION

Jennifer Boyle Photography Christina M Herstine Cazarch Inc.

1123 Broadway 55 WashingtonTESTING 2 Street (Brooklyn)


Kew Management Kew Management Two Trees Management n/a






10-64 50th Avenue 1,200 COMPREHENSIVE (Queens) (Brooklyn)

Allstate Insurance Company LID Design Collaborative, LLC Acquisitions for the Home

ESTIMATES AT NO 55 Washington Street 857 CHARGE
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401 Street NY 10013 55 WashingtonBroadway, Suite 609, New York, Two Trees Man200 Valerie Schweitzer Design (Brooklyn) LLC agement (212) 343-0050 • fax: (212) 343-0217
Sq. Feet tenant RETAILESTIMATING 330 Seventh Avenue 62 West 22nd Street 31 West 46th Street 1330 Third Avenue 5,100 HOTLINE (212) 343-0416
Panera Bread Subway Siu Wong Day Spa Francois Payard 2,000 2,000 1,400


Caroline Pardo represented the landlord in-house. STATE DEPT OF STATE/NJ DIV OF STATE POLICE LICENSED BY NY

Elizabeth Cottrill represented the landlord in-house.

Mark J. Lerner, PhD President & CEO

Steven F. Goldman, Exec. VP
Licensed Private Investigator

Selwyn Falk, CPP Vice Pres.
® Professional

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Super Nova 330 LLC



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© Ripco’s Andrew 2011 Mandell and Richard Skulnik represented the tenant. Paul Berkman and Davie Berke of Newmark Knight Frank represented theCALL: (212) 580-3434 asking rent was a$150 a square Mark of EPIC Security Corp. IN MANHATTAN landlord. The INTELIFAX is US Registered Service foot.



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Dalan ManageJeffrey Angel of RES Commercial Corp. represented the tenant in the 10-year deal. The landlord was ment repped in-house. Building ServiceS

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Orion Elevator Inc.
Luxury Home Collection LLC

Friedland Properties Local Offices in NYC, NJ & Philadelphia 400 East 55 Street

MFG. CorP CLASSIFIED Ruth Shnay of Temporary represented Corp. Permanent, Sierra RealtyRIGHT SIDE both the tenant and the landlord in the 10-year deal. FIRST PAGE - TOP RIGHT CORNER & Emergency Industry Leading General When Securityrepresented theISSUES:Construction Firm: New &demand Services! landlord in-house. you’re ready to HisAaron Prince Starts TUESDAY 4.26.11
NATIONWIDE COVERAGE both the landlord and Work Award Winning (800)the tenant. Winick Realty represented Finish

Abraham Kassin of Kassin Sabbagh Realty represented both landlord and tenant in the 10-year deal. The asking rent was $50 a square foot.

39-02 Main Street SERVICE (Queens)



Carat & Co.

USE CUSTOMER for safety RESOLUTION PDF FILE. DO NOT ALTER. PREVENTIVE in a world where the concerns SUPPLIED HIGH TIBERIAS We live Custom designed greenhouses MGGG Realty LLC Robert K. Futterman & Associates represented the landlord. CONSTRuCTION MAINTENANCE security are escalating every day. and & solariums, skylights
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To purchase a subscripTion To The commercial observer, 401 Broadway, Suite 609, Newplease call 212.407.9331 York, NY 10013

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18 May 3, 2011 the commercial observer |

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ESTIMATING HOTLINE | the commercial observer May 3, 2011 3



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the commercial observer |

May 3, 2011


(Brooklyn) 55 Washington Street (Brooklyn) 200 Valerie Schweitzer Design LLC

agement Two Trees Management Elizabeth Cottrill represented the landlord in-house.

330 Seventh Avenue 62 West 22nd Street 31 West 46th Street 1330 Third Avenue

Sq. Feet




5,100 2,000 2,000 1,400

Panera Bread Subway Siu Wong Day Spa Francois Payard

Super Nova 330 LLC Dalan Management 31 West 46th Street Realty LLC JBS Realty

Ripco’s Andrew Mandell and Richard Skulnik represented the tenant. Paul Berkman and Davie Berke of Newmark Knight Frank represented the landlord. The asking rent was $150 a square foot. Jeffrey Angel of RES Commercial Corp. represented the tenant in the 10-year deal. The landlord was repped in-house. Abraham Kassin of Kassin Sabbagh Realty represented both landlord and tenant in the 10-year deal. The asking rent was $50 a square foot. Ruth Shnay of Sierra Realty Corp. represented both the tenant and the landlord in the 10-year deal.

202 East 58th Street 1000 First Avenue 191 West 4th Street 39-02 Main Street (Queens)

1,350 1,300 210 1,750

Luxury Home Collection LLC HealthSource Pharmacy Jit Kanda LLC Carat & Co.

Friedland Properties 400 East 55 Street Associates n/a MGGG Realty LLC

Aaron Prince represented the landlord in-house. Winick Realty represented both the landlord and the tenant. Roberto Camacho of Buchbinder & Warren brokered the 10-year lease. The asking rent was $171 a square foot. Robert K. Futterman & Associates represented the landlord.

The commercial Observer classified
Building ServiceS
Building ServiceS

Orion Elevator Inc.
the commercial observer |

(800) 548-3434

When you’re ready to demand more from your security service! SM
May 3, 2011 3










401 Broadway, Suite 609, New York, NY 10013 (212) 343-0050 • fax: (212) 343-0217 ESTIMATING HOTLINE (212) 343-0416


Mark J. Lerner, PhD President & CEO

Steven F. Goldman, Exec. VP
Licensed Private Investigator

Selwyn Falk, CPP Vice Pres.
® Professional

Certified Protection



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© 2011


IN MANHATTAN CALL: (212) 580-3434

INTELIFAX is a US Registered Service Mark of EPIC Security Corp.



May 3, 2011

Under Glass Honor Guard Security COMMERCIAL OBSERVER THE | the commercial observer



Real Estate tax assessments in Manhattan and the Boroughs are being raised for some co-op and condo homeowners, retail stores, and office tenants by

20% to 147%
We think this is unfair and bad for New York. How can you possibly think this is okay?

Concerned Citizens for Fair Taxes
c/o Time Equities, Inc. 55 Fifth Avenue New York, N.Y. 10003

the commercial observer |

May 3, 2011


By Jotham SederStrom

With condominiums still taking a backseat to the almighty rental, the Real Estate Board of New York’s “Residential Rentals: Today and Tomorrow” conference should draw a lot of attention. Expect heads to turn when Caroline Bass of Citi-Habitats and Senad Ahmetovic of Halstead Property speak at the summit. [Real Estate Board of New York rental committee summit, REBNY Mendik Education Center, 570 Lexington Avenue, 8:30 a.m., visit for more info or to register] To commemorate what would have been her 95th birthday, the Municipal Art Society is hosting a walking tour of the Greenwich Village that preservationist Jane Jacobs loved and lived in. Make sure to check beforehand to see if the popular walk is already sold out. [Municipal Art Society “Her Village” walking tour, meet at the front of the Center for Architecture, 536 LaGuardia Place, near Bleecker Street, 5:30 p.m., visit for more info] When, in 1975, the New York State Supreme Court struck down Grand Central’s landmark status, the heroic Municipal Art Society and Jacqueline Onassis reacted, sparking a campaign to save the terminal from becoming office towers. Join the society as it reenacts the events that led to the building’s safety. [Municipal Art Society “Grand Central Terminal” tour, meet at info booth, main concourse, Grand Central, 12:30 p.m., visit www.mas. org for more info] CB Richard Ellis Vice Chairman Howard Fiddle will preach to the choir when the National Association of Industrial and Office Properties takes an updated look at leasing activity in New York City, circa 2011. No

slouch himself with regard to leasing, Mr. Fiddle will present his assessment of the current market dynamics when the group hosts its second annual State of the Leasing Market event. [The National Association of Industrial and Office Properties Second Annual State of the Leasing Market seminar, Haworth Showroom, 125 Park Avenue, 7:30 a.m., visit http://www. for more info or to register]

Queen of Retail Faith Hope Consolo is among the heads of this year’s September Concert Foundation cocktail party, an event that will raise money for a four-day “Celebration of Peace Through Music” concert series in venues around the world. [September Concert Foundation fund-raising cocktail party, Rauschenberg Studios, 381 Lafayette Street, 6:30 p.m., call 212-333-9399 or email or visit for more information, or to register or donate] All the coolest boutiques are doing it, so why not figure out why? Join REBNY’s commercial committees for a luncheon focused on lofts and all the secondary office buildings that the kids in the know are leasing. [Real Estate Board of New York “Loft and Secondary Office Buildings” luncheon, REBNY Boardroom, 570 Lexington Avenue, second floor, noon, email Desiree Jones at djones@ for more info or to register]

Jane Jacobs.

Bronx are a few of the neighborhoods and topics explored as part of this celebration of Jane Jacobs in commemoration of what would have been her 95th birthday. Each neighborhood is hosting its own walking tour, so check www. for more info. [Municipal Art Society “Jane’s Walk” walking tour, visit or email for more info]

Bloomberg Television, Credit Suisse, BlackRock, Moody’s, JPMorgan and a host of other financial mavens. [Deloitte’s Second Annual “Real Estate Distressed Debt & Assets” symposium, the New York Athletic Club, 180 Central Park South, 7:30 a.m., contact Elizabeth Cheek at 212-8850682 for more info] Jill Sloane of Halstead Property will talk about “Income Producing Activities” between bites of eggs, toast and sausage when REBNY reconvenes for the latest installment of its popular early morning “Residential Breakfast Club” series. [Real Estate Board of New York “Residential Breakfast Club” series, REBNY Mendik Education Center, 570 Lexington Avenue, 9:30 a.m., call 212-532-3100 for more info] To understand New York, start with Lower Manhattan. To that end, the guides of the Municipal Art Society are continuing their downtown walking tour, which will include visits to Wall Street and a few historic churches. [Municipal Art Society “Downtown, Where New York Began” tour, meet at the Downtown Info Center, 55 Exchange Place, Suite 401, 12:30 p.m., visit for more info] Calendar items can be sent to Jotham Sederstrom at

Brooklyn Heights, Soho, Riverdale in the Bronx and the controversial Atlantic Yards project in Prospect Heights are a few of the neighborhoods and topics explored as part of this celebration of Jane Jacobs in commemoration of what would have been her 95th birthday. Each neighborhood is hosting its own walking tour, so check for more info. [Municipal Art Society “Jane’s Walk” walking tour, visit or email for more info]

Newtown Creek in Greenpoint, Williamsburg’s rezoning, the Rockaways, Harlem, East Village, Washington Heights, the Upper West Side, Bushwick and the Grand Concourse in the

Feeling distressed? Then join the gang when Deloitte hosts its second annual “Real Estate Distressed Debt & Assets” symposium. The event will feature executives from

Faith hope Consolo.

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the commercial observer |

May 3, 2011


this op-ED pAGE

What Albany Needs to Do to Help the Real Estate Recovery
The industry’s priority should be lobbying for legislation that promotes capital investment, not discourages it
ew York’s recovery from ing law as possible. the worst economic crisis Albany needs to act promptly since the Great Depression and send a clear, strong signal to the has been slow. Though monthly job business community and the real esgrowth has been positive, unemtate industry that New York encourployment is about 30 percent for ages private-sector capital investthe city’s construction industry. A ment and that it is serious about more robust recovery with meancreating more construction jobs. ingful job growth will require more The expiration of 421-a, a parprivate sector capital investment. tial tax exemption program for new This capital investment is stalled Steven Spinola residential construction, has stalled due to uncertainty about the future six 80/20 projects. These comprise of critical economic development more than $1 billion in capital inprograms and the discord regardvestment, 9,600 construction-reing rent-regulation legislation. lated and building service worker To promote economic recovery and job jobs and 600 units of affordable housing. Othgrowth through capital investment, Alba- er large-scale residential projects throughout ny must renew the 421-a partial tax exemp- the city are stalled, and the industry anxiously tion program, the Industrial and Commercial awaits the renewal of this critical incentive for Abatement Program, the J-51 program, the new housing construction. transfer tax reduction for sales to REITs, and As part of 421-a, we have proposed an extend rent stabilization as close to the exist- amendment that would permanently preserve


the 20 percent low-income units in these buildings in exchange for lowering the real property tax burden on these rental properties to 20 percent of gross income from an unsustainable level of 33 percent. Even at this lower level, the real property tax burden for owners would be higher than that of comparable properties in most other major cities around the country. To further encourage private-sector capital investment in housing we need to restore 421-a benefits to high-density (FAR 15) districts and extend these benefits to conversions of commercial properties to residential use. The Industrial and Commercial Abatement Program (ICAP) also expired in February 2011. ICAP has played an invaluable part in encouraging development in the boroughs’ and Upper Manhattan’s commercial districts. Without this program, projects in these areas would not be economically feasible, and the construction and permanent jobs they create would be lost. At the end of the year, the J-51 program expires. This program, which provides a financial incentive for upgrading our aging housing stock, has encouraged the renovation of housing for all income groups throughout the city. However, J-51 requires that the capital project be completed by the expiration of the program. As a result, many major capital improvements have been delayed as owners wait to see if the program will be extended, further curtailing job-generating investment. The transfer tax reduction for sale of property to a REIT, which is scheduled to expire in September 2011, has facilitated numerous sales since its enactment in the mid-1990s. This provision has attracted substantial capital to New York for acquisition and job-generating building improvements. As our economy struggles to recover, we need to provide stability and confidence by renewing this capital investment incentive.

We cannot legislate ourselves back to a time when abandoned housing dotted our urban landscape.
The introduction of vacancy and luxury decontrol and reasonable rent increases for capital improvements has led residential building owners to maintain their residential property as rentals instead of converting them to condominium or co-operative ownership. In addition, these reforms have encouraged major national residential property owners to begin investing in New York. The Legislature must also adopt a fair and workable remedy for the chaos created by the J-51 Roberts Court of Appeals decision. Properties affected by this decision are unable to secure financing and to embark on capital improvements given the uncertainty about apartment rent and the potential for litigation that is emerging from this decision. The reforms enacted in the rent-regulation system have been good for our housing stock and for the quality of life in New York City. We must vigorously oppose legislation passed in the Assembly that would return us to the 1970s, when regulated apartment rents could neither support necessary capital improvements nor sustain basic building operating expenses. We cannot legislate ourselves back to a time when abandoned housing dotted our urban landscape. We need to extend the current system and address the impact that the Roberts decision has had on our housing market. Our priority in Albany is to support legislation that promotes capital investment, not discourages it. For our city to create jobs, generate tax revenue and provide for the fundamental needs of our residents, we must create the climate and opportunity that will attract the capital our city needs to continuously rebuild itself. Steven Spinola is president of the Real Estate Board of New York.


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he reforms in the rent-regulation system that began in 1993 have improved the quality of our housing stock, preserved rental housing and attracted national residential owners to invest in New York. Based on the most recent HPD Housing and Vacancy Survey, the quality of our city’s housing stock is the best it has been since 1965, when housing conditions were first surveyed.

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the commercial observer | May 3, 2011 25


the power

The Most Powerful People in New York Real Estate



his list in 2009 and 2010 reflected a recessionary New York, one thoroughly upended by economic maelstroms like high unemployment and the odd major bank collapse. No one had need of more office space; no one had financing for investments; no one had much to do save get on the blower and commiserate, or, on the odd workday, try to set up sit-downs or walk-throughs. The president of the United States was No. 1 in 2009, because everyone looked to the government for help. Toss me some TALF! Then, inevitably, as these things seem to go in New York and not in places like Vegas or Mobile, a thaw began. The first inklings came amid the end of landlord concessions, whether for office tenants or those in apartments. Then, round about the summer of 2010, the news of major leases trickled out—foremost, perhaps, that of Si Newhouse (No. 51) intending to park his Condé Nast publishing engine in 1 World Trade, where the development has been organized by the Port Authority, led by Chris Ward (No. 70), and where Douglas and Jody Durst (No. 1) have the big private stake. (And simply that there is a 1 World Trade, more than halfway to its 1,776 feet now, is itself a sign of recovery.) Then, the statistics across the board began to validate the gratingly chipper chatter as office leasing and investment sales picked up, and the housing market steered well clear of an assumed double dip. Suddenly, by the close of 2010, it wasn’t all so much bullshit; the recovery was happening. The list now is meant to reflect that. Three big things about it: Not since our inaugural Power 100 in 2008 has the upper echelon been so dominated by the familiar moguls, but not all are patronymically so. There’s a rustling at the top. There are the Durst cousins, yes, and Anthony Malkin (No. 12), Donald Trump (No. 14), the Speyers (No. 15) and Richard LeFrak (No. 20)—and, for that matter, Andrew Cuomo (No. 2)—but also the boot-strapMay 3, 2011

py likes of Mort Zuckerman (No. 5) and Andrew Farkas (No. 11), and our very own Richest Guy in Town, Michael Bloomberg (No. 7). We also have relative newcomers, like the benignly voracious Gary Barnett (No. 6); the seemingly ruthless Mikhail Prokhorov (No. 24); and the oddly familiar Scott Rechler (No. 19), back in Manhattan in a big way. Also, the highest-ranking workaday brokers (aside from REBNY’s chairwoman, Mary Ann Tighe, at No. 18) are Mitchell Steir and Michael Colacino at No. 33, right behind moguls Larry Silverstein and Bill Rudin, respectively. Messrs. Steir and Colacino run Studley, a leading tenant-rep firm—not a bad spot to be in now that the commercial market has turned in favor of landlords, and tenants need hand-holding. Other brokers, particularly those in office leasing and investment sales, sprinkle the list’s top two-thirds in the Studley gentlemen’s wake. Finally, you’ll note the likes of Jay Sugarman (No. 21) and Charles Spetka (No. 27). They and a couple of others have rushed the market in the past year or so to capitalize, literally, on those distressed assets ankling into the recovery. There are more special servicers, as they’re euphemistically called in the industry (thumb breakers would be too direct), on the list than ever before. A few final notes. As in previous years, the list remains overwhelmingly male (there are 10 women) and white (China’s president, Hu Jintao, at No. 9, is the highest-ranking exception), quite the feat amid the world’s most diverse city. Twenty-seven names from last year didn’t make the cut this year; last year’s Power 100 runs along the bottom of this spread, and an entrant’s 2010 rank appears in parentheses after his or her name, if relevant. The list was chosen internally by The Observer using subjective criteria, and any comments can be made through our Web site, or by shouting from a moving Town Car on West 44th Street. Slow as you near the InterContinental Hotel; face left.

the commercial observer |

May 3, 2011


Douglas and Jody Durst (8) Chairman and president, respectively, of the Durst Organization ...................................... The third-generation heads of this storied real estate family were at the LEEDing edge of pushing green buildings a decade ago, and now they may just lead us out of the recession. Durst/Fetner is working on a residential site on 31st Street and Sixth Avenue that may be one of the first major projects out of the ground post-Lehman. But it is their BIG pyramid at 57th Street and the Hudson that could ensure the new wave of brash buildings did not wash away with the recession. And need we mention drawing Condé Nast from their 4 Times Square to 1 World Trade? We need to: It could help upend the relationship between midtown (bride) and downtown (always the bridesmaid).


Mr. Cuomo’s biggest individual donor in 2010—a love his dad most definitely never felt. Marc Holliday and Andrew Mathias (2) CEO and president, respectively, of SL Green ...................................... While its status as the city’s largest commercial landlord can be disputed (see No. 4), what can’t be argued is that under Messrs. Holliday (pictured) and Mathias, SL Green has posted some of the most enviable numbers in New York in recent memory. To wit: As of last month, the REIT owned a financial stake in 61 properties across the city. As it and other REITs gobble up distressed hospitality assets as part of a cresting hotel boom, expect those numbers to continue rising.


Jody and Douglas Durst


...................................... The onetime enfant terrible of the Democratic machine has come into his own. But why would this Albany macher with Queens roots be so high on a list dominated by Manhattanites? Because so much of what Big Real Estate cares about in this town comes down to Mr. Cuomo’s pen or pulpit, including, but not limited to, rent regulation, 421a and property taxes. The industry teems with fans of his—Jerry Speyer (No. 15) was


Andrew Cuomo (15) Governor of New York

1, 2010 | the commercial observer


May 3, 2011 | the commercial observer


©2011 General Motors. Cadillac ® SRX®



the commercial observer | May 3, 2011 29



Steve Roth and Michael Fascitelli (4) Chairman and president-CEO, respectively, of Vornado Realty Trust ...................................... Vornado has quietly become the most widely spread REIT in town, with a full or partial interest in 95 properties. Just within the past year, they took a 25 percent stake in special servicer LNR Property Corporation, bought a $600 million stake in JCPenney and joined with SL Green to recapitalize 280 Park Avenue. Mr. Roth’s buddy Bill Ackman (No. 17) summarized it best: “Vornado,” he said, “is the only REIT that’s opportunistic.”

vertical this year, and workers are busy at a 70-story hotel-condo on 57th Street. Plus, Mr. Barnett has recently been buying properties like mad near the Gem Tower. More to come coming out of the recession? You will read it here first.


Mort Zuckerman (3) Chairman of Boston Properties ......................................


Michael Bloomberg (9) Mayor of New York ......................................

Earle S. Altman Steven Hornstock James Caseley Alan S. Cohen Jason Fein Mary Gallagher Robert Hadi Jay Kreisberg Keith Lipstein Wynn Mazey Douglas Regal Michael Sass Tom Schwartz Steven Solomon Dean Valentino

Gregg L. Schenker

We Congratulate

Peter Burack John Ambrosini Martin Cappa Jay Einbender Ken Findley John L. Gols Jason Kling Joseph LaRosa Adam Maxson Rick Meyerson Amy L. Murwaski Hector Rodriguez Ilyse Schwartz Jack Selig Mark Tergesen

Gary Barnett (58) President of Extell Development ...................................... In July 2009, this newspaper dubbed Mr. Barnett “the busiest man in New York real estate.” We weren’t lyin’— though the Extell chief has taken it up a notch of late. The International Gem Tower on 47th Street started to go


Boston Properties just needs one major tenant and it could break ground on 125 West 55th Street, the first office development since SJP’s 11 Times. Meanwhile, the landlord has brought No. 85 Harry Macklowe’s former 510 Madison back to life, with rents north of $100 per square foot and a possible lease by SAC Capital. The REIT owns or has a stake in 14 properties around the city, focusing on the high-end office properties that are coming out of the recession especially strong.

Jonathan Gray (5) Senior managing director and Real Estate Group co-head at Blackstone ...................................... Blackstone, the world’s largest private-equity group, walloped analysts’ expectations in the first quarter of this year and boasted its best three months since becoming a public company several years ago. The firm’s success was largely credited to its real estate investments, led by Mr. Gray. The boy wonder finally cracked 40 this year, and recently Blackstone announced that it is planning to raise its next real estate fund, with a target of about $10 billion, later this year.


The Christmas blizzard, Cathie Black and a high real unemployment rate haven’t been good for a mayor suffering from third-term flu. But Mr. Bloomberg remains immensely influential for Big Real Estate, especially when it comes to incentivizing development and ensuring plenty of fresh spaces for it (read: rezonings). It doesn’t hurt that he’s the richest guy in town—this is New York, so that matters—and that he uses his office to advocate the sorts of pro-business policies that make the industry swoon.

1. Stephen Ross 2. Marc Holliday and Andrew Mathis 3. Mort Zuckerman 4. Steve Roth and Michael Fascitelli 5. Jonathan Grey 6. Barry Sternlicht | the commercial observer

30 May 3, 2011





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May 3, 2011


Hu Jintao China’s president and general secretary of the Chinese Communist Party ...................................... Mr. Hu represents the Chinese investors who have beat a steady march to iconic New York properties recently. Li&Fung signed one of the largest leases since Lehman, nearly 500,000 square feet, at the Empire State Building. Vantone Industrial is the only private tenant to have closed a deal at the erstwhile Freedom Tower. A Chinese construction firm also purchased the landmarked American Bank Note Building. Chinese banks also quietly helped refinance local towers, in a sign the original other Red State is here to stay. Stephen Ross (1), Jeff Blau and Bruce Beal Chairman and CEO, president and executive vice president, respectively, of the Related Companies ...................................... In Miami he may be best known as the owner of the Dolphins, and in Michigan as an active philanthropist; but if Mr. Ross’ name rings a bell in New York, he has real estate to thank for that. With his net worth at reportedly $4.5 billion, Mr. Ross and the leadership team of Mr. Blau (he works big-picture development mostly) and Mr. Beal (he works day-to-day oversight of said development) have consistently stewarded big ideas, notably the development of the Time Warner Center and now the creation of the mini-city over the old Hudson Yards.



Andrew Farkas (12) Chairman and CEO of Island Capital ...................................... Since liquidating nearly all of his co-investments with Dubai World following what can fairly be described as seven of the most development-crazy years ever recorded in the emirate, Mr. Farkas (pictured with his wife, Sandi) has continued to invest across the world. When he isn’t building high-end marinas and fivestar hotels, the babe magnet and real estate magnate is likely yachting or glad-handing the most powerful people in the world (including his former employee, Andrew Cuomo, No. 2). Anthony Malkin (18) President of Malkin Holdings ...................................... Following lengthy litigation against former investment partner Helmsley-Spear that resulted in the financial untangling of 10 Manhattan properties, Mr. Malkin led a mission to reposition each and every one, including the Empire State Building. The work now nearly completed on all of them, the company has seen dramatic leasing activity throughout its portfolio of buildings. Not too shabby for a supposedly great recession.



Stephen Ross


1, 2010

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May 3, 2011




Janette Sadik-Khan (95) Commissioner of the Department of Transportation ...................................... Love her or hate her, no one has transformed more of the city over the past two years than the strongwilled transportation czarina. From Broadway to Water Street to Dumbo, Ms. SadikKhan has created simple sanctuaries with little more than asphalt, paint and some folding chairs. More plazas are on the way, as are fancy new bus lanes, from the East Side to 34th Street and into the heart of Brooklyn. But it is another set of exclusive lanes, ones involving bicycles, that have shown her true power as Mrs. Moses.


across the globe, including a $95 million asset in Paris and office towers in Washington, D.C. Barry Sternlicht (6) Chairman and CEO of Starwood Capital

Bill Ackman


22 | the commercial observer

Sheldon Silver (17) Speaker of the New York State Assembly ...................................... If you’re reading this paper, chances are you’re a real estate industry professional. What’s also somewhat likely is that you pull in more than $300,000 a year. If that’s you, then Mr. Silver is your guy. In office since God was a boy, the speaker is calling for a controversial expansion of rentregulation laws that would offer protection to some of the city’s wealthiest people. Love him or hate him, Mr. Silver will not be ignored.

Group ...................................... Even three years after the recession first sent shivers down the spines of real estate investors, money is still hard to find. But not for Mr. Sternlicht’s Starwood, which only a month ago deployed $352 million through three—three!— separate transactions. Among them, the origination of a $30 million mezz loan on an Upper East Side boutique hotel put the private firm on top of a hospitality boom that experts believe will continue, unimpeded, through the near future.

May 11, 2010

Donald Trump (16) CEO of the Trump Organization ...................................... On page 198 of his 2007 book, Think Big & Kick Ass in Business and Life, Mr. Trump advises, “Because I get screwed all the time, I go after people. You know what, people don’t want to mess with me as much as others. They know if they do they are really in for a big fight. Always get even.” The developer of such city sites as the Trump International and Trump Place is not to be trifled with—he remains the personification of New York real estate for the masses.




executive, Mr. R e c h l e r, sat on the sidelines throughout the darkest days of the economic collapse—in part because of a non-compete agreement with SL Green. Now back in action since 2009, the company has amassed some $4 billion in assets and about 11 million square feet of property. Most recently, the group bought into a partnership interest at 340 Madison Avenue and took 1330 Avenue of the Americas.

Richard LeFrak (10) Chairman and CEO of the LeFrak Organization ...................................... If you’ve ever driven through Brooklyn, Queens or New Jersey, chances are you’ve come across one of the more than 70,000 mostly blue-collar apartments developed by the LeFrak Organization since its start in 1901. But under the blunt Mr. LeFrak, the company’s third-generation president, the group has swerved in a new direction, primarily toward upscale residential assets and loads of commercial office properties, which now represent 40 percent of its income. Jay Sugarman (52) CEO and chairman of iStar Financial ...................................... Look no further than the ticker to see that among mortgage REITs, iStar Financial is the leader of the pack. Last month, in fact, the group outperformed all competitors by posting a 77 percent gain in trading activity on April 17. Meanwhile, after months of shopping around $84 million in debt at the foreclosedupon 47 East 34th Street, Mr. Sugarman, it appears, may have finally found a buyer in the investment firm CIM Group. If the troubled building changes hands, it will be another accomplishment.

Howard (21) and Steve Rubenstein Chairman and president, respectively, of Rubenstein Communications ...................................... Talk to a reporter, likely a member of the so-called liberal media, and most will say it isn’t the oil barons, gun lobbyists or Sarah Palin that truly ruffle their feathers but, rather, the spokespeople representing them and others. Be that as it may, these are the gatekeepers who keep their clients on top and the journalists at bay. For this father-son duo (father pictured), that strategy is routinely applied to many of the names on this list. Mikhail Prokhorov (43) Controlling owner of the New Jersey Nets ...................................... When Mr. Prokhorov stepped forward last year as the new owner of the New Jersey Nets, he not only established himself as the latest real estate investor to interlope the city’s gridlock of property assets, but also forced himself onto Gotham’s cultural scene. So much so that New York magazine named him as the leader of the city’s “Global Russians.” Whether he can really make it in this town has yet to be seen, but, either way, for now he’s bought himself a ticket to the top.



Bill Ackman Founder and manager of Pershing Square Capital He may be a hedge fund manager, but an upbringing in the bare-knuckle world of New York City real estate made Mr. Ackman one of Wall Street’s shrewdest investors. From his failed takeover of Target (and subsequent success at JCPenny with No. 4 Steve Roth) to his jaw-dropping buy of bankrupt General Growth Properties, he looks at publicly traded companies as if they were property. Like Stuy Town, where he may not have won out but still broke even by making CW Capital buy him out. Mary Ann Tighe (7) Regional CEO of CB Richard Ellis and chairwoman of

REBNY ...................................... Last year, Ms. Tighe was sworn in as the first female chair ever (and first broker in 30 years) of the Real Estate Board of New York, the 114-year-old group that secretly runs the city. For the industry, it was a major milestone, but hardly the first big achievement in Ms. Tighe’s prolific career. Her current clients include biggies like Condé Nast, the Times Company and the Catholic archdiocese of New York. Scott Rechler Chairman and CEO of RXR Realty ...................................... Formed shortly after the sale of Reckson Associates to SL Green in 2006, RXR and its chief




Jerry and Rob Speyer (11) Co-CEOs of Tishman-Speyer ......................................

For the average New Yorker, “setbacks” include heavy traffic on the BQE, say, or rain delays at a Mets game. For the Speyers, a typical setback might include the $5.4 billion debacle of Stuy Town. Even as that big investment unraveled alongside the economy, it remained business as usual for the mega-landlords, who have continued to gobble up trophy assets all


7. Mary Ann Tighe 8. Douglas and Jody Durst 9. Mike Bloomberg
36 May 3, 2011

10. Richard LeFrak 11. Jerry and Rob Speyer 12. Andrew Farkas

13. Carlos and Tony Slim 14. Craig Newmark 15. Andrew Cuomo

Mikhail Prokhorov

24 | the commercial observer


We salute our leaders

Marc Holliday
Chief Executive Officer and

Andrew Mathias
President on being recognized by The New York Observer for the third consecutive year among the Top 100 Most Powerful People in Real Estate. Congratulations to all the honorees.

the commercial observer |

May 3, 2011



December. Since then, she’s met with executives at the retail behemoth and watchers say she is trying to strike a middle ground. If the country’s largest retailer does secure entry into the city, it will no doubt signal a rush of new real estate activity across the boroughs. That is, if Ms. Quinn, a 2013 mayoral hopeful, allows it.


Charles Spetka (32) President of CW Capital

...................................... When the economy tanked, Mr. Spetka of CW Capital Asset Management came running. As a “special servicer,” the company has been behind the complicated financial restructurings of some of the city’s most mammoth properties, including Stuyvesant Town and Peter Cooper Village, Riverton and the W Hotel Downtown. Slowly but surely—and very quietly, too— the group is becoming a big player. Christoph Kahl, Matt Bronfman and Michael Phillips Founder and managing directors, respectively, of Jamestown Properties ...................................... For the 27-year-old Jamestown Properties, moderation has been a guiding light, and never more so than during this latest economic cycle. For Messrs. Kahl, Bronfman and Phillips, the strategy has paid off. While inching toward what may well be a whopping $1.9 billion sale of its 2.9 million–square–feet building at 111 Eighth Avenue to Google, the owner of more than 80 U.S. properties is also swooping up assets across the country.


Robert Stuckey, Mark Schoenfeld, and Andrew Chung (50) Managing directors of the Carlyle Group ...................................... How could the Carlyle Group and its partners possibly top last year’s bonanza $300 million lease to Japanese retail clothier Uniqlo at 666 Fifth Avenue? Why, by enlisting Messrs. Stuckey, Chung (pictured) and Schoenfeld to do more of the same. As managing directors, the team has been behind some of the city’s biggest deals of the last few years, and few real estate observers believe that their pace will slow soon. Christine Quinn Speaker of the New York City Council ...................................... No public official has been quite so vocal a critic of Wal-Mart’s entry into New York as Ms. Quinn. “Wal-Mart is something I am not supportive of,” she said plainly back in








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Christine Quinn


16. Donald Trump 17. Sheldon Silver 18. Peter and Anthony Malkin 19. Sam Zell 20. Chris Ward
May 11, 2010

26 | the commercia | the commercial observer

the commercial observer |

May 3, 2011



Mitch Steir


May 11, 2010 | the commercial observer

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Lloyd Goldman (36) President of BLDG Management ...................................... “I can tell you he’s licking his chops about buying property in the next few months,” one colleague of Mr. Goldman’s told The Observer back in 2008. It was an apt assessment of the mega-privatemegalandlord footing the bill at some of No. 31 Larry Silverstein’s developments at ground zero. Indeed, the magnate has been buying properties like 1372 Broadway at a deep discount since the recession struck and seems to be continuing his brisk pace with no immediate plans to slow down.


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Marc Wieder, CPA


Sears Tower in Chicago, and his company owns local properties like 200 West 57th and 488 Madison. Most notable, however, was his role in the $590 million purchase of Worldwide Plaza in 2009.’

Larry Silverstein (33) President and CEO of Silverstein Properties ...................................... From his office at 7 World Trade Center, Mr. Silverstein has established himself as a sort of patriarch of downtown. He continues cheerleading for the World Trade Center site, including inking a major lease with the city at 4 WTC; he’s also signed a number of nonprofits at 120 Wall Street. With discernible progress on the WTC towers, which are set for completion in 2013, he has his hands on some of the city’s only large available Class A office space.

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Jeffrey Feil (23) CEO of the Feil Organization ...................................... Like Lloyd Goldman (No. 29), Mr. Feil is one of the “New York guys” who repeatedly helms some of the biggest deals in the city while remaining fairly anonymous. He was a part of the team that bought the

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21. Howard Rubenstein 22. Steven Spinola 23. Jeffrey Feil 24. Bill Rudin 25. Mitch Rudin 26. Jeffrey Gural, Barry Gosin, Jimmy Kuhn and David Falk 27. Peter Riguardi 28. Mitch Steir and Mike Colacino 29. Ronald Kravit 30. Keith Barket and Adam Schwartz | the commercial observer

the commercial observer |

May 3, 2011



pany ...................................... After a rush of refinancing between 2006 and 2008, the relatively debt-free Rudin Management Company swung back into business, including its push for luxury condos at St. Vincent’s Hospital in Greenwich Village. But like most family-owned real estate companies, Rudin has remained cautious, choosing to renovate existing buildings, rarely selling assets and only acquiring the best properties for some meaty leases, including the NFL in 345 Park last summer. Touchdown!


Bill Rudin (24) Vice chairman and CEO of Rudin Management Com-

Bill Shanahan and Darcy Stacom


Mitch Steir and Michael Colacino (28) Chairman-CEO and president, respectively, of Studley ...................................... Under the leadership of Messrs. Steir and Colacino, Studley landed the city’s two largest deals of 2009 (242,464 square feet for Wachtell, Lipton, Rosen & Katz and 230,000 feet for Ralph Lauren). Last year, the firm inked a 260,000-square-foot office deal for Tiffany & Co. So what does a tenant-rep firm like Studley do to top itself in 2011? With the economy looking sunnier, we’re betting on much more of the same.


David Denison President of the Canadian Pension Plan Investment Board ...................................... The future of more than 17 million graying Canucks rests with New York real estate. The fund, paid into by Canadian taxpayers, is entrusted with a whopping $140 billion in funds, including at least $8 billion for investment in real estate (in Canadian dollars, now worth slightly less than the greenback). It burst onto the scene in 2010, buying a 45 percent interest in SL Green’s 1221 Sixth Avenue for $576 million. An Ontario pension fund has also invested in Related’s Hudson Yards project. Doug Harmon, Adam Spies (47) and Ben Lambert Senior managing directors and chairman, respectively, at Eastdil Secured ...................................... Mr. Harmon and his colleagues, Messrs. Spies (pictured) and Lambert, have the answer to one of the mustbuzzed-about questions of last month: Who is the buyer, perhaps famous, of the storied Chelsea Hotel? Eastdil Secured acted as the broker, but have, thus far, refused to reveal his or her identity. It is as close to a mystery as we can hope for in the world of real estate, and the powerful trio is at the root of it. All the while, they’ve been inking other deals, like a $2 billion half-stake at 1633 Broadway.



Ric Clark (39) CEO of Brookfield Properties ...................................... Barely four months into a young year, Brookfield is already busy. In January, the publicly traded landlord purchased a stake in General Growth Properties valued at $1.7 billion, and in March it signed two huge leases at 2 World Financial Center. The largest downtown landlord, with 12.9 square feet, Brookfield is also planning one of the city’s largest new developments, a 5.4 million–square–foot mixeduse project at 400 West 33rd Street.
26 May 11, 2010

ship (Mr. Portner’s their guy in the Eastern U.S.). With 14 Wall and 450 Lex already in its portfolio, expect big acquisitions in the firm’s near future. Jeffrey Gural, Jimmy Kuhn, Barry Gosin and David Falk (26) Chairman, president, CEO and tristate president, respectively, of Newmark Knight Frank ...................................... With Mr. Gosin as a lead broker, Newmark Knight Frank was the runner-up for the Real Estate Board of New York’s 2011 “Most Ingenious Deal of the Year” award for the 247,433-square-foot deal for Local SEIU 32BJ. (Another Newmark broker took first place.) Such are the signs that the firm’s influence, not only in leasing but in ownership, continues to increase under the ultimate helm of the likable lefty, Mr. Gural (pictured). Darcy Stacom and Bill Shanahan (46) Vice chairmen at CB Richard Ellis ...................................... Ms. Stacom is synonymous with big deals: the $5.4 billion sale of Stuyvesant Town and Peter Cooper Village in 2006; the sale of the former AIG headquarters at 70 Pine Street in 2009; and don’t forget the record-shattering $2.8 billion sale of the General Motors building in 2008. No slouch himself, Mr. Shanahan has been ranked first among CBRE professionals worldwide for the past five years running.

39 | the c


& Co. ...................................... It was in early 2010 that Keith Barket, Angelo, Gordon’s longtime real estate head, and Adam Schwartz undertook a joint venture with Extell Development to purchase the Helmsley Carlton House Hotel for $170 million. Only nine months later, Barket died of stomach cancer, leaving Mr. Schwartz to guide Angelo, Gordon’s stealth real estate ship.

Adam Schwartz (30) Head of U.S./Europe Real Estate at Angelo, Gordon



Doug Shorenstein (37) and Mark Portner Chairman-CEO and managing director, respectively, of the Shorenstein Company ...................................... Shorenstein Properties is in a league of its own when it comes to raising equity. Last month, the San Francisco– based private real estate management concern put the lid on an investment fund—its 10th, in fact—valued at $1.23 billion. No doubt, a goodly portion of that capital will be focused on scooping up office properties in New York, a city that the company penetrated with zeal 10 years ago under the pictured Mr. Shorenstein’s leader-


31. Adam and Amy Rose 32. Charles Spetka 33. Larry Silverstein 34. Amanda Burden
42 May 3, 2011

35. Jeff Horowitz 36. Lloyd Goldman 37. Doug Shorenstein 38. Howard and Edward

Milstein 39. Ric Clark 40. Thomas Hughes 41. William Mack, Lee

Neibart, Richard Mack 42. Howard Lutnick, Steve Kantor and Anthony Orso 43. Mikhail Prokhorov | the commercial observer

At Tishman Speyer, we convert opportunity into value through our expertise in every aspect of real estate. Our global professionals work collaboratively across disciplines and borders to bring together our market-driven insights, experience and expertise. All of which allows us to create properties of enduring value around the world.


the commercial observer |

May 3, 2011


o ce. retail. hotel. industrial.
Massey Knakal Commercial Real Estate Investment Summit
New York, New York May 20, 2011 McGraw-Hill Conference Center


Jon Kaplan, Richard Baxter, Ron Cohen and Scott Latham


Toby Cobb and Justin Kennedy Co-CEOs of LNR Property ...................................... Sprung from Wall Street, where both enjoyed fruitful careers, Messrs. Cobb and Kennedy joined LNR Property in October. Under the ownership of Vornado Realty Trust, the group has wasted no time in spearheading a number of investment goals, partly with a $200 million fund launched last year.
26 May 11, 2010



Steven Spinola (22) President of the Real Estate Board of New York ...................................... The Real Estate Board of New York is among the most powerful trade groups in the country, if not the world. Its president since 1986, Mr. Spinola (pictured below) remains the go-to guy on industry issues, including, but not limited to, 421-a, rent regs, property taxes, J-51 and the 9/11 terror trials, which were supposed to take place downtown—until Mr. Spinola and his team pulled some strings in Washington. That’s power, kids.

Join us on Friday, May 20 in Midtown Manhattan and earn continuing education credits for a full day of discussion, debate, and networking designed for the commercial, o ce, retail, hotel, and industrial real estate professional. Save 25% with the promo code OBSERVER for all Commercial Observer readers Featured Speakers include: | the commercia


(48) Capital Markets team at Jones Lang LaSalle ...................................... When Jones Lang LaSalle last spring poached this team from Cushman & Wakefield, the news clanged around the industry—how dare they? What lured the dapper quartet, to hear it from wellplaced sources, was the firm’s willingness to expand the group’s investment sales and capital markets platforms. By all accounts, they’ve taken what was given to them by JLL and run with it.

Scott Latham, Richard Baxter, Yaron Cohen and Jon Caplan

Richard Clark
President & CEO Brook eld Properties

Sharif El-Gamal
Chairman & CEO SOHO Properties

Harry Macklowe
Founder & Chairman Emeritus Macklowe Properties

Larry Silverstein
President & CEO Silverstein Properties

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44. David Levinson and Rob Lapidus 45. Arthur and William Zeckendorf 46. Darcy Stacom and Bill Shanahan 47. Doug Harmon and
44 May 3, 2011

Adam Spies 48. Scott Latham, Richard Baxter, Yaron Cohen and Jon Caplan 49. Glenn Rufrano 50. Robert Stuckey, Mark Schoenfeld and | the commercial observer

A Triple Play: 3 Deals - Over 300,000 SF
We’re pleased to announce:

Omnicom Group
has leased

147,000 SF at 1 Hudson Square
Lee N. Feld and Andrew Beckler of Feld Real Estate LLC represented the tenant. Robert Constable, Andrew Peretz, Mikael Nahmias and Carlos Suarez of Cushman & Wakefield represented ownership.

Penguin Group
has renewed its lease of

136,000 SF at 345 Hudson Street
Richard Berzine, Robert J. DeAngelis and Richard A. Fenn of Richard Berzine & Company, Ltd. represented the tenant.

Horizon Media
has leased an additional

33,000 SF at 1 Hudson Square
and now occupies a total of 150,000 SF
Brian Cohen, Chris Mongeluzo and Moshe Sukenik of Newmark Knight Frank represented the tenant. Robert Constable, Andrew Peretz, Mikael Nahmias and Carlos Suarez of Cushman & Wakefield represented ownership.

For leasing information, please call:

President Jason Pizer 212.602.0819

Senior Vice President of Real Estate Leasing Marc Packman 212.602.9678

Assistant Vice President of Real Estate Leasing Tom Lynch 212.602.9693

Assistant Vice President of Real Estate Leasing Peter Fontanetta 212.602.0854

the commercial observer |
Availabilities updated weekly
May 3, 2011 45


David and Jed Walentas


Leonard Litwin and Gary Jacob (51) Chairman and executive vice president of Glenwood Management ...................................... Long before the recession turned condo developers across the city into rental mavens, Messrs. Litwin (pictured) and Jacob were focusing exclusively on the rental market. Now more than ever, the strategy has paid off, as even the most stable New Yorkers turn away from pricey condos in exchange for rentals they can more easily walk away from. So it’s no surprise that, after buying land from Fordham for $125 million earlier this year, Glenwood is doing more of the same: a planned 54-story rental tower at 160 West 62nd Street near Lincoln Center.
26 May 11, 2010

44 | the commercial

46 47


Dottie Herman and Howard Lorber (63) President-CEO and chairman, respectively, of Prudential Douglas Elliman ...................................... The city’s biggest brokerage just keeps getting bigger, having added 822 brokers last year—during some of the darker days of the downturn, no less. A big part of their secret is chasing all those punch-drunk condos, helping to unwind the whole mess. The firm has also been ramping up its own eponymous Developments division. And as a side project, Mr. Lorber has been quietly flipping tony townhouses that he bought on the cheap during said downturn.

Pam Liebman (66) CEO and president of the Corcoran Group ...................................... Corcoran may not have the cachet of some of its competition on this list, but they own much of the middle market, especially in Brooklyn, where Ms. Liebman led an aggressive charge in recent years. There have been some embarrassments over the past year, including a discrimination suit from an overweight ex-employee. Still, the firm’s chief has done much to cut costs and keep it afloat, despite takeover rumors. David and Jed Walentas (82) Founder and director of daily operations, respectively, at Two Trees Management ...................................... Everybody knows about Dumbo, the land of pollutant-belching manufacturers that, relatively speaking, became a New York wonderland overnight. Now, with the buildings built and the space leased, what else are David and son Jed to do but hop over to Manhattan to re-create another swath of land in their own image. To be sure, the duo started construction on a 900-unit rental on 54th Street near 11th Avenue and inked a deal for a 340,000-square-foot office loft at 50 West 23rd.

In today's complex and changing real estate marketplace, you need to work with experts who share your vision for success and have the experience to make that vision a reality.
Leasing. Property Management. Investment Sales. Advisory Services.

Andrew Chung 51. Leonard Litwin, Gary Jacob 52. Jay Sugarman 53. Bruce Ratner 54. Stephen Seigel 55. David Paterson 56. Stefan Solow | the commercial observer


May 3, 2011





If it’s about to happen in real estate, it’s already happening at NYU Schack.
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May 3, 2011


Solomon Blum Heymann LLP John Moran, Adam Leshowitz, Newmark Knight Frank XcitekSolutionsPlus Richard Levine, Michael Rizzo, CB Richard Ellis HAKS Engineers and Land Surveyors Mark Shapses, Cushman & Wakefield Telstra Incorporated Robert Tanzmann, Cushman & Wakefield Brokerage & Management Corporation John Johnson, Nicholas Farmakis, Studley Core Staffing Services Mike Zaleski, Zaleski Properties NYG Capital LLC Ariel Cohen, Prudential Douglas Elliman RRZ Management Inc. Ariel Cohen, Prudential Douglas Elliman Managed Health Network Inc. Scott Panzer, Jones Lang LaSalle Direct Access Partners LLC Ruth Colp-Haber, Wharton Property Advisors GDS Publishing, Inc. Jared Freede, CB Richard Ellis Spyker Consulting,Inc. Jared Freede, CB Richard Ellis Infinitel Communications, Inc. Joseph Hilton, Grubb & Ellis Accounting and Compliance International Wes Rudes, Richard Doolittle, Murray Hill Properties XO Communications Services, Inc. Brian Reiver, Scott Cahaly, Jones Lang LaSalle Zaremba Brownell & Brown PLLC Dan Suozzi, Jones Lang LaSalle Star Alliance Trading Group LLC Dan Suozzi, Jones Lang LaSalle Country Wide Insurance Company Mark Weiss, Newmark Knight Frank Vertex Capital Management Dawn Frojen, Prudential Douglas Elliman Clancy Financial Services, Inc. Oakwood Asset Management, LLC 40WALLSTREET.COM Rosen Greenberg Blaha LLP Rosabianca & Associates PLLC
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Bruce Ratner (53) Chairman and CEO of Forest City Ratner ...................................... With the last of the lawsuits behind him, Mr. Ratner began work on what may still be the most cutting-edge arena in the country, even without Frank Gehry designing it. The developer is struggling to find financing for the first apartment tower on the site— but if he does, there are rumors it could be the largest prefabricated structure in the world, and something with the possibility to transform the way New York builds. And there is a certain Manhattan apartment building he and Mr. Gehry managed to finish together.

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Bruce Ratner

David Levinson and Robert Lapidus (44) CEO-chairman and president-CIO, respectively, of L&L Holding Company ......................................
26 May 11, 2010

For more information please contact:
Jeffrey A. Lichtenberg • Special Consultant to the Owner • 516.314.4458 Adam Foster 212.618.7088 • Brad Gerla 212.618.7066 • Michael Higgins 212.618.7011 • Gregg Rothkin 212.984.8192 •

Reasons 2. REBNY brokers have exclusive access to the most comprehensive computerized New why you York City property data file and the largest reference library of any realty association in should the city. insist on 3. The Commercial Listing Exchange (CLE) pera REBNY mits REBNY broker and owner members to exchange their exclusive New York City comBroker mercial space listings weekly. for your Report, with the commercial 4. The Retail City retail brokerscooperation ofof New York and owners store space, is the most authoritative source Property
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When L&L Holding Company completed the $135 million renovations of 200 Fifth Avenue—formerly the International Toy Center—it was the most costly private endeavor of its kind in the city. That the very expensive repositioning happened in 2009 and 2010—at a time when few others were willing to spend that kind of coin—seemed to mirror Messrs. Levinson and Lapidus’ fearlessness in the face of an unsteady economy. | the commercial obse


Constantine Dakolias and Chris Linkas Managing directors of Fortress Investment Group ...................................... Since the middle of last year, the Fortress Investment Group has seen its profits rise after a long lull. And so the hedge fund has once again begun gobbling up both big companies and properties with abandon. Speaking of the latter, it has been thanks to the leadership of managing directors Constantine Dakolias and Chris Linkas that the company has regained its footing and investment savvy with regard to real estate.


REBNY brokers are bound by a Code of Ethics that serves the client’s best interests.

57. Avi Banyasz 58. Gary Barnett 59. Peter Duncan 60. Ray Kelly 61. Charles Bagli 62. Dan Tishman 63. Howard Lorber and Dottie Herman 64. Jay Walder 65. Peter Hauspurg and Daun Paris 66. Pam Liebman 67. Stanley and Haim Chera 68. Jonathan Mechanic and Stephen Lefkowitz 69. Joe Ficalora 70. Robert Knakal and | the commercial observer

5. REBNY brokers are highly knowledgeable

about laws, regulations and other public policies affecting real estate because of the Board’s Government Affairs programs, special bulletins and publications.


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May 3, 2011

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May 3, 2011





Dean Skelos

Real Estate is about more than steel and glass. It’s about a myriad of timely business decisions essential to maximizing the return on your properties. That’s why you need an accounting firm with real expertise. For over 85 years Friedman LLP has successfully guided our clients through the financial complexities of the ever-changing market, and helped them recognize and take advantage of every opportunity along the way. So when your real estate business needs expertise, build a relationship with Friedman.

May 11, 2010



...................................... Condé Nast, the parent company of magazines like Vogue and Vanity Fair, demonstrated it had affordable yet decidedly fashion-forward taste in office space in the ’90s, moving from Madison Avenue to the Durst Organization’s then-new 4 Times Square and helping kick off a boom in property values. Hopes are high that Condé will likewise boost the downtown office sector, now that it’s submitted a letter of intent to take 1 million square feet at another Durst work: 1 World Trade Center. Dean Skelos Majority leader of the New York State Senate ...................................... The Long Island Republican, more than any other elected official at the state level, is taking a stand against the extension of rent-regulation laws—and that’s a power move that, it’s safe to say, most in the real estate industry are rooting for.

51 | the commercial observer

Si Newhouse Chairman of Condé Nast

Ron Kravit (29) Managing director at Cerberus Real Estate Capital Management ...................................... As one of the largest private-equity investment firms in the U.S., when Cerberus sneezes markets move. So it’s on Mr. Kravit, who specializes in real estate private equity, to make sure that the trains run on time. The former Blackacre Capital head has overseen high-profile acquisitions of the discount chain Mervyns and grocery store Albertsons while also overseeing the financing for a number of commercial and residential projects across the country.


© 2010 Friedman LLP. All rights reserved. An Independent Member Firm of DFK with Offices Worldwide



Paul Pariser and Charles Bendit Co-CEOs at Taconic Investment Partners ...................................... Going into the recession, Taconic Investment Partners had an ace in the hole in that they had just made a $300 million profit on 450 Park, which they sold at the market’s peak for $500 million. And while Mr. Pariser (pictured) admitted to The Observer in 2009 that times were indeed tough, he and Mr. Bendit bounced back with the titanic sale of 111 Eighth to none other than Google.

Paul Massey Jr. 71. Jeff Sutton 72. Robert Ivanhoe 73. Robert Lieber 74. Philip Green 75. Arnold, Kenneth, Steven and Winston Fisher 76. Archbishop Timothy Dolan 77. Mike Fishman 78. John Sexton and Mike Alfano 79. James Cooper 80. Diane Ramirez 81. Aby Rosen | the commercial observer



May 3, 2011


proudly congratulates our own

AND RAPHAEL DE NIRO on being honored among The New York Observer’s “10 0 MO S T P O W ERFUL PEOPLE IN NE W YORK RE A L E S TAT E ”


An independently owned and operated member of the Prudential Real Estate Affiliates, Inc.

is a service mark of Prudential Insurance Company of America.

Equal Housing Opportunity.

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May 3, 2011



A Proud T radition. A Legendary History.

John Sexton


May 11, 2010


quisitions ......................................

Stanley and Haim Chera (67) Principals of Crown Ac-

...................................... Like Columbia University, its equally capable collegiate counterpart, N.Y.U. has been on an expansion tear. To read the blogs and listen to preservationists, the push to develop 2 million square feet of new classroom space, dormitories and offices is a death knell for Greenwich Village. But under this trio, the school is doing what it believes needs to be done to compete in academia. Jeff Sutton (71) President of Wharton Properties ...................................... It’s easy to imagine that Mr. Sutton walks the streets with his head down, eyes focused on the ground floor. Again and again, he succeeds in his real estate investments by repositioning retail properties from the ground up—namely through his keen sense of sidewalk-facing retail pursuits. He brought American Girl to 609 Fifth and Abercrombie & Fitch to 720 Fifth, and was heavily involved in the Aeropostale deal at 1515 Broadway. Mitch Rudin (25), Robert Alexander and Stephen Siegel (54) Tristate president and CEO, tristate chairman and global brokerage chairman, respectively, of CB Richard Ellis ...................................... Under Messrs. Rudin, Alexander and Siegel (and Ms. Tighe, No. 18), the city’s largest commercial real estate brokerage has tallied endless best-of-the-year accolades, curated many of the biggest deals of the past few years and, generally, stayed afloat in the recession, only seeming to grow in size and influence. Their clients span this list. | the commercial observer

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Jay Walder (64) Chairman of the Metropolitan Transit Authority ...................................... The looming sale of its midtown headquarters and two Madison Avenue buildings. The relinquishment of development rights over the West Side Yards. And the give-away of air rights at the Brooklyn rail yards. Indeed, sometimes it’s easy to forget that the M.T.A.’s job is to make the trains and buses run on time sometimes. But under Mr. Walder, the first transit pro to hold the job, New York’s corpuscular labyrinth of tracks has played second fiddle only to the agency’s real estate dealings.

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With the purchase early last year of the St. Regis retail condominium, the Cheras catapulted to the more regal ranks of the real estate lions. With 24,700 square feet of space, leased to no less shabby a retailer than De Beers Diamond Jewelers, among others, the deal commanded a whopping $117 million.

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John Sexton, Mike Alfano (78) and Alicia Hurley President, executive vice president and vice president of government affairs, respectively, of New York University

Preferred by

82. David and Jed Walentas 83. Hall Willkie 84. Joseph Strasburg

85. Peter Ward 86. Veronica Mainetti 87. Ralph Herzka 88. Nochi Dankner | the commercial observer


May 3, 2011


the commercial observer |

May 3, 2011



Robert Knakal

pains to visit many of the 230 offices the firm operates across 60 countries. What’s more impressive is his ability to stave off widespread rumors that he was brought in to boost the business for an eventual sale. “The reason I was brought in—and what my tour is—is to maximize the value of Cushman & Wakefield,” he told The Times. Either way, the proven executive will continue to have his hands full.

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Peter Riguardi (27) President of Jones Lang LaSalle ...................................... Jones Lang Lasalle has earned its reputation as one of the industry’s most aggressive brokerages, scoring a high-profile investmentsales team from Cushman & Wakefield led by Mitchell Konsker, along with new leasing assignments, such as 625 Sixth Avenue. The firm is charged with leasing Goldman Sachs’ former hub at 85 Broad Street, too, currently the emptiest building in the city.
26 May 11, 2010

real estate servicer, has used to its advantage during the tumultuous throes of the Great Recession. Under Messrs. Pelusi and Tepedino, the group has taken advantage of markets from here to Dallas, closing, on average, two deals daily, each valued at $1 million or more. face stuff, Messrs. Massey and Knakal over the past 22 years elevated their concern into literally New York’s busiest investment sales brokerage. This year, coming out of the recession, they have begun to expand big time, launching a retail-leasing division under Benjamin Fox and a capital-markets group under Garrett Thelander. What does Rahm Emanuel always say? Never let a crisis go to waste. | the commercial observer

John Pelusi and Mike Tepedino CEO and senior managing director, respectively, of HFF ...................................... Debt placement, investment sales, structured finance and distressed assets are all specialties that HFF, the capital markets and commercial

Paul Massey and Robert Knakal (70) CEO and chairman, respectively, of Massey Knakal Realty Services ...................................... One holds a black belt in tae kwon do and the other has great hair. But beneath the sur-


Glenn Rufrano CEO and president of Cushman & Wakefield ...................................... Since taking the reins of Cushman & Wakefield in March 2010, Mr. Rufrano has taken


89. Dolly Lenz 90. Lee Bollinger 91. John Burger 92. Robert LiMandri 93. Lockhart Steele 94. Young Woo 95. Janette Sadik-Khan 96. Kirk Henckels 97. Joel Seiden and Offer Yardeni 98. Mark Jaccom 99. Paula Del Nunzio 100. Veronica Hackett


May 3, 2011 | the commercial observer

Past Sales Data | Property Price History | Geo-Targeted Home Page Integration of NYC Listings | Integration of Connecticut MLS Listings Integration of NJ MLS Listings | 800+ Videos Fully Integrated Mobile Friendly | Optimal User Experience | Modern Design

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May 3, 2011



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Peter Hauspurg and Daun Paris (65) Principals of Eastern Consolidated ...................................... Long before Lehman Brothers collapsed and economic instability reigned, this handsome husband and beautiful wife were exploring ways to expand Eastern Consolidated’s loan sales platform. And while the endeavor took longer than expected to get off the ground, the group is now among the city’s leaders with regard to navigating the era’s new value metrics. Meanwhile, Eastern continues to aggressively pursue debt procurements in all corners of the city—Brooklyn, Queens and the Bronx included—as well as to broker investment sales like mad.


up the last of No. 85 Harry Macklowe’s distressed commercial buildings, including the 1.8 million–square– foot Worldwide Plaza. At $590 million, the purchase was at the time the biggest to hit the city post-Lehman. And, just like that, the visionary Mr. Duncan had put the firm on the map. Two years later, he’s still making strategic plays. Howard and Edward Milstein (38) Principals of Milstein Properties, ......................................

Peter Duncan (59) President-CEO of George Comfort & Sons ...................................... Ask anybody in the real estate game, and they’ll tell you that George Comfort & Sons held a pretty low profile. That is, before July 2009, when the group snapped

The completion of two Battery Park City condominium towers a couple of years back marked a revival of sorts for Milstein Properties, which, due in part to a series of family legal disputes, had been largely inactive during the building boom that inspired so many of their competitors. But even as the third-generation scions remain somewhat quiet, the company’s 20 million square feet, including 50,000 apartments and 8,000 hotel rooms, continue to line the brothers’ pockets.

Howard Milstein


InvestIng In Our Infrastructure— Let’s Put PeOPLe Back tO WOrk
26 May 11, 2010 | the commercial observer

The only issue both parties agree on in 2011 is the need for jobs creation. We MUST take people out of unemployment and put them back to work. The $780 billion stimulus package of 2009 is viewed at least partially as a failure by many because the money never reached its intended goal— much needed shovel ready projects. Funds instead were diverted and used to plug huge State deficits. A second stimulus can succeed if it is administered in a way that will guarantee that it is channeled directly to infrastructure projects. This is not wasteful spending, it is investing in our State’s and our nation’s future. This is rebuilding America. WDF has always been uncompromising in the rigorous qualifications we require of our employees. Yet we have been finding highly skilled, experienced men and women among the unemployed and we are hiring them with outstanding results. The more infrastructure projects that are budgeted for, the more WDF will be hiring people. There are those who remain skeptical.

This is not a giveaway. This is not a giveaway. This is not throwing money out of a helicopter. This is not throwing money out of a helicopter. This is not giving people entitlements to sit This is not giving people entitlements to sit unproductively at home. unproductively at home. This is putting people back into the workforce, and This is putting people back into the workforce, making them productive members of society. and making them productive members of society.

Numbers don’t lie. The Queens Midtown Tunnel, which turned 70 last November, cost approximately $58M to build in 1940. In 2009, 27.7M vehicles paid an average of $5 each in tolls to cross (between the E-Z pass and regular rate). Do the math. The total is close to $140M IN JUST ONE YEAR in revenue: more than double the cost of building the tunnel – an impressive statistic even if the difference between 1940 and 2010 dollars is factored in. ThAT iS NOT SPENDiNG! ThAT iS iNVESTiNG! We need to restore our belief in people and trust that assets can and will increase in value. Spending creates no asset value. Public projects are durable assets that produce lasting value. Investing in our infrastructure will make America competitive once again with other parts of the world while creating REAL JOBS with REAL BENEFITS for ALL AMERICANS.

The New STaNdard of CoNSTruCTioN

Larry Roman Chairman & CEO WDF Inc.


May 3, 2011 | the commercial observer


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Some show up just to rev their engine. We’re focused on pulling ahead as the rst true alternative to real-estate-as-usual. We’ve put the pedal to the metal to help our clients race forward with investments in new markets, top talent, and a uni ed global brand in more than 480 o ces in 61 countries worldwide. We’ve got the inside track on service to accelerate your success.
Colliers International congratulates all of this year’s POWER 100 honorees.

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May 3, 2011




Amanda Burden (34) Chair of the Planning Commission and director of City Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . While her power has waned since construction came to a near halt during the downturn, the socialite–turned–public servant still may be the most respected—some might say loathed—person in all of local real estate. With the power to bend developers to her wishes, Ms. Burden is responsible for many buildings on this list (Durst’s BIG Project, Extell’s Riverside Center) looking as daring as they do.

Chris Ward (20) Executive director of the Port Authority of New York and New Jersey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . With the portentous 10th anniversary of 9/11 fast approaching, credit goes almost entirely to one of the smartest bureaucrats in the city (sorry, Larry!). Mr. Ward set new schedules for completing the memorial plaza in time for the hallowed day, and the four office buildings on the site are progressing in their own fitful ways. This would be job enough, but Mr. Ward is also undertaking modernization efforts at the region’s airports, container terminals, bus depots and bridges.

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Arnold, Kenneth, Steven and Winston Fisher (75) Principals of Fisher Brothers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . If ever a real estate company could be counted as members of the mile-high club, the Fishers (Winston pictured) would be the group’s Class A ambassadors. With skyscrapers like 605 Third, 299 Park and 1345 A of A all boasting upward of 1 million square feet each, the 96-year-old company has a thing for heights. But with the sale last year of its minority stake in 229 Park, a.k.a. Park Avenue Plaza, the group sent a signal that size doesn’t always matter.

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Aby Rosen (81) and Michael Fuchs Principals of RFR Holding ......................................

He has been harassed by Orthodox Jews over his development interests in Israel, has sparred with Tom Wolfe in the pages of The Times and last year split with longtime-sometime business partner Ian Schrager. But Mr. Rosen (pictured) —the tragically hip, art-collecting owner, along with Mr. Fuchs, of such trophies as the Seagram Building and Lever House— manages to hang on. With the purchase of 530 Park last year, he and Mr. Fuchs hope to turn the rental building into high-end condos. The sun has yet to set for the city’s most flamboyant investor.


Jeff Citrin and Craig Solomon Principals of Square Mile Capital ......................................

Harry Gross Chairman of Granite Broadway Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . After the Time Warner Center’s Mandarin Oriental, the soon-to-be Marriott Central Park has bragging rights as New York’s tallest hotel. “But since that’s a big ol’ mixed-use project, with apartments, offices and even a mall,” wrote our own Matt Chaban of the Mandarin back in January, “that doesn’t count.” The hotelier behind the 716-foot-tall hotel on 54th Street is Mr. Gross, a guy who registers almost no Google or Nexis hits, rendering him all but invisible. But we do expect his Web traffic to spike.

After beating up Kent Swig and taking a bunch of his stuff in 2008, Square Mile Capital, the lender that was launched only two years earlier, gained some power. But not without earning a bittersweet rep as the company above all others willing to show fangs to delinquent borrowers. Since teaming with Taconic Investment Partners in the ill-fated purchase of 29 of the 32 commercial condo units at the universally loathed Verizon building, Messrs. Solomon and Citrin have shuffled their feet to sandboxes outside of New York.

Amanda Burden


...................................... Along with Trinity Real Estate president Jason Pizer, Mr. Cooper has continued to reposition the Episcopal church’s 6 million square feet in Hud-


James Cooper (79) Rector of Trinity Church son Square into appealing office space for creative tenants. As recently as 10 years ago, the vacancy rate for the area might have hovered around 20 percent. But with the likes of New York magazine, Penguin Putnam, Getty Images and WNYC there, Mr. Cooper’s property tabernacle now appears especially secure.
26 May 11, 2010 | the commercial


May 3, 2011 | the commercial observer

Jonathan L. Mechanic
and congratulate the

One in a

We salute our friend and colleague

Power 100

New York | Washington DC | London | Paris | Frankfurt | Hong Kong | Shanghai
the commercial observer | 59

May 3, 2011

Danny Meyer CEO of Union Square Hospitality Group ...................................... Mr. Meyer might be the most influential restaurateur in the city—and not because of the food he cooks, phenomenal as it may be. It is the way that everywhere he goes, he transforms neighborhoods. Union Square in the ’90s, Madison Square in the ’00s; and now he has set his sights all over town and beyond, as his Shake Shack empire expands into Connecticut, Battery Park City and Brooklyn’s Fulton Mall. He just opened Untitled inside the Whitney, bringing barnyard hominess to the starched hood. Timothy Dolan (76) Roman Catholic Archbishop of New York ......................................

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is said, on his several sons (there’s eight kids and at least 50 grandkids in total) and quietly investing in things beyond real estate, like banks and nursing-home chains.


Arthur and William Lie Zeckendorf (45) Principals of Terra Holdings and Zeckendorf Realty ...................................... Under the brothers’ leadership (Arthur pictured), the family’s real estate legacy has since expanded to include the ownership stakes in brokerages like Brown Harris Stevens and Halstead. Meanwhile, they have scooped up some of the city’s most regal real estate, and maybe the world’s. Indeed, 515 Park has hosted producer L.A. Reid, and 15 Central Park lays claim to former Citigroup chair Sandy Weill, Goldman Sachs chief executive Lloyd Blankfein and Denzel Washington. Raphael De Niro Managing director at Prudential Douglas Elliman ................... ...................

Elizabeth Stribling and Kirk Henckels (96) President of Stribling & Associates and director of Stribling Private Brokerage, respectively ...................................... As if having charmingly stepped from some casting call for highbrow real estate brokers, the elegant Ms. Stribling (her real estate chops go back to 1967!) and the stately Mr. Henckels (bow ties and all!) embody in appearance and deed the luxury end of Manhattan housing. A cursory scan of Mr. Henckels’ latest listings, for instance, shows a $27.5 million ask at 810 Fifth and an “Estate in Umbria” for $17,418,440.

Danny Meyer
lion Harkness Mansion, and she had the biggest sale last year when the Duke-Semans manse went from Tamir Sapir to Carlos Slim for $44 million. Meanwhile, the redoubtable Mr. Willkie manages the many personalities under the BHS umbrella, including 350-plus brokers doing $3.4 billion in sales annually.

Columbia and N.Y.U., as this newspaper noted earlier this year, may be gaining on the Catholic Church as New York’s biggest private landlord, but Archbishop Dolan still oversees as sole proprietor vast and valuable properties in Manhattan, the Bronx and Staten Island. St. Patrick’s Cathedral alone has more than $191 million in assets, not to mention a prime Fifth Avenue location (God forgive us for being so cynical).


Diane Ramirez (80) President of Halstead Property ...................................... Ms. Ramirez cofounded Halstead in 1984; she inked her last multimillion-dollar real estate deal as a broker for none other than Calvin Klein, three years later; now the firm’s president, she spends much of her time reshaping the firm in her own classy image. Last year, she personally appealed to then free agent LeBron James to sign with the Knicks and move to New York while also working behind the scenes to sell Senator Kirsten Gillibrand’s Hudson Valley home. Robert Tierney Chairman of the Landmarks Preservation Com-


Ruby Schron Landlord

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A raging bull with the intense quietude of his father, Raphael De Niro has gone from famous kid to famous broker in just a few short years. This year, he led the top-selling team at Douglas Elliman, after a sixthplace showing the year before. His client list reads like an invite to a party at his Soho loft: Naomi Campbell, Mark Ronson, Pink and Mickey Rourke.

May 11, 2010

Norman Sturner and Neil Siderow President and chairman, respectively, of Murray Hill Properties ...................................... In the early ’00s, Murray Hill really blasted off by originating a handful of high-net-worth funds. Since then, Messrs. Sturner (pictured) and Siderow, the firm’s founders, have raised more than $300 million in individual funds and, subsequently, escalated their little something into a major player. In the meantime, they did yeoman’s work last year to keep Pepsi from moving its bottling division in Westchester to Connecticut. The intense negotiations over three years netted the largest transaction in the county’s history.

84 | the commercial ob



Matthew Wambua and Marc Jahr Commissioner of the Department of Housing Preservation and Development, and president of New York City’s Housing Development Corporation, respectively ...................................... In March, Mayor Bloomberg took a vacation from appointing outsiders by naming Mr. Wambua as the city’s latest housing commissioner. As a senior policy adviser back in 2002, he led bids for affordable housing in upper Manhattan and the South Bronx. Along with Mr. Jahr, the entrenched pair of do-gooders likely ruffle some feathers within the industry. So be it.’ Hall Willkie and Paula Del Nunzio (99) President and senior vice president, respectively, of Brown Harris Stevens ...................................... With the market, and particularly the market for townhouses, heating up again, the doyenne of uptown living is the broker to beat. Ms. Del Nunzio (pictured) still holds the all-time single residential record for the $53 mil-

mission ...................................... Since taking over the Landmarks Preservation Commission eight years ago, Mr. Tierney has overseen one of the largest expansions of protections for the city’s historic fabric, with a particular focus on the outer boroughs. Perhaps he has been too successful, as a massive district along West End Avenue—among others—is taking fire from Big Real Estate for stifling development. Recessionary knee-jerk or a coming backlash?

Properties ...................................... F. Scott Fitzgerald’s immortal words, “There are no second acts in American lives,” couldn’t have anticipated Mr. Macklowe. After a buying binge that would have made some of Fitzgerald’s protagonists envious, the developer saw his fortunes crumble in dramatic fashion. But as recently as last month, cranes appeared at the rubblestrewn site of the former Drake Hotel—an asset he won, then lost, and, in a joint venture with CIM, seems to have wrestled back into his fold. | the commercial observer


Harry Macklowe Founder and chairman emeritus of Macklowe

The mysterious Mr. Schron is one of the city’s largest individual landlords—estimates peg his holdings at 15 million square feet, including tens of thousands of outer-borough apartments and stakes in such commercial properties as the Woolworth Building. He plays his work close to his chest, relying, it
60 May 3, 2011

Senior Vice President, Managing Director Licensed Associate Real Estate Broker 212-906-9207 445 Park Avenue New York, NY 10022

Of the eight largest residential townhouse sales, Paula had represented the seller of seven, the seller and buyer of one, and sold one twice.

Highest townhouse sale ever. Highest townhouse sale for 2006 and highest residential sale ever for any property type. The Harkness Mansion. At approx 22,000SF and featuring grand 14’ ceilings as well as elegant, expansive living spaces, this residence has retained all of the grandeur and breadth that originally drew so many notable names throughout the years. Spanning 50’ in width, this property presented the ideal opportunity to create an unparalleled private residence in NY.

Highest townhouse sale for 2008 and highest residential sale in 2008 for any property type. The Milbank Mansion. Created by Jeremiah Milbank who combined 14 and 16 East 67th Street in 1919, this 48 footwide 21,000 square foot residence features a 30 foot swimming pool in a double-height space, numerous outdoor spaces, a suite of staff quarters on top, and superb entertaining spaces.

Highest townhouse sale for 2010 and highest residential sale in 2010 for any property type. Resold for 10% more than owner paid in 2006. The Duke-Semans Mansion. An incomparable corner location on Fifth and 82nd Street, with 103 feet of frontage on the side entry and 27 feet in width, the extraordinary living and entertaining spaces of landmarked Duke-Semans Manison.

Recognized as one of the top-producing brokers in New York City, Paula Del Nunzio has specialized in townhouses, penthouses and townhouse equivalent spaces for more than 20 years.

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.

the commercial observer |

May 3, 2011



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Burton and Jonathan Resnick Chairman-CEO and president, respectively, of Jack Resnick & Sons ...................................... Less than two years ago, Burton and Jonathan—the latter, the last of three sons to remain at Resnick & Sons—spearheaded the acquisition of 250 Hudson Street, a former printing building that they converted into office space for the wave of creative types moving to the area. The deal was a good investment for the family firm, which opened in 1928. But they’ve been relatively quiet, and, thus, there’s no way to tell what’s next for one of New York’s more dependable real estate names. Bruce Mosler and Arthur Mirante Former CEOs of Cushman

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small town the financial push would have single-handedly revived the community’s economy. And while Mr. Jaccom tends to speak in superlatives, the heft of his rhetoric has yet to overshadow the recent activity of his brokers.

Charles Cohen CEO of Cohen Brothers Realty ...................................... If he wasn’t so damn talented, Mr. Cohen might be perceived as an egomaniacal real estate tycoon of the worst kind: prone to silly whims and, even worse, terrible investments. But when his interest in design inspired him to develop hubs across the country for designers, it worked. And, more recently, when he followed his muse to Hollywood, the movie he produced earned Oscar nominations. While still a full-time real estate pro, he’s now juggling multiple film projects. Good show! Earle Altman Chairman of ABS Partners Real Estate ...................................... With eyes on Chinatown, Tribeca and, really, most of New York, Mr. Altman and ABS Partners Real Estate has been on a leasing binge. Besides a recent push to sell or netlease 250 Canal, the group worked behind the scenes to revamp 185 Franklin, a small office building that under ABS leased three big spaces just last month.


Jeff Winick Founder and CEO of Winick Realty Group ...................................... With Duane Reade hell-bent on opening a new store on every corner of the city, its brokerage of choice, Winick Realty Group, could have chosen to hit the snooze button a thousand times and still wake up in a pile of cash. But never one to rest on laurels, Mr. Winick has aggressively expanded the firm’s leasing capabilities to include retailers both big and small. Ralph Herzka (87) President and CEO of Meridian Capital Group ...................................... Capitalizing on the economic recovery is something of a specialty for the boys and girls over at Meridian Capital Group. Just visit its busy communications department, which tirelessly churns out news of new financial deals several times a week. Here’s an absolute fact: From the Upper East Side to Lower Manhattan, Mr. Herzka’s powerful financing muscle flexes for miles.

Serena Boardman


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Lockhart Steele (93) Founder and publisher of the Curbed Network ...................................... Not only does Mr. Steele have the list’s best name, but his is the first name in street-smart blogging. There is the ever-so-snarky Curbed— which has launched editions in Chicago, Washington, Miami, Seattle and a glossy national site—as well as the premier restaurant and retail blogs in these cities. He has helped define the look, feel and sound of a million hyper-local blogs chronicling the minutiae of the city. And just look at his shirts. .

& Wakefield ...................................... When Mr. Mosler (pictured) stepped down as chief executive of Cushman & Wakefield last year, it wasn’t entirely clear what his plans were, other than returning to brokerage. And so when it was announced this January that he would be teaming with another former Cushman chief executive, Mr. Mirante, to form a new brokerage services group, the news was akin to Bob Dylan, Tom Petty, George Harrison and Roy Orbison coming together as the Traveling Wilburys. The pair has been rocking big leases ever since.



Traurig ...................................... With astonishing regularity—for a lawyer, at least—Mr. Ivanhoe has played a huge role in shaping the city’s skyline. As No. 31 Larry Silverstein’s lawyer, he helped erect the luxury Silver Towers on West 42nd Street and oversaw the purchase of the Plaza Hotel for El-Ad Properties. More than perhaps anyone else in this city with a JD, Mr. Ivanhoe has acted as an unofficial urban developer for years.

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Robert Ivanhoe (72) Chairman of the New York office of Greenberg

Jonathan Miller CEO and president of Miller Samuel ...................................... Mr. Miller authors perhaps the most closely watched housing reports in the U.S. (sorry, Dr. Shiller): the Douglas Elliman quarterly snapshots. Long decisive for Manhattan condos and co-ops, they now include surrounding areas and the rental markets. Plus, Mr. Miller remains refreshingly free of spin. In January, he said of Manhattan housing: “Best case, we move sideways, but I’m more inclined to think we’re seeing a price or sales erosion in 2011.” Which is exactly what the stats have been showing. Steve Cuozzo Real estate columnist and an editor for


Jonathan Mechanic and Stephen Lefkowitz (68) Chairman of the real estate department and partner, respectively, at Fried Frank ...................................... Throw a rock during the Real Estate Board of New York’s annual gala and you’re sure to hit one of the pictured Mr. Mechanic’s current or former clients. Hope it’s the latter because, while charming and personable, he and Mr. Lefkowitz won’t hesitate to chew you up on behalf of said clients, who include[d] Donald Trump (No. 14), Jerry Speyer (No. 15), Michael Bloomberg (No. 7), Steven Roth (No. 4), Stephen Ross (No. 10), Bruce Ratner (No. 48), Douglas Durst (No. 1), Mort Zuckerman (No. 5) and Sheldon Solow, to name a small fraction.

Joseph Strasburg (84) President of the Rent Stabilization Association ...................................... Forget about the gun, cigarette and alcohol lobbies. It’s Mr. Strasburg and his confusingly named Rent Stabilization Association that should draw your attention—and sometimes does, like when the RSA president in March warned landlord advocates that Governor Cuomo (No. 2) “will crush you like his father did.” (The governor didn’t care for that: “I can’t believe they mentioned my family,” he thundered privately.) With legislation coursing through Albany that would extend rent regs set to expire in June, Mr. Strasburg remains a key player in an only–in–New York fight. Mike Fishman (77) President of SEIU 32BJ ...................................... Mr. Fishman’s on a roll. In the fall of 2009, he backed the successful candidates for mayor, public advocate and city comptroller; and a year later he was at No. 2 Andrew Cuomo’s back (as well as the winning AG and state comptroller candidates’), securing more powerful ears for his powerful union. He is perhaps the first labor leader in the Rolodexes of every big landlord on this list.

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Serena Boardman Senior vice president at Sotheby’s ...................................... Is Ms. Boardman the biggest residential broker in the city? Nobody knows because she is certainly its most discreet, but that is where The Wall Street Journal pegged her a few years ago. The socialite-turned-broker has handled some hefty listings, including many of brother-in-law Aby Rosen’s mansions and the infamous Madoff home. Other boldface clients include Eli Broad, Jimmy Fallon and a handful of Rockefellers.


the New York Post ...................................... Last November, Mr. Cuozzo bellowed from the tab’s pages that “the culture of self-congratulation in the retail-leasing industry is so entrenched, it’s almost impossible to get an acknowledgement of how dysfunctional our retail climate can seem to even casual observers.” It was trademark Steve—equal parts Andy Rooney and Howard Beale—making him not only a scoop machine, but the seminal bullshit detector in the industry.

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Mark Jaccom (98) CEO of New York tristate for Colliers International ...................................... He’s among the most outspoken real estate leaders locally—but God love him. Since the merger with FirstService last year, Mr. Jaccom has led all New York firms in a hiring splurge so big that if it had happened in a

Photos by Getty Images, Patrick McMullan, Joe Fornabaio, Daniel M. Weiss, Shravan Vidyarthi, Brian Letwin, Kurt Raschke, James Hamilton. | the commercial observer

the commercial observer |

May 3, 2011





May 3, 2011 | the commercial observer

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