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November 12, 2008



This year’s investment sales market was tough, and next year will be tougher. Sure, we’ve heard the prediction before, but unfortunately yesterday it came from authoritative specialist Bill Collins, the Cassidy & Pinkard Colliers broker who’s done some of the largest deals in Washington. He was in Manhattan at ABR’s East 52nd Street office yesterday morning to join other C&P and Colliers ABR execs in predictions.


Bill, right, with ABR chair Mark Boisi. If you’ve been sleeping, ABR, C&P, Colliers Turley Martin Tucker, and Colliers Pinkard merged a few months ago to create one of the largest independently owned brokerage houses in the East, partly leveraging C&P’s capital markets strength. Bill notes that as of four week ago, 75% of YTD transactions were cash buyers, with the remaining involved in assumptions and new debt deals. Price adjustments are around January 2007’s level, down from the mid-2007 high-water market. Investors who jump into the market now will be winners. (When they’re not golfing: Mark just returned from Augusta National, and Bill’s headed to Palm Springs.)


ABR’s Craig Evans, Mark Boisi, C&P’s David Webb, ABR’s Richard Bernstein, ABR’s Robert Sammons, Bill Collins, and C&P’s Kevin Thorpe. Next year, the market needs new debt vehicles to fill the CMBS void, they say. On the office side, sales activity will slow, cap rates will rise, and prices with fall further, with trophies performing the best. Anticipate more distressed assets (the firm is 30 days into its new distressed asset service group and has 6M SF of office and industrial assets). David says that there’s a misperception that no one’s lending in the current environment, but the best of the best are getting things done, and new opportunistic funds are appearing. Expect at least A-level CMBS to return by 2010 or 2011.


We tried getting D.C. researcher Kevin to arm-wrestle NY researcher Robert, but they politely declined. Why? They knew Kevin would win, because D.C. is stronger than Manhattan. Kevin contends that the nation’s capital has avoided three of four past recessions, with job growth continuing (31k new jobs this year, 29k in 2009—thank the federal government, the TARP bailout, and a new administration). New York lost 4,700 private sector jobs in September, and over 11k securities jobs YTD. Both markets are seeing their share of softening, but New York’s vacancy has increased by 29% and sublet space by 23%.


Construction & Development

Advance Realty finished the full remediation of Riverbend District, one of the largest brownfield, mixed-use transit oriented developments in New Jersey. The next step is construction of site utilities and roadways in time for the October 2009 opening of the 25k-seat Red Bull Arena. Overall, the project will feature more than 800k SF of retail space, 1.5M SF of office space, a 200-room and 350-room hotel, a 16-screen cinema and 1,800 for-sale and rental residential units. Construction is expected to begin in early 2010.


John Gallin & Son completed construction of the Action Center to End World Hunger, a multimedia center in Battery Park City developed by global relief and development agency Mercy Corps. The 4,000-SF center was designed for LEED Platinum certification, using deconstructed materials from demolished buildings in New Orleans. The project team also included ESI Design, Gary Shoemaker Architects and engineer IP Group.

Lease Transactions

Viacom International renewed and extended its lease covering 1.3M SF for its global HQ at 1515 Broadway. CB Richard Ellis’ Michael Langinestra, Scott Gottlieb and Andrew Sussman and the legal team of Shearman & Sterling’s Chris Smith and Laura Chirita represented the tenant. Building owner SL Green was represented in-house by Steven Durels, Neil Kessner and Kathy Crocco and attorneys Stuart Mass and Noah Shapiro of Paul, Hastings, Janofsky & Walker.


Lifetime Networks is relocating its New York exec offices to 111 Eighth Ave., inking a 12-year, 71k-SF lease on the 11th floor. CB Richard Ellis’ Scott Gottlieb, Michael Laginestra, Joan Meixner and Fred Fackelmayer represented the tenant, while CBRE’s Brian Gell represented building owner Taconic Investment Partners.


CB Richard Ellis’ Gary Trock and Edward Goldman arranged more than 80k SF of retail and garage leases at Manhattan House on 200 East 66th St. on behalf of O’Connor Capital Partners. Among the 30k SF in ground-floor retail transactions include Lululemon Athletica, ALDO Shoes, Staples Express and Madame Paulette. The firm also arranged a long-term 55K-SF parking garage lease with Icon Parking Systems.


Entertainment business management firm ML Management Associates leased the entire 9,200-SF, 26th-floor penthouse of 250 West 57th St. Cushman & Wakefield’s Mitchell Arkin and Ethan Silverstein represented the tenant, while C&W’s Barry Zeller represented building owner W&H Properties.


AT&T Mobility leased 3,000-SF on the ground floor of the Empire State Building, and will open the flagship store in early 2009. Winick Realty’s Steven Baker represented the tenant, while CBRE’s Eric Gelber, Andrew Goldberg and Matthew Chmielecki represented building owner W&H Properties.


Investment banking company vFinance inked a two-year, 10-month, 6,890-SF sublease at 330 Madison Ave. Winoker Realty’s Corey Abdo represented the tenant, a medical education company, while George Comfort & Sons’ Glenn Dawson and Mitch Kunikoff represented the sub-tenant.


10 West 33rd St. just garnered two deals: Timi & Leslie’s five-year, 3,078-SF lease and United Footwear Group’s five-year, 2,017-SF renewal. Adams & Co.’s David Levy represented the undisclosed landlord in both transactions and United Footwear Group. City Sites Commercial Group represented Timi & Leslie. Asking rents were $42 PSF.

Sales Transactions

Juster Development purchased the 211k-SF 100 and 120 White Plains Rd. in Tarrytown from SL Green for $48M. Cushman & Wakefield’s Andrew Merin, David Bernhaut, Gary Gabriel, Jose Cruz, Glenn Walsh and Tom O’Leary represented the seller and procured the buyer.


A locally based real estate family purchased the 49-unit The Canterbury apartment building at 204 W. 108th St. for $16.75M. Eastern Consolidated’s David Kalish represented the buyer, while Eastern’s Brian Ezratty, Deborah Gutoff and Ronda Rogovin represented seller IGPF Canterbury. The buyer and seller’s respective attorneys were Cutler Minikes and Adelman’s Richard Adelman and Goodwin Procter’s Ross Gillman.

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