LEASE BEAT POWER BROKER DATA GALORE!

40 West 53rd Street gg Swig’s Todd Korren Top Financing,

512 Broadway On Downtown gg Refi Deals of 4Q

January 19, 2010 THE WEEKLY NEWSPAPER OF NEW YORK’S COMMERCIAL REAL ESTATE INDUSTRY $5.00

 
 




Finally.
Mary Ann Tighe Becomes
First Woman to Chair REBNY—
Now, to Business!
BY JOTHAM SEDERSTROM

PLUS
More on the 2010
REBNY Honorees

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IN THIS WEEK’S ISSUE Vol. 2, No. 3

 



10 Prospective Tenants
By Dana Rubinstein 24 The Op-Ed: REBNY
L.A. law firm Winston &
Strawn hires Studley for
massive office hunt.
12 Commercial Breaks
By Dana Rubinstein
2009’s biggest uptown
commercial deal is a port- 26 Concrete Thoughts
folio sale. Déjà vu?
14 Lease Beat
By Emily Geminder
77 Water Street 28 The Sit-Down
111 Eighth Avenue
512 Broadway
And dozens more of New
York’s latest commercial
leases.
22 The Lead Indicator 30 The Power Broker:
By Sam Chandan
Banks in New York and
London brace for govern-
ment gobbling.
2 January 19, 2010


32 Building Stories:
Award Winners
Sandy Lindenbaum,
Robert Knakal, Ralph J.
DiRuggiero and David
Greenbaum among this 34 Top 4Q Financing
year’s honorees.
By Robert Knakal
A thank-you note for an
honoree’s career.
42 CMBS Corner
By Jotham Sederstrom
REBNY’s new chair, Mary
Ann Tighe, on her pri-
orities for the board this
year.
46 Calendar
Todd Korren
By Jotham Sederstrom
The Swiq Equities leasing
ace and REBNY honoree
talks downtown potential.
77 Water Street
By Emily Geminder
How Goldman Sachs made
a tower disappear.
Compiled by Roland
Li with data from
PropertyShark.com
The top 15 financings and
refinancings in the last
three months of 2009.
Designed by Nigel Holmes
with data from TREPP,
LLC
The top loans by submar-
ket maturing in 2010.
By Jotham Sederstrom
The week ahead in events.
30
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JAMES D. KUHN BRIAN S. WATERMAN HAL STEIN

TRIBECA
LARRY A. SWIGER
jkuhn@newmarkkf.com bwaterman@newmarkkf.com hstein@newmarkkf.com Senior Vice President
212-372-2200 212-372-2299 212-233-8185 larry.swiger@slgreen.com

L ANCE KORMAN JONATHAN T. FANUZZI 212-216-1628 slgreen.com

lkorman@newmarkkf.com jfanuzzi@newmarkkf.com
212-372-2160 212-372-2084

the commercial observer | observer.com January 19, 2010 3

THE WEEK IN REAL ESTATE January 12-19

BY ROLAND LI
A Burst of Sunshine!
Broker Suzanne Sunshine has been award-
ed 95,000 square feet in new nonprofit assign-
ments. She is representing Year Up New York
City, which is looking to move from 55 Ex-
change Place to 20,000 square feet in down-
town. She is also representing the Atlantic
Philanthropies, which is looking to sublease
25,000 square feet in 125 Park Avenue, and
Council for Senior Centers and Services of
New York, looking to relocate from 49 West
45th Street to 4,000 square feet around Penn
Station. Ms. Sunshine is also representing a so-
Cushman & Wakefield’s
cial service nonprofit looking to lease 20,000
square feet downtown and a museum looking
to buy 25,000 square feet in the Plaza district.
Families Settle
Up at 515 Madison
Two families represented by brokerage
Studley have sold a majority interest in 515
Madison Avenue. The Malloy and Sheffer fam-
ilies sold the interest of their fee and senior
leasehold positions to a joint venture led by
the Gural and Hemmerdinger families, which
controlled the existing subordinate leaseholds.
The transaction values the 340,000-square-
foot building at $150 million, or approximately
$440 per square foot, and was financed with a
loan from Wells Fargo.
U.S. Vacancy
Rates Rise in 4Q
The rises in nationwide vacancy rates
slowed in the office, industrial and retail mar-
kets during the fourth quarter of 2009, accord-
ing to CB Richard Ellis. Office vacancy rates in-
creased nationwide by 20 basis points to 16.3
percent on average. Industrial availability rate
increased 40 basis points to 13.9 percent. Re-
tail availability increased 20 basis points to
12.5 percent. The rise in vacancy rates for mul-
tifamily properties remained steady.

Harbert: The End of the

Anne Frank Center Looking
Slump Is Nigh
Real estate firm Grubb & Ellis is representing
First things first: Check out our awesome new offices! the Anne Frank Center USA, a nonprofit that is
So began real estate brokerage Cushman & Wakefield’s seeking to relocate from 38 Crosby Street. The
fourth-quarter breakfast on Tuesday, Jan. 12, which, in center is seeking to lease approximately 3,000
a marked break from tradition, took place in Cushman’s square feet for an exhibit and office space on a
spiffy new offices on the seventh floor of Vornado’s 1290 ground floor, second floor or combination of the
Avenue of the Americas, rather than at Michael’s midtown two. Grubb & Ellis’ Robert Shapiro, executive
eatery, where it has been for time immemorial. (Whether managing director, and Gerald Gibian, manag-
this was an austerity measure or a sincere attempt to show ing director, are representing the center.
rumored to be around $10 million. The space
off the firm’s new offices is anybody’s guess.)
was formerly occupied by the MTV Store and
In another marked break from tradition, instead of
milky scrambled eggs and a sparse picking of fruit à la Big Aéropostale is at the bottom of a 54-floor building between
44th and 45th streets. MTV’s parent, Viacom,
Michael’s, the breakfast featured little triangular-shaped
stacks of French toast, granola and yogurt, and a huge bowl overflowing with ripe berries,
Lease in 1515 Broadway has its headquarters inside the building, and
landlord SL Green announced a successful
served by handsome waiters from Thomas Preti Caterers.
Clothing retailer Aéropostale is expected to $475 million refinancing of the building earlier
All of which served as an enticing distraction from the meat of the presentation: New
lease a 17,000-square-foot storefront at 1515 this month. Newmark Knight Frank’s Jeffrey
York’s commercial real estate market.
Broadway. The rent was not disclosed, but is Roseman represented SL Green.
“This time, New York seems to be leading the way out of the recession,” said New York
region COO Joseph Harbert (pictured), contrasting this meltdown to former recessions,
in which New York’s recovery trailed that of the nation as a whole.
Mr. Harbert backed up his claim with the fact that New York has lost far, far fewer jobs
than originally predicted—about 147,000, rather than, say, 300,000—something he at-
tributed in part to federal assistance in the form of TARP funds. That, in turn, means that
New York has lost fewer office-using jobs than expected—6.7 percent from the peak, as
compared to 7 percent nationwide. Jared Kushner, Publisher
All that said, new leasing activity—a number that excludes plain old renewals—was far
Robyn Weiss, Associate Publisher
from impressive. In 2009, Manhattan saw 16.3 million square feet of new leases. Compare
that to 2008 (19.1 million square feet), 2007 (23.6 million square feet) and 2006 (27.1 mil-
lion). Even worse, compare that to the last recession, in 2001, a year that saw 18.9 million Kyle Pope, Editorial Director
square feet in new leases. Tom Acitelli, Editor
More bad indicators?
“This is the most negative slide you will see,” said Mr. Harbert, referring to a bar graph Eliot Brown, Dana Rubinstein, Staff Writers
titled “Comparative Direct Net Absorption.” He pointed to a long, green bar dipping inches
Robert Knakal, Sam Chandan, Columnists
below the X axis. Its meaning? In 2009, negative absorption totaled 11.6 million square feet,
which brought the Manhattan vacancy rate to 11.1 percent. That negative absorption, said Jotham Sederstrom, Emily Geminder, Contributing Writers
Mr. Harbert, equaled the negative absorption of the past 13 years combined. Even worse,
one downtown broker predicted the vacancy rate there would soar to 15.75 percent. Nancy Butkus, Art Director
And investment sales? Don’t ask. Last year, the trading of buildings was, essentially, Tyler Rush, Production Manager
“nonexistent,” said Mr. Harbert. Though investment sales broker Jon Caplan reassured Chris Cronis, Copy Editor
the room that “[t]here is a wave of capital coming to the U.S. from all over the world,” and Peter Lettre, Photo Editor
that “New York is the No. 1 target market.”
Barbara Sullivan, Design Associate
Now for the good news. When you include renewal activity, with tenants extend-
ing their current leases rather than relocating, 2009 saw 35 deals of more than 100,000 Lisa Medchill, Advertising Production
square feet in size. In 2008, there were only 32; in 2007, only 30.
Mr. Harbert also showed a slide depicting midtown leasing activity by quarter over Christopher Barnes, President, Observer Media Group
recent years, and said the bars depicted something of an “inverted salad bowl.” Not a V, Barry Lewis, Exec. Vice President, Observer Media Group
which would be ideal. But way better than, say, a flat line, or a downward sloping line with Brian Cohen, General Counsel
no end in sight.
Steve Goldberg, Senior Vice President Sales
Also on the upside! Retail is doing comparatively well, what with recent big transac-
tions in Times Square (Disney) and Sixth Avenue (Trader Joe’s). According to retail bro- Ken Newman, Director of Classified Advertising
ker Brad Mendelson, that’s because New York, for all its peccadilloes, remains the United
States’ tourist mecca. The Commercial Observer is published 49 times per year by Observer Media Group, 915 Broadway, New York, NY 10010. All Rights Re-
—Dana Rubinstein served. Material from this publication may not be reproduced without written permission from the publisher. For advertising infor-
mation, call 212-407-9382. One-year subscription, $245, two-year subscription, $345. For subscriptions, call 212-407-9331.

4 January 19, 2010 observer.com | the commercial observer

 Thank You Brokers
www.malkinproperties.com We congratulate the following brokerage firms for leasing www.whpropertiesny.com
1,271,850 square feet within our portfolio and earning over
$12.3 million in commissions on signing during 2009.

William G. Cohen William G. Cohen Brandl Frey

212-372-2233 212-372-2233 212-372-2446
wcohen@newmarkkf.com wcohen@newmarkkf.com bfrey@newmarkkf.com

FIRST STAMFORD PLACE EMPIRE STATE BUILDING ONE GRAND CENTRAL PLACE 1333 BROADWAY
At the Stamford Transportation Center 350 Fifth Avenue 60 East 42nd Street At 35th Street

Cushman & Wakefield, Inc.

Gretsch Commercial Real Estate
METRO CENTER
At the Stamford Transportation Center
CM Realty, Inc.
Plaza Realty & Management Corp.
MERRITTVIEW
Exit 40A off the Merritt Pkwy.,
or Super 7 Expressway, Exit 2
CB Richard Ellis, Inc.
TEN BANK STREET
At the White Plains
Transportation Center
CB Richard Ellis, Inc.
Howard Properties, Ltd.
Rakow Commercial Realty Group, Inc.
Albert J. Duryea, Inc. Bergson Strategies, LLC Colliers ABR, Inc.
Capstone Realty Advisors, Inc. Capstone Realty Advisors, Inc. Cushman & Wakefield, Inc.
Colliers ABR, Inc. CB Richard Ellis, Inc.
Cushman & Wakefield, Inc. CitySites Commercial Group, Inc.
Dakota Realty Group Colliers ABR, Inc.
EFA Realty, Inc. CresaPartners Michael Frantz
212-372-2203
Grubb & Ellis Company Cushman & Wakefield, Inc. mfrantz@newmarkkf.com
The Hunter Realty Organization, LLC E&B Real Estate
The Lansco Corporation George Comfort & Sons, Inc.
Newmark Knight Frank Grubb & Ellis Company
New York Realty Inc. Herbert Sanders, Inc. 1400 BROADWAY
Winick Realty Group LLC At 38th Street
Howard Properties, Ltd.
Jones Lang LaSalle
Cushman & Wakefield, Inc.
The Juster Group
JTRE
Jonathan T. Fanuzzi Manhattan Commercial
212-372-2084 Realty Corp.
jfanuzzi@newmarkkf.com Miyad Realty, LLC
Newmark Knight Frank Audrey Coe
Paragon Group, LLC 212-695-3617
audrey.coe@cushwake.com
Redac, Inc.
1350 BROADWAY
At 35th Street
Richard D. Duryea, Inc.
Signature Partners, LLC
CB Richard Ellis, Inc. Studley Inc. 112 WEST 34TH STREET
Cushman & Wakefield, Inc. Thomas P. Reilly & Co. Between Broadway and Seventh Ave.
Denham Wolf Real Estate Services UGL Equis
FirstService Williams Venture Capital Partners, Inc. Cushman & Wakefield, Inc.
Metropolitan Property Group
George Comfort & Sons, Inc. Winslow & Company LLC
Grubb & Ellis Company Studley Inc.
Intrepid Real Estate Group
Jones Lang LaSalle
George Fabian
Newmark Knight Frank Smith Mack
212-246-2247
Winick Realty Group LLC georgef@250west57th.com
Jonathan Fales
212-984-8009
jonathan.fales@cbre.com

500 MAMARONECK AVENUE Brandl Frey 250 WEST 57TH STREET

I-95, Exit 18B West or Hutchinson River 212-372-2446 Between Broadway and Eighth Ave.
Pkwy., Exit 23 South bfrey@newmarkkf.com
501 SEVENTH AVENUE
Howard Properties, Ltd. Adams & Company, LLC At 37th Street
Newmark Knight Frank CB Richard Ellis, Inc.
The Lansco Corporation The Hunter Realty
1359 BROADWAY Organization, LLC
For more information regarding At 36th Street
Sierra Realty Corporation
Malkin Properties please contact: Studley Inc. Newmark Knight Frank
Jeffrey H. Newman Cushman & Wakefield, Inc. Williamson, Picket, Gross, Inc. Wharton Property Advisors, Inc.
jnewman@malkinproperties.com
Kimberly Zaccagnino
kzaccagnino@malkinproperties.com
Jovani Rampersad
jrampersad@malkinproperties.com
T (203) 353-5200
C
(914) 328-4800 100% COMMISSION PAID ON LEASE SIGNING

the commercial observer | observer.com January 19, 2010 5


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Financial chaos.
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Tough market conditions.
In the face of these challenges our New York
team completed 8.5 million square feet of
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6 January 19, 2010
THE WEEK IN REAL ESTATE
Markus Leaves
Thankless Role
Marvin Markus resigned late last year as
the chair of the Rent Guidelines Board, which
sets rents for the city’s one million rent-regu-
lated units. As chair, Mr. Markus, a managing
director at Goldman Sachs, was yelled at dur-
ing public meetings and received the nick-
name of “Marvin Markup” from critics who
characterized him as pro-landlord. He served
for eight years under Mayor Bloomberg and
five years under Mayor Ed Koch.
FirstService Williams
Rebranding as Colliers
FirstService Williams will become part
of Colliers International, the world’s third-
largest commercial real estate firm. First-
Service Williams will adopt Colliers’ name
and branding and become the company’s
tristate hub. Mark Jaccom, CEO of First-
Service, will continue as CEO for the New
York–Tri-State region, which consists of
300 employees in New York, New Jersey and
Connecticut. Colliers has more than 15,000
employees in 480 offices in 61 countries.
Stuy Town Lenders
Breaking Thumbs
Stuyvesant Town and Peter Cooper Vil-
lage debt holders are demanding payments
from owners Tishman Speyer and Blackrock
within the next few days, reports Bloomberg.
A group led by Winthrop Realty Trust holds
about $300 million in senior mezzanine debt
and said in a letter it intends to pursue a fore-
closure sale. Tishman and Blackrock already
missed a $16.1 million payment on the apart-
ments two weeks ago, and have yet to make a
workout proposal to the mezzanine lenders.
Artwork in
Lower Manhattan
The Alliance for Downtown New York is in-
stalling five new works of public art in Lower
Manhattan in January. The new locations in-
clude the East River Waterfront Esplanade at
South Street; 99 Church Street; West Thames
Park in Battery Park City; Fiterman Hall in Bor-
ough of Manhattan Community College; and
56 Leonard Street. The works are part of the
Re:Construction program, launched in 2007
to improve the appearance of Lower Manhat-
tan from Houston Street to the Battery. The
program received a $1.5 million grant last
year from the Lower Manhattan Development
Corporation for about 30 projects over three
years.
Spielberg’s WTC
Documentary
Director Stephen Spielberg will produce
a television documentary series on the re-
building of the World Trade Center, reports
the BBC. The series will air on the Science
Channel in 2011 and chronicle the engineer-
ing and building of the 1,776-foot Freedom
Tower, which is to be completed in 2013. The
show will use 3-D, time-lapse cameras, com-
puter modeling techniques and other meth-
ods to chart the construction.
DANDELUCA; ELIZABETH LIBERT
observer.com | the commercial observer
 An extraordinary
office space awaits you.
And it’s ready today.
At 666 5th Avenue, we have a range of
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the commercial observer | observer.com January 19, 2010 7

THE WEEK IN REAL ESTATE
Zell Buys Out
Boymelgreen
Developer Sam Zell’s Equity Res-
idential bought out Shaya Boymel-
green’s interest in a piece of land at
the southwest corner of 10th Avenue
and 23rd Street, reports the New
York Post. Equity paid Mr. Boymel-
green $11.25 million for a long-term
ground lease and bought the land
from others for $750,000, according
to records. The Department of Build-
ings’ filings propose a 13-story proj-
ect on the 100-by-135-foot parcel,
FULL FLOORS.
OR FULL BUILDING.
Now, the choice is yours.
Full Floors of 12,671 sf
Full Building of 172,000 sf
Andrew Peretz, Executive Vice President
John Peters, Senior Director
Mikael Nahmias, Managing Director
212.841.7500
8 January 19, 2010
to include a fitness center, commu-
nity room and 96 apartments. The
building will also have an elevator
and stairway entrance to the nearby
High Line.
A Busy 40 Wall for
Trumps
The Trump Organization leased
252,790 square feet of leases at 40
Wall Street last year and has a “hand-
andrew.peretz@cushwake.com 212.709.0750
john.peters@cushwake.com 212.841.7510
mikael.nahmias@cushwake.com 212.709.0793
www.rockrose.com
January 12-19
shake” on another 61,721 square feet,
reports the New York Post. Another
40,000 to 50,000 square feet are in
“discussions,” said Donald Trump
Jr. “Rather than trying to squeeze
blood out of the market, we are see-
ing where it’s realistic to make a deal
and not screwing around over the
last 15 cents,” he told the Post.
rli@observer.com
CBRE’s Steve Siegel: Real Estate Will
Once Again Soar ‘Like a Shooting Star’
Painfully early Wednesday morning, Jan. 13, on the 18th floor of
the MetLife Building, CB Richard Ellis’ Global Brokerage chairman,
Stephen Siegel, the patriarch of New York’s brokerage community,
held forth on the future of New York commercial real estate.
“This city will bounce back faster than any city in the world,” said
Mr. Siegel, who admitted he’s thought to be something of a bull,
though he considers himself a “realist.” “Once it begins its real turn
around the corner, it’s going to shoot like a shooting star.”
Mr. Siegel’s fellow presenter, executive managing director Matt
Van Buren, backed up the sunny prognosis with some surprisingly
positive statistics. First, he pointed to a surge in temp jobs, gener-
ally thought to be a leading indicator of job market recovery. And,
as Mr. Van Buren pointed out, “For us, employment is extremely, ex-
tremely important and the factor we track the closest.” Jobs require
people. People require offices. Offices require office buildings. You
get the picture.
In the same vein, Mr. Van Buren said the amount of available space
in the office market seems to be stabilizing. So are rents. And, the dif-
ference between asking and taking rents—which is directly correlat-
ed to how much power tenants have in negotiations with would-be
landlords—is diminishing. Meanwhile, the amount of sublease space
is shrinking.
Mr. Siegel was even bullish on downtown, in stark contrast to rival
Cushman & Wakefield’s assertion a day earlier that the vacancy rate in
downtown Manhattan could soar to 15.75 percent. He pointed to ten-
ants making long-term commitments in Lower Manhattan, like law
firm Stroock & Stroock & Lavan’s renewal of its 225,000-square-foot
lease at Joe Moinian’s 180 Maiden Lane, and even predicted that Mer-
rill Lynch (a.k.a. Bank of America), which has a multimillion-square-
foot lease expiring in 2013 and a brand-new skyscraper in midtown,
would stay put.
“This is a very resilient city, and downtown is going to be right at
GETTY IMAGES
the heart of it,” Mr. Siegel said.
—D.R.
observer.com | the commercial observer
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the commercial observer | observer.com January 19, 2010 9

 PROSPECTIVE TENANT

Former Mitch Steir.

Blago Firm
of Record
Looking
Winston & Strawn
hires Studley for
250K-foot hunt
BY DANA RUBINSTEIN

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W
inston & Strawn, the international,
Chicago-based law firm whose ros-
ter of famous clients included Illi-
nois embarrassment Rod Blagojevich until he
stopped paying his hefty legal bills, is appar-
ently expanding.
The firm has hired real estate brokerage
Studley, which specializes in representing staff and that there have been deferrals of in-
coming associates.
A spokesman for Winston & Strawn de-
The firm’s lease at the MetLife clined to comment, as did Studley chairman
and CEO Mitch Steir.
Building at 200 Park Avenue—the
tower connected to Grand Central
Terminal—is up in about two years,
according to industry sources.
tenants, to search for about 250,000 square
feet of office space in Manhattan, according
to information released at CB Richard Ellis’
quarterly breakfast last week.
The firm’s lease at the MetLife Building at
200 Park Avenue—the tower connected to
Grand Central Terminal—is up in about two
years, according to industry sources. Win-
ston & Strawn has expanded into more than
200,000 square feet at 200 Park, more than
double the original 90,000 square feet it took
when it signed there in 1995.
Which is not to say that all is fine and dan-
dy at the firm. Legal blog Above the Law has
reported that salaries for 2008 associates
were frozen in 2009, that the firm has laid off

by advertising your deals in the

TENANT:
Winston & Strawn

LOOKING FOR:
About 250,000 square feet

BROKER:
Studley 200 Park Avenue.

LIKELIHOOD WILL MOVE:

Contact Robyn Weiss, Associate Publisher,
for more information: 212.407.9382
JAMES HAMILTON

3.75 trucks (out of five)

rweiss@observer.com

10 January 19, 2010 observer.com | the commercial observer

the commercial observer | observer.com January 19, 2010 11
 COMMERCIAL BREAKS
Upper Manhattan’s Biggest
’09 Sale Was ... a Portfolio?
Yes! Boom-time relic pops up as nine
apartment buildings trade for $26.9 M.
BY DANA RUBINSTEIN
A
relic of the boom-time era—the sale of
buildings in bundles, like cigarettes in a
pack, or strips malls in Florida—has re-
emerged for a brief cameo.
In December, Massey Knakal sold a portfo-
lio of nine apartment buildings in Upper Man-
hattan for $26.9 million, which, aside from a
Sam Chang portfolio of hotels sold to his bud-
dies at Rhode Island’s Magna Hospitality, was
both the largest portfolio sale of 2009 and the
largest sale of any kind in Upper Manhattan,
according to analysts at Real Capital Analytics
and the brokerage.
The nine apartment buildings, containing
about 230 units, are 125-127 East 118th Street;
149 East 118th Street; 121 East 119th Street; 125
East 119th Street; 166 East 119th Street; 158
East 119th Street; 212 East 119th Street; 135 East
122nd Street; and 2010 Lexington Avenue.
Mind you, the sale of the buildings as a
portfolio does not indicate some sort of re-
emerging trend, à la the Pinnacle or Vantage
12 January 19, 2010
125 East 118th Street.
days of yore.
“This had to be sold as a portfolio because
it was under Section 8,” said Massey Knakal’s
Mike Tortorici, who, with brokerage partner
Shimon Shkury, represented the sellers, the
Seattle-based Security Properties. “When
commercial MBS was available, it was easier
for people to package together loans and as-
semble large pieces of real estate. Now, it’s
much easier for banks to finance smaller build-
ings, much as it’s easier for buyers to swallow
smaller buildings.”
Francine Kellman, associate director of
buyer Pacific Housing Advisers, described
the firm’s plans thusly: “We certainly plan on
keeping the property affordable for the next
30 years and most likely longer than that. We
are doing over $40,000 a unit in rehab, includ-
ing all major systems, work in apartments,
social services, laundry rooms, new manage-
ment office, etc.”
“My motto is, ‘Today’s preservation is to-
morrow’s revitalization.’”
drubinstein@observer.com
observer.com | the commercial observer
 REAL MARKET KNOWLEDGE.

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REAL PASSION.

REAL RESULTS.

We are a national team of dedicated commercial real estate professionals with a

history of 100 years of successful client relationships which include $15 billion in
annual transactions, 420 million square feet of managed space and 22,000 Corporate
Services locations. Our world-class expertise enables us to deliver integrated, tailored
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To learn more, visit www.cassidyturley.com or call 212.758.0800.

CAPITAL MARKETS CORPORATE SERVICES LEASING & TENANT REPRESENTATION PROJECT & DEVELOPMENT SERVICES PROPERTY MANAGEMENT

© 2010 Cassidy Turley.

the commercial observer | observer.com January 19, 2010 13

 LEASE BEAT BY EMILY GEMINDER

Take That, Kindle! Indie Bookstore

Survives With West Village Relocation

17 Eighth Avenue this week. With it will come

Left Bank Books narrow-
ly avoided adding its name to
the ever-mounting casualty
list of New York independent
bookstores. After 18 years, the
landlord of the tiny West Vil-
lage shop it called home refused
to renew its lease. As per the usu-
al post-Kindle indie-bookstore
plot line, that was almost the end.
But in an unusual turn of fate, Left
Bank was literally granted a new
lease—a loyal customer pointed
the owners to a vacant storefront
just around the corner.
The bookstore inked a five-year lease
at 17 Eighth Avenue, where it will reopen
stacks and stacks of rare and
used books, including Nor-
man Mailer’s personal copy
of The Naked and the Dead.
The book’s hefty price tag
will come, too: $10,000.
While that may seem ex-
orbitant, consider the
store’s long list of rea-
sons why buying a first
edition is a good invest-
ment. Besides impressing
your friends and making yourself
look smarter, it also cements your rela-
tionship with the author. Though whether
that’s an endorsement of the $10,000 Naked
and the Dead is another thing.

LEASE OF THE WEEK

Triennale Design Museum

Taking Big Space in Paramount’s
40 West 53rd
40 West 53rd Street
“No object is an island” might be the
motto of the Milan-based Triennale De-
sign Museum, which skims from Italian
design to urban planning to contemporary
fashion in its exhibits exploring the rela-
tionship between industry and art. Set to
debut in time for the International Con-
temporary Furniture Fair in May, the mu-
seum’s New York branch will open at 40
West 53rd Street across the street from
the Museum of Modern Art.
The Paramount-owned building was
left vacant when the Museum of Arts &
Design moved to Columbus Circle two
years ago. Cushman & Wakefield’s
Michael Stone, who represented Tri-
ennale with David Tricarico, called
the museum’s 15-year lease “one of
this year’s most significant retail
deals.” The 18,067-square-foot
lease encompasses four levels;
in addition to exhibit space, the
building will house a museum
shop and cafe. “It brings a ma-
jor cultural icon to Manhat-
tan,” Mr. Stone said.
Paramount was repre-
sented in-house by Arthur
Bocchi and the Cushman
& Wakefield team of Gene
Spiegelman, Michael
O’Neill and Mark Lauzon.
PROPERTY SHARK

14 January 19, 2010 observer.com | the commercial observer

 Th e S w i g E q u i t i e s D ow n t ow n C o l l e c t i o n
A r t i s t r y i n o w n e r s h i p ®

900,000 square feet 48,000 square feet 400,000 square feet 324,000 square feet 350,000 square feet 325,000 square feet 400,000 square feet

Todd E. Korren

Swig Equities
congratulates and proudly salutes
Todd E. Korren,
SVP/Director of Leasing & Operations,
as recipient of REBNY’S
Young Real Estate Man of the Year Award

swigequities.com
the commercial observer | observer.com January 19, 2010 15
LEASE BEAT
Google Gobbles 57K More Feet Gem Judges Sign Up for
in Taconic’s 111 Eighth Floor at Extell’s Future
111 Eighth Avenue
The amount of silicon in Man-
hattan just got bigger. Since Google
Diamond District Tower
first occupied the old Port Author-
ity building at 111 Eighth Avenue 44 West 47th Street to relocating our New York labo-
back in 2006, New York has been Among the tenets ratory operations into a sin-
rife with speculation about the of engagement ring gle floor of the IGT,” said
day-to-day exploits of the Inter- shopping are what’s the GIA’s head Donna
net empire. What’s it like to work come to be known as Baker, who add-
there? Is it true there’s a slide? Is it the four Cs: cut, col- ed that the move
a cult? Are they building a parallel or, clarity and carat would increase
Internet? Will dark matter one day weight. But few out- efficiency and
be used for server farms? side the diamond help the non-
Google, in its characteristical- world know the profit organiza-
ly covert manner, has let on little organization tion manage its
about what goes on its New York of- that pioneered long-term costs.
fices (it has since opened an auxilia- the now famous The GIA’s New York
ry office in Chelsea Market as well): standards. The laboratory houses re-
Reporters who enter sign nondis- Gemologi- search into, among oth-
closure agreements; its communi- cal Institute of er things, the development
cation team is a sleek firewall. But America, head- of detection techniques for
whatever they’re doing, they’re do- quartered in Carls- treated and synthetic diamonds.
ing more of it—the search engine bad, Calif., has been Gary Barnett, president of the
signed a lease for 57,000 additional quietly and methodical- Extell Development Company, said,
square feet in the block-swallowing ly studying gems for almost 80 years. “This prestigious institute clearly rec-
Taconic-owned building. At Extell’s International Gem Tow- ognizes the value the development
David Hollander, Stephen B. er, the 34-story diamond district brings to New York’s diamond dis-
Siegel and Ken Rapp of CB Rich- building set for completion by 2012, trict and we’re thrilled to have them
ard Ellis represented Google in the the GIA will take an entire floor, nearly on board.”
deal. 30,000 square feet. “We look forward

16 January 19, 2010 observer.com | the commercial observer

 HOLDINGS
would like to thank all of the tenants and brokers involved in these recent deals:
The purchase of the fee simple interest
515 Madison Avenue
Corner of 53rd Street and Madison Avenue
340,000 SF
Financing by Wells Fargo
Special thanks to Woody Heller - Studley
and Paul Talbot - Newmark Knight Frank
200 Varick Street
OmnicomGroup
108,000 SF
Lee Feld - Feld Real Estate
Strength and Continuity in any Economic Climate - Over 1 Million SF Leased in 2009
40 Worth Street
NYC Department of Health - Roy Lapidus, Dan Segal, Jeff Gural - Newmark Knight Frank
Code, INC. - Roy Lapidus, Dan Segal - Newmark Knight Frank
Jerome S. Gillman Consultants - Roy Lapidus, Dan Segal - Newmark Knight Frank
200 Varick Street
Design Tex Group, Inc. - Alex Jinishina - FirstService Williams
Charity Global, Inc. - Eric Gural - Newmark Knight Frank
515 Madison Avenue
TCRM Advisors - Eric Gural - Newmark Knight Frank
Wildes and Weinberg - Adam Wildes - Base Realty
Protravel - Eric Gural - Newmark Knight Frank
Fisam - Lance Korman - Newmark Knight Frank
Fox River Execution Technology - Rob Silver, Neil Rubin - Newmark Knight Frank
Harrier Hawk - Daniel Madison, John Moran, Daniel Hassett - Newmark Knight Frank
Hampton Capital - Daniel Madison, Josh Friedman, Neil Goldmacher - Newmark Knight Frank
National Payment - Steven Rotter - Jones Lang LaSalle
James Alpha - Keith Caggiano - CBRE
Hamilton Investments - Corey Horowitz - Newmark Knight Frank
RockFleet - Esther Zar - Murray Hill Properties
Digital Tech - Eric Gural - Newmark Knight Frank
Lepol - Eric Gural - Newmark Knight Frank
Midtown Chiropractic - David Levy - Adams & Company Real Estate
318 West 39th Street
Model Management - Matthew Mandell, Brian Steinwurtzel - Newmark Knight Frank
Stenay - Matthew Mandell - Newmark Knight Frank
247 West 37th Street
Action Against Hunger - Matthew Mandell, Brian Steinwurtzel - Newmark Knight Frank
LB Studio - Bruce Kurzman - Newmark Knight Frank
Glory Studio - Bruce Kurzman - Newmark Knight Frank
80 8th Avenue
209 West 38th Street
505 8th Avenue
Big Apple Circus - Jeff Gural - Newmark Knight Frank
322 8th Avenue
Young Women's Leadership Network - Robert Neborak, Mort Schrader - PBS Real Estate
Woodworks Construction - David Kahane - DAK Commercial Realty
740 Broadway
Cheil USA, Inc. - Joshua Winslow - Winslow & Company
175 5th Avenue
Argo Tea Co. - Jeffrey Roseman - Newmark Knight Frank
17 Battery Place B 150 Bay Street B 560 Broadway B 594 Broadway B 740 Broadway B 1560 Broadway B 80-90 Eighth Avenue B 322 Eighth Avenue B 505 Eighth Avenue
520 Eighth Avenue B 206 Fifth Avenu- B 230 Fifth Avenue B The Flatiron Building B 333 Hudson Stree; B 767 Lexington Avenue B 171 Madison Avenu- B 515 Madison Avenue
630 Ninth Avenue B 305 Seventh Avenu- B
5 South Broadway B 5-9 Union Square Wes; B 7 Union Square Wes; B 200 Varick Street B 379 West Broadway B
0 Worth Street
125 West 3rd Stree; B 307 West 36th Stree; B 247 West 37th Stree; B 209-219 West 38th Stree; B 318-326 West 39th Stree; B 414-422 West 45th Street
For further information, please contact: Eric Gural at 212.372.2021 or Brian Steinwurtzel at 212.372.2091
the commercial observer | observer.com
40 Worth Street
265,000 SF
Eric Deutsch, Ken Meyerson,
Kevin Powderly - CBRE
420 West 45th Street
70,000 SF
Paul Wolf, Amy Lawrence - Denham Wolf RES
520 8th Avenue
General Vision - Brian Waterman, Brent Ozarowski - Newmark Knight Frank
Emerging Vision - Brian Waterman, Brent Ozarowski - Newmark Knight Frank
Fund for the City of NY - Glenn Markman, Joseph Cirone - Cushman & W
Kallen & Lemelson LLP - Richard Plehn, Greg Wang - First Service Willams
Noah Insurance - Matthew Mandell - Newmark Knight Frank
KIPP Foundation - Allen Gurevich - Newmark Knight Frank
Ripple 6 - Allen Gurevich - Newmark Knight Frank
ASPCA - Matthew Mandell, Brian Steinwurtzel - Newmark Knight Frank
SSS Sales - Matthew Mandell - Newmark Knight Frank
75 South Broadway
GSA - Richard Goldstein - Goldstein & Associates
Millennium Business Centers - Patricia Valenti, Hilarie Siles - Newmark Knight Frank
560 Broadway
Zorbit Resources, LLC - Donna Vogel - Newmark Knight Frank
16 West 22 Street
1521 WSL Corp. - Lenard Rosenblatt - Botsaris Realty
Teak Fellowship - Barbara Yagoda - Newmark Knight Frank
307 West 36 Street
I Trim Inc. - Bruce Kurzman - Newmark Knight Frank
Green Warehouse - Bruce Kurzman - Newmark Knight Frank
Green Land NY - Barbara Yagoda - Newmark Knight Frank
150 Bay Street
Pershing LLC - Chris Hile - Jones Lang LaSalle
1560 Broadway
American Immigrant Federation - Alan Steinberg - Newmark Knight Frank
Stephen Jeffries, Esq. - Gregg Espach - UGL Equis
230 5th Avenue
Park B. Smith - Harvey Richer - Newmark Knight Frank
Next Creations - Harvey Richer - Newmark Knight Frank
FA LLC - Harvey Richer - Newmark Knight Frank
Mazel Co. - Jay Futersack - Dakota Realty
171 Madison Avenue
Lawyers Alliance For New York - Amy Lawrence - Denham Wolf Real Estate
Early Intervention Center of Brooklyn - Jim Coleman - Bond New York Real Estate
630 9th Avenue
Mitchell Giurogola Architects - James Saunders, Noel Flagg - Newmark Knight Frank
594 Broadway
The Architectural League of New York - Sarah Eisinger - Denham Wolf
The Research Associates, LLC - Jessica Hoppe - Home. Work. People
5-9 USW
Business For Social Responsibility - Robert Lawlor - Studley
January 19, 2010 17
LEASE BEAT
Funky, Fun STK Steakhouse THE SCORE
BROKERAGES THAT WORKED
Graces 1114 Sixth With ON THE MOST DEALS IN THIS
WEEK’S LEASE BEAT
Second City Spot
Adams & Co. ....................18
1114 Avenue of the Americas midtown will house the concept’s second
The restaurant STK claims to make a New York restaurant, a 9,000-square- Newmark Knight Frank .... 6
break from the hypermasculine tradition foot space with an outdoor patio.
of steakhouses. With all the exaggerated The concave building, owned CB Richard Ellis ............... 4
curves and faux-leather of a sports car, by Brookfield Properties
its round booths shaped like hot tubs and and the Swig Company, was Cushman &
club lighting to match a pounding beat, represented by Ed Hogan. Wakefield .......................... 4
STK pulls off a vibe that is, as its tag line Kim Mogull of Mogull
goes, “not your daddy’s steakhouse.” But Realty represented STK.
in its professed feminine-oriented market- “Midtown is on the
ing, the proprietors are not quite so suc- cusp of a dining resur- LAST WEEK
cessful. The images that skid across the gence,” said Jonathan
STK Web site do indeed include women, Segal, CEO of the ONE Adams & Co. ....................14
but only if one counts close-ups of sul- Group, the high-end
try, rouged lips teething on veiny chunks hospitality company Newmark Knight Frank ....7
of steak and 4-inch heels digging into T- that runs the restau-
bones. It’s more like a restaurant for mis- rant. STK’s menu— CB Richard Ellis ............... 6
guided straight men hoping to get through though the menu
the cocktails-restaurant-club part of a date is really beside the Cushman &
as quickly and efficiently as possible. point—includes mini Wakefield ......................... 6
The first STK opened in the meatpack- gourmet Big Macs and
ing district three years ago, followed by lo- foie gras French toast as ABS Partners
cations in Los Angeles and Miami. It likes well as considerations Real Estate ...................... 6
to tout its status as a celebrity destination: for the restricted-in-
There, Beyoncé and Jay-Z were overheard take set: Steaks come
planning their wedding, and Fergie was in small, medium and
spotted smooching. The Grace Building in large.

GETTY IMAGES

18 January 19, 2010 observer.com | the commercial observer

the commercial observer | observer.com January 19, 2010 19
LEASE BEAT Lease Beat continues on page 36

L.A. Law Firm Grabs Three

Euro Apparel Company
AllSaints Goes
Marching in at Thor’s
512 Broadway
512 Broadway
The latest in the parade of trendy,
budget-conscious European apparel
companies to make their way to the
U.S. (somehow America just can’t
do edgy-cheap) is AllSaints, a Brit-
ish retailer with a London rocker
sensibility. Having graduated from
a Bloomingdale’s mini-boutique, its
U.S. debut has reached full-fledged
store status with a Soho location
opening in late spring.
Thor Equities signed the retail-
er to a 15-year lease at 512 Broad-
way. Spread out over three floors,
the store will comprise more than
22,000 square feet. “On any given
day, pedestrian traffic rivals the bus-
iest shopping districts on Fifth Ave-
nue or 34th Street,” Thor’s Joe Sitt
said of the area in a statement.
Floors at 77 Water; Goldman
to Pay for Build-Out
77 Water Street
With its 75,716-square-foot lease
at 77 Water Street, Los Angeles–
headquartered law firm Lewis Bris-
bois Bisgaard & Smith has more
than doubled its Lower Manhattan
office space. Moving down the street
from its offices at 199 Water, the
law firm signed a 10-year deal with
Goldman Sachs, which is subleas-
ing the entire building. Goldman,
which never occupied the building,
will cover the entire cost of Lewis
Brisbois’ build-out. The lease covers
three floors, according to Crain’s.
“Lewis Brisbois hit the market
at just the right time,” said Marc
Shapses, the Studley broker who
represented the law firm with Craig
McKenna. “The firm had outgrown
its space at 199 Water. With several
well-priced, quality options in the
marketplace, we were able to take the right economics.”
our time to determine the most ap- Adam Foster of CB Richard Ellis
propriate building with space that also represented the tenant. Cushman
could accommodate the firm’s size & Wakefield’s Louis D’Avanzo and
today, as well as in the future, with Robert Constable repped Goldman.

ON DEADLINE: BROOKFIELD’S WFC PLANS

B
rookfield Properties has big renova-
tion plans for its World Financial
Center in downtown Manhattan,
according to Crain’s Theresa Agovino.
“Sources briefed on plans say Brook-
field wants to create an entirely new
entrance on West Street, eliminate the
grand staircase which leads down to the
signature Winter Garden from the east,
and add more retail space. The company
plans to present its ideas to its board
next month for approval, according to one
source close to company. Those briefed
on the plans weren’t given cost estimates
or a timetable for the changes. Brookfield
had no immediate comment.”
The plans come as the downtown vacan-
cy rate is expected to rise sharply, perhaps
in part because of the possible exits of
both Merrill Lynch and Deloitte, both major
tenants of World Financial Center.
“Merrill Lynch currently rents 3 million
square feet at the center, but its lease ex-
pires in 2013. In 2008, Merrill Lynch was
purchased by Bank of America, which has
a new headquarters near Times Square
on West 42nd Street as well as acres of
other space in Manhattan. … Meanwhile,
the lease on the vast bulk of the 510,000
square feet that Deloitte leases at the
complex expires in three years, according
to published reports. The firm has already
hired Cushman & Wakefield Inc. to scout
for what reports say is anywhere from
600,000 and 800,000 square feet.”
—Tom Acitelli

PROPERTY SHARK

20 January 19, 2010 observer.com | the commercial observer

the commercial observer | observer.com January 19, 2010 21
THE LEAD INDICATOR

When the Levy Breaks

Government on both sides of the Atlantic
strike at bank compensation—to what end?
O
n both sides of the Atlantic, nal capacities. Rather, arguments on The bank’s chairman and chief exec-
bankers have faltered in the both sides of the debate have been utive, Jamie Dimon, said that earn-
public-relations management punctuated by occasions of dema- ings “fell short of both an adequate
of new profit reports. Many of the goguery and appeals to our baser return on capital and the firm’s earn-
largest banks, among them both instincts. Just days before a Massa- ings potential.” Nor were investors
willing and grudging recipients of chusetts verdict on the administra- overawed by the results. At least one
government support, have reported tion’s first year, hard lines dominate analyst described the earnings re-
heady profits for the year just ended. in a severe contest for voter support port as “disappointing.”
The disconnect between and a balance of power in The administration has commu-
the performance of banks the Senate. nicated its perspective clearly. Its
and the middling perfor- In proposing a new bank proposal to recompense taxpayers—
mance of businesses in oth- levy last Thursday, Presi- the Financial Crisis Responsibility
er sectors of the American dent Obama was unequivo- Fee—includes a levy on financial ser-
economy has cemented the cal: “My commitment is to vices firms with assets in excess of
popular discontent with recover every single dime $50 billion, irrespective of whether
the handling of the bank- the American people are a firm received TARP funding. As of
ing crisis, and the disaffec- owed. And my determina- the third quarter of 2009, roughly 35
tion with the banks them- tion to achieve this goal is bank holding companies and 15 other
selves. The most profitable only heightened when I see institutions would have met this cri-
banks’ attempts to fend off
Sam Chandan reports of massive profits terion. The 0.15 percentage point fee
a public backlash, through Columnist and obscene bonuses at the on eligible liabilities would be paid
reduced compensation ra- very firms who owe their over time, raising an estimated $90
tios, charitable contribu- continued existence to the billion to $117 billion over 10 years.
tions and public demonstrations of American people.” Lest the message The exact terms of the proposal are
circumspection, have failed to be- be lost, this Saturday’s weekly ad- expected in the February budget
guile a cynical and recession-weary dress from the White House was ti- proposal and will ultimately require
population. tled “Getting Our Money Back From Congressional approval. Depending
The goal of interventions like Wall Street.” Unconstrained by po- upon the outcome of Tuesday’s Sen-
the Troubled Asset Relief Program litical niceties, Paul Krugman was ate contest in Massachusetts and in-
has been to stabilize the financial exceedingly direct in his Jan. 14 New tense industry lobbying, this may be
system, but it seems as though the York Times op-ed: “As Congress and a significant obstacle.
banks have proven too resilient for the administration try to reform the In the meantime, other branches
the public’s taste. The fact of mul- financial system, they should ignore of government are acting on their
tibillion-dollar bonus payments— advice coming from the supposed own initiative. Last Monday, Attor-
coinciding with double-digit un- wise men of Wall Street, who have ney General Andrew Cuomo sent
employment and stagnating real no wisdom to offer.” For their part, requests to the eight original TARP
wages—has reinforced the percep- bank executives have intimated that recipients demanding informa-
tion on their compensation plans.
The F.D.I.C. met in open session last disincentives to lend will remain in ed to substantiate this claim.
Tuesday, releasing an advance no- place. Of course, the incidence of the The more pernicious undertaking
In the meantime, other branches of government are act- tice of proposed rule making that tax—who ultimately bears the bur- is an increase in the nation’s mar-
ing on their own initiative. Last Monday, Attorney General might ultimately relate banks’ De- den of the tax if the bank is able to ginal income tax rate for its high-
Andrew Cuomo sent requests to the eight original TARP posit Insurance Fund contributions pass it along—may fall to employ- est earners. Unlike the one-time tax,
to risk-taking incentives in insti- ees or to clients. In the short term, this permanent shock to personal
recipients, demanding information on their compensation tutions’ compensation structures: the direct cost is borne by the banks disposable income will render Lon-
plans. The F.D.I.C. met in open session last Tuesday, releas- “The FDIC does not seek to limit the themselves, satisfying the public in don less competitive. At least on the
amount which employees are com- advance of election dates. margin, the balance of agglomera-
ing an advance notice of proposed rule making that might pensated, but rather is concerned Across the pond, where a par- tion and cost will weigh against Lon-
ultimately relate banks’ Deposit Insurance Fund contribu- with adjusting risk-based deposit liamentary election is just months don and in favor of its peers. Even
insurance assessment rates … to ad- away, the outlook is less sanguine. if our own high-skilled labor pool is
tions to risk-taking incentives in institutions’ compensation equately compensate the DIF for the Under the leadership of Prime Min- less mobile, American lawmakers
structures. risks inherent in the design of cer- ister Gordon Brown, Chancellor of should heed the warning bells being
tain compensation programs.” Even the Exchequer Alistair Darling an- sounded in London when consider-
among the meeting participants, nounced last month the introduc- ing similar options at home.
consensus over the proposal proved tion of a so-called “supertax” of 50 The Webcast of the president’s
tion that financial professionals op- any new tax on profits will slow the elusive. percent on bankers’ bonuses in ex- Weekend Address on the Financial
erate in an environment detached sector’s recovery and, by extension, Apart from the F.D.I.C. proposal, cess of £25,000. The tax has been Crisis Responsibility Fee is avail-
from Main Street. And while the idea recovery in markets thirsty for cred- should we believe analysts’ expres- decried for undermining the com- able at the White House Web site
of a culturally and socioeconomically it. sions of concern regarding the Re- petitiveness of London as one of the at http://bit.ly/4yudli. A fact sheet
homogenous Main Street that serves sponsibility Fee’s slowing the recov- world’s financial centers. It is unlike- on the Financial Crisis Responsibil-

as a counterpoint to Wall Street is a
bizarre oversimplification, I imagine
that recent reports from New York
City must seem increasingly surreal
the farther one lives from a coast.
The question of how to respond to
bank profits and compensation has
been scarcely informed by our ratio-
O
ne’s perspective is crucial in
all of this. To the public, JP-
Morgan Chase’s estimated sal-
ary and bonus compensation of $27
billion might seem purposely pro-
vocative. But it is less so when one
considers that the firm has roughly
200,000 employees on its payroll.
ery of the largest banks and insurers?
As long as the target institutions’
profit-maximizing motivations are
not upset, and as long as they re-
main profitable, the fee should not
impact the market’s observable out-
comes. After-tax profits will be un-
dercut. But the basic incentives and
ly, however, that the one-time shock
to income will materially impact the
market, even if the incidence of the
tax falls to the professionals in the
institutions’ employ. The mayor of
London contends that 9,000 bankers
will flee the city to avoid the penalty,
but little analysis has been present-
ity Fee is also available at http://bit.
ly/7NuOzA.
chandan@reeconometrics.com
Sam Chandan, Ph.D., is president
and chief economist of Real Estate
Econometrics and an adjunct pro-
fessor of real estate at Wharton.

22 January 19, 2010 observer.com | the commercial observer

 PARAMOUNT GROUP
CONGRATULATES
ALL HONOREES &
Our Very Own
RALPH J. DIRUGGIERO
RECIPIENT OF
THE GEORGE M. BROOKER MANAGEMENT EXECUTIVE OF THE YEAR AWARD
REAL ESTATE BOARD OF NEW YORK

For more information:

1633 Broadway, 712 Fifth Avenue, 745 Fifth Avenue, 31 West 52nd Street and 60 Wall Street
Please contact Arthur Bocchi 212.237.3122 abocchi@paramount-group.com
1301 Avenue of the Americas, 1325 Avenue of the Americas, 900 Third Avenue, Candler Tower and 440 Ninth Avenue
Please contact James A.VanderVliet 212.237.3119 jvandervliet@paramount-group.com

NEW YORK - WASHINGTON, D.C. - SAN FRANCISCO

www.paramount-group.com
212.237.3100

the commercial observer | observer.com January 19, 2010 23

 FEIL LEASE TRANSACTIONS

The 2010 Real Estate  
 




Board of New York Honorees THE FEIL ORGANIZATION

Lindenbaum, Greenbaum, Knakal, DiRuggiero and Korren snag top honors IS PROUD TO ANNOUNCE THE
LEASE RENEWAL FOR

24,213 RSF AT
570 LEXINGTON AVENUE
Sacha Zarba and Lauren Crowley of CBRE
Represented the Tenant on a Pro Bono Basis.

Owner/Manager
Seven Penn Plaza, New York 10001
T 212 563 6557 F 212 563 6657
www.FeilOrg.com

DPOTVMUJOH

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ter New York, founder, director and vice Directors for the 34th Street Partnership,



888#$&9$)"/(&$0.
T
he Real Estate Board of New York ruch College, member of the Board of member of the New York University Real sible for the sale of more than 1,050 ed Harvard’s John F. Kennedy School of
on Jan. 21 plans to honor several Trustees; New York State Council on Estate Institute’s advisory board and properties worth over $5.8 billion. Government program for senior execu-
commercial real estate the Arts, member, 1976-1986, the executive roundtable committee of Mr. Knakal was in 1993 elected presi- tives in state and local government.
professionals at its 114th an- 1994-1999. the advisory board. Mr. Greenbaum also dent of the National Realty Conference, Mr. DiRuggiero began his career as a
nual banquet. Four of the hon- OP-ED Mr. Lindenbaum earned a serves on the boards of the Jewish Na- which made him the youngest president budget analyst at the city’s Office of Man-
orees are featured below, and B.A. cum laude from Harvard tional Fund as a presidential adviser, the in the organization’s 58-year history. He agement and Budget. He then worked
check out on page 30 our Pow- College in 1956 and a J.D. cum Jewish Guild for the Blind and the Jef- is also a very involved member of REB- as the assistant budget director for Es-
er Broker profile of Todd Korren of Swig laude in 1959 from Harvard Law School. fery Modell Foundation. He was selected NY. He has served on numerous com- sex County, N.J., eventually rising to be- NOTHING BEATS 50 YEARS OF STABILITY.
Equities, winner of the 2010 Young Real After graduating from law school, he by the New York City Partnership to par- mittees, including the ethics committee come the assistant county administrator
Estate Man of the Year Award. was awarded a Fulbright Fellowship. ticipate in the David Rockefeller Fellows and the arbitration committee, and has for New Jersey’s largest urban county.
He married Linda M. Lewis in 1957. Program. been chairman of its sales brokers com- In 1987, he joined Williams Real Estate
ÍÍÍ They have two married daughters, Er- mittee. He was also on the Commer- Company as a district manager respon-
ica Tishman and Laurie Lindenbaum, ÍÍÍ cial Division’s Board of Directors, and sible for a midtown portfolio of office
Samuel H. Lindenbaum and six grandchildren. was elected to the Board of Governors. buildings, and shortly thereafter was 61 BROADWAY
Counsel, Kramer Levin Naftalis & Robert A. Knakal In 2003, Mr. Knakal was appointed to promoted to assistant vice president.
Frankel LLP ÍÍÍ Chairman, Founding Partner, REBNY’s executive committee. Mr. DiRuggiero then joined Swig Weil-
Winner of the Harry B. Helmsley Dis- Massey Knakal Realty Services Mr. Knakal won, along with broker er & Arnow Management Company as
tinguished New Yorker Award, which David R. Greenbaum Winner of the Louis Smadbeck Bro- Mark Massey, the prestigious Robert its vice president of operations respon-
memorializes Helmsley, his generation’s President, Vornado Realty Trust, ker Recognition Award, which honors T. Lawrence Award in the REBNY Most sible for 6 million square feet of Class A
most admired real estate executive. New York division the memory of one of the profession’s Ingenious Deal of the Year contest for offices in Manhattan. In 1989, he joined Where you want to be
Sandy Lindenbaum is of counsel to Winner of the Bernard H. Mendik Life- most esteemed practitioners. their nine-year assemblage of the east- Equitable Real Estate Investment Man- when you want to be in business
Kramer Levin Naftalis & Frankel and a time Leadership in Real Estate Award, Robert Knakal graduated from the erly blockfront of Second Avenue be- agement as asset manager, and, for the
member of its land-use department. which is named for Bernard H. Mendik, Wharton School of Business at the Uni- tween 54th and 55th streets. next 10 years, was responsible for estab-
For more than 40 years, Mr. Linden- REBNY’s chairperson from 1992 until versity of Pennsylvania with a bach- In 2005, Mr. Knakal led the market- lishing the New York regional office of
baum’s extensive experience in land use his death, in 2001. elor’s of science in economics in 1984. ing team for the $138.5 million sale of Compass Management & Leasing, a sub-
He majored in real estate finance and the Vanderveer Estates in Brooklyn, sidiary of Equitable. In 1994, he was pro-
entrepreneurial management and was the largest privately owned apartment moted to senior vice president, respon-
variances, landmark proceedings, air vision of Vornado Realty Trust, which a member of the Wharton School’s Real complex in the borough. The proper- sible for Compass’ national corporate
rights transfers, tax abatements and eco- owns a commercial real estate portfolio Estate Club. ty consisted of 2,500 apartments in accounts, including AT&T, Lucent Tech-
nomic development incentives for many in New York City that encompasses 52 In 1981, Mr. Knakal was hired by 59 elevator buildings. The sale price nologies, AMP Inc. and General Motors.
of the city’s most prominent commercial buildings totaling 22 million square feet. Coldwell Banker Commercial, now CB was $138,500,000. In 2006, Mr. Knakal Mr. DiRuggiero completed assignments
Richard Ellis, as a market research in- led the marketing team in the assem- in Mexico City and in the Netherlands
the expansion programs of many of the the New York City portfolio, including tern. He returned the following sum- blage of the entire western blockfront for Lucent, and was a member of Com-
city’s leading nonprofit institutions. ground-up development, redevelop- mer as co-leader of its summer market on Sixth Avenue between 30th and 31st pass’ management committee. As the
His affiliations include the Real Es- ment, leasing and building operations. research group and, in 1983, obtained streets. This marked Massey Knakal’s firm merged with Jones Lang LaSalle,
tate Board of New York, vice president He started his career as a tax attor- his real estate sales license. He worked largest development transaction to Mr. DiRuggiero was promoted to execu-
and member of the executive commit- ney at Weil Gotshal & Manges, and then that summer at Coldwell Banker as an date, at a price of $117,500,000. tive vice president with responsibilities
tee of the Board of Governors; Met- joined the Mendik Company, a private assistant to a senior broker. After grad- for corporate clients. Solid, steady ownership · Unparalleled tenant services
ropolitan Museum of Art, honorary owner of commercial real estate, which uation, he started as a full-time invest- ÍÍÍ In 1999, Mr. DiRuggiero joined the Efficient floorplates · Distinctive classic Art Deco attended lobby
trustee; American Friends of the Isra- merged into Vornado Realty Trust in ment property specialist with CB’s mid- Trammell Crow Company as senior vice Beautiful views · Complimentary conference center
el Museum, honorary chairman of the 1997. town office. Ralph J. DiRuggiero president of property management and Exceptional access to all downtown transportation
Two blocks from Wall Street · Entrances on Trinity and Broadway
executive committee of the Board of Mr. Greenbaum is a trustee and mem- In 1984, Mr. Knakal collaborated with Vice President, Property Manage- as its regional director for the Northeast,
Directors; Peggy Guggenheim Collec- ber of the executive committee of the Paul Massey Jr. to establish a property ment, Paramount Group, responsible for clients including HSBC IMMEDIATE AVAILABILITY
tion in Venice, member of the adviso- Citizens Budget Commission, a private sales group in Manhattan. They served Winner of the George M. Brooker Bank and American Express. Mr. DiRug- LANDLORD WILL BUILD TO SUIT · PRE-BUILTS FROM 1,000–23,750 RSF
ry board; Guild Hall of East Hampton, watchdog organization that monitors the as co-directors for the new specializa- Management Executive of the Year giero joined Paramount Group in 2001 as MULTIPLE FULL FLOORS CAN BE MADE AVAILABLE
member of the Board of Trustees; Cen- city’s and state’s fiscal policies; a member tion, and, in 1986, shared CB’s presti- Award, which honors the memory of the vice president of property management, FLEXIBLE LEASE TERMS FROM 1–10 YEARS
gious top salesman award in New York. late Mr. Brooker, the first vice president and is responsible for all aspects of prop-
Trustees; Jewish Association for Ser- of Governors of the Real Estate Board of (At that time, CB employed an average for REBNY’s Management Division and erty management operations and secu- For additional information or lease inquiries contact:
vices for the Aged, chair of the execu- New York; a member of the Realty Advi- of 60 people in its Manhattan office.) one of the profession’s most respected rity for the current portfolio of 12 million Ramona Huegel or David M. Israni
tive committee; Association for a Bet- sory Board; and a member of the Board of Messrs. Knakal and Massey retained members. square feet, in New York, Washington
this top ranking until they left the firm Ralph DiRuggiero holds a bachelor’s and San Francisco. Mr. DiRuggiero es- “We're earning the right to be your next landlord.”
president; UJA Federation of New York, the Grand Central Partnership and the (212) 609.3700
in November 1988 to start their own
GREAT SERVICE
of science from the University of Scran- tablished Paramount’s San Francisco IS ALWAYS
member of the board of the real estate Times Square Alliance, all public-private WWW.BSDRE.COM
business, Massey Knakal Realty Servic- ton and a master’s of public administra- presence and is responsible for leasing Daniel M. Blanco Raymond Chalmé
GOOD BUSINESS
committee; Real Estate Institute of Ba- efforts to enhance midtown. He is also a es. To date, Mr. Knakal has been respon- tion from Baruch College. He also attend- in that market.

24 January 19, 2010 observer.com | the commercial observer the commercial observer | observer.com January 19, 2010 25
CONCRETE THOUGHTS
 
 




A Thank-You Note
This REBNY honoree has many to thank for success in his
accidental vocation

I
was sincerely humbled to learn eyed kid. Jack Fatigati was always grand dinner at Smith & Wollensky. we regard very highly and consid- day, having sold many properties
that I was going to be this year’s willing to answer any of the hun- Gerry was a 50-year veteran of CB er our good friends. In addition to for him over the years.
recipient of the Real Estate dreds of questions I had, and Tom who could not have been nicer to many others, these include Darcy Gary Barnett and Dov Hertz con-
Board of New York’s Louis Smad- Mallaney taught me that, despite us. Unfortunately, he passed away Stacom and Bill Shanahan at CB tinue to impress me with their in-
beck Broker Recognition Award. the commonly accepted rule, nice last year, but Paul and I will always Richard Ellis; Ron Cohen, Richard sightful knowledge and straight-
I’m extraordinarily appreciative guys can finish first. I’m fortunate remember his kindness to us in our Baxter, Scott Latham and Jon Ca- forward approach. Seventeen years
to REBNY, Steve Spinola, Bill Mon- to count Jack and Tom among my formative years. In two weeks, our plan at Cushman & Wakefield; Pe- of transactions later, I remain ap-
tana and the commercial board of good friends to this day, nearly 30 firm will present the 21st annual ter Hauspurg and Brian Ezratty at preciative of what they’ve done for
directors for this honor—and to years later. Gerald W. Bridges Salesman of the Eastern Consolidated; and Woody me. Frank Patafio, Russ Appel and
everyone who has, even tangen- Year Award to our top agent. Heller at Studley. They are all the Joel Wiener continue to show con-

A
tially, been a part of this wonder- fter graduating from Whar- In the early days of prospecting, finest of professionals and among fidence in me year after year, and
ful ride. ton, I decided to take a full- I was fortunate to stumble upon the nicest people you could meet. I’m very grateful. Joe Sitt has been
Probably the nicest thing about time position with CB in their Louis Brause, who owned two prop- Other brokers have helped me consistently great to work with,
being notified that I would receive Manhattan office. On my first day erties in the territory I was cover- in many ways. Mary Ann Tighe has and Andy Davidoff has not only
this award is that it made me take on the job, I met this other young ing. In my first cold call to him, I ex- been an inspirational leader in our been a wonderful client but has be-
a step back and consider the whole guy named Paul Massey. He had plained that I wanted to meet with industry and I congratulate her on come a valued friend.
history of my career. And worked for CB in the him to discuss what Paul and I were becoming the first woman to chair But no matter how small the
when I did that, I imme- same summer program, up to in our new division at Cold- REBNY. Steve Siegel is my real es- transaction, without the confi-
diately started thinking in Boston, and he’d also well. Lou suggested a meeting at tate big brother who has always dence and trust of each client, a
of all the people who’ve decided to give the build- his office at 52 Vanderbilt Avenue. I been there with the right advice track record cannot grow. There-
helped me along the way, ing sales business a go in said, “Vanderbilt Avenue? Where’s at just the right time, and I could fore, I’m extraordinarily thankful
without whom I would the Big Apple. CB had that?” I can just imagine what kind never forget one of the first bro- to each and every client with whom
never have been consid- about 50 office leasing of second thoughts that response kers I co-brokered a sale with, Sid- I’ve ever worked.
ered for this recognition. brokers in New York at must have given him. Fortunately ney Rosenthal, who taught me a lot The many past and present
My first serious expo- the time, and four build- for Paul and me, Lou kept the meet- about what being a sales broker members of my Massey Knakal
sure to the real estate in- ing sales brokers, includ- ing and became a great friend to us. was all about. family have had a huge hand in
dustry took place by acci- ing Paul. The three other I’m especially honored and flat- that track record—from all of my
dent, during spring break
of my freshman year at Robert Knakal sales brokers each had
about 20 years of expe-
tered when I note that this award
puts me in the company of so many
partners, including John Ciraulo,
Tom Donovan, James Nelson, Shi-
the Wharton School, in Columnist rience and wanted noth- There was no Web in 1981, legendary brokers whom I respect mon Shkury, Christy Moyle, and
1981, when I, along with ing to do with the young and admire, including Steve Sie- Mike Wlody; to our management
just about every oth- kids—so, on my second so I went to the library prior gel, Ray O’Keefe, Dan Gronich, team, including Gia LaMarca, Kyle
er Wharton kid, wanted to be the day on the job, Paul and I formed to the interview to do some Stephen Riker, Ben Fox, Mary Ann Mast and Ken Krasnow; to each
next hot shot to take over Wall a partnership that has lasted for Tighe, Eugene Hegy, Bruce Mos- broker; to our part-time interns.
Street. I wanted a summer job that 26 years and counting. Thousands research on this bank so ler, Earl Atlman and my partner, My personal team members, Jon
would look good on my résumé, so of days and tens of thousands of that I’d be prepared. When Paul Massey, who was the recipi- Hageman, Elysa Berlin, Tom Wil-
I applied at every commercial bank conversations later, I can say that ent three years ago. This recog- loughby, Kevin Gleason and Greg
and investment bank I saw in Ber- I have been so lucky to have a great I discovered that Coldwell nition is particularly meaningful Postyn, and my personal assistant,
gen County (which is where I grew business partner who has driven Banker was a real estate to me as Lou Smadbeck was one Erin Mitchell, are second to none
up). I walked out of a Paine Web- me to do better than my best every of those early members of the in terms of supporting my efforts.
ber office in Continental Plaza and, day. Thank you, Paul. company, I almost didn’t go Sales Brokers Committee whom I Past team members include Danny
across the hall, I saw “Coldwell The CB years were so much fun. to the interview. learned so much from. He was gra- Hagan, Mike Desjadon, Mike So-
Banker.” I thought it was another There was a group of us who all cious enough to send Paul and me leimani, David Kalish, Casey Mc-
bank, so I dropped my résumé off started together and went through a kind letter in November of 1988, Cormack, J.J. Stanton, Meyrick
there, too. the “start-up phase” of what was a congratulating us on the opening Ferguson, Michael Decheser, Peter
Just a few hours later, I received very challenging but exciting busi- of our firm. That letter, and a photo DeCheser and James Nelson, who
a phone call asking me to come in ness. Johnny Maher, Kevin Danehy, Another of our company awards is of Lou, hangs in the reception area is not only a partner but is a top
for an interview the next day. There Paul Myers, Bob Stella, Bob Law, named in his honor, recognizing all of our Manhattan office. producer at the firm.
was no Web in 1981, so I went to the Kim Mogul, Jackie Mansfield and of the guidance he provided. All I can say is thank you to all

I
library prior to the interview to do many others were all there with As our careers progressed, Paul can also think of so many clients of you, mentioned here or not,
some research on this bank so that Paul and me, and we all fought to and I became aware of the Real Es- to whom I owe so much. I apol- who have participated in transac-
I’d be prepared. When I discovered make our mark on the industry. tate Board of New York and the tre- ogize to each of you for not be- tions with me. This is a business in
that Coldwell Banker was a real es- Dinners often consisted of one pur- mendous work it does on behalf ing able to mention you all here by which success cannot be attained
tate company, I almost didn’t go chased beer and the systematic dis- of our industry. In the mid-1980s, name. I must, however, acknowl- without significant help. I’ve been
to the interview. But I went, and it mantling of the free hors d’oeuvres we both set the goal of becoming edge a few. I’ll be forever grateful very lucky to have had so many
was the only company to offer me bar at the Charley O’s in the ground members of REBNY’s Sales Brokers to Harry Macklowe for allowing me wonderful people to enjoy this in-
summer employment, so I took the floor of 437 Madison Avenue. Committee—and after months of to represent him in several transac- credible job with, and also lucky to
job somewhat reluctantly. Paul and I closed our first harassing Jack Hill, who oversaw tions, including the sale of his mul- have accidentally found a vocation
From my first day there, I loved transaction in March of 1985, a the committee in those days, we tifamily portfolio, one of the most I love so much.
it. It was an energetic environment 20,000-square-foot commercial finally did. It was on that commit- rewarding transactions I’ve ever rknakal@masseyknakal.com
with hardworking people making building located at 1421 Third Av- tee that we made several of the worked on. Before Ofer Yardeni be-
a lot of money and having a lot of enue that almost burned down the relationships that we still cherish came the maverick investor that he Robert Knakal is the chairman and
fun. The result was three college night before the closing. But the to this day. The comradely nature is today, he was a sales broker, and founding partner of Massey Knakal
summers working at CB. It was building survived; the sale closed; of the sales brokerage business in we completed the sale of a prop- Realty Services, and has brokered
there that I developed friendships and when we got back to the office, New York would surprise many erty on West 28th Street together the sale of more than 1,050 proper-
with two senior brokers who were our mentor, Gerry Bridges, was people. Among our competitors, in the early 1990s. I’m honored to ties in his career.
willing to befriend a young, wide- happy to take “the rookies” to a we’ve met a lot of people whom count him as one of my clients to-

26 January 19, 2010 observer.com | the commercial observer

 FEIL 2009 LEASE TRANSACTIONS
The Feil Organization would like to express our gratitude to the brokers who helped make 2009 successful!

TENANT RSF REPRESENTATIVE BROKER TENANT RSF REPRESENTATIVE BROKER

200 West 57th Street Seven Penn Plaza (370 Seventh Avenue)
57 Wellness Beauty 1,783 Fuminori Yokoyama Goldstick, Weinberger, 4,509 Simeon Weber Norman Bobrow & Co.
Bette Bruam, LCSW, PC 930 Jeff Buslik Adams & Company Feldman & Grossman
Dr. Christian Chung, DDS 2,210 Kat Hwang Rice & Associates, LLC Sinel & Associates, Esq. 3,751 Michael Kaufman Kaufman Organization
Hudson Pilot, LLC 1,350 Ira Fishman ID Real Estate Partners, LLC Tarlow & Company CPA’s 7,795 William Berkis, Jr. Winoker Realty
Immuno Health NY, LLC 982 April Summars City Connections Wounded Warrior 4,366 Brian Hay CB Richard Ellis
Jonathan Moldover, MD, LLC 2,039 Joshua Goldman Cushman & Wakefield, Inc.
Leonard Rubin, MD 878 David Amsterdam Cushman & Wakefield, Inc. 250 Park Avenue South
Blue Tee Corp. 6,541 James Searl, Ross Eisenberg CBRE
140 West 57th Street Hay House 2,633 Elliot Warren Kaufman Organization
Euro-Center USA, Inc. 3,461 Brian Siegel The Lawrence Group Madison Trading 11,683 Daniel Madison Newmark Knight Frank
Madison One, LLC 3,256 Ken Fishel Legacy Real Estate Joshua Friedman

488 Madison Avenue 257 Park Avenue South

Alzeon Holdings 3,743 Jay Futersak Dakota Realty Bluestone Residential 4,726 Jamie Covello Cushman & Wakefield, Inc.
Crowe Horwath 26,827 Paul Haskin CB Richard Ellis Management Nicholas Weld
Gerber Finance 4,925 Rob Silver Newmark Knight Frank M. Moser Architects 6,620 Randy Abend, Ken Siegel Jones Lang LaSalle
Karpas Strategies 1,181 Arthur Delmhorst Delmhorst & Sheehan, Inc.
Pustorino, Puglisi & Co. 13,081 Michael Burgio Cushman & Wakefield, Inc.
853 Broadway
Michael Gambino
Xerox 4,528 Doug Neye Jones Lang LaSalle BP Reprographics 7,687 Nathan Hale Mohr Partners
Dr. Edward Gorecki & 1,416 Allan Gallaway Kurland Realty
570 Lexington Avenue Howard Schissler
HL Group 7,381 Bret Varricchio Hunter Realty Organization
Archer Capital 3,970 Sinclair Li CB Richard Ellis
Make Up For Ever, LLC 7,686 Jamie Katcher, Don Preate Cushman & Wakefield, Inc.
Carrera Willowbridge 4,205 Joel Burris Brown Harris Stevens
Momofuku Holdings 1,516 Rafe Evans Walker Milloy
The Finsbury Group 7,080 Sacha Zarba CB Richard Ellis
Levien & Company 893 Alan Grossman ARG Realty
Queens Atrium (30-20 Thomson Avenue), Long Island City
Marex Financial 3,970 Adam Schultz CB Richard Ellis
Miller & Wrubel 8,598 Audrey Novoa Murray Hill Properties City University of New York 167,309 Barry Rosner Newmark Knight Frank
Modern Realty, Inc. 2,772 Cory Borg Newmark Knight Frank
Natanold Management Corp. 1,743 Jared Freede First Service Williams 2001 Marcus Avenue Lake Success
The Real Estate Board of 24,213 Sacha Zarba CB Richard Ellis Allergy & Asthma Care of 1,615 Frank Pagano Corporate National Realty
New York Lauren Crowley Nassau & Suffolk Dan Wiener
Ziegler, Ziegler & Associates 3,970 David Berke Cushman & Wakefield, Inc. Carillo & Kober CPAs 1,167 Jeff Cebula Sutton & Edwards
City Underwriting 10,295 Gus Nuzzolese Sutton & Edwards
Fred F. French Building (551 Fifth Avenue) Horowitz & Tanenbaum 3,536 Michael DiDonato Navigator Consulting Group
Savin Diamond Corp. 2,320 Jonathan B. Fein Cushman & Wakefield, Inc. InVitro Sciences 3,099 Jeff Cebula Sutton & Edwards
Jack Cohen Perry J. Milman, MD PC 4,133 Richard Someck Sutton & Edwards
Simon & Partners, LLP 5,510 Eric Zemachson Newmark Knight Frank Saft America 2,963 Jeff Cebula Sutton & Edwards
Chris Mongeluzo
100 Quentin Roosevelt Boulevard Garden City
145 West 30th Street EuroNext Asset Management, LP 782 Neil Creedon Sutton & Edwards
Amalgamated, LLC 8,101 Andrew Beckler Feld Real Estate Suite Space, LLC 2,990 Michael D. Ventre Windsor Commercial
New Age Training 8,101 David Menaged Intrepid Real Estate Group Viraj USA, Inc. 1,391 Neil Creedon Sutton & Edwards
Michael Chera
3601 Hempstead Turnpike Levittown
261 Fifth Avenue
Bernhardi Corghill 2,525 Christopher Stack CBRE
Babine Lake 8,575 Richard Phlen, Seth Hecht First Service Williams Michael Corrigan, LLC 2,097 Vincent LaManna, Richard Freel CBRE
DWI Holdings Inc. 13,678 Michael Norris Colliers ABR Premier Merchant Processing 1,899 Neil Creedon Sutton & Edwards
Raxon Fabrics 8,437 Rob Silver, Neil Rubin Newmark Knight Frank System Management 1,519 Vincent LaManna CBRE
Richard Freel

Seven Penn Plaza, New York, NY 10001 F T 212 563 6557 F 212 563 6657 F www.feilorg.com

Nothing Beats 50 Years of Stability.

the commercial observer | observer.com January 19, 2010 27

THE SIT-DOWN
 



Madame Chair
CB Richard Ellis’ Mary Ann Tighe
on REBNY 2010, recent leases and
Mayor Bloomberg
BY JOTHAM SEDERSTROM
The Commercial Observer:
Congratulations on becoming
chairwoman for the Real Estate
Board of New York. What will be
your first order of business as
chairwoman?
Ms. Tighe: Last week, I met with
the executive committee of REB-
NY. In the last quarter of 2009, I
joked that I went on a listening tour,
where I met with as many members
as I could of the board of governors
and the executive committee and as
many of the past chairmen as were
able to find time to meet. [REBNY
president] Steve Spinola, his staff
and myself put together priorities
for REBNY to focus on in 2010. We
talked to the executive committee
and got their sign-off on those pri-
orities, and we’ve begun to organize
ourselves around those priorities.
And what are those priorities?
We put together a collection of
priorities that really are aimed not
only at real estate but also at things
we believe are critical for the well-
being of the city. The first priority
is to advocate for programs that in-
centivize job creation and reten-
tion in New York City, and we’re ac-
tually making a specific proposal,
which our economic development
committee has put together for the
[Economic Development Corpora-
tion], for tax credits related to peo-
ple who are bringing new employees
to the city. The second priority is to
advocate for fiscal discipline at the
city and state level. The third prior-
ity is to work with all relevant par-
ties to encourage the development
of affordable housing. The fourth is
to advocate for a better and stronger
Buildings Department.
We think they’ve done a great job
on dealing with security at construc-
tion sites, but, meanwhile, there are
a number of hurdles that need to be
overcome in terms of making the
management side of the operation
flow better so we can be ready for
the next construction cycle. Also,
we’re concerned because the unem-
ployment rate among the construc-
tion trades is 25 percent in the city
right now, and there are over 500
projects that are stopped; so we
want to work, in general, with the
city to try to deal with unemploy-
ment in the trades as well as some of
the jobs that are troubled.
28 January 19, 2010
Another priority is that we want
to seek more federal infrastructure
dollars because New York City has
not gotten its fair share.
We want to support immigration
reform, and, finally, we want to en-
courage everyone to participate in
the 2010 census.
Looking inward, do you have a
cohesive vision for REBNY?
REBNY’s structure is a strong
and very healthy structure. I think if
there was any area of focus, it’s that
we want to continue to expand the
membership. We’re 12,000 strong
now, but we want to bring in more
young members.
‘[W]e’re concerned because
the unemployment rate
among the construction
trades is 25 percent in the
city right now and there are
over 500 projects that are
stopped; so we want to work,
in general, with the city to
try to deal with unemploy-
ment in the trades as well
as some of the jobs that are
troubled.’
You mentioned the Buildings
Department. With REBNY being
such a powerful lobby, I’d love
to hear your opinion of Mayor
Bloomberg.
There’s no official REBNY stance
on the mayor, except to say that the
city has flourished under his lead-
ership and that in this very difficult
economic time for the city, we all feel
blessed that such a skilled business-
man and manager is at the helm. So
I think we can only feel very positive
that he’s leading us these next four
years.
Take off your REBNY hat.
What’s your personal opinion
about Bloomberg?
I personally believe everything I
just said. This is a case where there’s
just a period of stress on a lot of the
different systems in the city, and it is


a very happy thing to wake up in the
morning and know crime is down in
New York. It’s a wonderful thing to
realize that there are fewer deaths in
the Fire Department. And it’s won-
derful to know he’s continuing to
fight the good fight for the schools of
the city, and our role at REBNY is to
make sure the physical environment
keeps up with his grand vision.
You’re the first woman to be
elected chairman in REBNY’s
113-year history. Is that shock-
ing to you? Is it a significant
benchmark in your mind?
It means a great deal to me, but I
can’t say that I’m shocked, because
our industry has tended to be slow
to change. I think that’s probably the
best way to describe it. I think it’s
only within the last 20 years or so
that you’re beginning to see the fe-
male membership of the Real Estate
Board growing significantly. I don’t
mean that historically there haven’t
been important women in New York
real estate—because there are many
of them—but they have been iso-
lated cases. The good news now is,
there have been a number of women
in our industry who would qualify to
be chairman of the Real Estate Board,
and what’s nice is that the executive
committee and our president, Steve
Spinola, has decided it was time to
recognize somebody. But, believe
me, there are several others who
could just as well be in my role.
You’ve been hailed as one of the
most influential women in New
York City by the New York Post.
Do you agree with that state-
ment?
If it means having the ability to get
things done—that you can envision
something and get it done—than I’d
like to think yes, that that’s the case.
There are a few things I’ve managed
to get done that make me feel like I
can have some impact on our city.
Can you name one of them?
I think you can look at two tow-
ers that are standing that I don’t
think anybody would’ve bet on. The
Condé Nast at Four Times Square,
which was the first new construc-
tion in a decade and the first build-
ing at Times Square. As you probably
know, it was a project that was held
up for more than two decades. And
then, of course, there was the New
York Times building at a site that
I don’t think most people thought
was coming into development any-
time soon.
You were honored with a ‘Life-
time Achievement’ award by
REBNY at its award ceremony.
That must be a little weird,
right?
You know, I suddenly thought to
myself, ‘Oh my! Am I that old?’ On
the other hand, that night was so
fun. I always joke that 25 years ago,
I was so intimidated by the event,
and now it seems like I’m going to a
family wedding. I mean, it has that
kind of festive feeling for me, so the
award just added to that.
In a previous life, you worked at
ABC, where you helped to create
the A&E network. What do you
think of A&E these days? Are
you watching it?
I love A&E. One of the things that
gave me great pride … I can still en-
vision the moment, on a yellow le-
gal pad, I wrote down ‘Arts & Enter-
tainment’ and then crossed out the
letters, and it’s hard to believe that
myself and a dear friend, Liz Oliver,
could be sitting at the garage she
rented in East Hampton in 1981, and
then, lo and behold, all these years
later A&E is part of the viewing land-
scape.
Have you watched The Jack-
sons: A Family Dynasty yet?
[laughs] I haven’t. I have to ad-
mit. Though I must admit I’m on the
channel all the time, but I haven’t
observer.com | the commercial observer
Earlier this month, legendary CB Rich-
ard Ellis tristate chief executive Mary
Ann Tighe officially moved into her
new role as chairwoman of the power-
ful Real Estate Board of New York. The
Commercial Observer spoke to Ms.
Tighe last week about her place in real
estate history, the city’s revitalization
and her priorities for REBNY.
gotten to that. [laughs] I’m sure I
would enjoy it, though.
Let’s shift from the Jacksons
and go back to real estate.
What’s your outlook for 2010?
I think we’re already in the pro-
cess of seeing an uptick. In the leas-
ing market in Manhattan, we’re
seeing an increase in activity. The
five-year rolling average in midtown
leasing, just to give one statistic, is
1.2 million square feet per month.
We were under that number until
June, when we broke through the
million-square-foot mark. With the
exception of one month, we’ve been
up every month. In December, we
did 1.6 million square feet of leas-
ing in midtown. Every single market
all had their availability rate drop—
not hugely, but at least 10 or 20 ba-
sis points for each one. In addition, I
think most of them had positive ab-
sorption, if not all of them.
What’s happened is very simple:
We now have enough volume to es-
tablish where pricing is. Once you’ve
established pricing, people feel con-
fident they can transact.
jsederstrom@observer.com
 ELEVEN TIMES SQUARE
SUMMER 2010

SJP Properties 212.344.6364

CBRE 212.984.8350

the commercial observer | observer.com January 19, 2010 29

POWER BROKER: TODD KORREN
 
 




The Downtowner
REBNY honoree and Swig ace focuses on luring tenants to Lower Manhattan
BY JOTHAM SEDERSTROM
role in luring people to Battery Park
City in the late 1980s, back when the

A
t one time or another during
his 25-year career, Todd Ko-
rren has donned nearly ev-
ery hat that can be worn in the real
estate industry. But whether he’s
served as a leasing agent, property
manager, developer or acquisitions
pro, one puzzle the Swig Equities se-
nior vice president has yet to solve is
the one he is reminded of each time
he returns to his William Street of-
fice: How do you keep Lower Man-
hattan desirable for potential ten-
ants?
Indeed, as a member of the Real
Estate Board of New York’s Down-
town Rental Conditions Committee
Mr. Korren said that he ex-
pects to announce what may
be the largest transaction
of the year within several
weeks, when an undisclosed
tenant signs a 120,000-foot
lease at 110 William. But Mr.
Korren, who is bullish on
Lower Manhattan, suggest-
ed that the deal could be the
first of many for Swig and
its portfolio of downtown
properties this year.
area was in its earliest development
phase and not yet the vibrant com-
munity it is today.
“Back then, there was literally
one building, for all intents and pur-
poses,” recalled Mr. Korren. As for
how difficult it was to lure tenants
and residents to the area, Mr. Kor-
ren said it was no walk in the park.
“Especially in the winter, when it
was very cold and there weren’t a lot
of attractions. That was before the
movie theater was there and before
you had other buildings. Taxicabs
weren’t even coming over there yet.
It was very inconvenient.”
Since then, Mr. Korren has em-
barked on a career that offers a pan-
oramic view of the real estate indus-
try. From positions at construction
management company Structure
Tone to the mechanical and elec-
trical contractor EMCOR Group, he
has learned the business by work-
ing from the ground up and has of-
ten followed a project from concept
to completion.
“I’ve always felt that the best way
to sell a product is by really under-
standing the product and to sell it
from a position of confidence,” said
Mr. Korren, 45, who has been mar-
ried for 20 years to his wife, Donna,
and has two young daughters. “The
best way to sell from a position of
confidence is having knowledge. I’m
very interested in learning, and I’ve Todd Korren joined Swig
always been somebody who’s con- Equities in 2004, after
tinued to learn during my career.” stints with the Witkoff

and of a subcommittee focused on
drawing new tenants to Lower Man-
hattan, Mr. Korren has emerged as
one of the area’s most committed
advocates.
“We’re trying to figure out how to
make downtown more competitive,”
said Mr. Korren during an interview
at his office at 110 William, one of
the downtown properties Swig op-
erates. “The question is, how do we
lure tenants downtown, and how do
we improve retail conditions and en-
courage them to come down here?”
Mr. Korren is nothing if not pas-
sionate about Lower Manhattan,
where the Roslyn, N.Y., resident first
got his start in the real estate indus-
try. As a college student at New York
University, Mr. Korren worked for
Rockrose Development, a job that
allowed the young upstart to play a
I
n total, he has negotiated more
than 830 leases represent-
ing over 5 million square feet
of property during stints at such
companies as the Witkoff Group
and Rockrose Development, where
he returned as a managing direc-
tor in 2001. He also played a role
in more than 20 acquisitions, with
a combined value in excess of $1.2
billion, he said.
Last year, Mr. Korren and Swig
Equities—where he has operated
since 2004—completed capital-im-
provement projects at all seven of
the company’s Lower Manhattan
properties, including lobby and fa-
cade renovations at buildings such
as 110 Williams Street and 90 Broad
Street.
The capital-improvement proj-
ects were made easier thanks to a de-
cision by Kent Swig in 2007 to take a
break from acquiring new projects
and instead to move to refinance
Swig’s existing assets—a strategy
that turned out to be prescient, said
Mr. Korren.
“This was before you had the sub-
prime crises,” Mr. Korren recalled.
“Kent realized we needed to stop and
get the properties leased up and sta-
bilized so we could refinance them,
and we did have a concern that there
was going to be some sort of credit-
induced crises that would affect our
ability to refinance our properties
over the next 24 months.”
But what Mr. Korren appears to
be most passionate about these days
is his work in Lower Manhattan and
his efforts to draw new tenants to
the area. Although many questions
about construction at the World
Trade Center have yet to be an-
swered, Mr. Korren said that delays
have not kept people from flocking
to other areas of Lower Manhattan
below Canal Street.
“What’s an interesting fact—and
something I like to tell people—is
that downtown Manhattan, exclud-
ing Tribeca, has the fastest-growing
residential population within all five
boroughs,” he said. “The fastest-
growing residential population! It’s
literally doubling since 2000. And
that’s absolutely amazing.”
Mr. Korren said that he expects
to announce what may be the larg-
Group and Rockrose
Development, among
others.
est transaction of the year within
several weeks, when an undisclosed
tenant signs a 120,000-foot lease at
110 William. But Mr. Korren, who is
bullish on Lower Manhattan, sug-
gested that the deal could be the first
of many for Swig and its portfolio of
downtown properties this year.
“Where the uncertainty still re-
mains is the access to the subways,
whether it be the Calatrava station
or when the PATH station will be fin-
ished,” he said. “Those are really the
questions people would like to have
answered. But as those dates start to
get firmly finalized, you’ll see people
start to move back down here.”
jsederstrom@observer.com
JB REED

30 January 19, 2010 observer.com | the commercial observer

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the commercial observer | observer.com January 19, 2010 31

BUILDING STORIES: 77 Water Street
‘No-Nonsense’ and a Sopwith Camel
Studiously economical, full of empty Goldman turf, now teeming with new leases
BY EMILY GEMINDER
B
uilding tops in downtown Man-
hattan offer little in the way of
eye-catching spectacle—imag-
ine, for a minute, that you’re staring
down, not up, at one of those gar-
gantuan fortresses of steel—and 77
Water Street is not a structure that
readily distinguishes itself from its
Financial District cohorts. It’s an
oversize air-conditioner of a build-
ing, vents running like industrial
gills up its sides, roughly the color of
an old computer monitor.
But if you could manage a glimpse
from above, you’d see its airplane.
For the past four decades, a World
War I Sopwith Camel fighter has
sat idling on a long green runway
atop the building’s roof. A source of
amused curiosity for the denizens of
overlooking skyscrapers (as well as
some initial trouble with the Federal
Aviation Administration), the life-
size model airplane has otherwise
maintained something of a nonexis-
tent existence. Not open to the pub-
lic, invisible from the street below,
it sits at the edge of its runway eter-
nally poised for flight.
In March of 2008, Goldman Sachs
put 77 Water Street on the mar-
ket. It had leased the entire near-
ly 600,000-square-foot building in
2000—one of several ancillary office
buildings it rented in the neighbor-
hood of its Broad Street headquar-
ters. That was at the height of the
1990s dot-com boom, when projec-
tions indicated the firm’s workforce
could expand to as many as 30,000
employees within a decade. It was
also the year that the boom went
bust, and Goldman never moved in.
Now after close to a decade, as the
THE VITALS
Year Built: 1970
Landlord: Sage Realty Cor-
poration
Square Footage:
Building: 541,569
Office: 541,569
Lot: 25,779
Annual Tentative Tax Bill
(2009/10):
$3,411,545
City’s Tentative Net As-
sessed Value (2009/10):
$72,300,000
Source: PropertyShark.com
32 January 19, 2010
firm relocates its headquarters to
the new 200 West Street, Goldman
is finally closing several major deals
in the building it never actually oc-
cupied. AT&T will take the largest
plot at 100,000 square feet, followed
by law firm Lewis Brisbois Bisgaard
& Smith, UnitedHealthcare and One-
Beacon Insurance Group. The rents
were around $35 a square foot, ac-
cording to Crain’s, with generous
building allowances.
For a firm that trades largely in in-
visible things, especially if that firm
holds secrecy as a governing cove-
nant, real estate can sometimes offer
a singularly corporeal history: gam-
bles and doubling-backs, an artful
dodge of a broader economic trajec-
tory here, a negotiation of a political
one there, all spelled out in concrete
and stone. Between a roughly $40
billion government bailout, payout
on its AIG debt, prodigious bonus-
es and the recent revelation that
Goldman bet heavily against the
very mortgage-related securities it
peddled, it’s not surprising that an
empty building in the Financial Dis-
trict has received little scrutiny. But
the history of Goldman at 77 Water
Street—a non-history, really, since it
was never actually there—is an odd
glimpse into the famously guarded
company.
I
n the 1960s, Melvyn Kaufman,
the developer of 77 Water Street,
acquired a reputation as some-
thing of a maverick, an iconoclast—
a rogue developer, if you will. It’s a
reputation he earned not so much
for his buildings themselves—
numbingly banal boxes engorged to
block-swallowing hulk—but for his
attitude toward them. “Every build-
ing is an obscenity,” he once said. “I
think every building carries with it
an obligation that from the moment
you begin to the day you die, you
must apologize.”
It’s difficult to imagine many de-
velopers today apologizing for their
buildings, even when the obsceni-
ties of those buildings are mark-
edly apparent to the rest of us. But
Mr. Kaufman did more than apolo-
gize. He constructed physical incar-
nations of his apologies from metal
and stone. He commissioned art ob-
jects and whimsical public spaces in
and around his obscenities, as if to
cushion the blow. The result was a
curious dynamic: mini-carnivals en-
cased in glass-and-travertine tombs.
On Third Avenue, Mr. Kaufman in-
stalled a giant game of chess. At 127
John Street, he commissioned Ru-
dolph de Harak to create a neon-lit,
corrugated-metal tunnel for an en-
tranceway and a three-story digital
clock. The American Institute of Ar-
chitecture called it “a no-nonsense
building with a happy nonsense-
filled lobby and sidewalk.”
At 26 stories, the bland and eco-
nomical 77 Water Street was com-
pleted in 1970 with Mr. Kaufman
and his brother Robert at the helm.
The plans were drawn up by the ar-
chitects at Emery Roth & Sons, a
firm better known for its ability to
maximize net rentable area than for
its commitment to aesthetics. But
this building, too, had its swaths of
happy nonsense. A series of ponds
meandered through the public pla-
za, traversed by small footbridg-
es and filled with streambed rocks
and jumping metal fish. Heat lamps
were shaped like trees and seats like
mushrooms. Hyper-modern sculp-
tures were installed here and there,
and in an unlikely final touch, an old-
fashioned candy store was thrown
in, too.
Mr. Kaufman, an admirer of Walt
Disney, said of his building philos-
ophy, “The Disney policy, simply
stated, is to transmit pleasure and
well-being to the public.” Critics,
meanwhile, were divided on wheth-
er Mr. Kaufman’s antics amount-
ed to cartoonish afterthoughts or
transformative amalgams of enter-
tainment and urbanism. New 1961
zoning law incentives for including
The 26-story 77
Water Street was
designed by Emery
Roth & Sons.
public spaces in new buildings likely
deserved some credit also, although
it must be said, few other plazas had
the Kaufman flair for theater.
The 1961 zoning laws rung in an
era of breakneck, breathless devel-
opment, encouraging the sort of
frenzied tower erecting that the pa-
renthesis about plazas was meant to
address, however feebly. New York,
it’s often said, is not defined by any
coalescing urban vision but by a
riot of competing visions, endless-
ly writing and rewriting each other
out of existence. It’s also true, how-
ever, that commercial enterprise
has always been at the heart of the
city’s architectural schemes, all but
etched into its blueprints. The 1961
zoning laws just opened the doors a
little wider.
At 77 Water Street, with high-roll-
er tenants like IBM, European Amer-
ican Bank and Walston & Co., the
Kaufmans fell squarely into the com-
peting visions of their day. The build-
ing is a testimony to the calculus of
extracting every last square foot of
profit from a space, but it also says
something about architecture’s po-
tential for whimsy. “You make a zil-
lion dollars from a job and you plunk
it down in the middle of a block,” Mr.
Kaufman once said. “You owe some-
thing to the people for doing that,
even if it’s just a place to sit.”
observer.com | the commercial observer
W
hy did Goldman wait eight
years to even put 77 Water
Street up for lease? Clearly, it
wasn’t waiting for a favorable mar-
ket. In some ways, the building was
always something of an odd choice
for Goldman, a firm with famously
attention-deflecting preferences in
office space. The stultifying brown
85 Broad Street shows no signs of
nonsense, happy or otherwise (at
least, not in the architecture), and
neither, at twice the size and rough-
ly 14 times the cost, does the firm’s
new headquarters (though the lobby
will contain at least one $5 million
painting).
In 2003, as Wall Street was shift-
ing its speculative zeal to the hous-
ing market, an article appeared in
The Wall Street Journal concerning
new regulations on how companies
write off their empty office space.
It used Goldman’s nearly vacant 77
Water Street as a case study. (Robert
Kaufman and a Goldman spokesper-
son both confirmed that the build-
ing has remained largely empty
throughout the past decade.) Citing
the roughly $75 million charge, or 9
cents a share, Goldman would have
been forced to incur for writing off
the building, the article speculated
that large tenants were refraining
from subleasing their space to avoid
such a scenario, possibly accounting
for millions of square feet of “shad-
ow space” throughout the city. A
Goldman spokesperson quoted in
the article said the firm was not re-
quired to write off the space and that
the rules allowed for “management
judgment.”
Management judgment turned
out to be a source of other debates
at 77 Water Street. In 2004, Crain’s
reported that the Kaufmans were
threatening Goldman with potential
litigation for improper maintenance.
The public plaza had largely fallen
into disrepair: Its trees were dying
or dead, an escalator entranceway
had been boarded up, pigeons were
flying through the light fixtures. To
be fair, Goldman said it had proposed
renovations, and Melvyn Kaufman
was never one to approach litigation
timidly (he sued several neighbors in
his high-end Westchester enclave as
well as Mayor Giuliani). But it’s still
unclear what Goldman had in mind
for the empty space. In 2000, rather
than subleasing from Reliance Insur-
ance, which held a lease for 77 Water
Street through 2014, Goldman made
a direct, 20-year deal with the Kauf-
mans. In return, it wanted to man-
age the entire building. Goldman, it
seemed, had serious plans for the
real estate. So what changed?
 In the wake of Sept. 11, city and state offi-
cials forecast a mass commercial migration
from Lower Manhattan and dreamed up in-
centives to convince companies to stay. Nev-
er a company to walk away from free govern-
ment money, Goldman sought $1 billion in
tax-free Liberty Bonds and committed early
‘Every building is an obscenity. I
think every building carries with it
an obligation that from the moment
you begin to the day you die, you
must apologize.’
—Melvyn Kaufman
a shadow space. The ponds have been emp-
tied of water and rocks, stranding their jump-
ing metal fish midair. Gone too are the tree
heat lamps, and the mezzanine is boarded up
and uninhabited. A sculpture made of sever-
al large metal blocks—including one hanging
from overhead like a loose chunk of building—
looks more convincing than was presumably
intended.
The Kaufmans got their zillion dollars, but
A Special Thank You
what did the public get? It’s true that if you
really wanted to, you could still sit on one of
the plaza’s concrete benches. But you could
also sit on the curb if you really wanted to. If
the public apologies at 77 Water Street have
We would like to thank
not fared well, at least the plane, that curi-
ous anachronism atop a skyline of high-ris-
es, is still intact. Though for whom exactly
it was intended is not altogether clear—cer-
our clients for making
tainly not for the public, who never saw it, or

on to build its headquarters cater-cornered to

the World Trade Center site. Goldman, after
all, understood better than anyone that New
York City would remain the sun of the finan-
cial solar system, propelled by the millions of
invisible transactions that turn the gears of
capital enterprise.
Today, with empty real estate something
of a national hallmark, Goldman is finally fill-
ing its own. Though Robert Kaufman says the
parties have settled their differences over the
public plaza, the area has the definite look of
 expand, and look forward

JOINUSASWEKICKOFF2010…
for the employees who had no access to the
roof. Melvyn Kaufman once said of 77 Water
Street that he’d wanted “to make the build-
2009 the best year ever for
ing disappear. … The scale of any large office
building is impossible for a human being to
relate to.” NAI Global New York City.
But it was Goldman that really made the
building disappear. It’s frequently the things
beyond the scale of human imagining—com-
plex financial derivatives, speculative bub-
bles, shadow real estate—that turn into noth-
ing suddenly. It’s just that most of us aren’t up Even in this difficult market,
high enough to catch the vanishing act.
egeminder@observer.com
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the commercial observer | observer.com January 19, 2010 33

FINANCING Compiled by Roland Li with data from PropertyShark.com

Who’s Lending to Whom

New York City’s Top 15 Commercial Mortgages of the 4Q 2009
Address Amount Borrower Lender Special Notes

Mount Sinai School of Medicine of Dormitory Authority of the State of Two separate mortgage files were filed on three properties: 1474 Madison
3 East 101st Street $369,914,999
New York New York Avenue, 4-20 East 102 Street and 3 East 101 Street.

SLG Graybar New Ground Lessee LLC, part Teachers Insurance and Annuity Association
420 Lexington Avenue $145 million Two separate mortgage files were filed.
of SL Green of America

Kips Bay Development LP, DFD Develop-

550 Second Avenue $96,810,873 The Union Labor Life Insurance Company Five separate mortgage files were filed on the same day.
ment LP

New York Society for Relief of the Dormitory Authority of the State of A mortgage was taken on two properties: 535 East 70th Street and
535 East 70th Street $79,308,000
Ruptured and Crippled New York 527 F.D.R. Drive.

New York Society for Relief of the Dormitory Authority of the State of
525 East 70th Street $79,308,000
Ruptured and Crippled New York

A mortgage was taken on six properties: 55 West 53rd Street, 53 West 43rd
51 West 53rd Street $70.4 million W2005/Hines West Fifty-Third Realty, LLC The Museum of Modern Art Street, 51 West 53rd Street, 49 West 53rd Street, 44 West 54th Street and
48 West 54th Street.

515 Madison LLC (c/o Newmark Knight

515 Madison Avenue $70 million Wells Fargo Bank, National Association
Frank)

A mortgage was taken on two properties: 697 Fifth Avenue and a commercial
697 Fifth Avenue $63 million GFC Fifth Avenue Owner LLC Safra National Bank of New York
condo unit at 2 East 55th Street.

1515 Broadway Fee Owner LLC, part of SL

1515 Broadway $50 million Bank of China, New York Branch
Green

1299 Second Avenue $41,202,068 215 East 68th Street LP Prudential Multifamily Mortgage Apartment building with stores.

17 Battery Place, Unit 1 $40 million Ocean Prime LLC (c/o the Moinian Group) Metropolitan Life Insurance Company

CCP Amsterdam I LLC (c/o American

166 Amsterdam Avenue $39,950,000 KBC Bank NV
Continental Properties LLC)

105 East 17th Street $38.6 million 105 East 17th Street Associates LLC Rcg LV Debt IV Reit, LP

Three separate mortgage documents were filed on two properties:

387 West 12th Street $37,545,071 383-391 W 12th LLC CSE Mortgage LLC
383 West 12th Street and 391 West 12 Street.

A mortgage filed on nine properties in two separate documents. A third mort-

East Harlem Lexington Housing Develop- New York City Housing Development
166 East 119th Street $30,870,000 gage document was filed on the same day with the exact mortgage amount as
ment Corporation
a previously filed one.

NOTES: Property classifications were as defined in the mortgage document; apartment buildings were included. rli@observer.com
34 January 19, 2010 observer.com | the commercial observer
 REDUCED
APPLICATION FEE
OF $4,500
As well as a New Streamlined
Application Form

And, as always:
)p to 80% LTV
)upplemental Loans Available
During Loan Term and
pon Acquisition
)
1-
 Million, ! to
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We’ve enhanced our small balance loan program in a way.

There has never been a better time to apply for a small commercial
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the commercial observer | observer.com January 19, 2010 35

LEASE BEAT Compiled by Emily Geminder

MANHATTAN Email information on new leases to Emily Geminder at egeminder@observer.com

SQ. FEET TENANT LANDLORD

Cohen Brothers
622 Third Avenue 14,000 Minerals Technolo- Realty Corpora- Minerals Technologies signed an 11-year lease. FirstService Williams’ Robert D. Goodman and Seth Hecht represented
gies tion Minerals Technologies. The landlord, Cohen Brothers Realty Corporation, was represented in-house by David Nevins.

Francemen 205 GNC signed a 1,800-square-foot lease. Ariel Schuster and Greg Covey of Robert K. Futterman represented GNC in the
205 Eighth Avenue 1,800 GNC LLC transaction. Building ownership, Francemen 205 LLC, was represented in-house by Aaron Schwartz.

UNX signed a seven-year lease. Howard J. Tenenbaum and Gary M. Rosen represented
215 Park Avenue South 4,945 UNX LLC SL Green landlord SL Green.

Metropolitan Shoe
100 Park Avenue 900 Repair and Shoe SL Green Metropolitan Shoe Repair and Shoe Shine renewed its lease for 10 years. Peter Goldich of ATCO Property Service Cor-
Shine poration represented the tenant; Jeffrey D. Roseman of Newmark Knight Frank repped landlord SL Green.

D’Espresso of 42nd D’Espresso of 42nd Street signed a 10-year lease. Jeffrey D. Roseman of Newmark Knight Frank repped landlord SL
317 Madison Avenue 504 Street, LLC SL Green Green.

Korea Health In- Korea Health Industry Development Institute signed a three-year lease. Marie Hammoudi of Own Manhattan repre-
420 Lexington Avenue 957 dustry Develop- SL Green sented the tenant.
ment Institute

Metropolitan Fiber
810 Seventh Avenue 125 Systems of New SL Green Metropolitan Fiber Systems of New York renewed its lease for five years.
York, Inc

Clear Harbor Asset

420 Lexington Avenue 2,016 Management SL Green Clear Harbor Asset Management signed a three-year lease. Andrew Stein of Vicus Partners represented the tenant.

420 Lexington Avenue 1,237 KBK, Inc. SL Green KBK signed a three-year lease. Hiroshi Nagata of Sumitomo Real Estate Sales represented the tenant.

Iron Mountain In- Iron Mountain Information Management signed a five-year lease. John Moxley of Jones Lang LaSalle represented the
317 Madison Avenue 5,801 formation Manage- SL Green tenant.
ment

Macaron Café signed a 10-year lease for a new eatery. Edward J. Reilly of Reilly Real Estate represented the tenant;
625 Madison Avenue 997 Macaron Café SL Green Gregg Gropper of Newmark Knight Frank repped landlord SL Green.

Lederer de Paris Lederer de Paris Fifth Avenue signed a lease for 18 months. Jeffrey D. Roseman of Newmark Knight Frank repped land-
625 Madison Avenue 6,150 Fifth Avenue SL Green lord SL Green.

Pias Intercosmex
420 Lexington Avenue 917 (U.S.A.) Corpora- SL Green Pias Intercosmex signed a 917-square-foot lease.
tion

The Caldwell Group signed a three-year lease. Andrew Lazarus of Tudor Realty Services represented the tenant; Denise
19 West 44th Street 394 The Caldwell Group SL Green Rodriguez repped landlord SL Green in-house.

Aurora Capital Associates signed a 40,000-square-foot master lease spanning 49 years, a roughly $150 million deal.
483 Broadway 40,000 Aurora Capital As- 483 Broadway Re- Aurora represented itself in the transaction. The building owner, 483 Broadway Realty Corp., was represented in-house
sociates alty Corp. by Bruce Kaye of AKB Realty Group.

3 West 56th Street 4,762 John Richmond Lexington Build- John Richmond signed a lease for 4,762 square feet. Building ownership, Lexington Building Co., was represented by
ing Co. Ariel Schuster and Izzy Anthony of Robert K. Futterman.

36 January 19, 2010 observer.com | the commercial observer

 Behind every successful Building Owner
there is a host of incredibly talented brokers
and steadfast tenants.
Jack Resnick & Sons thanks the following firms and the brokers who represented them,
as well as our existing tenants who renewed their commitments to New York City in 2009.

The Trustees of Columbia University
in the City of New York
880 THIRD AVENUE
represented by:
Paul Wexler of Corcoran Wexler
Healthcare Properties
H&R Block Eastern Tax Service, Inc.
170 WEST 23RD STREET
Equitable Leasing Co. Inc.
110 EAST 59TH STREET
Jaffe, Ross & Light, LLP
880 THIRD AVENUE
23rd Street Spa Belle, Inc.
Jefferey P. Symmons of The Lawrence Group
170 WEST 23RD STREET
represented by:
Craig Slosberg of Newmark
Knight Frank Retail
Fisher, Harris, Shapiro, Inc.
880 THIRD AVENUE
Empire Physical Therapy
133 EAST 58TH STREET
Subway Real Estate Corp.
170 WEST 23RD STREET
Braun & Goldberg
110 EAST 59TH STREET
Hand Baldachin & Amburgey LLP
8 WEST 40TH STREET
represented by:
Joshua Goldman of Cushman & Wakefield
Hunter Global Investors, LLC
485 MADISON AVENUE
represented by:
Mike Norris of Colliers ABR
Brial Corporation
133 EAST 58TH STREET
Jeffrey A. Scolnick
133 EAST 58TH STREET
represented by:
Dr. Martin Kent
133 EAST 58TH STREET
Stevens & Lee, P.C.
485 MADISON AVENUE
represented by:
Jane Roundell of CresaPartners
Aesthetique 2000
133 EAST 58TH STREET
represented by:
Daniel Katcher of Newmark Knight Frank
Coinmach
401 EAST 80TH STREET
Staples the Office Superstore East, Inc.
1755 BROADWAY
represented by:
Chase Wells of Northwest Atlantic
Real Estate Services, LLC
Adobe Systems, Inc.
8 WEST 40TH STREET
represented by:
John Lizzul of Newmark Knight Frank
Duchateau (U.S.) LTD.
485 MADISON AVENUE
Dr. Ari Druz
133 EAST 58TH STREET
Olympus U.S. Management, LLC
485 MADISON AVENUE
represented by:
Gary Greenspan & Eric LaCousiere of
Cushman & Wakefield, Inc.
Microdot LLC
133 EAST 58TH STREET
John Lang, Inc.
485 MADISON AVENUE
represented by:
Jim Fredericks of Colliers ABR
Coinmach
235 WEST 56TH STREET
Corbis Corporation
250 HUDSON STREET
represented by:
David A. Falk and David Levine
of Newmark Knight Frank
Jack Roth, DDS
133 EAST 58TH STREET
TED Conferences, LLC
250 HUDSON STREET
represented by:
Kim Skarvelis and David Barreto
of Cast Iron Real Estate
Pace University
161 WILLIAM STREET
represented by:
David A. Falk of Newmark Knight Frank
DDG Partners LLC
250 HUDSON STREET
Hudson Practice Management
133 EAST 58TH STREET
Galaxy Lobby
199 WATER STREET
Dr. David Molho
133 EAST 58TH STREET

Jack Resnick & Sons

Owners and Builders Since 1928
110 East 59th Street
New York, NY 10022
212-421-1300
www.resnicknyc.com

Proud to be a member of

the commercial observer | observer.com January 19, 2010 37

LEASE BEAT
MANHATTAN (continued)
SQ. FEET TENANT LANDLORD

800 Third Avenue 38,000 Levy Phillips & n/a Levy Phillips & Konigsberg signed a long-term lease. Newmark Knight Frank’s Ronald E. Goldberger and Arthur Draznin
Konigsberg represented the tenant; Richard Teichman of Joseph P. Day Realty Corp. represented the building owner.

United Feather and Ten Seventy One United Feather and Down signed a seven-year renewal. The asking rent was $44 a square foot. David Levy and Jeffrey
1071 Sixth Avenue 3,368 Down Associates Schwartz of Adams & Co represented both the tenant and landlord, Ten Seventy One Associates, in the transaction.

One Ten West For- Ilene Danchig signed a five-year renewal. The asking rent was $38 a square foot. David Levy and Michael Greenberg of
110 West 40th Street 3,491 Ilene Danchig tieth Associates Adams & Co. represented both the tenant and landlord, One Ten West Fortieth Associates, in the transaction.

DMF Sales Com- 411 Fifth Avenue DMF Sales Company signed a lease renewal. The asking rent was $36 a square foot. David Levy of Adams & Co. repre-
411 Fifth Avenue 1,485 pany Associates sented both the tenant and landlord, 411 Fifth Avenue Associates, in the transaction.

David Geller Asso- Ten Seventy One David Geller Associates signed a three-year lease. The asking rent was $42 a square foot. David Levy and Jeffrey
1071 Sixth Avenue 5,336 ciates Associates Schwartz of Adams & Co. represented both the tenant and landlord, Ten Seventy One Associates, in the transaction.

Arcade Building Pryorities NY signed a seven-year lease. The asking rent was $36 a square foot. David Levy and Brett Maslin of Adams
34 West 33rd Street 943 Pryorities NY Associates & Co. represented both the tenant and landlord, Arcade Building Associates, in the transaction.

34 West 33rd Street 1,680 NY Kids Showroom Arcade Building NY Kids Showroom signed a three-year renewal. The asking rent was $36 a square foot. David Levy and Brett Maslin of
Associates Adams & Co. represented both the tenant and landlord, Arcade Building Associates, in the transaction.

48 West 37th Street 1,542 Exist Fashion Forty Eight Thirty Exist Fashion signed a seven-year renewal. The asking rent was $95 a square foot. David Levy and Joey Friedman of
Seven Associates Adams & Co. represented both the tenant and landlord, Forty Eight Thirty Seven Associates, in the transaction.

The Arsenal Com- G.F.B. Fashions signed a three-year renewal. The asking rent was $36 a square foot. David Levy of Adams & Co. repre-
463 Seventh Avenue 2,159 G.F.B. Fashions pany sented both the landlord, the Arsenal Company, and the tenant in the transaction.

155 Fifth Avenue 5,097 Cosette n/a Cosette signed a five-year deal on the fourth floor. David Greene and Louis Pappas of Murray Hill Properties represent-
ed the landlord.

4 New York Plaza 813,750 JPMorgan Chase The Harbor Group JPMorgan Chase will lease 75 percent of the 1.085 million–square–foot building from the Harbor Group for 15 years.

Department of Pro- The city’s Department of Probation and Department of Homeless Services renewed their leases for a combined
60 Broad Street 313,022 bation and Depart- Piedmont Office 313,022 square feet. Jeff Kondrat of the Department of Citywide Administrative Services represented the city. Cog-
ment of Homeless Realty Trust swell Realty’s Arthur Stern, Anthony Stapleton, Eric Sarner, Ross Jacobs and Brian Ezra represented building owner
Services Piedmont Office Realty Trust.

900 Eighth Avenue 1,300 Gourmet LTD The Moinian Restaurant Gourmet signed a lease for 1,300 square feet. Winick Realty Group’s Darrell Rubens and Annie Shinn repre-
Group sented both the tenant and the landlord.

Hudson Square Trinity Real Es-

225 Varick Street 1,500 Mart tate Hudson Square Mart signed a 12-year lease.

79 East 125th Street n/a Wendy’s n/a A Wendy’s franchisee signed a lease for another restaurant, according to the New York Post. Jeff Schettino of Gis-
combe Realty represented both landlord and tenant.

1290 Sixth Avenue 16,000 Kintetsu Interna- Vornado Realty Kintetsu International Express, a Japanese travel agency, signed a 14-year deal. The asking rent was $57 a square foot,
tional Express Trust according to Crain’s. Paul Myers and Michael Movshovich of CB Richard Ellis represented Kintetsu. Building owner Vor-
nado represented itself along with brokers from Cushman & Wakefield.

38 January 19, 2010 observer.com | the commercial observer

LEASE BEAT
MANHATTAN (continued)
SQ. FEET TENANT LANDLORD

44 West 18th Street 33,300 National Forty Four Eigh- National Reprographics renewed its lease. The asking rent was $30 per square foot, according to Crain’s. James Buslik
Reprographics teen Associates and Alan Bonett of Adams & Co. represented both tenant and landlord Forty Four Eighteen Associates.

Los Angeles–based Lucca Antiques signed a five-year lease for 2,500 square feet on the ground floor and 2,000
182 Stelen Realty square feet in the basement. The asking rent for the ground floor was around $77 a square foot, according to Crain’s.
182 Duane Street 4,500 Lucca Antiques Co Robin Abrams and Joe Leinsdorf of the Lansco Corp. represented Lucca. Roxanne Betesh and Sarah Shannon of Sinvin
Realty represented landlord 182 Stelen Realty Co.

601 Lexington Avenue 165,000 Citadel Investment Boston Properties Citadel Investment Group expanded its lease from 90,000 square feet to 165,000, according to the New York Post. CB
Group Richard Ellis’ John Nugent represented the tenant. Andrew Levin represented Boston Properties in-house, along with
Jones Lang LaSalle’s Frank Doyle.

One Whitehall Street 42,000 Choice Logistics Rudin Family Choice Logistics expanded its lease by 7,000 square feet, extending its 35,000 existing square feet, according to the
New York Post.

RCN NY Communi- RCN NY Communications extended its lease by 24,707 square feet for a total of 44,707 square feet, according to the
55 Broad Street 44,707 cations Rudin Family New York Post.

Align Communica-
55 Broad Street 24,707 tions Rudin Family Align Communications signed a lease for 24,707 square feet, according to the New York Post.

Francois Latapie signed an 1,800-square-foot lease, according to the New York Post. JDF Realty’s Leslie Siben brokered
118 Greenwich Avenue 1,800 Francois Latapie n/a the transaction.

THE LOBBY

and private-equity players during

BY JOTHAM SEDERSTROM
Wolf Devours Ler-
man’s Experience
Ilan Lerman, a Manhattan-
based attorney known for his rep-
resentation of myriad developers
a 12-year legal career, has joined
Introductory Offer!
Wolf Haldenstein Adler Freeman &
Herz as a partner in the law firm’s
real estate practice.
Previously of counsel for the firm
Paul, Hastings, Janofsky & Walker,
where he had served since 1998, $14 for 49 issues.
Mr. Lerman will now be tasked with
representing many of the 122-year-
old company’s most powerful real
estate clients. In fact, the Benjamin
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has already provided legal repre- subscription prices.
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subscriptions-14
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the commercial observer | observer.com January 19, 2010 39

THIS WEEK’S PHOTOS

Monday Properties’ Unveiling of $1 M. Renovation and Mural

230 Park Avenue, January 11

The unveiling of the new lobby mural. (l-r) Robert Tierney, Landmarks Preservation Commission chairman; Anthony
Westreich, Monday Properties CEO and president; Manhattan Borough Presi-
dent Scott Stringer; and City Councilman Daniel Garodnick.

The Young Men’s/Women’s Real Estate Association

Monthly Luncheon
The University Club, 1 West 54th Street, January 12

(seated, l-r) Glen J. Weiss, chairman

of the YM/WREA; Harold Fetner,
president and CEO of Durst Fetner
Residential; Jody Durst, president of
the Durst Organization; and Robin
F. Fisher, vice chairman of the YM/
WREA. Messrs. Fetner and Durst were
guest speakers.
(standing, l-r) Glenn Tolchin and Lind-
say Ornstein, YM/WREA governors;
Michael Rudder, treasurer; Brandl
SUSAN STAVA; ANNA PASZTOR-BECKER

Frey, who heads the association’s

membership; Alison Coffey, governor;
and David Berke, secretary.

40 January 19, 2010 observer.com | the commercial observer

 the commercial observer | observer.com January 5, 2010 

the commercial observer | observer.com January 19, 2010 41
THIS WEEK’S PHOTOS
REBNY’s ‘Deal-Making During the Downturn’ Seminar
The Mendik Education Center, 570 Lexington Avenue, January 12

Panelists Norman Sturner of Murray

Hill Properties; Mark Weiss of Newmark
Knight Frank; Alan Victor of the Lansco
Corporation; Brian Gell of CB Richard El-
lis; and moderator Kenneth McCarthy of
Cushman & Wakefield.

CMBS CORNER Nigel Holmes

Source:
TREPP LLC

42 January 19, 2010 observer.com | the commercial observer

the commercial observer | observer.com January 19, 2010 43
TWEET WEEK
BY ROLAND LI
T
his week is divided between
looking forward and backward,
with the largest Upper Manhat-
tan sale of ’09 and fourth-quarter re-
ports, alongside current humanitar-
ian and local crises.
CB Richard Ellis (@cbrenyc)
issues fourth-quarter reports.
CBRE Manhattan Market Re-
search Media Breakfast: Manhattan
office market’s 2009 slide hits the
brakes http://bit.ly/7W7PHq
7:38 AM Jan 13th from Tweet-
Deck
RT @cbrecorp CBRE EA: US office,
industrial & retail vac rates continue
to rise, but pace slows; multi-family
unchanged http://bit.ly/5rCE1X
7:22 AM Jan 13th from Tweet-
Deck
Cushman & Wakefield (@
CushWakeNYC) is generous
44 January 19, 2010
with the re-tweets.
RT @CarylComm: Reading big-
news: CUSHMAN & WAKEFIELD
INKS 32,000-SQUARE-FOOT HEAD-
QUARTERS RENEWAL http://bit.
ly/8bHOZQ
9:31 AM Jan 14th from web
RT @CrainsNewYork: Manhattan
leasing activity dropped 15% in 2009
http://bit.ly/4ZcMKC
10:58 AM Jan 12th from web
Triennale Design Museum to open
first U.S. location at 40 West 53rd St
- http://tinyurl.com/yebukga
8:10 AM Jan 12th from web
Massey Knakal (@
masseyknakal)’s biggest sale:
$26.9 million in cash.
MK Closes Largest Upper Man-
hattan Sale of 2009 http://bit.
ly/7OSnIO
7:26 AM Jan 15th from web
Why to buy investment proper-
ties in Queens: http://bit.ly/8GPaLP
11:27 AM Jan 14th from web
Check out Robert Knakal’s latest
StreetWise post:10 Things to Watch
in 2010 (Part 3) http://bit.ly/6wUeDt
6:28 AM Jan 14th from web
RT @greenpearlnyc: NYC Real
Estate Execs to Speak at Distressed
Real Estate Summit, Feb 4, includ-
ing: Lenobel, Chandan, Knakal
http://bi ...
8:29 AM Jan 13th from web
MK Sells Six Brooklyn Buildings
in December with an aggregate val-
ue of over $6.5 million. http://bit.
ly/5C108d
7:48 AM Jan 13th from web
Eastern Consolidated (@East-
ernconsol) brings the listings.
Cobble Hill mixed-use residen-
tial opportunity at 495 Henry Street
for sale, with price break, http://bit.
ly/5UUjIw
2:11 PM Jan 14th from web
133-135 Greenwich Street, prime
Downtown location, +/-150,000
buildable sf & plans for 33-story
luxury tower, for sale, http://bit.
ly/8hTy5a
2:08 PM Jan 14th from web
Prime New York Downtown +/-
5,125 sf vacant development site for
sale at 115-117 Nassau Street, http://
bit.ly/5bOpMN
12:59 PM Jan 13th from web
CPEX Real Estate (@CPEXRe-
alEstate) joins the relief efforts.
Text “HAITI” to 90999 to donate
$10 to Red Cross relief efforts in
#haiti
8:30 AM Jan 15th from CoTweet
New Listing: 314-318 49th St in
Brooklyn. 4,600 sf development site
in Sunset Park. Asking $975k. http://
bit.ly/8TytGU
observer.com | the commercial observer
11:00 AM Jan 13th from CoTweet
Event: Timothy D. King will be a
panelist at the @BROOKLYN_EDC
Supermarket Attraction Seminar
1/14/2010. http://bit.ly/5EDncW
8:30 AM Jan 13th from CoTweet
REBNY (@rebny) takes on the
M.T.A. and President Obama.
At the ABNY breakfast this morn-
ing, MTA CEO Jay Walder promised to
fix inefficiencies & bring better service
to NYC; REBNY hopes he delivers.
6:05 AM Jan 16th from HootSuite
Mayor Bloomberg is right: Obama
bank tax will hurt NYC: http://ow.ly/
WTqU
12:05 PM Jan 15th from Hoot-
Suite
Mass transit is NYC lifeline- MTA
faces $400M deficit in 2010.
9:56 AM Jan 15th from HootSuite
rli@observer.com
 
 
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the commercial observer | observer.com January 19, 2010 45
CALENDAR
BY JOTHAM SEDERSTROM
TUESDAY, JANUARY 19
So, the first fairly obvious problem
with holding a business-card-ex-
change party at a barbecue joint is,
well, just really fairly obvious. But
once you get past the challenges of
handling barbecue sauce and small
pieces of cardboard simultaneously,
the Evantz Saint-Gerard & Dean
Graber–sponsored Nassau-area net-
working event promises to be a fun
or an odd way for real estate brokers,
developers, builders and attorneys
to break bread together. Just keep
it clean, guys. … Kenneth Springer
first made his name as a fraud inspec-
tor for the Federal Bureau of In-
vestigation. Now the president and
founder of his own investigative firm,
Mr. Springer is taking his show on the
road in the post-Madoff era, and the
National Realty Club is hosting the
sleuth for a speaking engagement
that’s expected to touch on the sordid
side of the private-equity and capital
markets. Should be spooky.
[Nassau Business Card Exchange,
the Spare Rib, 600 West Old Country
Road, Hicksville, Long Island, 6 p.m.,
email evantz@yahoo.com for more
info; National Realty Club “Due Dili-
gence in the Post-Madoff Era” sem-
inar, the Friars Club, 57 East 55th
Street, noon, www.nationalrealty-
club.com]
WEDNESDAY, JANUARY 20
When, in 1975, the New York State Su-
preme Court struck down Grand Cen-
tral’s landmark status, the Municipal
Art Society and Jacqueline Kenne-
dy Onassis went into action, spark-
ing a campaign that would eventually
save the vaunted terminal from be-
coming an office tower for Penn Cen-
tral Railroad. So it’s no surprise that
each Wednesday, the talented MAS
guides return to the scene of near
disaster for an informative walking
tour of the terminal’s magnificent
Beaux-Arts interiors. … Have burning
questions about Stuy Town? Starrett
City? Or, more pressingly, do you ever
wonder how the media decides what
to cover and how when it comes to
big-time real estate? You do? Wow,
we’re flattered! N.Y.U.’s Schack In-
stitute of Real Estate is hosting a
46 January 19, 2010
breakfast roundtable moderated by
The New York Times’ Charles Bagli,
badass dean of the economic develop-
ment beat (and a New York Observer
alumn), with panelists Tom Topou-
sis of the New York Post, Amanda
Fung of Crain’s and our very own El-
iot Brown.
[Municipal Art Society Grand Cen-
tral Terminal walking tour, meet at
the information booth, main con-
course, Grand Central Terminal,
12:30 p.m., www.mas.org; “Fair
Deals? Fair Coverage? Reporter
Roundtable on Two Big Deals from
‘the Boom’” breakfast roundtable,
N.Y.U. Washington Square Campus,
8 a.m., R.S.V.P. at www.scps.nyu.edu/
schackpressevent]
THURSDAY, JANUARY 21
Perhaps the biggest real estate event
of the year, the Real Estate Board
of New York will host its 114th An-
nual Banquet, with major awards ex-
pected to go to Sandy Lindenbaum,
Robert Knakal, David Greenbaum,
Todd Korren, Ralph DiRuggiero
and Frederick Peters. The event,
which is a full 32 years older than
the Academy Awards, is sure to cap-
ture the buzz this month. … But as
star-studded as the REBNY ceremo-
ny threatens to be, don’t count out
the 2010 Annual State of the Insur-
ance Industry seminar, which prom-
ises to be even more scandalous than
last year’s event. Michael De Chiara
of Zetlin & De Chiara and Rosemary
Scanlon of N.Y.U.’s Shack Institute
of Real Estate will lead a panel of ex-
perts in a not-to-be-missed insur-
ance extravaganza. … Now that even
your mom is tweeting, it’s no surprise
that the architects of the world want
to do it, too. To that end, the Ameri-
can Institute of Architects is host-
ing “Why Blog, Text and Tweet: Tips
and Tricks” and, well, you may as
well learn sooner rather than later,
right? Right. … The Metropolitan
New York Chapter of the Apprais-
al Institute is holding its two-day
“Appraisers Course” on Thursday,
Jan. 21, and Friday, Jan. 22. The rest
is self-explanatory. … Putting mar-
ket volatility and risk in perspective
is never easy to do, but Association
of Real Estate Women members
Sheila Soufian and colleague Robert
Stansbury intend to help put attend-
ees of this AREW seminar at ease.
[The Real Estate Board of New
York Annual Banquet, New York
Hilton Hotel, 1335 Avenue of the
Americas, 5:30 p.m. cocktails, 7 p.m.
dinner, call Thomas Griffin at 212-
532-3100 for more info; 2010 State
of the Insurance Industry seminar,
the McGraw-Hill Auditorium, 1221
Avenue of the Americas, 8 a.m., call
Whitney Murray at 212-682-6800
or email her at wmurray@zdlaw.
com for more info; American Insti-
tute of Architects-NY “Blog, Text
and Tweet” seminar, the Center for
Architecture, 536 LaGuardia Place, 6
p.m., www.aiany.org; Appraisal In-
stitute “Appraisers Course,” the Real
Estate Board of New York’s Mendik
Education Center, 570 Lexington Av-
enue, 9 a.m., call 866-966-3710 for
more info; Association of Real Es-
tate Women Finances workshop and
seminar, 1290 Avenue of the Ameri-
cas, Duplex Room, 15th floor, 8 a.m.,
www.arew.org]
SATURDAY, JANUARY 23
For those poor souls for whom saggy
jeans kept them far removed from
the Manhattan club scene, or those
sad, sad state-school graduates who
were snubbed by the Harvard Club,
the talented tour guides at the Mu-
nicipal Art Society are offering an all-
access pass inside Manhattan’s most
privileged social clubs. Indeed, the
“Midtown=Clubland!” tour will hit
midtown landmarks like the Union
League and the Century Associa-
tion, allowing rare glimpses into a
world where men still wear top hats
and everybody eats heaping serv-
ings of bald eagle for breakfast. And
for wayward sailing enthusiasts, the
tour, which includes a stop at the
New York Yacht Club, could provide
a once-in-a-lifetime opportunity to
rub shoulders with current and for-
mer commodores of the Gipsy Moth
IV, to name but one example of the
kind of mind-blowingly famous peo-
ple still cavorting at such fancy-pants
social clubs.
[Municipal Art Society “Midtown=
Clubland” walking tour, meet at the
northeast corner of Park Avenue and
37th Street, 2 p.m., www.mas.org]
SUNDAY, JANUARY 24
At the turn of the century,
city planners envisioned
a subway system worthy
of attractive design and
great beauty. More
than a century later,
the city’s hundreds of
rails and trains have, in-
deed, been transformed
into public works of art.
Consider graffiti—
most notably by
the artist/gang
Dominican’s
Don’t Play—
but also the
performance
artists regu-
larly found
sleeping on
trains and selling M&M’s. Seeking
to learn more about the system’s art
and architecture, the Municipal Art
Society will lead a tour from the Bat-
tery to midtown, inspecting the origi-
nal 1904 IRT designs as well as the In-
dependent Line that opened in 1932
and a 1970s-era redesign.
[Municipal Art Society “Subway
Art and Architecture, Historically
Speaking” walking tour, meet on
the steps of the former U.S. Custom
House at Bowling Green, at the foot
of Broadway, 2 p.m., www.mas.org]
MONDAY, JANUARY 25
The Industrial and Office Real Es-
tate Brokers Association is hosting
its second annual “Urban Develop-
er’s Night” at the Robert Treat Hotel.
The Newark area gala will showcase
a collection of current and new-
ly renovated commercial projects
and feature words of wisdom from
Marc Berson of the Fidelco Real-
ty Group and Gus Milano of Hartz
Mountain Industries. “Urban De-
veloper’s Night,” meanwhile, will be
followed by the Sixth Annual Urban
Music Awards, which will feature
the dope rhymes of Fabolous, 2L8
and Young Money. … Speaking of
Young Money, the Young Mortgage
Bankers Association is hosting a
seminar called “Beyond the Banter:
What’s Really Happening with Note
Sales?” Need we say more? Doubt it.
… As Kermit the Frog once said, “It
ain’t easy being green.” Doug-
las Durst (pictured) and
a few other environmen-
tally friendly develop-
ers might disagree,
but for the most
part, it’s generally
agreed that building
green is no walk in the
park. That’s why the
nonprofit Solar One is
hosting a free workshop
aimed at showing prop-
erty owners, share-
holders and manag-
ers how to make
their buildings
good and green.
[Industrial and
Office Real Estate
BrokersAssociation
second annual “Ur-
observer.com | the commercial observer
ban Developer’s Night,” Robert Treat
Hotel, 50 Park Place, Newark, N.J., 5
p.m. cocktails, 6:30 dinner, www.iore-
ba.com; Young Mortgage Bankers As-
sociation “Beyond the Banter: What’s
Really Happening with Note Sales”
seminar, the Union League Club, 38
East 37th Street, noon, call Sonia Ol-
iveira at 201-440-8144 or send an
email to info@ymba.net for more info;
“Green from the Inside Out” work-
shop, the 14th Street Y, 344 East 14th
Street, 6:30 p.m., call Celia Salgado at
212-505-6050 or email her at celia@
solar1.org for more info]
TUESDAY, JANUARY 26
If you were a professional in the real
estate biz, you could meet some like-
minded friends at the local watering
hole, get drunk and chat about prop-
erty. But the Association of Real Es-
tate Women has taken that idea and
elevated it a notch or two: Instead of
meeting at just any old bar, they’re
holding their soiree at the 21 Club. So
expect some class at this fiesta, ladies.
… The New York Commercial Real
Estate Women will kick off 2010 with
its Industry Spotlight Series, which
this week turns its gaze to “Global
Trends in the Capital Markets.” Al-
ixPartners managing director Den-
nis Yeskey will weigh in on the global
trends to look out for in the Teens. …
Getting an ad message across to a po-
tential mark can be difficult. For one,
you need a good gimmick—some-
thing that’ll get ’em buzzing and, in
turn, spending their dough. For this,
the nationally renowned entertainer
Lady Gaga will be a featured speaker
when the Real Estate Board of New
York hosts its seminar “Write for
Success: Getting Your Ad Message
Across” at the group’s weekly break-
fast club series. (Note: Lady Gaga, in
fact, will not be speaking at the event.
Instead, Teri Pomerantz of Corpo-
rate Communication Services will
do her best to be informative on the
topic.) … To truly understand New
York City, one might reason, you need
to start with Lower Manhattan. With
that idea in mind, the guides of the
Municipal Art Society are continu-
ing the nonprofit’s weekly downtown
walking tour, which will include visits
to Wall Street and at least a few really
old churches.
[Association of Real Estate Wom-
en networking soiree, the 21 Club, 21
West 52nd Street, 6 p.m., www.arew.
org; New York Commercial Real Es-
tate Women 2010 Capital Markets
seminar, UBS Building, 1285 Avenue
of the Americas, 6 p.m., www.nycrew.
org; Real Estate Board of New York
Residential Breakfast Club, REB-
NY Mendik Education Center, 570
Lexington Avenue, 9:30 a.m., email
adonovan@rebny.com for more info;
Municipal Art Society “Downtown,
Where New York Began” walking
tour, meet at the Downtown Informa-
JAMES HAMILTON; JAYWOOD UK
tion Center, 55 Exchange Place, Suite
401, 12:30 p.m., www.mas.org]
Calendar items can be sent to
Jotham Sederstrom at jseder-
strom@observer.com.
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48 January 19, 2010 observer.com | the commercial observer
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