Robin Abrams, executive vice president of Lansco, and East River Plaza
The 50,000-square-foot space in East River Plaza that Best Buy is vacating would be perfect for first time entrants into Manhattan’s retail sector, according to brokers who spoke with Real Estate Weekly. Best Buy announced this week the Harlem store would be one of 50 nationwide closings, and the only one in New York City. [more]
East Harlem’s Embelesar118 has been declared effective by the attorney general and has received its Temporary Certificate of Occupancy, meaning closings and move-ins can begin. Now, the project’s developers, Bluestone Organization, are putting the remaining units on the market.
The eight-story, 57-unit cooperative at 152 East 118th Street has more than 50 percent of its units in contract since hitting the market last June, according to Bluestone.
The development is being marketed by the Corcoran Group and the firm is emphasizing value. Studios in the building start at $199,000 and two 1,041-square-foot two-bedroom apartments are available for $599,000, Streeteasy.com shows. – Adam Fusfeld [more]
The Real Deal attended the opening ceremony of East River Plaza today on 116th Street (see video
above), East Harlem’s new big box retail center developed by Forest
City Ratner Companies and Blumenfeld Development Group. The more than
500,000-square-foot shopping center, where rents range from around $40
to $150 per square foot, is home to a Target, Costco, Best Buy, Old
Navy and other large retailers. The project cost approximately $400
million, according to a spokesperson for the developers. Bruce Ratner,
chairman and CEO of Forest City Ratner, said that while he’s excited
about the plaza opening, he’s still cautious about development in
general. “We’re finishing all our projects, that’s what’s most
important now,” Ratner told The Real Deal following the ribbon
cutting this morning. “In the development business… there’s really
not [much of a] difference between now and six months ago.”
From left: Robert Futterman and 229 West 43rd Street; Chase Welles and East River Plaza; and Jedd Nero and 798 11th AvenueThe Real Estate Board of New York announced the nine contenders for its “Retail Deal of the Year” awards today, a competition that honors ingenious and influential real estate transactions (click here to see the full list of contenders). Included in the list was the controversial deal at the Times Square building at 229 West 43rd Street, through which retail brokerage Lansco claims it was cheated out of a $1 million commission. Robert Futterman of the eponymous firm represented the property owner, Africa Israel, in the deal and was named in the nomination. Other top deals submitted included the Costco lease at East River Plaza at 521 East 116th Street and the Volkswagen Group lease at 798 Eleventh Avenue.
[more]
A number of regional, national and international retailers are set to open first outposts in New York City. Last week, Costco, the largest membership warehouse club in the world, opened its first location in Manhattan in the 500,000-square-foot East River Plaza. Target will open its first Manhattan store in the same plaza next year. Best Buy, Marshalls and New York City’s first Bob’s Discount Furniture will join them. Bob’s has 35 stores throughout New York, New Jersey and New England. In the fall it opened its newest location in Carle Place, LI. [more]
East Harlem’s new big-box retail shopping center, East River Plaza, officially opened today on FDR Drive, according to a press release, with Costco welcoming customers. The 500,000-square-foot center, developed through a partnership between Forest City Ratner Companies and the Blumenfeld Development group, will include a Target, Best Buy, Marshalls, PetSmart and Old Navy. Costco, which occupies a little over a fifth of the plaza’s total space, is the first tenant to open, bringing 400 new jobs to the area. Leasing at the center largely has been considered a success; according to developer Bruce Ratner, 90 percent of the retail space has been leased out. All told, the East River Plaza will create an estimated 2,000 jobs.TRD
From the November issue: While vacancy signs have been proliferating along the avenues of many of the city’s established shopping districts throughout the downturn, major chain stores are moving into massive new malls located in former retail dead zones in places like the South Bronx and East Harlem. These new multilevel malls — many of which are on former industrial sites — are different from the big-box stores that made inroads into many parts of the city in recent years. They boast even larger floor plates, often allowing a store to consolidate all of its operations on one level. That, in turn, has the potential to attract the types of warehouse stores and wholesale outlets typically found in the suburbs and less dense parts of the outer boroughs. Indeed, later this month, Manhattan’s first Costco is set to open at East River Plaza, a new half-million-square-foot mall located between East 116th and 119th streets along the FDR Drive. Next year, a slew of bargain stores will also be opening at the mall, which was developed by the Blumenfeld Development Group and is 90 percent leased out. Tenants will include Best Buy, Marshalls, and Bob’s Discount Furniture.
Futterman is the founder, chairman and CEO of Robert K. Futterman & Associates. He is a 25-year retail leasing veteran, having personally completed more than $3 billion in transactions. He has been a big player in revitalizing major retail areas including Union Square South, Times Square, 34th Street and Soho.
In what part of the city are you seeing the most retail store closings and why do you think that is?
Upper Madison [Avenue]. Luxury brands and international retailers at one time felt a Madison Avenue showcase was critical, however, the desire to be profitable in tough economic times has proven more important. For many, occupancy costs became an obstacle to being profitable.
Costco is going to be the first retailer in the East River Plaza in Harlem. How long do you think it will take to lease the remaining 485,000 square feet?
If they haven’t leased the space yet, then probably six months after Costco opens. Costco should be a magnet for other big-box retailers and create an environment where they will flourish.
Compiled by Lauren Elkies [more]
