From left: Howard Lutnick and Barry Gosin

Financial firm BGC Partners will grow the average revenue per Newmark broker as
well as develop a detailed financial product tied to commercial real estate following the
purchase of the property brokerage later this year, Howard Lutnick, BGC company
chairman and CEO said this morning on a first quarter conference call.

The average revenue per BGC broker for the first quarter of 2011 is about $210,000, higher than that earned by
the average Newmark commercial real estate broker, although the amount was not
identified. (Note: clarification). “We believe the Newmark revenue per broker is higher than its public peers,” Lutnick
said. “However, commercial real estate brokers in general have a lower production per
broker than the BGC average. We expect Newmark’s profit margins to grow to become as
high as — if not higher than — BGC’s.” [more]

Pace University has signed an agreement with SL Green Realty for a 24-floor residence hall to be constructed at 180 Broadway, at the corner of John Street, in Lower Manhattan. Demolition is already underway at the building, which is expected to open in 2013, and will include retail space on the first three floors, plus one floor reserved for student activities. The new hall, designed by Karl Fischer, will replace the roughly 600-bed location that the school currently leases in Brooklyn Heights, and is part of a university-wide construction effort. Other Pace residences downtown are at 55 John Street, 106 Fulton Street and at 1 Pace Plaza. Pace was represented by David Falk of Newmark Knight Frank. TRD
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Worldwide Plaza

WebMD, the online medical resource, has taken 50,000 square feet on the 11th floor of Worldwide Plaza as part of its national expansion plan. WebMD, whose headquarters are located at 111 Eighth Avenue, had conducted an “extensive search throughout Midtown South” for more space before settling on Worldwide Plaza at 825 Eighth Avenue, according to Newmark Knight Frank, whose David Falk and Kyle Ciminelli represented the website in the transaction. Since launching its expansion campaign in 2008, WebMD has signed leases in Chicago and Montreal, and also recently more than doubled its office space in Atlanta, Ga. TRD

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The commercial real estate market will see a change in
tenant improvement allowances before a change in rents, according to David
Falk, newly-appointed president of Newmark Knight Frank’s New York tristate
region. The longtime
broker said tenants have been taking advantage of receiving allowances to an
“obscene” extent, and that landlords have already begun to hold their
ground. Falk also said that under his control, Newmark will attempt to lure in
brokers from other firms. In talks with “at least 10 people” who may
make the jump to Newmark, Falk said he is “hearing a lot about the sagas that
are going on in the other firms. It’s interesting, but it’s not
surprising.”

Embattled developer Harry Jeremias is facing a new round of litigation for allegedly defaulting on $48 million in loans from Bank of America, used to purchase and renovate a 13-story office tower at 216 West 18th Street. Jeremias, founder of the Harch Group, allegedly defaulted on the loans after the project encountered months of construction delays, multiple stop-work orders from the Department of Buildings and deteriorating safety conditions at the site, according to documents filed Oct. 22 in New York State Supreme Court. Mortgage Electronic Registration Systems, a firm that services the loan on behalf of Bank of America, is asking for a court-appointed receiver, and warning that the building could lose its existing base of tenants without “competent” supervision of the project. [more]