The Commercial Observer - May 11, 2010

Lease Beat Clash of the titans The lead indicator
717 Fifth Avenue Durst, Zuckerman and Ross Sam Chandan Parses
80 Pine Street ❯❯ Vie for Stake in 1 World Trade ❯❯ Mayor’s New Budget
May 11, 2010 The Weekly Newspaper of New York’s Commercial Real Estate Industry $7.00
THE
MOST POWERFUL PEOPLE

IN NEW YORK REAL ESTATE
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Markets Move. Strength Endures. NEW YORK CITY’S LARGEST OWNER

OF COMMERCIAL REAL ESTATE
in this week’s issue Vol. 2, No. 18
4 The Week in Real Estate 18 Calendar

By Roland Li, Dana Rubinstein By Jotham Sederstrom
and Eliot Brown The week ahead in events.
Three heavies vie for private
stake of One World Trade; SL 19 Lease Beat
Green does two deals with the By Roland Li and Emily
Canadians. Geminder
* 717 Fifth Avenue
12 Concrete Thoughts * 30 Orchard Street
By Robert Knakal * 655 Madison Avenue
What’s been holding invest- And dozens more of the latest
ment sales back, and where commercial leases in New York.
they’re headed now.
26 Observer Power 100
14 The Lead Indicator Our annual list of the 100 most
By Sam Chandan powerful people in New York
The mayor’s released his bud- real estate.
get, complete with service cuts.
Now what?
16 The Op-Ed
By Steven Spinola
Be vigilant, real estate! A lot
ahead as government at all lev-
els tinkers.
Jody and Douglas Durst,
No. 8 in the Power 100.
ON THE COVER: Photo-illustration by Joe Zeff Design.
FASTER
FORWARD
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2 May 11, 2010 observer.com | the commercial observer

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Daniel L. Levine Managing Director 212-372-2319
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the commercial observer | observer.com May 11, 2010 3

the week in real estate
may 3 - may 10
by roland li
Clash of the Titans international presence (Related

has noted that it has offices in Chi-
Over One World Trade na and the Middle East.) He has
partnered on the deal with David
In late April, the race to buy a Levinson, chairman of L&L Prop-
stake of One World Trade Center erties and a former office broker,
narrowed to three old names in and people involved say Mr. Ross
New York real estate. has been an aggressive salesman.
The trio left to fight it out, down • Mr. Zuckerman has pushed
from an original six: Mort Zucker- his experience as a national office
man, Douglas Durst and Stephen Zuckerman. developer and landlord, one who
Ross—the chairmen of Boston works extensively with govern-
Properties, the Durst Organiza- ment tenants—One World Trade
tion and the Related Companies, is slated to be more than one-
respectively. Each has amassed a third filled with federal and state
giant war chest intended to buy offices. He nearly put up a tower
up new properties, and each pro- on Eighth Avenue this past cycle
claims they covet the idea of being before one of the two anchor ten-
the public face for what will be the ants dropped out, and he has a
city’s tallest building. significant presence in Boston and
The contest is less about the fi- Washington.
nancials—each has offered around • Mr. Durst has advertised his
$100 million in a deal that could Ross.. company’s recent successes. He
bring a greater return than a stan- built and fully rented out two gi-
dard equity stake—and more about ant midtown office towers, most
bringing in a big name with the ability to recently the highly successful Bank of Amer-
score tenants and help guide construction ica tower in midtown. Mr. Durst tends not to
for the government-developed building still do layoffs at his company, and thus the leas-
largely known as the Freedom Tower. ing and construction team that worked on
According to multiple people familiar with Bank of America is still in place.
discussions between the Port Authority, the
tower’s developer, and the bidders, their respec- In effect, the Port Authority is looking for
tive pitches have highlighted the following: a building manager with a small stake—a
household name in the real estate world who
• Mr. Ross, the builder of the Time War- will be able to draw both international and lo-
ner Center and owner of the Miami Dolphins, cal tenants.
has positioned himself as a seasoned builder “We really do want a private spokesper-
who works well with government and has an son for this project, and we want to know that
I_iWbHk]IWb[Wj789 Jared Kushner, Publisher

Robyn Weiss, Associate Publisher
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Kyle Pope, Editorial Director
Tom Acitelli, Editor
Eliot Brown, Dana Rubinstein, Staff Writers

Robert Knakal, Sam Chandan, Columnists
Jotham Sederstrom, Emily Geminder, Roland Li Contributing Writers
Nancy Butkus, Art Director

Tyler Rush, Production Manager
Chris Cronis, Copy Editor
Peter Lettre, Photo Editor
J^[bWh][iji[b[Yj_ede\8[b]_Wdi_iWb"Ye_h"i[W]hWiiWdZfWf[hhk]iWdZYWhf[j Lisa Medchill, Advertising Production
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/Ên'(ÊijWhjWibemWi)//$IWb[(/$/&#+/$/&igoZ$lWbk[,&#'(&igoZ$
Christopher Barnes, President, Observer Media Group
Barry Lewis, Exec. Vice President, Observer Media Group
Brian Cohen, General Counsel
Steve Goldberg, Senior Vice President Sales
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8hedn"DO'&++8hednH_l[h7l[-'..*(.--& Ken Newman, Director of Classified Advertising

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there’s going to be very significant allocation
of time from these developers,” said Tara Sta-
SL Green Covers Deals with
com, vice chairman at Cushman & Wakefield, Maple Leaf
the firm handling leasing for the tower and ad-
vising on the developer sale. “This is a global
icon, and we intend to brand it as such.” SL Green, New York’s largest commer-
For Messrs. Durst and Zuckerman, the re- cial landlord, has found some deep-pocketed
cent history of bidding on major public proj- funders north of the border.
ects may be troubling: Mr. Ross tends to win. The Canada Pension Plan Investment Board,
Related, which seems to bid on most every which manages a staggering $123.9 billion in
large development going on in the city, edged pension money, is SL Green’s joint investment
out Mr. Durst to win control of the 26-acre partner in two of the three significant transac-
West Side rail yards in 2008, and then tried to tions that the REIT announced on May 10.
woo the tenant Mr. Durst had signed to his los- SL Green is selling a 45 percent interest
ing bid: Condé Nast. In 2005, Mr. Ross bested a in 1221 Avenue of the Americas to the fund
bid by Mr. Zuckerman to expand Penn Station for $576 million; and the fund is taking a 45
into the Farley Post Office, a project that also percent stake in 600 Lexington Avenue, the
envisioned a new office tower. scraper SL Green just bought from the Cali-
The three also once courted a single tenant fornia-based Hines for $193 million. SL Green
in a contest a decade back, according to a New also announced a deal to acquire from Shoren-
York Times article then: All three offered plans stein Properties 125 Park Avenue, overlooking
to build a tower for Random House. Again, Mr. Grand Central, for $330 million.
Ross won. The $500 million in net proceeds that SL
Here, however, he has less experience than Green said it expects to make from the 1221
the other two in building office towers—al- Avenue of the Americas interest sale will
though his partner, Mr. Levinson, owns sig- be used in the purchases of 600 Lex and 125
nificant office space—and he also has far more Park.
going on elsewhere, which could prove a dis- In a statement, SL Green’s CEO Marc Holli-
traction. day made a point of acknowledging the firm’s
The next stop for the developers: the Port new partnership with the Canadians: “In the
Authority board. The authority, which expects case of 600 Lexington Avenue, we hope that
to take a loss on the tower given its tremen- this transaction marks the beginning of a long
dous $3.2 billion cost, expects that the teams and mutually beneficial relationship with CP-
will each present to board members before its PIB.”
June meeting, when it hopes to make a selec- The beginning of a beautiful friendship?
With Anchin’s Expertise, tion. —Eliot Brown —Dana Rubinstein
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your deals in the Echo in the Flatiron
With just under 40 million square feet of inventory, the Flatiron submarket is by far the
largest in Midtown South. With few Class A buildings, it has been the 25 million–square–
foot Class B segment (second largest of the 14 submarkets in Manhattan) that has been
the neighborhood’s engine. That engine has sputtered lately, with the Class B vacancy rate
climbing to 16.2 percent in April, up 100 basis points from March and the highest figure in
15 years.
Contact Robyn Weiss, What’s responsible? Reed Elsevier adding 68,000 square feet of sublease space to the
113,000 feet it already had on the market at 360 Park Avenue South. The Class B Flatiron
Associate Publisher, asking rent, not surprisingly, has taken a nosedive, closing April at $39.60 a square foot,
for more information: 212.407.9382 27.1 percent off the record high of $54.30 set in June 2007.
—Robert Sammons of Cassidy Turley
rweiss@observer.com

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East Harlem told Crain’s that the younger Mr. Macklowe
has been scouting office space and recently
Project Under Way reached a deal to rent at Tower 56 at 126 East
56th Street—a tower the Macklowes once
Construction started on the first phase of a owned.
$700 million multiuse development in East Har-
lem, The Real Deal reports. The development, at
the corner of 125th Street and Third Avenue, JLL Tapped for
will include 800 housing units, 600 of which will
be for low- and middle-income families; 50,000
350 Madison
square feet of retail space; a 98,000-square-foot
hotel; and 250,000 square feet of office space. Jones Lang LaSalle was selected as the
The development has received funding from leasing agent for 350 Madison Avenue, a
private investors as well as from the city’s De- 400,000-square-foot office and retail tower.
partment of Housing Preservation and Develop- Available spaces range from 70,000 to 7,000
ment and the State Department of Housing and square feet. Landlord Kenscio Properties is
Community Renewal. renovating the property, adding a new exte-
rior curtain wall and a waterfall in the lobby.
Eric Reimer, Barbara Winter, Gregory Green
Report: Hotel Revpar Rising and Mercedes Fernandez of JLL will handle
the property.
Manhattan hotel occupancy will increase
to 84.4 percent in the next five years, accord-
ing to a report by The Real Deal. Revenue per J.F.K. Warehouse
available room, or revpar, will rise to $303 in
2015, after a decline of 6.5 percent this year
Groundbreaking
and 0.5 percent next year. The report used
data from the consultancy HVS. Developer Vista Realty Partners is set to
break ground on the first industrial ware-
house project at Kennedy Airport in more
Billy Macklowe Going Solo? than a decade, reports The New York Times.
The air cargo warehouse, which may include
Billy Macklowe is reportedly planning to office space, will be up to 110,000 square feet
leave his position running Macklowe Proper- on 5 acres on the northern edge of the airport.
ties, the decades-old concern formed by his Asking rents are around $13 per square foot.
father, Harry, that has experienced several The industrial market around Kennedy is one
financial setbacks in recent years, including of the strongest in the world, according to Co-
the loss of the GM Building. Several sources Star Group.
Cushman & Wakefield, Inc.

is pleased to announce the following
transactions on behalf of
G.S. 505 Park, LLC, a member
of the Glorious Sun Group:
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Loeb, Block & Partners LLP
26,275 sf on the 7th and 8th floors
represented by
Chris Kraus and Robert Taylor
Jones Lang LaSalle
Montrose Accounting Company, LLC

5,743 sf on the 20th floor
represented by
Joel Burris
Brown Harris Stevens
Eisner’s Real Estate Services Group provides KEY SERVICES
Compass Global Investments, LLC innovative tax and advisory services to Transactional & Operational Consulting
the real estate community. We work closely Tax & Attest Services
4,165 sf on the 4th floor Due Diligence for Acquisitions
represented by with clients, developing a foundation and
building an understanding of the underlying Analysis of Investment Opportunities
Ruth Colp-Haber
FOR MORE INFORMATION CONTACT: Bankruptcy & Insolvency Solutions
Wharton Property Advisors objectives and nuances of each situation.
Litigation Consulting
Tara Stacom
tara.stacom@cushwake.com We examine each aspect of operations
T. 212.841.7843
Availabilities: and transactions to help maximize
CONTACT US
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david.green@cushwake.com
T. 212.841.7934
2nd floor measuring 3,977 sf Our goal is to help our clients structure sound
Ken Weissenberg, CPA, JD, LLM
recently renovated, available immediately transactions, create optimum tax and financial 212.891.4070
Peter Alden
strategies, and exceed their expectations.
peter.alden@cushwake.com
T. 212.841.7641 Partial 5th floor – 2 units Aaron Kaiser, CPA
212.891.8084
2,774 sf and 6,077 sf Eisner LLP is one of the top 10 accounting
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available November 1, 2010

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please contact:
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FRANK DOYLE
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212.812.5759
frank.doyle@am.jll.com
85BroadNYC.com

A LOOK FORWARD
City Sees
Flat
Office Rents
Through ’11
Within the
Bloomberg admin-
istration’s proposed
budget, released May
6 for the fiscal year
starting July 1, there
are some prognostica-
tions about the office
market for the next
year: Rents have hit
bottom and will stay
flat, as vacancy will
rise and then fall.
From the budget summary, created by the Office of Management and Budget:
“While employment losses are expected to subside in 2010, there is significant risk that
additional supply will cause the market to stay soft. As a result, vacancy rates will average
12.9 percent in 2010 and only gradually improve in 2011, remaining at an elevated level in
the out-years as new supply comes on line. The increased vacancy rate has already caused
asking rents across the primary market to fall from an average of $85 per square foot in
mid-2008 to $62 per square foot in the first quarter of 2010.
“As vacancy rates stabilize in 2010, asking rents are not expected to fall significantly go-
ing forward, but increases are not likely either. Even though the commercial rental market
appears to be nearing its trough, commercial sales are expected to improve only slightly
compared to the dismal performance in 2009, when only five transactions valued at over
$100 million were recorded. Weak credit markets and a general aversion to commercial
real estate investment will keep investors at bay in the near term.” —Eliot Brown
Midtown at No. 26 mal vote. Construction must being by the end

of the year to qualify.
London’s West End remains the world’s
most expensive office market, but Hong
Kong’s Central Business District has risen Gosin Buys Hauspurgs’
to second place, according to CB Richard El-
REAL MARKET KNOWLEDGE. lis. Tokyo’s Inner Central is third, Mumbai is
Estate
fourth and Moscow is sixth. Midtown Man-
hattan is just 26th globally, with occupancy Newmark Knight Frank principal and CEO
REAL CONNECTIONS. costs at $64.51 per square foot. Overall, costs Barry Gosin bought the Westchester estate of
are down 4.6 percent over the 12 months end- Eastern Consolidated’s founders, Peter Haus-
ing on March 31. Latin America, led by Brazil, purg and Daun Paris, for $9.4 million, reports
was the only region to increase in costs over The Real Deal. The 26-acre parcel includes three
REAL PASSION. that time period. residential buildings, a pool and a two-story
pool house at 617 Croton Lake Road in Bedford
Corners. Mr. Hauspurg said the property was
REAL RESULTS. New School’s New Building too big for him and his wife after their children
moved out. The deal closed on April 8.
The New School will build a $353 million,
16-story building, the school’s largest con-
struction project in Greenwich Village, re-
ports The New York Times. The brass-and-
glass tower will be at Fifth Avenue, between
13th and 14th streets, with lecture halls, an
auditorium, academic spaces and a 600-bed
dormitory. The school does not expect much
We are a national team of dedicated commercial real estate professionals opposition, since it is building on a site that
with a history of 100 years of successful client relationships. Our it owns and will not have to demolish private
world-class expertise enables us to deliver integrated, tailored solutions. property.
Our knowledge of local markets and deep industry connections allow
us to achieve superior results. We are Cassidy Turley. Bonds for Harlem Hotel
JLL Poaches Cushman
Former NFL star Emmitt Smith plans to
To learn more, visit www.cassidyturley.com build a hotel in Harlem, and city officials sup-
or call 212.758.0800. port awarding $19.8 million in federal tax-ex- The top Cushman & Wakefield investment
empt bonds to fund the project, reports The sales team of Richard Baxter, Scott Latham,
Wall Street Journal. The project, a 200-room Ron Cohen and Jon Caplan (pictured l-r)
CAPITAL MARKETS CORPORATE SERVICES PROJECT & DEVELOPMENT SERVICES luxury hotel and retail project at 125th Street jumped to a similar role at Jones Lang La-
PROJECT LEASING PROPERTY MANAGEMENT TENANT REPRESENTATION and Lenox Avenue, would cost $80 million. Salle. At the same time, Cushman announced
The New York City Capital Resource Corp., that Andrew Merin, a vice chairman of the
controlled by Mayor Bloomberg, concluded firm and one of its leading investment sales
the development team should get financing. A brokers, would expand his team’s coverage
© 2010 Cassidy Turley. hearing will be held in June, followed by a for- into Manhattan.

LAST BUT NOT LEASED.
Two Contiguous
Full Floors of
30,000sf Each
Remain.
Pre-builts from
3,900 to 15,600 sf
FOR LEASING INFORMATION, PLEASE CONTACT:
Steven S. Bauer Andrew F. Wiener Barry J. Zeller Matthew R. Astrachan Paul N. Glickman
212.841.7996 212.841.5088 212.841.5913 212.841.7904 212.841.7847
steven.bauer@cushwake.com andrew.wiener@cushwake.com barry.zeller@cushwake.com matthew.astrachan@cushwake.com paul.glickman@cushwake.com

concrete thoughts
Spring Thaw
Discretionary sellers return! Sales activity picks up;
further evidence: 1031 exchanges
Executive Summary underwater. These properties had much more latitude in dealing with of underlying collateral for suspect trillion of assets over an extended pe-
➤ Sales decline was caused by sup- mortgage-debt balances in excess of underwater CMBS loans. Bank regu- loans on behalf of lenders and spe- riod. This would normally exert up-
ply constraint as discretionary sellers their value. Based upon the average lators are allowing portfolio lenders cial servicers thus far in this cycle. ward pressure on rates.
withdrew. reduction in value, from the 2007 to hold loans on their balance sheets From September 2008 through Sep- Today, the 10-year has settled back
➤ They’re returning as advantageous peak, of 32 percent and the very at par even if they know the collater- tember 2009, we obtained just 12 down at 3.6 percent, as the turmoil
loan terms for distressed properties high total loan-to-value ratios that al for the loan is worth only 60 cents disposition assignments within this overseas in Portugal, Ireland, Italy,
burn off or mature. were obtainable in 2005 through on the dollar. And many transac- sector. Since then, we have been re- Greece and Spain has created a flight
➤ The volume of 1031 exchange pur- 2007, in both the sales and refi- tions that are fundamentally under- tained to sell 78 distressed assets. to safety, and the U.S. T-bill is at the
chases is increasing—another sign of nancing markets, Massey water are still hanging on These assignments have included top of that list. It will be interesting
sales volume rising. Knakal estimated that ap- by a thread due to advan- note sales, short sales and REO sales. to see if the recent announcement of
➤ Sales activity could increase by at proximately 15,000 prop- tageous mortgage terms. Clearly, this increase in distressed- an E.U. bailout abates some of this de-
least 40 percent this year. erties were in this nega- These include interest- asset flow is palpable. mand for quality and safety.
tive equity or distressed only periods during which The fundamentals within the mar-
T
position. This total repre- no amortization is added he reasons for this increased ket appear to be improving, as posi-
W
e in the investment-sales sec- sented about 9 percent of to the debt service pay- flow are numerous. Profits at tive absorption in residential and
tor are painfully aware of the the stock of 165,000 New ment; interest reserves banks have been enormous, commercial buildings have caused
anemic sales volume our mar- York City properties we upon which distressed as- as the Fed’s highly accommodative concessions to be reduced, and rents
ket experienced in 2009. The number track on an annual basis. sets can stay current even monetary policy is allowing for the have appeared to stabilize. These
of sales diminished from its peak by On these 15,000 dis- without sufficient current recapitalization of the banking in- improving fundamentals have cre-
74 percent, and the total dollar vol- tressed properties, there dustry. These profits have allowed ated incentive for some discretion-
ume of sales was off by 91 percent. By was approximately $165
Robert Knakal net income; and interest
rates floating over LIBOR, lenders to incrementally write ary sellers to add to the supply of
any measure, these figures represent- billion of mortgage debt, Columnist which opened the morn- down bad loans, making it less pain- available properties for sale. We are
ed record lows for at least 26 years we estimated. Based upon ing of May 10 at 34 basis ful to dispose of distressed assets. seeing the results of this discretion-
and, perhaps, longer. The perception current standards, with points. As we have been in the downswing ary selling reflected in the increase
held by many observers was that this today’s values and loan-to-value ra- For example, I analyzed a portfo- of the cycle for more than two years in 1031 exchange activity. Distressed
lack of volume was caused by either tios, a conservatively underwritten lio for a client of mine last week who now, we are seeing advantageous selling produces no 1031 activity,
a lack of demand or a very wide “bid- market would have only $65 billion paid about $100 million for a port- loan terms burning off, prompting as there is simply no equity to rein-
ask spread,” indicating that the level in debt on these properties. While folio a few years ago. The total debt action. Many foreclosure actions are vest. Discretionary selling produces
of expectation of buyers and sellers this may be reality, it is clear that is about $85 million and, today, the beginning to run their course, allow- residual equity, which produces ex-
was sufficiently far apart to bring a $100 billion will not come out of the properties are worth about $65 mil- ing lenders to offer deeds on their change transactions. This activity
halt to trading activity. market in the form of losses. lion. Even with a $20 million nega- distressed assets. Note sales are also had all but evaporated over the past
It has been my opinion, however, The reasons for this include the tive-equity position, the portfolio gaining in popularity, as lenders and couple of years, but has come roar-
that this lack of volume was caused facts that (1) some of these proper- is cash-flowing because the debt is special servicers are becoming in- ing back based upon the return of
more by supply constraint than a ties can still cash-flow at 110 percent creasingly frustrated with the cum- discretionary sellers to the market.
lack of demand or the oft-mentioned or 120 percent loan-to-value ratios; bersome foreclosure process in New The increases in the supply of
bid–ask spread. There were simply (2) some owners have alternative Today, the 10-year T-bill has York. This can take two, three or properties available for sale, from
not many properties for sale. Nor- sources of capital and, if they want settled back down at 3.6 per- even four years to complete. Lenders both distressed and discretionary
mally, the supply of available prop- to own the asset on a long-term ba- and special servicers that operate in sellers, have thus far been met step-
erties for sale is fed by discretion- sis, can feed a property that is in a cent, as the turmoil overseas states like Texas and Georgia, where for-step by the excessive demand
ary sellers. As value began to drop negative cash-flow position; and (3) in Portugal, Ireland, Italy, the foreclosure process can be com- present in the market. New York
in 2007, these discretionary sellers some lenders will modify loans to al- pleted in 30 to 90 days, can’t fathom families and high-net-worth inves-
withdrew from the market. When low the existing owners to hold on. Greece and Spain has cre- the length of the process here. When tors, both domestic and foreign,
this happens, distressed sellers usu- Because of these possibilities, we ated a flight to safety. they become aware of the significant have been joined by a resurgence of
ally swoop in to fill the void and add expect total losses to reach $30 bil- recoveries possible relative to col- institutional capital, creating tre-
supply to the market. This did not lion to $40 billion. About $15 billion lateral value, a note sale becomes an mendous demand. Now, 1031 buyers
happen in numbers anywhere near in losses have already been realized, floating at 150 over LIBOR. Consid- easy decision. have joined the party.
what most participants in the mar- so we should have $15 billion to $25 ering the mortgage rate is 1.84 per- While we are seeing a solid in- These dynamics bode well for the
ket were expecting. billion to go. cent, it is not difficult to see how pos- crease in the supply of distressed balance of 2010 and substantiates
Fortunately, today we are seeing So why haven’t we seen a more itive cash flow is obtained. Mortgage assets, we believe this flow could in- the projection we made at the end
a loosening in the supply of prop- significant flow of these distressed maturity becomes a critical factor in crease substantially if interest rates of last year, that sales activity would
erties for sale, as distressed assets assets in the market? The answer: the fate of these properties. At ma- rise. Many economists argue that increase by at least 40 percent this
are beginning to flow in a tangible Everything that has happened from turity, no lender will extend and pre- the Fed’s exit from the marketplace year. This would be a welcome oc-
way, and discretionary sellers are a regulatory perspective has al- tend at such a low interest rate. would increase rates. When the Fed currence for those of us who lived
returning to the market. In order lowed lenders and special servicers As these advantageous loan terms ceased its asset-buying program, through 2009 and rely on transaction
to understand why this dynamic is (who are the primary holders of dis- burn off or these loans mature, it which created $1.25 trillion of mort- volume for our livelihood.
occurring, we should take a look at tressed assets) to avoid having to will trigger steps likely to bring dis- gage-backed securities and treasury rknakal@masseyknakal.com
what caused the supply constraint. deal with their problem properties. tressed assets to market. We are al- sales, we saw the 10-year T-bill rise
Changes to FASB’s mark-to-market ready seeing this occur in a substan- from about 3.5 percent to more than Robert Knakal is the chairman and
T
here was never a doubt in any- accounting rules are one of the is- tial way. 4 percent. About two weeks ago, the founding partner of Massey Knakal
one’s mind that New York City sues; another is significant modifica- Consider that Massey Knakal’s Fed announced that a second meth- Realty Services and has brokered the
was chock-full of investment tions to REMIC guidelines that pro- Special Assets Group has completed od of exit would begin soon, as it em- sale of more than 1,050 properties in
properties that were fundamentally vide servicers and special servicers the valuation of nearly 1,200 pieces barks on a program to sell nearly $1 his career.

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THE lead indicator
The Mayor’s New Budget and the Next Moves

Service cuts abound—understandably—in Bloomberg’s $62.9 B. proposal
Executive Summary bills since the March 31 deadline for
➤ Mayor’s proposed $62.9 B. FY 2011 a formal budget. Governor Paterson
budget included cuts and higher fees has threatened to furlough state em-
for services. ployees.
➤ City expenses for the current year Governor Paterson’s office has
projected to be $523 million lower questioned whether the mayor’s pro-
than forecast. posed cutbacks are necessary. Hard
➤ The mayor has not pushed for tar- hit by the downturn on Wall Street,
geted tax increases on higher incomes and as a result of the proposed state
to go along with the cuts. funding cut, the city would face an
➤ He’s right to have not: High-income even larger spending pullback were
New Yorkers can split the city. it not for its relatively more disci-
plined management of the public fi-
T
he dramatic and often trag- nances to date. In 2008, the city had
ic events unfolding in Greece a cumulative surplus of $8 billion,
have highlighted that the cur- built up during six years when city
rent debt crisis is not isolated to the operations were in the black.
world’s private borrowers. Although not meeting
In Europe and in the United the requests of every con-
States, governments at all stituency, the mayor has
levels are having to grap- been a very able steward of
ple with the consequences our public purse when few
of long-standing fiscal mis- others can say the same.
management just as house- And he has remained pru-
holds and commercial real dent through the down-
estate investors are ad- turn: Total city expenses
justing their own balance for the current year are
sheets. projected to be $523 mil-
While recent weeks’ at- Sam Chandan lion lower than forecast in
tention has been focused Columnist January. The city is in im-
on Europe and the poten- measurably better health
tial for the Olive Belt’s cri- than during the fiscal crisis
sis to spill over into global financial of 1975 and the creation of the Mu-
markets, our own fiscal challeng- nicipal Finance Assistance Corpora-
es have been coming to a head on a tion (MAC).
smaller scale here at home. In the
T
shadows of Greek protests and the o ensure that the city can ulti-
stock market roller-coaster ride, the mately return to fiscal balance,
budgetary hurdles still facing New the mayor has had to embrace
York City were made apparent last politically unpalatable reductions Michael Bloomberg.
week, when the mayor kicked off the in services, including the aforemen-
next fiscal year’s budget debate. tioned pruning of the teaching ranks.
Our city faces a deficit for the up- And while cuts to libraries, seniors
coming fiscal year, and our elected centers and fire companies have erable cities: “Stagnant or declin- The New York Fed’s Andrew stances.
officials must determine how to close served to contain the city’s shortfall, ing private economies create unique Haughwout, along with Professor And so in their analysis of the re-
the gap. And so the mayor’s $62.9 they have not been matched with pressures on local public officials: Inman and other colleagues, de- lationship between taxes and rev-
billion fiscal year 2011 budget pro- corresponding tax increases. hard-pressed taxpayers, concerned scribes the need for forethought in enues in New York City, Philadel-
posal, unveiled May 6, includes myr- Given the current political cli- investors, worried public employ- considering tax increases for high phia, Houston and Minneapolis, Mr.
iad cuts to city services and higher mate, the absence of targeted tax in- ees, and needy residents each make income earners, pointing out that “… Haughwout and his colleagues con-
fees for a host of public services. creases for high-income earners and their claim to a share of the shrink- elected state and city officials must clude that “tax increases unmatched
The city’s teaching rolls may lose as profitable financial-services firms ing real resource base.” by tax-financed, compensating ser-
many as 6,400 educators through a has prompted suggestions of bias. But the mayor is right to avoid vice benefits for taxpayers—wheth-
combination of attrition and layoffs. On Friday, The Wall Street Journal seeking an increase in taxes on the At least at the local level, tak- er property owners, consumers,
In sum total, the budget proposal re- quoted City Councilman Brad Land- city’s highest income earners. While or firms—will drive those taxpay-
duces city expenditures by just over er as saying that “the mayor is ask- it may seem intuitive that our most ing from Peter to give to Paul ers from the city. Property values
$600 million, or 1 percent of current ing children, seniors and families well-heeled citizens should contrib- may leave us all wanting. fall, business sales decline and the
spending. to do all the sacrificing. … The only ute even more to the public purse, city’s job base shrinks. To protect
As the mayor’s office has been people the mayor is not asking to economics and history show us that city economies, a dollar of taxes paid
quick to point out, the city’s pre- share in the sacrifice are the Wall following this intuition will under- must be matched by a compensating
dicament follows in part from even Street banks and hedge funds that mine the city and its tax base. Even recognize the reality of city revenue dollar of public services received.”
deeper cuts in Albany. Grappling cause[d] the economic mess to be- when imperfectly mobile, house- constraints. A city’s revenue capac- At least at the local level, taking
with a gaping $9 billion budget gin with—he’s taking great pains to holds and firms respond to increases ity is limited by the mobility of its from Peter to give to Paul may leave
shortfall, the governor has proposed defend them.” in local taxes by locating to other ju- residents and firms.” us all wanting.
a $1.3 billion reduction in state sup- Mr. Lander’s viewpoint is not risdictions. Redistributive taxes can- In New York City, the mobility schandan@rcanalytics.com
port for the city. The state’s new fis- unique to this cycle. In his trea- not be implemented at the local lev- of wealthy households is very high
cal year began on April 1, but dis- tise on local public finance, “How el without some loss of the tax base. given a plethora of options—from Sam Chandan, Ph.D., is global chief
agreements in the state capital have to Have a Fiscal Crisis,” eminent Mayor Bloomberg describes this Westchester to Connecticut to New economist and executive vice presi-
precluded passage of a budget in the Wharton finance professor Robert readily observable economic phe- Jersey—where the tax-for-service dent of Real Capital Analytics and
Legislature. The state has been op- Inman described a recurring theme nomenon in clear terms: “At some trade-off may be more favorable giv- an adjunct professor of real estate at
erating under emergency spending in the life of our nation’s most ven- point, you drive them out.” en any family’s particular circum- Wharton.

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Bonpoint, Inc. • Cesare Paciotti • Peter Kaiser, Inc.
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212.758.0430 x402
spressler@promenadere.com
the op-ed page
How Government Could
Muck Up the Recovery
Industry must watch actions in D.C.,
Albany and downtown
Executive Summary is essential that our industry continues to be
➤ There are signs of recovery in the New York vigilant—in Washington, in Albany and in
real estate market. City Hall—on legislative matters to promote
➤ But there are still signs of strug- a business climate that encourages
gle, including higher vacancies and new investment and economic ac-
a dearth in financing. tivity.
➤ Government actions on FIRPTA, New York City’s unemployment
421a and wages could hinder or rate declined in March to 10 percent
help nascent recovery. from 10.2 percent, and job losses ap-
pear to have abated. Further, our job
N
ew York City’s real estate losses (169,000, according to New
market has shown signs of York City’s Office of Management
recovery from the global and Budget) were significantly low-
economic crisis that rocked our er than the 250,000 projected last
city and industry at the end of year, resulting in a less significant
2008. However, our return to the impact on our local economy.
prosperity of a few years ago fac- According to the New York City
es serious challenges, as the failed Steven Spinola Independent Budget Office (IBO),
bombing in Times Square and the Guest these fewer job losses are partly the
Dow’s nearly 1,000-point plunge result of structural changes in the
last week should remind us. Columnist composition of our local employ-
Government actions in our ment. Health and education com-
control, from tax policy to business regula- prise a larger share of our city’s employment
tions, could propel or derail our recovery. It and appear comparatively recession-proof.
tweet week
By Roland Li REBNY (@rebny)
looks at housing per-
I
t’s all about the numbers this week: world- mits.
wide office rents, listings, housing permits
and employment.
Manhattan’s 326 new housing permits
CB Richard Ellis (@cbrenyc) ranks the issued in March is the borough’s highest
world’s office properties. monthly total in the past 9 months.
11:30 AM May 7th via HootSuite
Office Rents survey: Midtown Manhattan is
North America’s most expensive office market; Only 1,005 new housing permits were issued
ranks 26th worldwide http://bit.ly/aPsnCf in 1Q10, it seems unlikely that new housing per-
7:22 AM May 5th via TweetDeck mits will match last year’s annual total of 5,953.
8:30 AM May 7th via HootSuite
Cushman & Wakefield (@CushWak-

eNYC) refinanced a hotel. Eastern Consolidated (@Eastern-
consol) sees sublease space disappearing.
CWSG has arranged a $212M refi for a
9-hotel portfolio http://tinyurl.com/269jfhc More than 1.1 million square feet of sublease
7:03 AM May 5th via web space was removed from Manhattan’s office
market in the first quarter http://bit.ly/bDvh64
7:23 AM May 4th via web
Massey Knakal (@masseknakal) has

new listings.
Newmark Knight Frank (@New-
Listing: 111 Fulton Street, New York, NY - markKF) tackles unemployment.
Vacant Financial District commercial condo
with 19,102 SF...http://bit.ly/bXIz4v USDOL reported 444,000 initial #unemploy-
10:42 AM May 7th via web ment claims for week ending May 1, a decrease
of 7,000 from last week. http://tiny.cc/z9xbi
Check out the video tour of 198 W.10th St. - a 7:28 AM May 6th via web
Greek revival brownstone located in the heart
of the West Village... http://bit.ly/ckVkSq Follow us on Twitter @commercial_nyo.
8:24 AM May 7th via web

the op-ed page
Also, the Federal Reserve’s financial- retail market. In March, national re- fice-building sales have been virtual- legislative matters to sustain eco- whose funding has been contingent
stabilization package has lessened tail sales were up 7.6 percent over ly nonexistent for the most part since nomic growth. on the receipt of the credits. We also
the recession’s impact on New York. last year and up 1.6 percent month 2008, and financing has been largely In Washington, we have called for need Albany to extend the 421a par-
Modest job growth is returning on month. New York City retail em- unavailable for these transactions, amendments to the Foreign Invest- tial tax exemption program for new
to our city. Employment figures for ployment in March was up 1.4 per- which have in the past generated ment in Real Property Tax Act (FIRP- residential construction. We are rec-
March indicate a growth of 28,000 cent year on year. Similarly, April’s significant transaction tax revenue. TA), which imposes a gains tax on ommending modest amendments to
jobs (not seasonally adjusted), the consumer confidence index was at In 2009, New York City transaction non-U.S. buyers of real estate. Elimi- provide a catalyst for developments
second month in a row of growth. its highest since September 2008. (transfer and mortgage recording) nating the gains tax on such transac- stalled since 2008; to induce the con-
The positive change in employment As a result, REBNY’s Spring Re- tax revenue was $1.25 billion, down tions would provide more liquidity version of obsolete office buildings
will slowly trickle through our local tail Report notes that average ask- in the market. The proposal to tax to residential use; and to offer build-
economy. An important indicator of ing rents have started to increase in the profits distributed to the entity ing owners a reduction in taxes for
an improving office market has been most of the retail corridors we sur- Our economy and the real that arranges funding and manages keeping low-income units in 80/20
the steady decline of available sub- veyed. Likewise, homes sales in New estate market are still frag- a real estate project, usually the gen- projects permanently affordable.
let space. This has helped stabilize York City in the first quarter of 2010 eral partner, at the ordinary income At City Hall, the City Council in-
the vacancy rate (13.5 percent) and are up 52 percent over the past year, ile. Many parts of our econ- tax rate, not at the capital-gains rate, troduced a bill that would mandate
the average asking rent ($50.41) in signaling that economic activity is omy are still suffering from would impose higher taxes on this the payment of a prevailing wage to
Manhattan. We have begun to see returning. crucial real-estate–related activity. building workers if a developer re-
some owners increase asking rents devastating impacts of the This proposed change in the “car- ceives any tax benefit from the city.
O
for high-end space. However, we will ur economy and the real estate national recession. We are ried interest tax” would weaken our This bill would seriously undermine
need sustained employment growth market are still fragile. Many recovery. the value of the tax exemption that is
for more significant office leasing parts of our economy are still not expected to return to the In Albany, as part of the budget critical to new development and ma-
and rent increases to occur. New suffering from the devastating im- employment levels of 2008 negotiations, the governor has pro- jor renovation projects.
York’s office market remains the pacts of the national recession. We posed legislation that would de- As the real estate market slowly
strongest in the nation, according to are not expected to return to the em- for another three years. fer 50 percent of certain tax credits improves, it will continue to need the
the mayor’s executive budget docu- ployment levels of 2008 for anoth- that would be used or refunded over help of government to lower taxes,
ments released last week. er three years. The budget deficits the next three years. This deferral remove restrictions for investment
As tourists continue to flock to at the national, state and local level $2 billion (62 percent) from 2007. would apply to almost all tax cred- and provide the needed stimulus for
our city, hotel occupancy levels re- and the prospect of higher taxes are To avoid losing the momentum its, including brownfields, rehabili- the economic activity that does so
main high, and leisure and hospi- casting a cloud over our recovery. we are generating, we need to make tation of historic properties, green much to fund the services that are
tality employment continue to rise. Office rents are down 25 percent sure that government proposals to buildings and low-income housing. crucial to our city’s future.
These visitors and an improving from the peak, and vacancy rates are address budget deficits do not de- This deferral is effectively a tax in-
economy have contributed to the nearly twice as high today from the press our nascent recovery. REBNY crease and could jeopardize the de- Steven Spinola is the president of the
improvement we are seeing in the peak of the market, in 2008. Large of- has been engaged in a wide range of velopment of numerous projects Real Estate Board of New York.

calendar
By Jotham Sederstrom email Edreana@realestateacade- General Demonstration Appraisal

my.com for more info; Touro College Writing. Have fun with that.
“Using Technology and Social Net- [Real Estate Lenders Associa-
WEDNESDAY, MAY 12 working to Market Yourself” semi- tion Golf Outing, Metropolis Country
Even five years ago, hauling a nar, Touro College, 65 Broadway, 6 Club, 289 Dobbs Ferry Road, White
gaggle of successful real estate pro- p.m., call Michael Spampinato at 212- Plains, N.Y., 9:30 a.m., email head-
fessionals to an abandoned elevat- 742-8770, ext. 2439, for more info; quarters@rela.org for more info;
ed freight railroad would’ve been New York Building Congress 89th Appraisal Institute “General Demon-
a recipe for disaster. But when the know a little bit about bankruptcy, tweet about it on your smart phone. Annual Leadership Awards, Hilton stration Appraisal Writing” course,
New York Commercial Real Estate which is among the subjects to be … Dig out your cummerbunds and New York, 1335 Avenue of the Ameri- Marriott Residence Inn, 9 Gerhard
Women descend on the High Line discussed when the New York Soci- dinner jackets from the closet when cas, 11:30 a.m., call 212-481-9099 or Road, Plainview, N.Y., 8 a.m., call
for a private tour of Manhattan’s ety of Security Analysts convenes the New York Building Congress email jmb@buildingcongress.com 516-248-8964 for more info]
newest park, expect nothing short of for a mirth-filled seminar on invest- honors Douglas Durst, Matthew for more info; “Matt’s Promise” fifth
glamour. … With most brokers pub- ing in distressed and defaulted debt Goldstein of CUNY and godfather annual benefit, Cipriani Wall Street,
licly acknowledging that the worst and the basics of bankruptcy. Pull of mouthpieces Howard Ruben- 7 p.m. log on to www.mattspromise. Tuesday, May 18
of the recession is behind them, it up a chair, Greek President Karolos stein at its 89th Annual Leadership org for more info] Members of the Port Author-
seems a bit odd that yet another real Papoulias! … Juicy nuggets abound Awards. Mr. Rubenstein, we pre- ity and Regional Plan Association
estate group is hosting yet another when the Real Estate Board of New sume, will do most of the speaking, SATURDAY, MAY 15 will discuss findings in the recently
forum about the downturn. But give York hosts its regular “Inside Se- considering that he reps most of the How better to enjoy a Saturday released Urban Land Institute-Ernst
the folks at the B’nai B’rith Real Es- crets of Top Brokers” seminar. … people in attendance. … And finally, afternoon than with a tour of the and Young 2010 Report. They’ll also
tate Unit a break when they host its Apparently the first glimpse of sun- after a day spent gallivanting, do Greenwich Village townhouse acci- be discussing updates on the New
“Surviving and Flourishing in the light inspired not a few office-dwell- something good for a change by at- dentally blown up by members of the York Regional Infrastructure Proj-
Downturn” seminar. After all, it’s the ing real estate professionals to train tending the fifth annual benefit for radical Weather Underground and ects report when the Urban Land In-
only thing anybody really wants to their eyes on the High Line, Manhat- “Matt’s Promise,” a charity working the popular bars where leading art- stitute hosts its “Laying the Founda-
talk about, right? … Referrals, short tan’s newest park. Indeed, not only ists of the ’50s and ’60s shared their tion for Growth” seminar… The Real
sales and getting more bang from are the women of NYCREW hosting venereal diseases? If that’s your poi- Estate Board of New York will be dis-
your listings will be discussed—by an event at the elevated park, but so, son, then the radical tour guides of cussing lease renewal negotiations,
real estate trainer Debra Asher, no too, are the gents and damsels of the the Municipal Art Society are at the which, as any skilled broker knows is
less—during this seminar hosted National Arts Club. The only differ- ready with a “Radical Greenwich Vil- the bread and butter for any success-
by Charles Rutenberg Realty and ence is that the National Arts Club lage” walking tour. ful real estate professional. Steve
Continental Home Loans as part folks will discuss the spot from the [Municipal Art Society “Radical Durels of SL Green and Mitch Kon-
of its Professional Education series. comfort of their office. … The Real Greenwich Village” walking tour, meet sker of Cushman & Wakefield will
… When, in 1975, the New York under the arch at Washington Square speak alongside others… The Na-
State Supreme Court struck Park, 11 a.m., call 212-935-2075 or log tional Realty Club will hold its reg-
down Grand Central’s landmark on to www.mas.org for more info] ular luncheon as it welcomes TBD
status, the Municipal Art So- Holdings… To understand New York
ciety and Jacqueline Kenne- SUNDAY, MAY 16 City, one might reason, you need to
dy Onassis went into action, If beat poetry and abstract art start with Lower Manhattan. With
sparking a campaign that would Rubenstein. isn’t your thing, the guides at the that in mind, the guides of the Mu-
eventually save the vaunted ter- Municipal Art Society have an alter- nicipal Art Society are continuing
minal from becoming an office native in its tour of Staten Island’s the non-profit’s weekly Downtown
tower for Penn Central Railroad. historic St. George neighborhood. walking tour, which will most defi-
So it’s no surprise that each With monumental Beaux-Arts Stat- nitely include visits to Wall Street
Wednesday the talented MAS en Island Borough Hall and nearby and at least a few old churches.
guides return to the scene of Richmond County Courthouse, at- [Urban Land Institute “Laying the
near disaster for an informative tendees will be forgetting that bad Foundation for Growth” seminar,
tour of the terminal’s magnifi- acid in no time. the Yale Club, 50 Vanderbilt Avenue,
cent Beaux-Arts interiors. [Municipal Art Society “Sunday in log on to http://newyork.uli.org/ for
[New York Commercial Real St. George” walking tour, meet at the more info; Real Estate Board of New
Estate Women High Line tour, top of the escalators at Staten Island York “Lease Renewal Negotiations”
Ganesevoort Entrance at Wash- Ferry Terminal in Battery Park, 12:45 seminar, Mendik Education Center,
ington Street, 6 p.m., register at p.m., call 212-935-2075 or log on to 570 Lexington Avenue, 8 a.m., www.
www.nycrew.org/events; B’nai B’rith Estate Academy, the storied private www.mas.org for more info] rebny.com; National Realty Club lun-
“Surviving and Flourishing in the boys school that inspired Dead Po- Durst.
cheon, the Friars Club, 57 East 55th
Downtown” seminar, Cornell Club, 6 et’s Society and most of the films by MONDAY, MAY 17 Street, noon, log on to www.nation-
East 44th Street, noon, call Aracelis John Hughes, (pictured) is hosting Real Estate lenders will be do- alrealtyclub.com/events for more
Kuilan at 212-885-7239 or email her a “continuing education conference” to find a cure for Duchenne muscular ing what they do best—shmoozing, info; Municipal Art Society “Down-
at akuilan@bdo.com for more info; in which current real estate trends dystrophy. If being good isn’t reason presumably—when members of the town, Where New York Began” walk-
Continental Home Loans “Real Es- will be discussed. Expect laughs, enough, then go just to see Platinum- Real Estate Lenders Association ing tour, meet at the Downtown Info
tate Professional Education” series, followed by deep and profound in- selling rockers the Fray perform at tee up at the group’s annual golf out- Center, 55 Exchange Place, Suite 401,
Holiday Inn at MacArthur Airport, sight, when the group meets today the event. ing. Caddies, be warned: That tip 12:30 p.m., www.mas.org]
3845 Veterans Memorial Highway, at Touro College in Lower Manhat- [New York Society of Security may actually be a high-interest loan.
Ronkonkoma, N.Y., 8:30 a.m., call tan and again on May 17 and 19. … Analysts seminar, 1540 Broadway, … Meanwhile, those persistent folks Calendar items can be sent to Jotham
516-575-7500 for more info; Munic- Afterward, stick around the school, 1 p.m., register at www.nyssa.org; at the Appraisal Institute are at Sederstrom at jsederstrom@observ-
ipal Art Society Grand Cen- grab a cup of coffee and check your Real Estate Board of New York “In- it again, this time with a course on er.com.
tral walking tour, meet at Facebook page for side Secrets of Top Brokers” series,
info booth, main concourse, a few hours un- Mendik Education Center, 570 Lex-
Grand Central Terminal, til a free semi- ington Avenue, call 212-532-3100 for
12:30 p.m., www.mas.org] nar, “Using more info; National Arts Club High
Technology Line discussion, National Arts Club,
THURSDAY, MAY 13 and Social 15 Gramercy Park South, 8 p.m., log
getty images; james hamilton
What do Six Flags Amuse- Network- on to www.nationalartsclub.org

ment Park and the entire ing to Mar- for more info; Real Estate Academy
country of Greece have ket Your- “continuing education” conference,
in common, besides be- self,” begins where the Graduate School of Business at
ing tourist magnets? Well, the continuing education confer- Touro College, 65 Broadway, 9 a.m.,
for starters, both entities ence left off. Later, you’ll be able to call Edreana at 212-262-2662 or

Lease Beat by roland li
61 BROADWAY
LEASE OF THE WEEK

Where you want to be
Three Hedge Funds Take Prebuilt when you want to be in business
Spaces at Blackstone’s 717 Fifth

717 Fifth Avenue ners signed a lease for five years for
A trio of hedge funds have signed leases 4,177 square feet on the 14th floor. Gary
at 717 Fifth Avenue, each taking prebuilt Kamenetsky of CB Richard Ellis rep-
spaces with asking rents resented the tenant,
of $75 per square foot. which last leased at
All will have relocat- 599 Lexington Avenue.
ed by May to the tower Berens Capital took
controlled by the Black- 8,476 square feet on
stone Group (an SL the 12th floor for seven
Green partnership owns years. Brad Needle- IMMEDIATE AVAILABILITY OF 1,000–23,750 RSF PRE-BUILTS
an interest in floors one man and Ben Fried- Landlord will build to suit
through four). land of CB Richard Ellis Multiple full floors can be made available
Boston Provident represented the ten- Flexible lease terms from 1–10 years
took 4,346 square feet ant, which moved from
for five years on the 12th 1 Rockefeller Plaza. Solid, steady ownership · Unparalleled tenant services
floor. The firm will move Zachary Freeman, Efficient floorplates · Distinctive classic Art Deco attended lobby
from 600 Madison Av- Brian Hay, Robert Beautiful views · Complimentary conference center
enue this month. Chris Stillman and Robert Exceptional access to all downtown transportation
Whitman of Lincoln Alexander of CB Rich- Two blocks from Wall Street · Entrances on Trinity and Broadway
Properties represented ard Ellis represented
the tenant. the landlord in all three For additional information or lease inquiries contact:
Berchwood Part- transactions. Ramona Huegel or David M. Israni
“We're earning the right to be your next landlord.”

(212) 609.3700 GREAT SERVICE
IS ALWAYS
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11 Times Square Nears First Major

Daniel M. Blanco Raymond Chalmé
Lease: Proskauer Rose

11 Times Square
The law firm Proskauer Rose is poised to be- When corporate America collides with
come the first tenant in the empty 1.1 million–
square–foot tower built on spec by Steve Pozy- changing government and political landscapes,
cki’s SJP Properties at 11 Times Square, taking
380,000 square feet, or about 40 percent of the its leaders turn to Patricia Lynch Associates
building. Other companies want to build an aquar-
ium as a tourist attraction in the lower floors. for trusted advice and optimal results.
Proskauer is currently at 1585 Broadway, at
Morgan Stanley’s world headquarters, and the
bank is offering Proskauer a subsidy to vacate that
building’s 12th floor.
PLA’s team of seasoned professionals
CB Richard Ellis is representing both the land-
lord and the tenant. navigates the terrain for you, advancing your
The New York Times’ Charles Bagli reported the
pending lease on May 7. cause and bringing your message to the
key decision makers.
Salad Wizard Chop’t Taking Space at

Rudin’s 80 Pine
80 Pine Street
In yet another step in the Financial Dis- Government Affairs • Media Relations
trict’s transformation into a foodie desti-
nation, the salad specialist Chop’t is taking
3,340 square feet of ground-floor space at B R ATI 1 Pennsylvania Plaza, Suite 1909
LE
80 Pine Street. The 38-story office tower is
10
N
CE
owned by the Rudins and occupies a block New York, NY 10119

G
bounded by Pine Street, Pearl Street, Maiden

Lane and Water Street. The site is the chain’s
212.742.2680
YEARS
sixth Manhattan location. www.plynchassociates.com
Craig Hantgan of Esquire Properties
represented the tenant. Samantha Rudin
and Lou Somoza of Rudin Management
Company represented the landlord. albany buffalo new york cit y panama cit y, panama

Lease Beat by roland li
Orianne Collins
Picks 655 Madison for
First U.S. Store
655 Madison Avenue retail debut,” said Dan Harroch, direc-
The Swiss jewelry designer—and, for tor of PBS Real Estate, which represent-
those who care, Phil Collins’ ex—Ori- ed the tenant. “As designers look to real
anne Collins will open her first U.S. re- estate as a means to build brand image,
tail store at 655 Madison Avenue. Ms. neighboring retailers such as Barneys,
Collins’ company has signed a long-term Baccarat, Hermés and the Pierre Hotel
lease for 3,400 square feet, including make this an excellent opportunity to
two levels of retail space that will house market to the savvy luxury consumer.”
the “O.C. Concept Store.” The building is owned by a partner-
The store is slated to open in the fall, ship of the principals of the old First-
across the street from Barneys New Service Williams, according to the Post’s
York. Steve Cuozzo, who had news of a lease
“We were pleased to help secure the last month.
perfect location for Orianne Collins’ U.S.
Scoop! Häagen-
Office Furnisher Gets New Office;
Dazs Comes to
Takes Two Floors
N.Y.U.-Ville With
at 1140 Sixth
Two-Floor Spot
1140 Sixth Avenue
OfficeLinks, deliverer of furnished offic- 55 East Eighth Street
es and meeting rooms, took 24,000 square Washington Square Park is about to get
feet at Stellar Management and Rockpoint sweeter. Häagen-Dazs will occupy 1,824
Group’s 1140 Sixth Avenue, its fourth Man- square feet, split between the ground floor
hattan location. The lease is for the 9th and and the lower
10th floors in the 22-story building, and is the level, on 55
company’s second midtown location. East Eighth Street. The building, along a retail strip between
Steven Strati and Phil Amarante of Cush- University Place and Broadway, already has a Chipotle and a
man & Wakefield represented the tenant. Cosi inside.
“OfficeLinks has been very strategic and The ice cream chain will open during the summer, and faces
selective on a location and property-specific competition from the nearby Coldstone Brewery on Broadway,
basis,” said Mr. Amarante, who described the as well as from Ben & Jerry’s on Third Avenue.
deal as adding “another premier property to Beth Rosen and Ross Berkowitz of Robert K. Futterman
the firm’s portfolio, boasting quality office & Associates, with Jennifer Watson and Phil Baugh of Baum
space in the heart of midtown with direct ac- Realty, represented the tenant. Bruce Spiegel and William
cess to all mass transit, restaurants and pub- Bergman of Rose Associates represented the landlord, Uni-
lic amenities like Bryant Park.” way Partners.
Deutsche Spinoff Art Gallery Grows

Signs First Lease in Orchard Street
Since 681 Fifth Condo for $76 a
Renovation Foot
681 Fifth Avenue 30 Orchard Street
Global Thematic Partners, a spinoff of Rental Art Gallery took the 2,175-square-
getty images; property shark; corcoran group
Deutsche Asset Management, signed the first lease foot commercial ground space at 30 Orchard
at the newly renovated 681 Fifth Avenue. The firm Street, a new condo building on the Lower
will occupy 5,835 square feet, the entire 12th floor East Side. The space will feature 20-foot ceil-
of the 18-story property owned by Metropole Re- ings, skylights and bare walls to display art-
alty Advisors. Tommy Hilfiger occupies the bot- work. The rent is $76 per square foot.
tom six stories of the building. Tony Gaskin and Lesley Steiner of Cen-
Mitchell Konsker, Matthew Astrachan, Robert tury 21 NY Metro represented the tenant.
Gallucci and Scott Silverstein of Cushman & Wake- Joshua John of 8x8 Construction repre-
field represented the landlord. Michael Movshovich sented the landlord.
of CB Richard Ellis represented the tenant.

lease Beat by emily geminder
MANHATTAN - Office
Sq. Feet Tenant Landlord Brokers
Elliott Associates signed a 15-year lease, according to Crain’s. Newmark Knight Frank’s Chris Mongeluzo represented
40 West 57th Street 44,034 Elliott Associates SL Green the tenant. Landlord the LeFrak Organization was repped by Howard Fiddle and Zachary Freeman of CB Richard Ellis.
Parsons Transpor- Parsons Transportation Group signed a 10-year lease. John Maher and Gerry Miovski of CB Richard Ellis represented
100 Broadway 48,213 tation Group Hiro Real Estate the tenant. Patrick Dugan, Edward Goldman, Scott Gottlieb, and Scott Sloves, also of CB Richard Ellis, repped landlord
Hiro Real Estate.
LivePerson, Inc. signed a 10-year lease. The asking rent was $35 a square foot. Michael Kaufman and Grant Greenspan
475 10th Avenue 18,500 LivePerson, Inc. n/a of the Kaufman Organization represented the tenant; Kristin Fisher of the Adler Group represented the landlord.
KBL Group Interna- 1407 Broadway KBL Group International Limited signed a six-year lease, according to Crain’s. Savitt Partners’ Marc Schoen represent-
1407 Broadway 18,000 tional Limited Real Estate LLC ed the tenant. Landlord 1407 Broadway Real Estate LLC was repped by the Kaufman Organization’s Grant Greenspan
and Sommer Scafidi.
Bluewolf Inc. signed a 12-year lease, according to Crain’s. Adams & Co’s James Buslik and Jeffrey Schwartz represent-
11 East 26th Street 12,000 Bluewolf Inc. n/a ed both the landlord and the tenant.
U.S. Bank National U.S. Bank National Association signed a seven-month lease for the entire 16th floor. Michael Burlant of Cushman &
461 Fifth Avenue 7,134 Association SL Green Wakefield represented the tenant.
SK Telecom signed a five-year lease. The tenant was represented by Matt Leon of Newmark Knight Frank. Cynthia Was-
540 Madison Avenue 6,950 SK Telecom Boston Properties serberger, Randy Abend and Amanda Saltzman of Jones Lang LaSalle represented building owner Boston Properties.
540 Madison Avenue 6,950 Molo Lamken LLP Boston Properties Molo Lamken LLP signed a five-year lease. The tenant was represented by Jarod Stern of Studley. Cynthia Wasserberg-
er, Randy Abend and Amanda Saltzman of Jones Lang LaSalle represented building owner Boston Properties.
655 Madison Avenue 6,800 Kayne Anderson Plaza Madison As- Kayne Anderson Capital Advisors signed a 10-year lease. David Rosenbloom of Cushman & Wakefield represented the
Capital Advisors sociates tenant; landlord Plaza Madison Associates was repped by Colliers International.
885 Second Avenue 6,150 World Health Orga- Ruben Cos. The World Health Organization signed a 10-year lease. Cassidy Turley represented the tenant. Landlord the Ruben Cos.
nization was represented in-house.
Global Thematic Metropole Realty Global Thematic Partners, an investment management firm, signed a lease for the entire 12th floor. The tenant was
681 Fifth Avenue 5,835 Partners Advisors represented by Michael Movshovich of CB Richard Ellis. Cushman & Wakefield’s Mitchell Konsker, Matthew Astrachan,
Robert Gallucci and Scott Silverstein repped the owner.
Bloomsburg Carpet Twenty Three R.P. Bloomsburg Carpet Industries Inc. signed a five-year lease. The asking rent was $30 a square foot. James Buslik and
49 West 23rd Street 5,594 Industries Inc. Associates Alan Bonett of Adams & Co represented both the tenant and the landlord.
The New York Eye The New York Eye and Ear Infirmary signed a 15-year lease, according to Crain’s. Ripco Real Estate Corp’s Brad Cohen
75 Worth Street 5,500 and Ear Infirmary Jodi Richard represented the tenant; the landlord was repped by Sinvin Realty’s Michelle Stone.
Christopher Spitz- Abraham + Martin Christopher Spitzmiller Inc. signed a 10-year lease.
248 West 35th Street 4,500 miller Inc. Midtown Manage-
ment
231 West 39th Street 4,000 Cullen, Inc. 231/249 West 39 Cullen, Inc. signed a seven-year lease. The asking rent was $35 a square foot. James Buslik and Jeffrey Buslik of Ad-
Street Associates ams & Co represented both the tenant and the landlord.
Edelman Financial Edelman Financial Services LLC signed a five-year lease for 3,200 square feet. The tenant was represented by John
540 Madison Avenue 3,200 Services LLC Boston Properties Termini with CB Richard Ellis. Cynthia Wasserberger, Randy Abend and Amanda Saltzman of Jones Lang LaSalle repre-
sented the landlord.
10 West 33rd Street 3,016 Hosiery Network, Ten West Thirty Hosiery Network, Inc. signed a 10-year lease. The asking rent was $36 a square foot. David Levy of Adams & Co. repre-
Inc. Third Associates sented both the tenant and the landlord.
750 Lexington Avenue 3,000 Bryan, Garnier & Cohen Brothers Bryan, Garnier & Co. signed a four-year lease, according to Crain’s. Prudential Douglas Elliman’s Amy Murawski repre-
Co. Realty Corp. sented the tenant. Landlord Cohen Brothers Realty Corp. was repped by Adam Karafiol in-house.

MANHATTAN - Office
Eisenman Associ- Eisenman Associates signed a lease on the 22nd floor. Michael Rouzenrouch of Myriad Realty represented the tenant;
401 Broadway 2,349 ates n/a ABS Partners repped the landlord.
The Confidas 680 Fifth Avenue The Confidas Group USA signed a 10-year lease. Byrnam Wood’s Benjamin Mohr and Gordon Ogden represented the
680 Fifth Avenue 2,300 Group USA Associates tenant. The landlord was repped by Brian Gell and Brian Hay of CB Richard Ellis.
Software firm Lattice Engines signed a three-year lease. David Gomez of GlenMark Realty represented both the land-
291 Broadway 2,100 Lattice Engines n/a lord and the tenant.
The Kaufman Or- MARV Capital signed a three-year lease on the sixth floor. Brendan Mahoney of CSCommercial Group represented the
450 Seventh Avenue 1,600 MARV Capital ganization tenant. Landlord the Kaufman Organization was repped in-house by Barbara Raskob.
Charmed Acces- Ten West Thirty Charmed Accessories signed a six-year lease. The asking rent was $36 a square foot. David Levy of Adams & Co. repre-
10 West 33rd Street 1,334 sories Third Associates sented both the tenant and the landlord.
Photographer Barbara Probst signed a lease on the 11th floor. Adams & Co. represented the tenant. ABS Partners
401 Broadway 782 Barbara Probst n/a repped the landlord.
OUTER BOROUGHS — OFFICE

85 Wythe Street (Brook- Colossal Media Colossal Media Group, a hand-paint advertising company, signed a seven-year lease. Jacques Wadler and Vincent Lo-
lyn) 7,500 Group Wythe, LLC pez of Kalmon Dolgin Affiliates represented both the owner and the tenant.
55 Washington Street The International Two Trees Man- Jennifer Rhodes of Ideal Properties Group represented the tenant. Landlord Two Trees Management was repped in-
(Brooklyn) 1,258 Legal Foundation agement house by Natalie Ungari.
Ltd.
55 Washington Street Ferreira Construc- Two Trees Man-

(Brooklyn) 1,253 tion Co. Inc. agement Elizabeth Cottrill of Two Trees Management brokered the deal.
55 Washington Street Two Trees Man- Quint & Quint, a direct marketing design studio, signed a three-year lease. Caroline Pardo repped landlord Two Trees
(Brooklyn) 1,093 Quint & Quint agement Management in-house.
Rubber Band International LLC, a real estate management and development company, signed a lease. Chris Havens of
55 Washington Street 1,072 Rubber Band Inter- Two Trees Man- Creative Real Estate Group represented the tenant. Landlord Two Trees Management was repped in-house by Caroline
(Brooklyn) national LLC agement Pardo.
55 Washington Street Two Trees Man-

(Brooklyn) 1,072 Erminio Olivi Lucci agement Erminio Olivi Lucci, a photographer, signed a lease. Caroline Pardo repped landlord Two Trees Management in-house.
Reach the people who own, manage, lease and sell space in
the city by advertising your deals in the
Contact Robyn Weiss, Associate Publisher, for more information:

212.407.9382 or rweiss@observer.com

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MANHATTAN — RETAIL
Marcus Samuels- Home Court Man- Marcus Samuelsson signed a 15-year lease for a new restaurant, according to Crain’s. Ripco Real Estate Corp.’s Brad
310 Lenox Avenue 7,300 son agement Cohen represented the tenant. Landlord Home Court Management was repped by SL Green’s Gary Rosen.
Food World signed a 15-year lease, according to Crain’s. Prudential Douglas Elliman’s Gary Dana and Rick Dana repre-
939 Eighth Avenue 5,000 Food World Harry Eisenstein sented both the tenant and the landlord.
Nesso Manage-
49 West 24th Street 4,200 ment n/a Nesso Management signed a 15-year lease. Olga Ousmanova of CSCommercial Group represented the tenant.
The asking rent was $76 a square foot. Tony Gaskin and Lesley Steiner of Century 21 NY Metro represented the tenant.
30 Orchard Street 2,175 Rental Art Gallery 30 Orchard LLC The landlord was repped by Joshua John of 8x8 Construction.
11 West Commer- Uni.K.Wax signed a 10-year lease. Josh Gunsberger of JG Realty Associates represented the tenant. Landlord 11 West
13 West 18th Street 2,000 Uni.K.Wax cial Corp. Commercial Corp. was repped by Sinvin Realty.
66 Madison Av-
66 Madison Avenue 1,800 Pallatte enue Apartment New eatery Pallatte signed a 15-year lease. Sinvin Realty represented both the landlord and the tenant.
Corp.
Friedland Proper-
189 East 79th Street 1,500 MaxWax East LLC ties MaxWax East LLC signed a lease. Ripco Real Estate represented the tenant.
264 Bleecker Street 1,300 Binn On Bleecker n/a Binn On Bleecker LLC signed a 15-year lease. Steve Rappaport of Sinvin Realty represented both the landlord and the
LLC tenant.
1035 Third Avenue n/a Jimmy’s Custom n/a Jimmy’s Custom Framing Gallery signed a lease. Faith Hope Consolo and Joseph A. Aquino of Prudential Douglas Elli-
Framing Gallery man represented both the landlord and the tenant.
OUTER BOROUGHS — RETAIL

Amazing Savings signed a 10-year lease, according to Crain’s. William P. O’Brien and Karen Cohen of M.C. O’Brien Inc.
1605 Avenue M (Brooklyn) 17,400 Amazing Savings n/a represented both the landlord and the tenant.
1305 Kings Highway 3,500 BBS Beauty Sys- 1305 Properties BBS Beauty Systems Inc. signed a lease. M.C. O’Brien represented both the tenant and the landlord.
(Brooklyn) tems Inc. LLC
Reach the people who own, manage,

lease and sell space in the city by advertising your
deals in the Commercial Observer.
Contact Robyn Weiss, Associate Publisher, for more information:

212.407.9382 or rweiss@observer.com

the
Power
100 The Most Powerful People in New York Real Estate
T Power 100 Photographers: michael nagle; shravan vidyarthi; getty images; green pearl; james Hamilton;blackstone group;
wo years ago, in the months before the fall of Lehman Broth- nette Sadik-Khan (No. 95).
ers, when New York’s economic lily was still contentedly As usual, the list remains arctic white and terminally male. (How does this keep hap-
Joe Fornabaio; Steve Friedman; shana wittenwyler; masnyc; ryan Meehan; Willie Davis; nyhtc; stephanie sauer
gilded, crafting a list of real estate’s biggest machers was pening in the world’s most diverse city? Even the suites of Wall Street—and of the White
pretty easy: Moguls X, Y and Z had done deals A, B and C, and House—claim more diversity.) There are 12 women—the most ever—with CBRE tristate
the business of real estate ticked along. chief and REBNY chair Mary Ann Tighe the highest ranked at No. 7, and the chair of City
Then came the bust, and the list was notable more for who Planning, Amanda Burden, in a distant second at No. 34. Nonwhites? Governor Paterson
had fallen off than for who had stayed on. Last year’s tally (No. 55), who, dear reader, will likely not make it next year, and Korean-American devel-
was demarcated by government—President Obama was No. oper Young Woo (No. 94)—and that’s just about it.
1—and by those adapting to survive. The phrase “money on Brokers, the middlemen (and, on occasion, middlewomen) of the city’s deals, are less
the sidelines” made numerous appearances. represented than landlords and investors—there has just been less work to go around.
This year, the list, like the industry it chronicles, is very much in motion. Pinning Brokerages themselves are amply represented, in the form of their chief executives or
down who is up, if anybody, and who is down the most changes by the day. This repre- chairs. These include residential ones like Pam Liebman (No. 66) of the Corcoran Group;
sents our take on the most powerful people in New York real estate right now. Howard Lorber and Dottie Herman (No. 63) of Prudential Douglas Elliman; and an en-
And yet about three-fourths of the people here are returnees, which says something gorging number on the commercial side, including the boys from Newmark Knight
about the closed club that is New York real estate. Old money is heavily represented, Frank (No. 26), Peter Riguardi from Jones Lang LaSalle (No. 27) and Mitchell Steir and
able as it has been to weather the recession—even when it has botched deals epically, Michael Colacino from Studley (No. 28).
such as Jerry and Rob Speyer (No. 11) with Stuy Town. The Speyers join old money like Institutionally, the same names showed up as in previous years, such as Lee Bollinger
Douglas and Jody Durst (No. 8); Richard LeFrak (No. 10); Peter and Anthony Malkin (No. (No. 90) of Columbia; John Sexton (No. 78) of N.Y.U.; Timothy Dolan (No. 76) of the Ro-
18); Howard and Edward Milstein (No. 38); and Bill Rudin (No. 24). man Catholic Archdiocese; and James Cooper (No. 79), the Episcopalian rector of Hud-
There are new people. Carlos Slim—according to some, the world’s richest person— son Square–controlling Trinity Church.
clocks an appearance (No. 13), having just made a sudden splash in the biz. Another for- The No. 1 spot, supplanting the president, belongs to Stephen Ross, chairman of Re-
eigner with billions to immolate: Mihkail Prokorov (No. 43), erstwhile Nets owner and lated Companies. His firm seems to be everywhere about New York, particularly on the
would-be Nets arena developer. And, speaking of Stuy Town and the Speyers, Charles far West Side. There are train tracks there now, slightly below ground level, in an area
Spetka (No. 32) chairs the distress-hungry firm overseeing that most historic of foreclo- to be avoided after dark—or in broadest daylight. But Mr. Ross envisions 13 towers on
sures. Also, welcome media enthusiast Sam Zell (No. 19), reluctant heir Stefan Solow (No. two platforms producing 5,000 apartments and 6 million square feet of office and retail
56), M.T.A. chairman Jay Walder (No. 64) and Israeli magnate Nochi Dankner (No. 88). space—a city within a city, 50 percent bigger than Rockefeller Center.
While Mr. Obama did not make the list this year, government is represented fairly That’s some change right there. Vision, too.
strongly, with perennial flower Michael Bloomberg hitting the top 10 again. Looming A final few notes on the list. There are 138 names amid the 100 slots. Of those, more
six spots behind him is probably the soon-to-be most influential public figure in New than 25 percent are new; the rest are returnees. If someone made the list last year, that
York State: Andrew Cuomo (No. 15). Other apparatchiks and pols include Deputy Mayor ranking is next to their entry in parentheses. The list was chosen by The Observer, and is
Robert Lieber and Economic Development Corp. president Seth Pinsky (together at No. subjective. Feedback can be given in the comments section of Observer.com.
73); Parks Commissioner Adrian Benepe (No. 87); and Transportation Commissioner Ja- Discuss.

Publication 2 of 4: May 11th, 2010
effectiveness and attractiveness of these strategies. We have working, full in carpets, and low off-gassing paints, adhesives, and wall coverings. ESB
The Empire State Building and partial floor installations in the building occupied by large credit tenants
available for review for new tenants and their service providers.
operations are healthier, the ESB work environment is healthier, the ESB
impact on the environment is healthier.
Takes Leadership Role In Energy Remember that utility costs represent the third largest component
of tenant expenses (after salaries and rent). At ESB, we offer tenants proven
To what extent can ESB’s emphasis on sustainability actually help a
tenant reduce its costs and improve its work environment? In our next
and Cost Savings for Tenants pathways to reduce current costs and exposure to escalating costs over
the lease term. There is no other Pre-War Trophy building ... nor Post-War
building ... that can match our on-site energy
publication, we will outline in detail the experiences of one tenant, Skanska
USA, who reduced their energy consumption by 57 percent from their prior
office during its first year of occupancy at the
efficiency team and web-based, real-time building. (Note: The reduction represents a
What Brokers Need to Know Tenant Energy Management System with comparison which takes into account changes
instant feedback to measure, control, and in size and employee density.)
How ESB Helps Tenants make actionable recommendations for
Consider the advantages: New, modern
improving tenant efficiency. And these
On April 5, 2009, President Bill Clinton, New York Mayor Michael Bloomberg, and W&H Properties’ Empire State Building (ESB) base building systems and a groundbreaking
features are not limited to big tenants ... ESB
energy retrofit program that is setting a new
unveiled a new model for economically viable, replicable energy retrofits in the existing built environment to reduce now sub-meters electric in all new suites of
world-wide standard for efficiency; advanced
materially energy consumption, operating costs, and carbon footprint. In this, our second of four publications, we would like more than 2,500 square feet of electricity use.
tools and support from the nation’s leading
to explain the impact of this work on our tenants and the brokers who serve them.
Energy efficiency, however, is only experts for controlling tenant electricity con-
one of ESB’s environmental advantages. sumption and office climate; unparalleled access
Look back a decade ago ... had anyone ever heard of the corporate Everyone needs to see ESB, not just for the visible results of our The building’s new state-of-the-art building to natural light; a full suite of “green” applications
position, “Chief Sustainability Officer” ... very few companies were even ongoing $550 million top-to-bottom upgrading ... our fully restored lobby management system and HVAC infrastructure to reduce exposure to toxins and allergens – all
focused on subjects like energy efficiency and carbon footprint reduction. with new office-only areas on 34th and 33rd Streets, new elevators, common- – including the largest wireless BMS (Build of it at a Pre-War Trophy price, typically half the
Today, these subjects have become commonplace. The larger and more area hallways, bathrooms, and more ... our unsurpassed array of tools and Management System) network in the world price of modern buildings offering less than
successful the company, the more focus there is on reducing exposure to resources to assist tenants with achieving their corporate sustainability to manage climate control – provide fresh, half of our competitive, productivity-enhancing,
energy costs and incorporating sustainability practices in everyday business objectives. Signing a lease at ESB provides tenants improved energy clean air throughout every floor, with four cost-containing advantages.
activities and long-term planning. efficiency to reduce overall operating expenses and provide a healthier, individual air handling units per floor to
more productive work environment for their employees as well ... all at Try some of these thoughts out on
Business leaders realize they have the ability to improve bottom lines enhance temperature control for tenants.
unmatchable Pre-War Trophy rents. your important tenant clients. Bring them to
and protect against risk by reducing energy consumption. Think about it: Adding to the impact of these high-tech benefits is ESB’s inherent the Empire State Building’s world-class address right in Midtown Manhattan,
the three highest costs of The Empire State Building is undergoing a groundbreaking structural advantage: the building’s center-core construction enables an conveniently located near virtually every major subway line and PATH train,
occupancy for a tenant in energy reduction program. In addition to tools which support our tenants unsurpassed window-to-floor-area ratio, providing deep penetration of and virtually equidistant from Grand Central Terminal, Penn Station, and
At ESB, we offer tenants
New York City are salaries, in achieving high performance build outs, the energy retrofit program natural light and air. That abundance of light is unobstructed by nearby the Port Authority Bus Terminal in the heart of the revitalized 34th Street
proven pathways to
rent, and utilities – in that consists of eight rigorously evaluated and proven cost-reduction initiatives buildings, even on lower floors ... and remember, as part of the retrofit shopping and services Corridor.
reduce current costs order. Through a combination that will reduce the building’s energy consumption by 38 percent. This is program the existing windows are upgraded and reinforced as triple-glazed
and exposure to of payment for utilities for Standing behind all of this is the financial strength of the Empire
not “future-ware,” but here today in our retrofitted windows, perimeter insulated panels for high thermal efficiency.
escalating costs over space under lease and the insulation, networked digital controls of every steam valve, air damper, fan, State Building Company. As with other properties supervised by Malkin
the lease term. inclusion of utility charges in and pump throughout the entire building. This allows us unprecedented The full ESB advantage includes a cleaner, healthier environment Holdings, our generations of prudent investment and management provide
the calculation of escalation control over our HVAC system as well as unprecedented real-time for better worker productivity and retention, all at prices competitive to other, tenants with the peace of mind that comes from a financially stable landlord
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end up being the biggest variable of the three. Over the life of a lease, these functioning as designed, we know immediately. comprises tenant waste and construction debris recycling, the use of non- the meantime, more information on our groundbreaking program can be
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28 May 11, 2010 observer.com | the commercial observer the commercial observer | observer.com May 11, 2010 29
1 Stephen Ross (2)
Chairman of the Related Companies 2 Marc Holliday and Andrew
Mathias (7)
CEO and president–chief investment
Recession be officer, respectively, of SL Green
damned. As
foreclosures It’s hard to
proliferate and overstate this
new construc- one. Messrs.
tion is mostly Holliday
halted citywide, (pictured) and
Mr. Ross, also Mathias
the owner of together
the Miami control SL
Dolphins, is not slowing down. To Green, which is
name a few of the items that take up the single
his days: He is mid-construction on largest commercial landlord in New
a hotel and apartment tower on York City, controlling 23.2 million
42nd Street; he has amassed a large square feet in 29 office buildings. If
acquisition fund to scoop up SL Green’s battles at 100 Church and
distressed assets; he has started a 510 Madison—and its recent buys of
bank with his partners at Related, 600 Lexington and 125 Park—are
looking to buy a failed bank; he is any indication, the REIT has every
negotiating with the New Jersey intention of further expanding its
#
1
governor about taking over the New York empire.
giant Xanadu mega-mall; and he
constantly has executives at
Related’s doorstep, looking to a man
with money.
Stephen Ross

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#
3
Mort Zuckerman
3 Mort Zuckerman (3)

Chairman-CEO of Boston Properties 5 Jonathan Gray (14)
Senior managing director and Real Estate
Group co-head of Blackstone
Not only does Mr.
Zuckerman’s Boston Mr. Gray has shepherded
Properties control 8.88 some of the company’s
million square feet of biggest deals, including
office property in New the privatization of
York City, including the nearly a dozen real
GM Building, but he’s on estate companies and,
the prowl for more, one most notably, Hilton
of three runners-up, Hotels (including the
along with Douglas Waldorf-Astoria), which
Durst (No. 8) and Stephen Ross (No. 1), to rebounded last month
buy an equity stake in the building formerly after Blackstone bought back $1.8 billion in
known as the Freedom Tower. debt.
4 Steve Roth and Michael Fascitelli

(11)
Chairman and president, CEO and Trustee, respec-
6 Barry Sternlicht (65)
CEO of Starwood Capital Group
tively, of Vornado Realty Trust Few chief executives

have enjoyed such
success during this
The bluntly spoken yet Great Recession as Mr.
oddly press-shy Mr. Sternlicht, who
Roth (pictured), with his managed to drive up
right-hand-man, Mr. Starwood’s total equity
Fascitelli, together by a whopping $3 billion
control the second-larg- since last year. His
est office landlord in capital-raising skills go a
New York, their REIT long way in explaining why, just last month,
owning 22 million feet he and a group of investors shoveled $905
in more than 50 Manhat- million into financially troubled Extended
tan properties. These include several around Stay Hotels, a company that boasted among
Penn Station, including the Hotel Pennsylva- the largest debt loads in hotel history.
michael nagle
nia, which Vornado would turn into the city’s

third-tallest office tower.

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7 Mary Ann Tighe (22)
CEO of CB Richard Ellis’ New York Tri-state
Region
11 Jerry and Rob Speyer (pictured)
(5)
Chairman and co-CEOs of Tishman Speyer
Feared and admired in While the father-son

equal measure, Ms. duo has distressed prop-
Tighe has completed erties around the
millions of square feet country, vestiges of a
of leasing transactions. buying spree at the peak
Also, as the chairman of of the market, they still
the Real Estate Board of are at the head of one of
New York since January, the more dominant
she has the ear of families in New York
countless landlords and City. Among their
policy makers as REBNY pursues what for it holdings: Rockefeller Center, the Chrysler
is a rather well-publicized political agenda. Building and the MetLife building, all of
which are surely worth far more than when
they purchased them.
8 Doug and Jody Durst (6)
12
Co-presidents of the Durst Organization
Andrew Farkas
CEO of Island Capital Group
Environmentalist
stalwarts, cousins
and keepers of the An heir whose surname
family fortune, literally means “wolf,”
Messrs. Durst Mr. Farkas is nothing if
control an empire not aggressive when it
of commercial and comes to investing.
residential real Years after making a
estate that name for himself by
encompasses the snatching up a dis-
fabulously successful new One Bryant Park, tressed real estate
the Helena, 4 Times Square and, if they have partnership in circa
their way with the Port Authority, a piece of 1990s Manhattan, he returned to the front
One World Trade Center. pages of the business trades in March after
acquiring Centerline Holding, a bankrupt
9
group that restructures troubled mortgages.
Michael Bloomberg (4) When he’s not picking through real estate
carcasses, Mr. Farkas is said to cheer on his
Mayor of New York
former employee, governor-in-waiting
Andrew Cuomo.
His main rezonings are
done; his legacy projects
13
were announced years
ago; and he has few Carlos and Tony Slim
distinct plans for the
Chairman-CEO of Telmex; head of Real
third term. Still, our
Medici wields power Estate Investments
over anyone seeking to
build anything large, Mexican telecom mogul
and he and Deputy Carlos Slim Helú
Mayor Bob Lieber (No. 73) have shown an (pictured), the world’s
eagerness to take assets from the state. richest person,
They’ve now grabbed Governors Island and according to Forbes
Brooklyn Bridge Park, and are eyeing Battery (estimated wealth:
Park City. $53.5 billion), bought
the plain vanilla office
building at 417 Fifth
10
Avenue, owns a note
Richard LeFrak (18) backing The New York Times’ former
headquarters and is said to be searching for
Chairman, president and CEO of the Le-
more such investments—with son Tony—in
Frak Organization Manhattan. Carlos Slim, budding New York
real estate mogul? Puede ser?
His personal wealth estimated at $4 billion,
Mr. LeFrak controls the New York empire
14
founded by his grandfather Harry, which
includes 40 West 57th Street and, in Queens, Craig Newmark (15)
the eponymous LeFrak City, the Brussels and
Founder of Craigslist
the Marseille. The empire is also pursuing
Stuyvesant Town in a partnership with Wil-
bur Ross. On his Twitter bio (he
has a loyal 21,899
followers) the classi-
fieds caliph humbly
describes himself as
“customer service rep
and founder for
shravan vidyarthi
craigslist.” He does not

mention the company’s
ongoing legal battles

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21 Howard Rubenstein (27)
Chairman, Rubenstein Communi-
cations, Inc.
bankruptcy, but at least he has that
whole real estate empire thing
going for him: 15 office towers,
including 345 Park Avenue and 1675
Broadway, well over a dozen
When some- residential properties and, of
thing goes course, the leadership of the
wrong, Association for a Better New York,
clients—and allowing him an influential voice in
reporters—call real-estate–related public policy.
Mr. Rubenstein,
the city’s
25
public-relations
master, who Mitch Rudin (26)
has been styled
President-CEO of CB Richard
“the dean of damage control” by
Rudolph Giuliani. His eponymous Ellis’ New York Tri-state Region
firm, with more than 200 employ-
ees, represents a staggering roster Mr. Rudin oversees the manage-
#
26
of clients, including SL Green, ment of the largest commercial real
Vornado Realty Trust, Tishman estate brokerage in New York City.
Speyer and dozens of other real It is 700 employees strong; given
estate players. the general broker personality type,
it cannot be easy to run. Still, CBRE
Barry Gosin
22
continues to dominate the city’s
Steven Spinola (28) office-leasing landscape, working on
more of 2009’s largest leases than
President of the Real Estate
any other firm.
Board of New York
19 26
The State
with eBay or the fact that his
international classifieds purveyor,
which began as a personal email list
15 years ago, has more than 20
17 Sheldon Silver (10)
Speaker of the State Assembly
vestments
Sam Zell
Chairman of Equity Group In-
Senate may be
Democratic, but
Mr. Spinola has
managed to
Jeffrey Gural, Barry
Gosin, Jimmy Kuhn
and David Falk (39)
billion page views per month, many With a help ward off Chairman, CEO, president and regional
of which service a DIY-hungry real lame-duck Before this any legislation president, respectively, of Newmark
estate community. governor and a year, Mr. Zell that might hurt
slim Democrat- was known landlords’ Knight Frank
15
ic majority in locally for bottom lines.
Andrew Cuomo the Senate, Mr. riding a Now, he is using Messrs. Gural,
Silver is often motorcycle, his trade group and landlord cash to Gosin and Kuhn
Attorney general of New York
referred to as being delight- mimic unions, better organizing have trans-
the de facto fully crude in members on policy issues and formed
Despite no governor. He public settings raising money for a political party Newmark
announcement has strong control over his and owning the of sorts, tentatively using the Knight Frank
of his inten- conference, and anything going Tribune Company. But in March, he Independence Party line to push into a top-flight
tions, much of through the Legislature must gobbled up Harry Macklowe’s last pro-business candidates. commercial
the New York receive his nod. For real estate, the three apartment buildings for $475 brokerage by
political world object of much of his affection is his million, following a $12 million deal carefully
23
views Mr. Lower Manhattan district, which he for a lot owned by Shaya Boymel- cultivating both young talent and an
Cuomo as the has helped shower with tax breaks green. Suddenly, he was all about Jeffrey Feil (37) enviable work environment. (Mr.
governor-in- and infrastructure. New York, or at least distressed Falk, pictured, is being groomed to
President-CEO of the Feil Or-
waiting. He’s properties in it. take it all over.) In so doing, they’ve
expected to control the state in ganization scored countless prime tenants,
18
eight months, and his campaign from Claremont Prep to Orrick
20
coffers are flush with real estate Peter and Anthony The multigenerational real estate Herrington.
contributions. He also has a history Chris Ward (48) investment firm that bears his name
in the housing world: He was HUD
Malkin (50) cast a wide net last year, to Herald
Executive director of the Port
27
secretary in the late 1990s, in Chairman and president, respectively, of Square, where the group acquired
President Clinton’s cabinet; and his Malkin Holdings Authority of New York and New Jersey the 250,000-square-foot Herald Peter Riguardi (34)
current office approves or rejects Center. The nine-story shopping
President, Jones Lang LaSalle
condo offering plans. After the mall marks the Feil’s 19th shopping
The Malkins are authority’s center acquisition, but Mr. Feil, a New York Region
a multigenera- bruising, founding partner of the private-eq-
16
tional New York yearlong uity group Longview, didn’t pause Mr. Riguardi is
Donald Trump (16) real estate negotiation to enjoy the purchase. He was off one of the more
family, with with developer to oversee the acquisition of a re- dominant office
CEO of the Trump Organization
office holdings Larry Silver- tail segment of the St. Regis Hotel, brokers in
throughout the stein (No. 33), a which commands the highest retail town, repre-
To a younger region. Most financial asking rents in the city. senting
generation, the notably, they agreement is in numerous
24
Donald may be are co-owners place at the World Trade Center for banks and
best known for of the Empire State Building, which two new private towers, thanks in Bill Rudin (12) buildings and
firing up-and- has been going through a much-bal- large part to the Port Authority’s occasionally
President of Rudin Manage-
comers and lyhooed green upgrade—Peter balance sheet. Taken with One playing both sides of big deals (like
boldface names Malkin (pictured) announced it last World Trade Center, which the ment Company in a large lease at One World Trade
alike on The year with Bill Clinton at his side. agency is developing itself, Mr. Center, for instance). His firm is
Apprentice. But Speaking of last year, Malkin Ward has his hands in 7 million Mr. Rudin may charged with finding tenants for
buried deep his Holdings leased more than 1.1 square feet downtown. be struggling to Goldman Sach’s old headquarters,
colorful Google results, Mr. Trump, million square feet in 2009, of which get his St. at 85 Broad Street, as well as at 1285
it seems, is still a developer at heart. only about 400,000 involved Vincent’s Avenue of the Americas, among
To wit: After years of playing renewals. redevelopment others.
Goliath to neighborhood groups, the project under
Trump Soho Hotel Condominium way, now that
james hamilton
finally opened in Manhattan last the hospital has

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#
39Ric Clark
28 Mitch Steir and

Mike Colacino (41)
Chairman-CEO and president, respective-
30 Keith Barket and
Adam Schwartz
Senior managing director and head of
distressed assets, an area that is
most certainly a growth industry.
site, backed in large part by
public-sector subsidies. Should he
raise private capital, he will own
some of the only new office space in
brightest star. Indeed, as the bank
seeks to entrench itself in a lucra-
tive bid to help financially strapped
private companies enter the public
32
ly, of Studley U.S. Investment Activities, respectively, of the city starting in 2013, with large markets, few individuals are bet-
Angelo, Gordon & Company Charles Spetka blocks available for leasing. ter positioned to contribute to the
bank’s bottom line than Mr. Horow-
President of CW Capital Asset
Messrs. Steir itz, who as an investment banker in
34
(pictured) and As head of real Management the 1990s helped move financially
Colacino lead estate acquisi- Amanda Burden (8) burdened private landlords to the
New York’s tions at Angelo, Slowly but public sector and, subsequently,
Chairwoman of the City
preeminent Gordon & surely, CW helped rev up equity for the REIT
tenant rep Company, Mr. Capital is Planning Commission industry.
brokerage, and Barket and Mr. taking control
are doing so Schwartz have of Manhattan’s The design-at-
36
during the most spearheaded commercial tentive Ms.
tenant-friendly many of the market. Under Burden and her Lloyd Goldman (25)
office market in ages. It pays. Their savviest Mr. Spetka, the department
President of BLDG
stable of brokers have won two of property buys in recent memory, firm is the have now
the past three top REBNY awards, including the Chelsea Market in “special rezoned more Management
and they continue to rake in the 1998 as part of a package deal of five servicer” charged with restructur- than one-fifth
clients. The latest coup? Negotiat- buildings. After purchasing the ing or selling giant properties of the city, Heir to his uncle’s real estate throne,
ing Tiffany’s new headquarters in portfolio for a paltry $115 million, bought at the market’s peak and restricting the press-shy Mr. Goldman has be-
four-plus floors of 200 Fifth Avenue. the firm upgraded the buildings and now in, or near, default. Among the development in come probably the city’s biggest
sold them individually for a properties in the purview of the side streets and allowing new private landlord, with an unknown
reported total of $1 billion. More relatively anonymous firm: density near subways, in formerly total of apartment and mixed-use
29
recently, the firm, in a partnership Stuyvesant Town, Riverton and the industrial areas along the water- buildings under his purview that
Ronald Kravit with Extell, signed a deal to acquire W Hotel Downtown. front; the major city-led rezonings likely totals in the hundreds.
the Helmsley Carlton House hotel. are now mostly finished. Private
Managing director of
33
developers must first gain her
37
Cerberus Real Estate stamp of approval on many large
Larry Silverstein (29)
31
projects. Doug Shorenstein
President of Silverstein
He’s known for conjuring innovative Adam and Amy Rose
Properties CEO of the Shorenstein Co.
investment deals, including land-
(56)
35
mark acquisitions of the discount
retailer Mervyns and grocery store Co-presidents of Rose Associates After taking a It’s been only
Jeff Horowitz
chain Albertsons. But what many tenacious about eight
Head of Real Estate Invest-
investment and real estate profes- The cousins Rose, one arm of the approach to years since the
sionals talk about when they discuss storied real estate family, are yearlong ment Banking in the Americas, Bank of San Francisco–
Mr. Kravit is how he helped put into amassing a greater portfolio these negotiations America based real
play the trend of hedge funds enter- days, due in large part to the mar- with the Port estate firm
ing the private-equity sphere. In ket crash. From Riverton House to Authority, Mr. penetrated the
these heady financial times, innova- Stuyvesant Town (though not of- Silverstein now Among the Merrill Lynch employees New York
tion is key. ficially for Stuy Town), the company is able to build who joined B of A after the two com- markets in
getty images
has become the third-party man- two office panies merged, shotgun-style, Mr. earnest. Ever
ager of choice for many of the larger towers at the World Trade Center Horowitz may be the new group’s since then, however, Mr. Shoren-

42 Howard Lutnick,
Steve Kantor and
Anthony Orso
The urbane
Zeckendorfs,
who were
CEO, managing director and senior part- among the first
developers to
ner, respectively, of Cantor Fitzgerald bring condo-
miniums to
Since 2008, New York
when Cantor City—most
Fitzgerald recently, the
announced its epically successful 15 Central Park
entry into the West, probably still the nation’s
real estate most expensive condo, sales-wise—
investment and spend their spare time controlling
development Terra Holdings, the owner of
market, the Halstead and Brown Harris Stevens,
financial group the employer of more than 600
has been on a hiring spree. Mr. brokers and the manager of more
Lutnick (pictured) is at the helm of than 80 buildings.
the newest venture, Cantor Real
Estate, and has already announced
46
plans to bring on more than 130 new
#
46
professionals. Former Credit Suisse Darcy Stacom and
stars, like Mr. Kantor and Mr. Orso,
figure prominently in the new
Bill Shanahan (59)
strategy. Vice chairmen of CB Richard Ellis
Darcy Stacom and If a building
43
got sold
Bill Shanahan during the
Mikhail Prokhorov
recession,
Would-be owner of the
they sold it.
Brooklyn Nets And now
that the
Assuming the recession
NBA gives him appears to
the thumbs-up, be
Mr. Prokhorov, bottoming out, if not finally lifting,
a Russian Ms. Stacom and Mr. Shanahan are
billionaire, is busy again. Recently, the duo helped
slated to Hines sell 600 Lexington Avenue to
become owner SL Green for $193 million.
of New York
City’s newest
47
professional sports team, as well as
a co-owner of the Barclays Center Doug Harmon and
now under construction in down-
town Brooklyn after seven years of
Adam Spies (71)
planning. Senior managing directors of Eastdil
Secured
stein, who has been credited with

turning his long-established
family-run business into a national 39 Ric Clark (49)
CEO of Brookfield Properties 41 William Mack (pic-
tured), Lee Neibart and
44 David Levinson and
Rob Lapidus
Chairman-CEO and president-CIO, re-
After advising Deutsche Bank in its
sale of the former Macklowe office
empire, Mr. Harmon continues to
be at the fulcrum of the investment
player, has financed and invested in Richard Mack (24) spectively, of L&L Holdings sales market, which today means
properties here and elsewhere with The largest Chairman, Global CEO and North Ameri- trading in mortgage notes. Most re-
the zeal of a New Yorker. office landlord can CEO, respectively, of AREA Property cently, with fellow senior managing
in Lower In these director Mr. Spies, he’s been hired by
Manhattan, Mr. Partners economically Royal Bank of Canada to sell the $210
38
Clark’s publicly turbulent million note on the Lipstick Building,
Howard and Edward traded The real estate times, it’s hard
Brookfield is über-investor to blame the
Milstein (36)
48
trying to buy and fund landlord who
Principals of Milstein Properties General Growth manager has forgoes Scott Latham (pic-
Properties and made the excitement for
Leaders of one presumably is looking for other recession work stability.
tured), Richard Baxter,
of the city’s acquisitions as well. His challenge: to its advan- Messrs. Yaron Cohen and Jon Caplan
most powerful finding tenants to fill the World tage, soliciting Levinson (pictured) and Lapidus, New York Capital Markets team for Jones
real estate Financial Center, as millions of foreign however, turned the tables when Lang LaSalle
families, square feet are expiring by 2013. investors and they rejected numerous offers at
brothers eagerly scooping up distressed 200 Fifth Avenue and instead took
Howard assets and bottomed-out hotels on Eataly, an ambitious, Turin- Jones Lang
40
(pictured) and around the city. The investment based food emporium. Add to that LaSalle just
Edward Thomas Hughes locomotive, best known as co-devel- news last month that Tiffany’s HQ poached these
inherited the oper of the Time Warner Center, is would be occupying four and a half four from
Chairman of LNR
company from father Paul and his optimistic about the return of the floors in the building, and it Cushman &
own brother, Seymour. Generally, corporate market, but Mr. Neibart becomes clear that the duo is Wakefield,
they try to stay afloat and under the The former chief of Deutsche As- recently told The Observer that behind one of the flashiest projects where they
radar, due in part to a fraternal set Management, Mr. Hughes took investing in retail and office space is in years. spent the boom
power scuffle several years back. charge of the Lennar real estate still a ways off. time selling
45
Milstein owns sizable Manhattan finance spinoff LNR in July 2007. billions of
square footage, but the recent Rumors have it that the flush firm William and Arthur Zeck- dollars’ worth of real estate before
completion of two Battery Park City is circling the city, positioning Mr. the bust rendered them idle. Now
endorf (pictured) (31)
Shravan Vidyarthi
condo towers marks the company’s Hughes to be among the more rapa- they’re tasked with expanding JLL’s
first ground-up construction in cious investors to come out of the Co-chairmen of Zeckendorf Realty and of share of the investment sales
years. recession. Terra Holdings market.

Newmark Knight Frank
is pleased to congratulate
-HĝUH\5*XUDO
Chairman
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President
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President New York Tri-State Region, Principal
on being selected among the
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in the New York Observer’s Annual “Power 100” Issue
North America X Europe X $VLD3DFLĞF X Latin America X Africa X Middle East ZZZQHZPDUNNIFRP

#
54
Stephen Siegel
49 Glenn Rufrano
CEO of Cushman & Wakefield 51 Lenny Litwin and Gary
Jacob (13)
Chairman and executive vice president,
Donald Trump, the company has
been hit hard by the downturn,
losing $24.2 million in the first
quarter of 2010. Still, a recent $1.4
54 Stephen Siegel (35)
Global Brokerage chairman of
CB Richard Ellis
selecting a bidder to build a racino
at the Aqueduct racetrack.
56
After Bruce respectively, of Glenwood Management billion property sale to Dividend
Mosler Capital Realty Trust demonstrates It’s hard to find Stefan Solow
transitioned to Long before it that iStar remains a hefty player. a real estate
Heir to developer Sheldon
a chairmanship became professional
at Cushman, fashionable— without a kind Solow
53
the brokerage or, to be more word to say
hired industry accurate, Bruce Ratner (23) about Mr. Judging by a New York Times pro-
veteran Glen economically Siegel—this, file several years ago, Mr. Solow, 35,
Chairman of Forest City Ratner
Rufrano, no feasible—to despite his may not yet be entirely comfortable
stranger to the focus on the enormous stepping into his father’s formi-
title. Before assuming the helm in rental market, For the past success in the dable shoes. But when your father
March, Mr. Rufrano was CEO of the nonagenar- seven years, Mr. brokerage business. Now, Mr. Siegel, is Sheldon Solow (No. 53 on our list
Australia-based Centro Properties; ian Mr. Litwin (pictured) and Mr. Ratner’s focus who’s something of the wise last year), and he’s named you as
prior to that, he was CEO of New Jacob were doing just that. In a has been on godfather of New York real estate, is his “heir apparent,” what do you ex-
Plan Excel Realty Trust Inc. down market, however, the duo’s Atlantic Yards, busy helping landlord Steve Pozycki pect? Indeed, Mr. Solow will be the
plans seem downright prescient. the planned land Proskauer Rose for 11 Times likely arbiter of his father’s massive,
And now as competitors rush to home to a Square, in what will surely be one of 6.1 million–square–feet develop-
50
convert unsold condos, Glenwood Brooklyn Nets the biggest leases of the year. ment near the East River—not to
Robert Stuckey, Management is successfully leasing arena and, mention 9 West 57th Street.
Emerald Green, the 569-unit eventually,
Mark Schoenfeld and
55
residential complex on West 38th thousands of units of housing. This
Andrew Chung (17)
57
Street. spring, he finally emerged the David Paterson (9)
Managing directors of the Carlyle Group winner of the fight with defiant Avi Banyasz (20)
Governor of New York
landowners. He was clearly
Managing principal of West-
52
wounded by delays and the
With a focus on New York City economic crash, but he is still He may be a brook Partners
Jay Sugarman
and Washington, Messrs. Stuckey, standing, and construction is under lame duck
CEO of iStar Financial
Schoenfeld and Chung have been a way. under a cloud As head of the private-equity fund
formidable trifecta for the Carlyle of scandal with Westbrook Partners, Mr. Banyasz
Group for years. But plans to re- Mr. Sugarman almost no swooped in at the top of the market
tenant a swath running the entire runs a commer- supporters in to buy big-deal properties like the
block of Fifth Avenue between 52nd cial lender that the Legislature. Burberry Building, the Paramount
and 53rd streets with high-level has financed But Mr. Hotel and 235 West 75th. Now that
retailers could translate into even more than $28 Paterson is still the bubble has burst, he has set his
more success for the team. Only billion in the governor sights across the pond. Earlier this
last month, Carlyle inked a whop- projects. until the end of December (presum- month, it was announced that West-
ping $300 million lease at 666 Fifth Although its ably), with many of the powers that brook Partners had invested in a joint
james hamilton
Avenue, the retail of which it partly clients have come with that office, be it the venture with an Irish investment
owns, for Japanese clothing retailer included such suspension of construction group to develop a 435-bed student
Uniqlo. luminaries as Harry Macklowe and contracts, vetoing legislation or housing facility in North London.

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58 Gary Barnett (32)
President of Extell
Development
61
Times
Charles Bagli
Staff writer for The New York
To say nothing In a world of

else of Mr. blogs, some-
Barnett, he has times it takes
stayed active in the most
the downturn. influential news
One of the city’s organization to
most prolific call the end of
developers, he an era. Mr.
is working on Bagli (an
foundations for Observer
two midtown towers (sans full alumnus!) did just that in October
financing, for now) and is bringing 2008, in a story titled “Failed Deals
plans for a giant, mixed-use Replace Boom in New York Real
development on the West Side Estate.” Since then, he’s document-
through the public-approval ed every major development,
process this year. successful or struggling, from Stuy
Town to N.Y.U. to Atlantic Yards.
59 Peter Duncan
62
President of George Comfort
Dan Tishman (81)
& Sons
Chairman-CEO of Tishman
Mr. Duncan, as Construction
president of the
family-owned Amid much
firm, shepherd- controversy
ed the pur- and more PATH
chase—along- rail lines, the
side a number family
of partners—of development
Worldwide concern is
Plaza, the last trucking away
of the Macklowe detritus. He did so at One World
in the middle of the recession for a Trade Center.
bargain-basement $590 million, With the 700,000-square-foot
thus conferring a certain patina and underground foundation structure
added prestige to the company completed, Mr. Tishman’s firm
name. expects to finish the erstwhile
Freedom Tower in 2013. The
company is also involved in a slew
60
of big-box hotels through its
Ray Kelly subsidiary, the Tishman Hotel
Corporation.
New York police commis-
sioner
Under the
watchful eyes of
Mayor Mike
Bloomberg and
63 Howard Lorber and
Dottie Herman (33)
Chairman and president, respectively, of
Mr. Kelly, New Prudential Douglas Elliman
York has
enjoyed record
lows in crime, Talk about Iron
both nonviolent Man. Emperor
and otherwise. and Empress by
For this, property values have default, the duo
remained relatively steady even in steering the
the face of a global recession. But city’s largest
with the downturn and a recent residential
uptick in crime, will the commish be brokerage
able to sustain the goodwill of continue to flex
#
63
property owners? Only time—and, as their iron
in the case of the would-be Times despite the downturn; they’ve
Square bomber, a little luck—will tell. opened new offices, inaugurated a
rental division and pirated talent
from recession-failed rivals,
Dottie Herman bringing the monolith’s current
agent count to 3,800, a 15 percent
increase from two years ago.
joe fornabaio

64 Jay Walder
Chairman of the Metropolitan Transpor-
tation Authority
66 Pam Liebman (51)
CEO-president of the
Corcoran Group
Transit advocates like “New York has had a

to refer to the M.T.A. as very good rebound,” Ms.
the lifeblood of the city. Liebman said recently,
New York owes its and Corcoran’s hasn’t
density to the transit been bad, either. A year
system, and worsening ago, the firm was
service would turn away fighting shutter rumors,
business. Particularly as now the city’s second-
giant budget gaps loom, largest residential
Mr. Walder’s challenge brokerage is back to
is to find savings (or more revenue) and keep fiercely competing with Goliath archrival
the trains running. Elliman by adding agents and aggressively
launching the first house-hunting iPhone
app.
65 Peter Hauspurg and Daun
67
Paris (58)
Stanley Chera (pictured) and
Chairman-CEO and president, respectively, of East-
Haim Chera
ern Consolidated
Principals of Crown Acquisitions
The best dressed of the Judging by recent deals,

brokerage community the Cheras seem to take
(and married to boot!), just as much delight in
Mr. Hauspurg and Ms. mining underdeveloped
Paris run a boutique gems as they do in
investment-sales firm scooping up valuable
that specializes in retail. With the Carlyle
off-market deals. It has Group, Crown last
pulled through the month leased 90,000
worst real estate square feet to clothing
recession in recent history swimmingly. retailer Uniqlo at 666 Fifth Avenue for an un-
Meridian Congratulates
The 2010 Power 100
Meridian is proud to salute

our President and CEO,
Ralph Herzka, on being
recognized in The New
York Observer’s 100 Most
Powerful People in New
York Real Estate.
1 Battery Park Plaza New York, NY 10004 | 212 972 3600 | www.meridiancapital.com

#
70
Robert Knakal
precedented $300 million over 15

years. Meanwhile, the group
announced last week that it was
setting its sights on Brooklyn’s
69 Joe Ficalora (40)
CEO-chairman of New York
Community Bancorp
day-to-day operation, Mr. Knakal
(pictured) remains an inveterate
salesman—but they have both
helped it enjoy a plush run through
York’s preeminent real estate
lawyer, with a client list that’s
pretty much a shorter version of
this one. Piloting deals from
74 Philip Green
Owner of Arcadia Group Ltd.
Fulton Mall, where they intend to an investment desert. In January, Tishman Speyer’s acquisition of Sir Philip
convert a former department store If you’re The Real Deal pronounced Massey Stuy Town to El-Ad’s purchase of staged a British
into student housing for Long Island seeking signs of Knakal the top New York firm in the Plaza, his firm is involved in invasion of
University. a sagging number of sales from 2007 through about one-third of the city’s Soho with the
economy, don’t the third quarter of 2009; and tied commercial deals. opening last
bother looking for fifth in sales volume over that year of the
68
to Mr. Ficalora, span. Bring it. Topshop
73
Jonathan Mechanic and whose bank flagship store at
raised more Robert Lieber and Seth 480 Broadway.
Stephen Lefkowitz (54)
71
than $1 billion With a little
Chairman of the Real Estate Department in new capital
Pinsky (43) help from Kate Moss and in-store
Jeff Sutton (52)
at Fried Frank; member of the Real Estate last year and rose to become the Deputy mayor for economic development roller-skating parties, he has
Founder and president of Whar-
Department country’s 22nd largest, asset-wise. and president of the New York Economic established the clothing retailer in
Meanwhile, the Westbury-based ton Acquisitions Corp. the city, and is reportedly eyeing
Development Corp., respectively
bank has been aggressively more local sites.
If anyone buys expanding its reach (six new Mr. Sutton is a ball-busting real es-
or sells a branches in Arizona in March, to tate player of the old school, with a Mr. Lieber
75
building in New give one example) and gobbling up keen eye for acquisitions and retail (pictured) and
York, or signs a failing regional banks in Phoenix, and more than 100 properties to his Mr. Pinsky lead Arnold, Kenneth, Ste-
big lease in one, Cleveland and back home in New name, including 717 and 609 Fifth economic
Messrs. York State. Avenue. His tenant roster reads development
ven and Winston Fisher
Mechanic like a who’s who of Big Retail: from policy for the (pictured) (45)
(pictured) and American Eagle and Abercrombie Bloomberg Partners in Fisher Brothers
70
Lefkowitz are and Fitch to Armani and Escada. administration,
bound to have a Robert Knakal and pouring money
hand in the deal. They are two of the at big-ticket With their
Paul Massey Jr. (75)
72
most successful—and discreet— projects like Coney Island and family
real estate attorneys in the industry. Chairman and CEO, respectively, of Willets Point, along with new water- business, which
Robert Ivanhoe (47)
Massey Knakal front parks. The two recently were has “enjoyed
Chairman of the New York of-
mediators in a yearlong clash over nearly a
fice of Greenberg Traurig financing towers at the World Trade century of
The founding Center, eventually brokering a plan uninterrupted
partners of New Calling Mr. to give rise to two new office towers. growth”
York’s busiest Ivanhoe a real (according to
investment- estate lawyer is their Web site),
sales firm do like calling the the Brothers Grimm of hefty
different things pope a Catholic. midtown real estate are staying the
within it—Mr. Mr. Ivanhoe is course with their sky-happy empire,
Massey runs the arguably New which counts a bevy of buildings

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with square footage over the 1 Square Park area and a satellite
million mark, including Park Avenue campus on Governors Island, hinges
Plaza, 605 Third Avenue, 1345 on adding 240,000 square feet of
Avenue of the Americas and 299 development per year.
Park Avenue.
76 Timothy Dolan (79)

Roman Catholic archbishop of
79 James Cooper (82)
Rector of Trinity Church
New York Along with the

recently
It’s a thankless resigned Carl
task some- Weisbrod, Mr.
times. Not only Cooper has
is he surround- repositioned
ed by the Trinity’s 6
capital of million square
secularism, but feet of
Timothy Dolan, loft-heavy old
archbishop industrial buildings in Hudson
since early Square, bounded by the Avenue of
2009, faces the same financial the Americas and Greenwich,
problems as his predecessor, Houston and Canal streets, into
Edward Egan, who made this list in appealing office space for creative
2008. These problems might very tenants. In so doing, he helped
well mean another round of parish transform Trinity Church into a
closings. Take heart, though, landlord for the likes of Penguin
Excellency. The archdiocese, which Putnam, WNYC, Lauder and Getty
includes Manhattan, Staten Island Images.
and the Bronx, remains—for
now—one of the city’s biggest
80
landlords.
Diane Ramirez
President of Halstead
77 Mike Fishman
President of SEIU 32BJ
Property
The former
broker, who
Mr. Fishman began her
picked well in career almost
the fall 40 years ago in
elections. In Palm Beach, is
addition to the optimistic
mayor, his about the
union support- future of her
ed the eventual semi-boutique
winners of the brokerage (it’s owned, along with
comptroller BHS, by Terra Holdings), and from
and public-advocate races, along the looks of things, she has reason
with six new members of the City to be. Recruiting about two dozen
Council. Now he will be calling on agents from the carnage of CBHK,
his new friends in government for the Halstead honcho recently said
support, as he pushes a bill opposed that her company’s seeing more and
by landlords that would raise the more transactions over the $10
wages of building service workers million mark.
in subsidized developments.
78 John Sexton and

Mike Alfano
81 Aby Rosen (91)
Principal of RFR Realty
President and executive vice president, The suave Mr.

respectively, of New York University Rosen is an art
buff—his
78
modernist
# Messrs. Sexton
(pictured) and
Alfano’s recent
Seagram
Building and
landmarked
revealing of the Lever House,
university’s which hosts an
John Sexton expansion art gallery,
plans only could be thought of as part of the
added to hobby, in fact. His RFR Realty is
Village shopping around leases at a slew of
residents’ some of the city’s most coveted and
resentment of what they view as the high-end properties on the gilded
school’s colonization of their Park, Madison and Fifth avenues.
neighborhood. The 2031 expansion
plan, which includes suburban
“superblocks” in the Washington
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82 David (pictured) and
Jed
Walentas (72)
85 Peter Ward
President of the Hotel & Motel
Trades Council
Founder and vice president, respectively,
of Two Trees Management In the past few
89
years, Mr. Ward
The tumble-
weed-tossing
John Wayne
has built up a
political
powerhouse of
#
who decided a union. With
Dumbo was his political
dandy is still in director, Neal
Dolly Lenz
the saddle. Kwatra, he has
With the most spearheaded
expensive numerous actions that bring down
condo sale in barriers to the unionization of
Brooklyn ($8.5 million at One hotels, most recently through a
Brooklyn Bridge Park); Jay-Z and clause added to public authorities
Ralph Lauren rumored as house legislation that passed last year.
hunters at the moguls’ $25 million
penthouse clock tower listing—by
86
far the borough’s priciest—and last
year’s legal victory regarding the Veronica Mainetti
controversial Dock Street construc-
U.S. Activities head for the
tion, the wily Walentases seem
primed to ride out the storm. Sorgente Group
Don’t let her
83
emerald-green
Hall Willkie (84) eyes or her age
fool you. At 31,
President of Brown Harris
Ms. Mainetti has
Stevens enough real
estate savvy to
The boutique-style firm crafts a fill the shoes of
carefully honed reputation for dis- dozens of her
cretion and class, garnering some aging male
of the glossiest, most privacy-de- competitors. Her seven-unit Soho
manding and largest listings, from condo 34 Greene Street is now on the
Gold Coast co-ops to Georgian bow- market, and Sorgente acquired the
front townhouses. The firm contin- Flatiron Building last year. Plus!
ues to add brokers, supplementing Rumors are afoot that the group’s out
last year’s assumption of Edward to buy the Woolworth Building, too.
Lee Cave’s boutique. Mr. Willkie
recently confessed, “I’m elated be-
87
cause a year ago I never thought we
could come to this level so quickly.” Adrian Benepe (99)
Parks commissioner
84 Joseph Strasburg (63)

President of the Rent
Stabilization Association of New York
Despite the
Tavern on the
Green hullaba-
loo and
budget-cut
In 2008, the crises (Hudson
Democrats River Park),
recaptured the this biker boy 452 Fifth Avenue for $330 million— estate, and there’s nothing boring of moneo ($200 million), is slated to
State Senate keeps green cash. It’s very likely Mr. Dankner’s about that. With her sales coup at open—oh, but first, there’s
after decades in space on the first major foray into New York real the Apthorp (she had to find 25 graduation!
the minority. brain, stalwartly forging ahead with estate, though likely not the last. buyers in a pinch) and continued
City landlords the mayor’s PlaNYC project, which With a corporate CV too long to list boldface listings, no one is saying
91
burst into plans to have all New Yorkers living here, he has mammoth capital—and “Goodbye, Dolly” just yet.
sweat beads. within 10 minutes of a park by 2030. access to more—to sink into John Burger
Would tenant With the weather warming and similarly 2007-like deals.
Senior vice president and man-
90
activists finally get the decidedly Brooklyn Bridge Park heralded as
landlord-unfriendly changes to city “the most important public space of aging director at Brown Harris Stevens
Lee Bollinger (57)
89
rent regulations that they’d fought the century,” Mr. Benepe is in the
President of Columbia
for forever? Mr. Strasburg sprung spotlight, or sunlight, rather. Dolly Lenz (89) Forget Ghostbusters. John Burger is
into action. As the landlords’ top University the one to watch out for on Central
Vice chairman of Prudential
representative in Albany, he pushed Park West, with current listings (all
88
back against the activists. For now, Douglas Elliman Affectionately over $10 million) at the San Remo,
it looks like he won; regulation Nochi Dankner called “Prezbo” Dakota and Majestic, including Co-
changes are dead in the political Ms. Lenz’s by students, Mr. nan O’Brien’s $29.5 million duplex.
Owner, chairman and CEO of
water. winning Bollinger has a Reliably offering “no comment” to
IDB Group Elliman’s top full schedule. the press, the BHS powerhouse has
sales award is On June 1, the made a name for himself in discre-
The investment about as Court of tion, which might explain his recent
magnate blew surprising as Appeals will $22 million sale with Jamie Tisch at
into town from Tiki Barber’s make a decision 720 Park and the 778 Park Avenue
Ben Gurion last cheating: It’s on the use of Buckley listing he shares with Paula
October in a getting to be a eminent domain for Columbia’s Del Nunzio (No. 99).
big, big way: bore. But the 17-acre West Harlem expansion;
James Hamilton
His firm agreed super-agent, who claims, “It’s not and, this fall, the controversial
to buy the work; it’s a passion,” has sold more Rafael Moneo–designed science
HSBC tower at than $7 billion in New York real center, which incidentally cost lots

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92 Robert LiMandri (87)
Commissioner of the Depart-
ment of Buildings
95 Janette Sadik-Khan
Transportation commissioner
Not only does

The city’s Ms. Sadik-Khan
construction manage the
site chaperone city’s 4,000
currently faces DOT workers,
the challenge of 5,800 miles of
making his streets and
more-than- sidewalks, 789
1,200-strong bridges and 1.3
regulatory million street
force more signs, but she has been one of
efficient in an environment offering Mayor Bloomberg’s most innovative
curbed spending. In the past year, and sometimes controversial
Mr. LiMandri has shown he means deputies, building miles of bike
business with bold (and possibly lanes and transforming Broadway in
PR-motivated) moves, such as Times Square into a pedestrian
bringing the whip down on divisive plaza, with plans to do the same at
Brooklyn architect Robert Scarano Union Square and on 34th Street.
and, most recently, demanding that
Shepherd Fairey’s apparently illegal
96
mural on Houston Street be
destroyed. Kirk Henckels (83)
Executive vice president and
93
director of Stribling Private Brokerage
Lockhart Steele (95)
Mr. Henckels
Publisher of Curbed Network
takes tea at the
Carlyle, neatly
According to a bespectacled
recent deifying and always
profile in The bow-tied. It is
Times Maga- no accident
zine, Curbed that the
postings cover elegant,
“anything a Texas-bred
New Yorker former banker began his tenure in
might do with the business at Edward Lee Cave’s
square footage, aristocratic boutique. The plume in
a lease and a dream.” It sounds like Stribling’s cap, Mr. Henckels
the premise of a Frank Capra film. seemed a natural choice for the
And yet the “Curbediverse” is a bit famed 778 Park Avenue duplex—a
of an optimist anomaly, with choice Mrs. Astor certainly would
voyeurs and vendors coexisting in not regret.
the darkest downturns. In fact, the
digital conglomerate, which also
97
includes Racked and Eater, began
making a profit mid-2009. Joel Seiden and Ofer
Yardeni
94
Principals of Stonehenge Partners
Young Woo
As owners of Stonehenge, Mr. Se-
Principal of Young Woo &
iden and his Israeli-born partner,
Associates Mr. Yardeni, have acquired upward
of 15 properties in New York. The
Hailed as the power duo owns and manages
new nice guy in assets valued in excess of $700
town, the million, and with a portfolio that
94
developer’s has included the Pennmark, it’s
# bold aspira-
tions for AIG’s
70 Pine Street
easy to see why. Purchased at the
top of the market, the 33-story,
600,000-square-foot space cost Mr.
and 72 Wall Seiden and Mr. Yardani a reported
Street, which $244 million, among the highest
Young Woo he acquired for prices paid for property in 2005.
a cool $150 million combined last
summer (he plans to sell condos in
70 Pine for $2,000 per square foot),
make him the new go-to guy as well.
Mr. Woo’s firm also won the
development rights to Pier 57, and
he already owns the Chelsea Arts
Tower and the automobile-elevator-
ed 200 11th Avenue.
stephanie sauer

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The Yankees Columbia University Chelsea Market
Representation of the New York Yankees in the development Representing Columbia University as environmental counsel in Representing Jamestown Properties on the rezoning and redevelopment
of the new Yankee Stadium in the Bronx, NY connection with the approvals for the creation of a new of Chelsea Market in West Chelsea in New York, NY
17-acre campus in West Harlem in New York, NY
Atlantic Yards AIG
Representation of Forest City Ratner Companies in the US$4b West Side Rail Yards Representation of AIG in connection with the sale and leaseback of its
mixed-use development project of Atlantic Yards in Brooklyn, NY Representation of The Related Companies in connection with world headquarters in New York, NY
the development of West Side Rail Yards in New York, NY
Chicago Mercantile Exchange UBS
Represented Tishman Speyer Properties in the acquisition and leasing Polo Ralph Lauren Represented UBS AG in connection with the sale of its interest in
of the Chicago Mercantile Exchange Center Representation of Ashkenazy/Carlyle in connection with the lease of 299 Park Avenue in New York, NY, a 1.1 million square foot office
space at 650 Madison Avenue in New York, NY to Polo Ralph Lauren building, to Rockpoint Group, LLC
West Side Property Development
Representation of Brookfield Properties Corporation in connection World Financial Center HSBC Bank Buildings
with the development and financing of the ‘superblock’ at Representing Brookfield Properties in connection with infrastructure Representation of subsidiaries of IDB Holding Corp.
West 33rd Street and 9th Avenue in New York, NY projects at The World Financial Center in New York, NY in the acquisition and lease back of the HSBC Bank
buildings at 425 Fifth Avenue and
GM Building Pier 92, 94 1 West 39th Street in New York, NY,
a total of 865,000 square feet
Representation of Macklowe Properties in connection with the Representation of Vornado Realty Trust and Merchandise Mart
sale of the General Motors building and three other office towers in the development of Hudson River Piers 92, 94 to a
in New York, NY 400,000 square foot trade show facility
Attorney Advertising. friedfrank.com

98 Mark Jaccom
CEO of Colliers
International Tri-State Division
her belt, is taking the torch as
genteel but power-savvy dame du
jour. Her current listings total more
than $241 million combined, and
there are only 17 of them! She also
When it was shares the newly launched Buckley
announced in listing at 778 Park with John Burger
January that (No. 91).
First Service
Real Estate
100 100
#
Advisors would
merge with Veronica Hackett
Colliers
International,
(98)
thus creating Managing partner of the
what could be the world’s third- Clarett Group
Veronica Hackett
largest commercial firm, nobody
was happier than Mr. Jaccom, the
newly named chief executive of As any real
Colliers International’s tristate hub. estate honcho
will advise,
99
there’s no surer
Paula Del Nunzio (74) way of sending
a message than
Senior vice president and
by building the
managing director at Brown Harris tallest tower.
Stevens For Clarett,
that superlative
became a reality last year, when the
Ms. Del Nunzio, company completed the Brooklyner,
townhouse Her- a 51-story residential tower in
cules, with the downtown Brooklyn that now bests
$50 million the borough’s former tallest by two
Duke-Semans feet. And business, reportedly, has
Mansion on the been brisk, even with studios
docket and the starting at $1,550.
james hamilton
record-setting
Harkness
Mansion under

thousands of no-fee apartments, direct from owners UrbanEdgeNY.com

SIGN OF THE TIMES: The team of Cushman & Wakefield's Corporate Investment Banking Group based in New York and New York Brokerage Services,
pose with REBNY’s Most Ingenious Deal of the Year Award for the sale-leaseback of a $225 million condominium interest in The New York Times head-
quarters building in Manhattan. Front row (left to right): Andrew Sachs, Michael Rotchford, Louis Wolfowitz. Back row (left to right), Jessica Lowery, Anna Mori,
Richard Chun, Robert Elms.
An Ingenious Collaboration
Cushman & Wakefield is pleased to receive one of REBNY’s Most Ingenious
Deal of the Year Awards for the sale-leaseback of a portion of The New York
Times headquarters in Manhattan.
This transaction, and its award-winning results, would not have been possible
without the vision of our client and the collaboration of our Corporate
Investment Banking Group and New York Brokerage Services professionals.
Bringing the full complement of real estate Capital Markets expertise

to our clients in New York... We’re There.
Global intelligence.
Innovative advice.
Flawless execution.

The Commercial Observer - May 11, 2010

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The Commercial Observer - May 11, 2010

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Lease Beat Clash of the titans The lead indicator

MOST POWERFUL PEOPLE

Markets Move. Strength Endures. NEW YORK CITY’S LARGEST OWNER

4 The Week in Real Estate 18 Calendar

FIRSTSERVICE WILLIAMS IS NOW

2 May 11, 2010 observer.com | the commercial observer

the commercial observer | observer.com May 11, 2010 3

Clash of the Titans international presence (Related

I_iWbHk]IWb[Wj789 Jared Kushner, Publisher

Eliot Brown, Dana Rubinstein, Staff Writers

Nancy Butkus, Art Director

4 May 11, 2010 observer.com | the commercial observer

As a property owner, operator, developer, and

Whether restoring an urban icon such as New York’s

At Tishman Speyer, we see opportunities ahead.

the commercial observer | observer.com May 11, 2010 5

Complex Real Estate

Reach the people who own,

6 May 11, 2010 observer.com | the commercial observer

FOR MORE INFORMATION, PLEASE CONTACT

the commercial observer | observer.com May 11, 2010 7

Cushman & Wakefield, Inc.

Montrose Accounting Company, LLC

8 May 11, 2010 observer.com | the commercial observer

Grab the Power Seat:

For leasing information,

the commercial observer | observer.com May 11, 2010 9

Midtown at No. 26 mal vote. Construction must being by the end

10 May 11, 2010 observer.com | the commercial observer

FOR LEASING INFORMATION, PLEASE CONTACT:

the commercial observer | observer.com May 11, 2010 11

12 May 11, 2010 observer.com | the commercial observer

We've built your new offices.

• Brand new pre-built-4,002 rsf

For leasing information, please contact:

LEASING · MANAGEMENT · PROPERTY SALES absre.com

the commercial observer | observer.com May 11, 2010 13

The Mayor’s New Budget and the Next Moves

14 May 11, 2010 observer.com | the commercial observer

Full floors of 8,000 rsf Contiguous block of 21,622 rsf

Cushman & Wakefield (@CushWak-

Massey Knakal (@masseknakal) has

16 May 11, 2010 observer.com | the commercial observer

the commercial observer | observer.com May 11, 2010 17

By Jotham Sederstrom email Edreana@realestateacade- General Demonstration Appraisal

What do Six Flags Amuse- Network- on to www.nationalartsclub.org

18 May 11, 2010 observer.com | the commercial observer

LEASE OF THE WEEK

Spaces at Blackstone’s 717 Fifth

“We're earning the right to be your next landlord.”

11 Times Square Nears First Major

Lease: Proskauer Rose

Salad Wizard Chop’t Taking Space at

owned by the Rudins and occupies a block New York, NY 10119

bounded by Pine Street, Pearl Street, Maiden

the commercial observer | observer.com May 11, 2010 19

Deutsche Spinoff Art Gallery Grows

20 May 11, 2010 observer.com | the commercial observer

the commercial observer | observer.com May 11, 2010 21

OUTER BOROUGHS — OFFICE

55 Washington Street Ferreira Construc- Two Trees Man-

55 Washington Street Two Trees Man-

Contact Robyn Weiss, Associate Publisher, for more information:

22 May 11, 2010 observer.com | the commercial observer

I_iWbHk]IWb[Wj789 Jared Kushner, Publisher