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Three major trends as we start 2011

Foreign money is looking to buy Manhattan office and residential buildings by paying prices beyond those that make economic sense for domestic buyers.

Retail Landlords are actively seeking pop up stores to replace failed retailers. Landlords are still not willing to negotiate with struggling retailers.

The Manhattan Office market is a tale of two cities. Wall Street and Law firms have gone from net firing to net hiring. These two employer categories are economic engines for Manhattan and consumers of Class A office space. The other side is N.Y. State and N.Y. City governments that are shrinking and existing N.Y. firms are down- sizing on renewals. The net result is a continued slight tightening on the Manhattan office market over the next year.

New York City Market Overview:
Mayor Michael Bloomberg's budget director has ordered a 20 percent reduction in planned spending for the city's 10-year construction plan, due to the struggling economy. It's unclear which projects will be cut, but budget director Mark Page asked the city to identify work that can be postponed or canceled.

New York City has, one million square feet too much real estate. We have to look at where we own, where we lease, the air rights and development rights and look broadly to return as much as possible to the private sector. Possible places that can be downsized are the 50 data centers and 100 garages in the city.

Midtown South pushes Manhattan vacancy rate down. Overall vacancy rates in Manhattan declined in November to 12.3 percent, from 12.4 percent in October. The decrease was largely in part to a number of smaller transactions in the Midtown South market, which saw strength across most of its submarkets, with vacancy rates falling to 12.2 percent from 12.8 percent. The average asking rent in Manhattan saw a small boost last month, rising to $47.57 per square foot, from $47.23 in October.

Mortgage delinquencies across the country are expected to decline significantly in 2011 as the economy continues to stabilize. The national mortgage loan delinquencies, the number of borrowers 60 or more days past due, will drop close to 20 percent by the end of 2011 to 4.98 percent, from an expected 6.21 percent at the end of 2010. The projected decrease in 60-day mortgage delinquencies would more than double the 9.87 percent yearly decline that is expected between the end of 2009 and 2010, from 6.89 percent to 6.21 percent.

Office tenants in Midtown leased more space in November than in any month since the middle of 2006, as new office leasing rang in at double the monthly average. The month's robust leasing activity, the largest single-month total since June 2006, was achieved by deals of all sizes across the entire market. Tenants struck relocation or expansion deals for more than 2.4 million square feet in Midtown, compared with 1.2 million square feet the month before.

New Developments
Columbia University may be moving forward with plans for a $6.3 billion expansion after the U.S. Supreme Court rejected an appeal by local businesses whose properties may be subject to eminent domain. The justices refused to question findings by a state development agency and said that the area is blighted and that the expansion has a legitimate public purpose.

Several years back, retail giant Walmart tried to open stores in Queens and Staten Island, but backed off after fierce community opposition. Now the discount chain store is trying again to break into the New York City market, since it believes dynamics have changed, with the city becoming more receptive to similar stores like Target and Ikea. Walmart is looking at properties in each of the five boroughs, and hired Mayor Michael Bloomberg's former campaign manager to help organize its lobbying efforts. A site in East New York was under consideration, but opponents of the project fear that Walmart will be bad for smaller local businesses which cannot compete with the retailer's low prices.

The U.S. hotel industry posted improvements across the board last week, with all of the key metrics showing increases in year-over-year comparisons. Occupancy rose 4.7 percent to just under 50 percent, while average daily rates inched up by .5 percent to $96.87. Revenue per available room, or revpar, was up 5.3 percent, to $48.31. Investors are once again taking an interest in the U.S. hotel market after steady improvements in recent months.

JER Partners is to market the $75 million mortgage on Kent Swig's 80 Broad Street, putting the embattled developer at risk of losing the 36-story office building. Swig defaulted on the loan earlier this year, and could lose control of the Lower Manhattan property should a buyer pick up the note and decide to foreclose. This is not the first time that Swig's ownership of 80 Broad Street has fallen into jeopardy. This summer a mezzanine lender attempted to foreclose on the building.

The newly built Courtyard New York Manhattan/Soho opened at 181 Varick Street, between King and Charlton streets in the Hudson Square area. The 20-story Marriott hotel features a fitness center and a business lobby equipped with Wifi, Starbucks and Table 181, a wine bar. The 120-room hotel includes 36 double-bedded rooms and one king suite, with several rooms offering glass-walled views of the Hudson River or the Manhattan skyline.

The developer of the planned brick and aluminum twin condominium conversion in Tribeca is trying to flip the site before the shovels have even hit the ground. Alvaro Arranz, principal of a major Spanish construction firm, bought the warehouse at 401 Washington Street and its neighboring parking garage for $57 million in 2007. Now, after hiring architect Morris Adjmi to design a mirror-image aluminum version of the warehouse on the garage site, and obtaining all of the necessary approvals to carry out the conversion plans, Arranz is hoping a new investor will pony up $65 million to take over and finish the job.

At times, this city can seem like an ocean of distress. Half-built or unsold condos abound. Office buildings dot marginal neighborhoods offering low rents to stay full. Loans secured by real estate are in trouble. Yet, distressed commercial inventory can be elusive, kept off-limits by banks waiting for a full recovery and perhaps mindful that in the last downturn, in the early 1990s, they may have let go of valuable real estate too soon. Nonetheless, some are figuring out how to wrest control of these troubled properties.

Troubled lender iStar Financial has reached a deal with Los Angeles investment firm CIM Group to recapitalize the debt on Trump Soho, the condominium-hotel at 246 Spring Street. iStar has been substantially paid down and all project, indebtedness has been extended as a result of new debt financing.

Extell Development got two steps closer to getting the go-ahead from the city on its 3.1 million-square-foot Riverside Center project, with unanimous approval from two City Council committees. The 'yes' votes by both the Committee on Land Use and the Subcommittee on Zoning and Franchises are hopeful signs for the project as it heads to a final vote by the full City Council later this month.

Waterscape Resort, the owner of the new, 50-story Cassa Hotel and Residences at 66-70 West 45th Street in Midtown is suing its construction firm for $30 million, alleging that the firm never obtained insurance to cover defaults by its subcontractors. Pavarini claims, however, that it did get the insurance and paid hundreds of thousands of dollars in premiums. In June 2007, Waterscape hired Pavarini to build Cassa, which is developed by Assa Properties. Under the agreement, Pavarini was obligated to purchase Subguard insurance to protect against potential default by its subcontractors.

Home Depot is reaping the benefits of Americans' increasing willingness to invest in home improvement projects. The retailer, which reported stronger-than-expected sales last month, upped its predicted earnings for the second time in two months. The company now pegs its expected income for fiscal 2010 to be $1.97 per share, up from its previous estimate of $1.94 per share.

CCLC, a national child care provider, plans to build its first-ever child care center in New York City at 90 Park Avenue, between East 39th and 40th streets. CCLC @ 90 Park Child Care Center is to open in spring 2011, and can accommodate up to 68 children between six weeks to five years old. In addition to backup child care, approximately half of the spaces will be available for regular, full-time enrollment by local families. CCLC is also considering additional backup care center locations downtown and near Columbus Circle.

Pharmaceutical giant Pfizer has paid a $24.7 million penalty to the city for relocating some of its corporate offices to New Jersey and Pennsylvania after receiving tax abatements and other incentives intended to keep jobs in New York. The company originally struck a benefits deal with the city in 2003, when it employed 5,300 people here, and in 2005, asked for more incentives as it increased its New York headcount. But as of this summer, the staff at Pfizer's East 42nd Street global headquarters had fallen to 3,837, down from a peak of over 6,500.

A Greek Orthodox Church destroyed by debris from the Sept. 11, 2001 terrorist attacks is suing the Port Authority of New York and New Jersey over a failed deal to rebuild its home. In the claim, leaders of the Church allege that the agency engaged in arrogance, bad faith and fraudulent conduct when it withdrew in March from negotiations over a 2008 rebuilding agreement, citing excessive demands by the church.

Law firm Winston & Strawn has inked a deal to renew and expand its New York City offices at 200 Park Avenue. The 280,000-square-foot lease is likely the second-largest for a law firm this year, behind Proskauer Rose's 400,000-square-foot lease at 11 Times Square. Winston & Strawn, whose clients include Goldman Sachs, Bank of America and Ernst & Young, has been located in the building since the mid-1990s, and this deal represents one of several expansions for the firm since then.

Lender Deutsche Bank is not expected to accept the full payoff of the defaulted loan on 3 Columbus Circle. Developer Joseph Moinian bought 3 Columbus Circle, also known as 1775 Broadway, in 2004, refinanced it two years later with a $250 million loan, and then defaulted on the mortgage earlier this year. In September, Related Cos. bought the $250 million mortgage and moved to foreclose on the property, intending to destroy it and create a larger building.

Foreign exchange market brokerage FXDD has moved to a new office at 7 World Trade Center. The firm, which was previously located at 75 Park Place, signed a 13-year lease for the 40,000-square-foot office. FXDD has already moved into the new office to accommodate its growing roster of employees.

Facebook has inked a deal to lease two floors at Milstein Properties' 335 Madison Avenue, the former Biltmore Hotel, between 43rd and 44th streets, and could expand to as much as 150,000 square feet there. That's enough to house up to 600 employees, at a time when the social network is reportedly getting ready for an aggressive hiring push for new advertising sales representatives in the city. Currently, the company has 15 open positions in New York and a 5,700-square-foot office in Midtown that's already overcrowded.

In the largest lease deal of the year, Paris-based financial firm Societe Generale agreed to take up to 560,000 square feet at 245 Park Avenue, moving east from offices on Sixth Avenue in Rockefeller Center. And also last month, Natixis, a Paris- and Boston-based money manager, signed a 16-year deal for 182,200 square feet on the third, fourth and fifth floors at 1251 Sixth Avenue. The actual starting rent was $59 per foot, and included $60 per foot in landlord improvements and 12 months of free rent.

Gene Kaufman, the founder of Gene Kaufman architects, is currently working on several new projects, including a Hyatt hotel in Union Square, a Marriott Courtyard at 35th Street in the old Atlantic Bank Building, a Holiday Inn on Delancey Street and a Holiday Inn Express in the West 40s.

The last few months have brought several new stores to the trendy Soho neighborhood. The American Eagle Outfitters flagship store at 599 Broadway . The Kardashian sisters opened a new clothing boutique called Dash at 119 Spring Street. More than 20 stores have recently opened up in the area, from indie boutiques like Wendy Nichol at 147 Sullivan Street and Realm at 98 Greene Street, to global brands like Chanel, which renovated its location at 139 Spring Street, Moncler at 90 Prince Street and AllSaints Spitalfields at 512 Broadway.

Bloomberg LP is seeking an additional 300,000 square feet near its headquarters at 731 Lexington Avenue and East 59th Street, which would expand its current space by one third. The company already rents nearly 900,000 square feet at 731 Lexington Avenue, but there is no more room available at the 1.3 million-square-foot property, which is owned by Vornado Realty Trust. Over the last year, the company has added close to 500 lawyers. It was unclear where Bloomberg was looking but sources said there is a large block of space available at 601 Lexington Avenue, a Class A building owned by Boston Properties.

A renovation is underway at the Battery Park City Regal Cinema in the Embassy Suites Hotel, owned by Goldman Sachs. The box office and entrance to the theater are being moved to the second story, and the newly vacant space will be absorbed back into the hotel. Embassy Suites is also being redesigned. The hotel is slated to close in early January for a gut renovation that will transform it into a Conrad Hilton.

Industry expert battle proposed mortgage interest deduction changes Industry leaders are riled over a federal proposal to overhaul the mortgage interest tax deduction. The deduction, which allows homeowners to deduct interest on their mortgages of as much as $1 million, would be curtailed under the proposal. Among the changes would be a $500,000 mortgage cap and a 12 percent non-refundable tax credit made available to all. The panel, which has been tasked with reducing the national deficit by $4 trillion over the next decade, said that the tax deduction could be siphoning too much cash out of federal coffers.

City officials and developer Alexandria Real Estate Equities unveiled a new, 310,000-square-foot science park today at 450 East 29th Street, the first of the collaborators' three planned life science facilities for a vacant stretch of land along First Avenue. The Alexandria Center for Life Science, located on a three-acre, city-owned site, has benefited from millions in city, state and federal funding.

A new rezoning plan organized by the Department of City Planning and Manhattan Borough President Scott Stringer is taking shape in West Harlem, where an expansion in Manhattanville by Columbia University is underway.

The saga of the Second Avenue Subway continues, and this time it's not only struggling businesses worried about their livelihood or residents being temporarily displaced from their homes. The owner and residents of the Yorkshire Towers, a rental complex at 305 East 86th Street, filed suit yesterday to force transit officials to justify planned entrances for the Second Avenue Subway in front of their building. Yorkshire Towers Co. and the Yorkshire Towers Tenants Association say the proposal means nearly 9,000 commuters will flood the sidewalk during the morning peak hour for entry and exit at the building.

A team of investors led by Todd Lippiatt of Aristone Realty Capital has come to the rescue at 245 10th Avenue, the 11-story condominium near the High Line that had been facing a foreclosure action and several lawsuits. The investors have bought out the debt holders at the property, including Citigroup and Hudson Realty Capital, which had filed to foreclose on their $43.3 million mortgage last March. Now, with the foreclosure action withdrawn, and the lawsuits, filed by contractors over allegedly unpaid work, settled, the project is on schedule to debut in the spring.

A high-end residential development in Greenpoint that was funded in part by basketball great Magic Johnson and that failed as a condominium but survived as a rental was sold in bankruptcy for $58.2 million. Brooklyn investors Chaim Gross, Martin Friedman and Joseph Brunner signed a purchase agreement for the 130-unit property known as Viridian, at 110-130 Green Street between Franklin Street and Manhattan Avenue.

The city is seeking to lure a "top caliber academic institution" to open a new graduate engineering school campus with the promise of as much as $100 million in real estate and other public contributions. The city is concerned that it is falling behind its peers in attracting technology start-ups and may offer up properties like the former hospital sites at the Brooklyn Navy Yard and Roosevelt Island.

William Beaver House, the Andr?Balazs-designed Financial District condominium that was just bailed out by the Los Angeles-based CIM Group, is going partially rental under its new ownership. The 333-unit tower, which had been facing a foreclosure lawsuit prior to the takeover, was part of a three-piece deal in which CIM agreed to buy the debt on two troubled Sapir Organization buildings (Trump Soho and Beaver House) and take an equity stake in another (11 Madison Avenue). CIM purchased the loan on over 200 unsold condos at the Beaver House and subsequently took ownership through a deed-in-lieu of foreclosure.

A Joseph Moinian-Stephen Ross battle for tenants may be underway, with Moinian planning to build a new office tower just north of Related Companies' $15 billion West Side rail yards development, which is currently seeking office tenants. Although Moinian hasn't divulged too many secrets about his new development, set to break ground on 11th Avenue between 34th and 35th streets, he did say he plans to begin marketing the 1.6 million-square-foot tower. While the timing of Moinian's announcement may be brushed off as mere coincidence, the developer said he'd been planning the project for five years. The Related CEO has been angling to foreclose on Moinian's 3 Columbus Circle office building.

Negotiations have resumed between the U.S. Postal Service and the New York City Department of Education, in a deal that would turn the Peck Slip Post Office in Lower Manhattan into a 400-seat elementary school. The postal service first entered talks with city officials to sell the property this past summer, after putting the 70,800-square-foot building at 1 Peck Slip between Pearl and Water streets on the market in the spring. But negotiations deadlocked and the proposed sale, which officials say could help alleviate Lower Manhattan's overcrowded schools, appeared to be in jeopardy.

Brooklyn Borough President Marty Markowitz has officially thrown his support behind a proposed "Skyscraper Historic District" designation for Downtown Brooklyn, with a handful of modifications. Markowitz said he would omit the 75 Livingston Street co-op building from the district, as the co-op owners have requested, and also said he'd continue a planned retail conversion for a portion of the Borough Municipal Building, one of the protected structures in the landmark plan. Community Board 2 has already voted in support of the plan, which would protect several of the neighborhood's most notable buildings, including Borough Hall.

In keeping with Mayor Michael Bloomberg's recent initiative to bolster the research science industry in New York City, the mayor's office announced a new effort to bring an engineering campus to the city. The initiative is to bring a new, state-of-the-art applied sciences research school to the boroughs, something he believes would help develop a 21st-century innovation economy. The city is prepared to make a capital contribution of an undisclosed amount toward the development of this campus.

The Related Companies is plowing ahead with its preliminary construction work at the 26-acre West Side rail yards site, between 30th and 33rd streets, 10th Avenue and the Hudson River, which it ultimately plans to transform into a massive office, retail and residential destination. The developer is hiring a contractor to demolish the 60,000-square-foot former metal products distribution center that stands on the site of its first new rail yards building, an 800-foot tower with 1 million square feet of office space and 25 floors of apartments.

U.S. foreclosure activity dropped to its lowest level in nearly two years in November, as the country's biggest lenders put the breaks on their proceedings amid allegations that they'd been taking over properties without properly verifying the paperwork. The country's 262,399 foreclosure filings represent a 21 percent month-over-month and a 14 percent year-over-year decline, the largest in almost six years by both measures. In New York City, there were 863 foreclosure filings last month, down 41 percent from the 1,466 filings recorded in October and 56 percent from the 1,949 filings in November 2009.

The Port Authority of New York & New Jersey has hit the halfway point on the construction of 1 World Trade Center, the 3 million-square-foot skyscraper being erected on the former site of the Twin Towers. Currently rising 52 stories, the 1,776-foot, Skidmore, Owings and Merrill-designed tower will eventually be New York City's tallest.

Jay-Z has reached a settlement with his lenders over the site of a planned boutique hotel near the High Line and has deeded the property back to them for the value of the senior mortgage. The hip-hop mogul, whose given name is Shawn Carter, had partnered with real estate investors Charles Blaichman and Abram Shnay to purchase the site, a former Time Warner Cable warehouse at 511 West 21st Street, in 2007. The property was to become the first of many J Hotels, but the plan was foiled when the partners defaulted on their $52 million senior loan in August 2009, prompting a legal battle over their interest payments.

Tenants at Stuyvesant Town and Peter Cooper Village allowed a year-long freeze on their landmark class-action lawsuit regarding rent overcharges to expire, but warned that a settlement was not likely before the end of the year, which could lead to a resumption of the case.

A joint venture between Fisher Brothers, BlackRock and a California pension fund won the 95-unit Upper West Side apartment building Park Columbus with a bid of $48 million in a bankruptcy auction. In March, embattled developer Yair Levy lost the building located at 101 West 87th Street that he had tried to convert to condominiums, in foreclosure to Garrison Residential Funding. The mortgage and other debts totaling $52.6 million will be wiped out once the closing occurs.

HSBC is restarting foreclosures in New York State after a nearly two-month reprieve. The bank, along with peers like Bank of America, JPMorgan Chase and Wells Fargo, had halted foreclosure proceedings, revealing widespread errors in foreclosure documentation. HSBC is the first major bank it owns, around one-tenth of New York mortgages to restart proceedings since then (BofA has announced that it will resume foreclosures for vacant non-owner-occupied properties next month).

A new $342 million package of grants approved by the New York State Homes and Community Renewal will help build three Brooklyn developments and will preserve 541 units of affordable housing, while creating jobs and stimulating the local economy. The three Brooklyn projects: 25 Washington Street in Dumbo and Downtown Brooklyn's 388 Bridge Street Apartments and 29 Flatbush Avenue will each receive a portion of the funds and will have units set aside for low-income tenants.

Details of the New York Aquarium's planned $150 million renovation have emerged, with the project set to be completed in 2015. The aquarium, which attracts roughly 750,000 visitors a year at its Coney Island spot on the corner of Surf Avenue and West 8th Street, will receive a new, glimmering facade in the development, as well as a new 50,000-square-foot shark attraction.

A year after Thomas and Frederick Elghanayan formed TF Cornerstone, breaking off from their brother Henry and the Rockrose Development Corporation, Frederick, 62, opened up about the young company's success so far. People said it was impossible to get construction financing, but we've had a lot of interest in banks giving us construction money. TF Cornerstone broke ground three months ago on a 41-story, 380-unit apartment building in Long Island City with the foundation slated for completion in the next two weeks. The company also gave foundation orders last week for another New York City building.

SouFun Holdings, , plans to spend $46 million to acquire the former training center of American International Group in Manhattan, with the purchase expected to be close in the first half of 2011. The training center includes a 250,000-square-foot building at 72 Wall Street. SouFun, said it will partner with selected universities and colleges in the U.S. to train its expanding management, staff and clients in the former AIG center.

Extell Development plans to start with its 34-story International Gem Tower building in March with or without a construction loan. The developer's equity partners in the project have agreed to invest the funds needed that many lenders have shied away from in recent years. The Diamond District commercial condominium currently has 150,000 square feet worth of commitments from buyers, which works out to around 20 percent of the building.

Pace University has signed an agreement with SL Green Realty for a 24-floor residence hall to be constructed at 180 Broadway.

Discount department store Daffy's has signed a lease for 28,000 square feet in the former New York Times building in Times Square, in a coup for Africa Israel USA, which had been struggling to find tenants there since it purchased the property at the height of the market. Last year, the company changed course at the 750,000-square-foot building, at 229 West 43rd Street, moving to convert it into retail space, a hotel and condominiums.

Silverstein Properties has delayed its scheduled sale of $1.3 billion in tax-exempt Liberty Bonds to finance the first of the developer's three office towers at the World Trade Center until the bond market stabilizes. The municipal bond market has been erratic in recent weeks as borrowers have rushed to take advantage of the federal Build America Bonds subsidy program, which may expire soon without an extension from Congress. With an expected completion date of 2013, the 4 World Trade Center project has already risen through the 10th floor but needs the bonds to fund the rest.

Ailing Anglo Irish Bank underwrote hundreds of millions of dollars in real estate debt in New York during the boom and is now unloading a $51.5 million mortgage secured by a package of apartment buildings in Upper Manhattan, owned by Vantage Properties. Anglo Irish, based in Dublin, is in financial distress after billions of dollars in global real estate loans went bad. Ireland's central bank, which provided financing for projects such as the Apthorp and 225 Rector Street, is winding down operations. Demand for note sales is higher than for actual properties.

New York City Buildings sold
Google paid $1.77 billion in cash for its new office at 111 Eighth Avenue. Google will occupy 550,000 square feet in the 2.9 million-square-foot Chelsea building, located between 15th and 16th streets. Google's ability to pay cash helped it succeed in the purchase.

MCR Development has acquired a portfolio of 10 Marriott and Hilton hotels for $164 million, marking one of the largest hotel deals in the country so far this year. The collection of mostly extended-stay hotels, include 1,100 rooms across New York, New Jersey, Connecticut and Pennsylvania. The seller, developer Briad Group, held onto the portfolio longer than it intended. Briad, who built the hotels between 2007 and 2010, chose to ride out the recession before unloading the properties.

Brooke Astor's 14-room duplex at 778 Park Avenue, once listed for $46 million, is now in contract. The apartment, which takes up the 15th and 16th floors of the Rosario Candela-designed building, has been on the market since Astor died in 2007, most recently, for $24.9 million.

Los Angeles-based investment firm CIM Group has picked up an equity stake in yet another Sapir Organization-developed property, 11 Madison Avenue. The news comes on the heels of CIM's deal to purchase a stake in both the Trump Soho and William Beaver House. CIM is buying the property, which overlooks Madison Square Park and serves as the headquarters for Credit Suisse, for an undisclosed amount.

Aby Rosen's RFR Realty sold a two-story corner retail property at 451 Lexington Avenue at 45th Street in Midtown for $28.7 million. A Connecticut-based buyer identified as 451 Lexington Realty went into contract on the purchase. RFR Realty bought the 13,585-square-foot property in 1992 for an undisclosed sum. A one-story portion of the property is leased to fast food-restaurant Sbarro while a two-story portion is leased to McDonalds. There are three other tenants as well.

SL Green Realty has agreed to buy close to $391 million worth of office and retail investments from Gramercy Capital. As part of the deal, SL Green will own the land and lease fee for three properties, the Lipstick Building at 885 Third Avenue, 2 Herald Square and 292 Madison, but will also assume about $266 million in debt. SL Green will pay $39 million to buy Gramercy's 45 percent joint venture interest in the Lipstick Building, $26 million for their interest in 2 Herald Square and $19 million for 292 Madison's land and lease fee.

Developer Craig Nassi sold the former Midtown offices of the Jewish Daily Forward to a Los Angeles-based entity called NYC Hotel 33 LLC for $20 million in a quick flip after buying the property the same day from the long-time owners. Nassi's BCN Development had planned to build a 108-unit condominium at the six-story site at 45 East 33rd Street known as the Workmen's Circle building.

The West Village's Bleecker Street is now home to the third-most expensive storefronts in the city. Three properties were sold this week for $34 million, or $6,700 a square foot. Private real estate investment firm Beck Street Capital sold 367-369, 382-384 and 387 Bleecker Street, with tenants such Michael Kors and Burberry signing long-term leases. Since 2003, Fifth and Madison avenues have been the only retail areas to fetch higher prices than the West Village.

One of North Williamsburg's few remaining vacant lots along Kent Avenue has been purchased for $5 million by an entity called Waterview Lofts LLC. The previous owner of the 40 North 4th Street site, Matarese/Mandella LLC had filed a permit to construct a new seven-story building there in 2008, but has apparently run into financial trouble since. In May, the owner was hit with a lis pendens which marks the beginning of the foreclosure process. The area is ripe for new development, with nearby 175 Kent Avenue and 224 Wythe Avenue both taking shape in recent months.

NYC Buildings For Sale
Schrager took a pass on the Hotel Chelsea after touring the for-sale landmark. The 127-year-old property at 222 West 23rd Street, famous for having housed literati like playwright Arthur Miller and rock and roll stars like singer Patti Smith, went up for sale in October for the first time in over 65 years and is to be asking around $90 million.

Zamir Equities is selling off its leasehold on the 43,000-square-foot Fifth Avenue building that houses retailer Quicksilver on the ground floor. The 10-story property, which sits between 48th and 49th streets and has an address of 587 Fifth Avenue, is 95 percent leased, including the few floors taken up by Zamir's jewelry business. Zamir's leasehold extends until 2079 and Jane Goldman owns the land beneath the building.

The Philip Coltoff Center properties on Sullivan Street will be going on the market, as decided by a unanimous vote last night by the Board of Trustees of the Children's Aid Society. The sale of the Greenwich Village properties has been opposed by local residents, including Brooke Shields, as well as parents, one of whom has filed a lawsuit to stop the school from closing. Though there is no official listing yet, an earlier estimate valued the properties, one at 219 Sullivan Street and another at 177 Sullivan, to be worth between $20 and $30 million.

New York Office Leases:
Total Manhattan Office Class A vacancies decreased from 22.75 million RSF to 22.11 million RSF.
Total Manhattan Office Market vacancies decreased from 35.80 million RSF to 34.87 million RSF.
Total Midtown Office vacancy decreased from 21.32 million RSF to 20.80 million RSF.
Total Midtown South Office vacancy decreased from 6.40 million RSF to 6.12 million RSF.
Total Downtown Office vacancy decreased from 8.08 million RSF to 7.96 million RSF.
Total vacant Office Direct Space For Rent in Midtown Manhattan decreased from 19.06 million RSF to 18.73 million RSF.
Total vacant Office Sublease Space For Lease in Midtown Manhattan decreased from 2.26 million RSF to 2.06 million RSF.
Total vacant Office Direct Space in Midtown South Manhattan decreased from 5.78 million RSF to 5.56 million RSF.
Midtown South Manhattan Sublease vacancies decreased from 0.62 million RSF to 0.56 million RSF.
Total Downtown Manhattan Office Direct Lease Space decreased from 6.81 million RSF to 6.80 million RSF.
Total Downtown Manhattan Office Sublease Vacancies decreased from 1.27 million RSF to 1.16 million RSF.

NYC Retail Leases:
Total Available Manhattan Retail Space decreased from 0.86 million RSF to 0.82 million RSF./li>
Midtown Manhattan Retail vacancy increased from 0.24 million RSF to 0.25 million RSF./li>
Midtown South Retail space vacancies decreased from 0.50 million RSF to 0.46 million RSF./li>
In Downtown Manhattan, Retail vacancy decreased from 0.13 million RSF to 0.11 million RSF./li>

New York Industrial Leases:
Total Manhattan Industrial Vacant Space increased from 0.17 million RSF to 0.18 million RSF.
Midtown vacancy stayed at 0.07 million RSF.
Midtown South Industrial space vacancies increased from 0.09 million RSF to 0.11 million RSF.

Manhattan Office Rentals:
Meredith Corporation leases 212,594 sf at 805 Third Avenue.
Sesame Workshop leases 140,000 sf at 1900 Broadway.
Dorsey & Whitney leases 70,476 sf at 51 West 52nd Street.
Topps Company leases 66,684 sf at One Whitehall Street.
Cooper Square Realty leases 66,000 sf at 622 Third Avenue.
New York City Police Pension Fund leases 56,196 sf at 233 Broadway.
Schiff Hardin leases 48,164 sf at 666 Fifth Avenue.
Anthony Lawrence-Belfair Inc. leases 44,419 sf at 30 West 24th Street, 53 West 23rd Street and 49 West 23rd Street.
Altegrity Inc. leases 42,764 sf at 600 Third Avenue.
International AIDS Vaccine Initiative leases 37,000 sf at 125 Broad Street.
DeWitt Stern Group leases 36,783 sf at 420 Lexington Avenue.
Taylor & Francis Group lease 32,800 sf at 711 Third Avenue. leases
Morgan Keegan leases 28,750 sf at 535 Madison Avenue.
NBC Universal leases 28,541 sf at 135 West 50th Street.
Academy for Educational Development Inc. leases 28,000 sf at 71 Fifth Avenue.
Whitney Museum of American Art leases 27,000 sf at 300 Park Ave South.
News America Inc. leases 26,792 sf at 1185 Sixth Avenue.
AMSCO School Publications Inc. leases 26,342 sf at 315 Hudson Street.
Forefront Advisory Services LLC leases 25,030 sf at 590 Madison Avenue.
Update Inc. leases 25,000 sf at 1040 Sixth Avenue.
Buddy Media leases 23,896 sf at 21 Penn Plaza.
NewBay Media LLC leases 22,160 sf at 63 Madison Avenue.
Tremor Media Inc. leases 22,000 sf at 30 West 24th Street and 53 West 23rd Street.
HQ Global Workplaces leases 21,382 sf at 600 Third Avenue.
Wolf Popper LLP leases 21,180 sf at 845 Third Avenue.
The Shubert Organization leases 20,738 sf at 520 Eighth Avenue.
Greenwich House leases 20,000 sf at 122 West 27th Street.
The Clark Estates Inc. leases 18,900 sf at One Rockefeller Plaza.
Faunus Group International leases 18,000 sf at 80 Broad Street.
Forrest Solutions leases 17,684 sf at 19 West 44th Street.
Hertz Herson & Company LLP leases 17,548 sf at 477 Madison Avenue.
Gerson & Gerson leases 17,000 sf at 100 West 33rd Street.
Artscroll Printing Corp. leases 16,500 sf at 53 East 23rd Street.
Grohe America leases 15,219 sf at 160 Fifth Avenue.
North American Precis Syndicate leases 14,315 sf at 415 Madison Avenue.
Palantir Technologies leases 13,335 sf at 15 Little West 12th Street.
Hunter Global Investors leases 13,330 sf at 485 Madison Avenue.
Glass Lewis & Co LLC leases 13,162 sf at 48 Wall Street.
BuyWithMe Inc. leases 12,801 sf at 345 Hudson Street.
Urban Homesteading Assistance Board leases 12,644 sf at 120 Wall Street.
Canaccord Genuity leases 11,889 sf at 535 Madison Avenue.
Opera Solutions Inc. leases 11,161 sf at 180 Maiden Lane.
Kahn Lucas Lancaster leases 10,902 sf at 112 West 34th Street.
Cortview Capital Securities leases 10,793 sf at 650 Fifth Avenue.
T.Y. Lin International leases 10,400 sf at 110 William Street.
Perceptive Pixel Inc. leases 10,000 sf at 102 Madison Avenue.
BPCM leases 10,000 sf at 531 West 25th Street.
Thales Transport Security leases 10,000 sf at 317 Madison Avenue.
New York Retail Leases:
Aritzia leases 15,000 sf at 524 Broadway.
District 36 leases 14,800 sf at 29 West 36th Street.
All Saints Spitalfields leases 12,000 sf at 411-417 West 13th Street.
Nordstrom leases 11,137 sf at 350 West Broadway.
Fidelity Brokerage Services LLC leases 8,989 sf at 188 East 78th Street.
Duane Reade leases 7,300 sf at 3387 Broadway.
Tincati leases 6,000 sf at 20 East 63rd Street.
Sisu Fitness leases 4,103 sf at 600 Washington Street.
Chop't leases 3,750 sf at 520 West 43rd Street.
Consulate General of Honduras leases 3,500 sf at 255 West 36th Street.
Allison's on Fifth Inc. leases 3,000 sf at 1405 Fifth Avenue.
Dash leases 3,000 sf at 119 Spring Street.
Just Salad leases 3,000 sf at 706 Sixth Avenue.
Tribeca Food Group leases 2,760 sf at 120 Greenwich Street.
Scribble Press leases 2,600 sf at 215 West 84th Street.
CPW Tae Kwon Do leases 2,529 sf at 50 West 72nd Street.
Scottrade leases 2,200 sf at 1392 Third Avenue.
Canvas leases 1,800 sf at 199 Lafayette Street.
L2 Computer Inc. leases 1,800 sf at 726 10th Avenue.
Bric's leases 1,610 sf at 535 Madison Avenue.
Brickyard GastroPub leases 1,600 sf at 785 Ninth Avenue.
Zadig et Voltaire leases 1,550 sf at 409 Bleecker Street.
Eton leases 1,500 sf at 625 Madison Avenue.
Go Burger leases 1,450 sf at 1450 Second Avenue.
JOIE leases 1,346 sf at 1200 Madison Avenue.
Lovella Salon leases 1,300 sf at 111-117 West 72nd Street.
Eastern Image Day Spa leases 1,200 sf at 1169 Second Avenue.
Molloy's leases 1,200 sf at 737 Ninth Avenue.
Pet Ark leases 1,150 sf at 595 10th Avenue.
W W Spa leases 1,135 sf at 244 East 23rd Street.
Bauman Rare Books leases 1,133 sf at 535 Madison Avenue.
GNC leases 1,050 sf at 1755 Broadway.
Mailboxes Etc. leases 1,000 sf at 1461 First Avenue.
Turkish restaurant leases 1,000 sf at 399 West 44th Street.
New York City Buildings Sold:
1540 Broadway a 907427 sf office building was sold to HSBC Alternative Investments; Edge Fund Advisers for $254 million.
700 Eighth Avenue a 27-story hotel 1301 rooms total was sold to Rockpoint Group; Highgate Holdings for $200 million.
19 West 44th Street an 18-story office building was sold to Deka Immobilien Investment for $123.15 million.
152 West 26th Street a 22-story 280-room hotel was sold to RLJ Development for $119.9 million.
933 to 943 Madison Avenue and 33 East 74th Street Five 5-story commercial buildings was sold to JZS Madison LLC for $95 million.
227 East 19th Street 4 commercial buildings 435108 sf total was sold to Memorial Sloan-Kettering for $83.1 million.
5 Hanover Square a 24-story 325000 sf office building was sold to Savanna for $64.98 million.
510 Fifth Avenue a 61159 sf retail space was sold to Vornado for $58 million.
841 Madison Avenue a 4-story 18000 sf retail condo was sold to Ashkenazy Acquisition for $51.4 million.
509 Fifth Avenue a 12-story 48667 sf office building was sold to Murray Hill Properties for $32 million.
859-865 Lexington Avenue and 132 East 65th Street a Development site was sold to Toll Brothers for $26.4 million.
147-149 West 46th Street a 4-story office building was sold to Sbp 46 Street LLC for $18 million.
449 Broadway a 5-story 25000 sf office building was sold to United American Land for $15 million.
237-239 East 53rd Street 2 mixed-use buildings was sold to ATA Enterprises for $12.7 million.
55 Mercer Street a 5-story 16600 sf mixed-use building was sold to KLM Construction affiliate for $10 million.
125 Maiden Lane a 26000 sf office condo was sold to International Planned Parenthood Federation-Western Hemisphere for $9 million.
35-39 Cooper Square a 28998 buildable sf development site was sold for $8.5 million.
256 Fifth Avenue a 6-story 12960 sf office building was sold for $6.5 million.
18 East 23rd Street a 5-story 9400 sf mixed-use building was sold for $5.7 million.
70 West 36th Street an 11,294 sf office condo was sold to KGK Group for $5.1 million.
70 West 36th St an 11,294 sf office condo was sold to a Software development company for $5.08 million.
411-417 West 13th Street a 12000 retail space was sold to Thor Equities.

legend
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