WEDNESDAY, APRIL 12, 2006
Doll's House is a Real Estate Gold Mine
Doll’s House is a Real Estate Gold Mine, by Lois Weiss.
JEFFREY Sutton has waved his magic money wand and created $182 million in value at the American Girl Place building.
To make each of its 157,571 feet worth $1,155, Sutton brought in a $66 million contribution from SL Green Realty Trust.
That recapitalizes 609 Fifth Ave. essentially based on American Girl's long-term retail lease for 46,000 feet.
Sutton is retaining the majority stake while SL Green takes on property management of the 12-story plus penthouse property at 49th Street.
Sutton and SL Green have many other joint ventures. At 141 Fifth Ave., a 75 percent interest in the third through 12th floors was recently sold to Savanna Partners which will create residential condos in the Beaux Arts building.
We've now learned that Sutton and SL Green intend to do the same thing at 379 W. Broadway, the home of Ralph Lauren across from Cipriani, by marketing the upper floors of the building to a converter.
The Sutton/Green ventures also have two spots in Times Square under the microscope by corporations in search of a visible branding experience.
One is 1604 Broadway - the former Noche penthouse restaurant. That was also where David Copperfield disappeared when he couldn't get his place off the ground.
Another Sutton/SL Green building to come is 1551 Broadway, the former Howard Johnson's site.
We've learned that Pepsi, which is working on jury-rigging the Toys 'R' Us space, as The Post exclusively reported last Friday, has also examined Sutton's ground-up plans for three levels of retail and another 22-stories of signage or a boutique office or hotel tower.
Meanwhile, as The Post also exclusively reported, M&Ms World has leased about 20,000 feet at 1600 Broadway where Red and Yellow will soon roll on the red carpet.
Building owner Sherwood Equities' CEO Jeffrey Katz said, "We have a Times Square destination retail use with an American icon that totally got it. Their store is an art work in progress and they will do a fabulous job."
Condo owners will start moving into the new tower next month where only a "handful" of units remain.
His exclusive broker, Kim Mogull of Mogull Realty, said, "We talked to every major company looking for the strongest branding presence in Times Square. We will now fill in the remaining ground floor spaces with equally as exciting tenants."
Asking rent is now $475 to $525 a foot and is comparable to the other Bow Tie-area rents for prime street retail spaces.
Bob Savitt of the Kaufman Organization is leading a group of investors that has purchased 11 W. 19th St. in the Flatiron District for $87 million.
The seller, a group of six family members, was represented by Brian Ezratty of Eastern Consolidated Properties.
The 11-story, 281,000 foot building has Sam Flax in the retail. But it also has a hunk of 100,000 feet vacant, providing a naming and separate entrance opportunity in a hot neighborhood with a 6 percent vacancy rate.
Vornado Realty Trust has sold off its Sears shares and has plenty of places to spend its money.
One area of concentration seems to be along the retail stretch of 57th Street where they recently bought 50 W. 57th St.
Now, we hear they are in contract to buy both the former Chickering Piano building at 29 W. 57th St. and the tiny 49 W. 57th St. - where McDonald's has some of the retail - from the same European owners.
Don't be surprised if Vornado also steps up to grab the Sitt family's 100,000 foot 24 W. 57th St.
It just started being peddled through the same Cushman & Wakefield team that marketed the other two buildings.
The Sitts paid about $40 million two years ago and now need to show their antsy investors $75 million.
Globe St. reported the Sitt family also hired Douglas Harmon of Eastdil Secured to bring the former Knickerbocker Hotel to market.
If the building variously known as 1466 Broadway and 6 Times Square is sold as a conversion back to a hotel, it could trade for close to $300 million.