Joseph Sitt and the Takashimaya building

Skeptics within Manhattan’s retail industry wondered if Thor Equities would achieve its aggressive asking rent at the Takashimaya Building, the 20-story commercial tower at 693 Fifth Avenue, which it acquired in 2010 for $142 million.

Two years ago, company CEO Joseph Sitt boasted that he would get at least $2,000 per square foot on the ground floor of the tower, located between 54th and 55th streets, in the heart of the city’s priciest retail district. At the time, even asking rents had barely broken that number. [more]

693 Fifth Avenue

In its ongoing effort to land a retail tenant for the former Takashimaya building on Fifth Avenue, Thor Equities is spending another $5 million to spruce up the six-floor space, Crain’s reported. The space has been on the market for 19 months, CoStar Group data shows.

The upgrade intends to convert 2,000 square feet of lobby space into retail space and brings the total six-floor retail square footage to 44,500. When complete in September, a three-story glass facade will also be added to the building. Once a retailer is signed on, Thor will spend millions more to build out the space. [more]

Joseph Sitt, CEO of Thor Equities, and 516 Fifth Avenue

Joseph Sitt’s Thor Equities has agreed to acquire three connected buildings at 516-520 Fifth Avenue and 43rd Street from developer RFR Holding, the Wall Street Journal reported, and is planning to demolish the existing properties and build a new $250 million, 350,000-square-foot mixed-use complex at the site.

The acquisition isn’t Sitt’s sole investment on Fifth Avenue of late. The Thor CEO has also agreed to purchase a building at 445 Fifth Avenue near 39th Street, the Journal said, bringing his holdings on the avenue to eight buildings, all but one of which are south of 49th Street. The exception is the trophy Takashimaya building between 54th and 55th streets, which Sitt acquired last year for $142 million. … [more]

A new tenant for the high-profile Takashimaya building at 693 Fifth Avenue will likely pay a ground-floor rent higher than the $2,000 per square foot that Swatch recently signed for in a space nearby, property owner Joseph Sitt, chairman and CEO of Thor Equities, said in an interview with Insights from The Real Deal (see video above).

Swiss-based Swatch inked a 15-year deal that starts at about $2,000 per square foot in the retail condo at 666 Fifth Avenue owned by Carlyle Group, Kushner Companies and Crown Acquisitions.

Sitt said there was “no question” he would get rents in the range of $2,500 per square foot. He added there were six tenants looking seriously at the space in the 20-story building.

In addition, Robert Knakal, chairman of commercial brokerage Massey Knakal Realty Services, told Insights that the first quarter sales for retail property in Manhattan nearly reached the $586 million figure for all of 2010…. [more]

One of the few unlandmarked buildings in Fifth Avenue’s key retail
corridor could see a major revamp in the coming months, according to
the Wall Street Journal. After buying the Takashimaya building for $142 million in June,
Thor Equities plans to transform the building, which sits between 54th
and 55th streets, into an eight-floor retail hub. The real estate
developer is set to expand 693 Fifth Avenue’s retail space to 6,300
square feet, from its current level of 3,500 square feet, while also
completely revamping the building’s facade — a renovation that Thor
wouldn’t have been able to begin had the building been landmarked.
Japanese retailer Takashimaya first announced
that commercial real estate services firm Jones Lang LaSalle would
represent the sale of the property in April. While there is no word yet
which tenants Thor may be courting for the space, industry experts say
that the company will likely attract tenants willing to pay upwards of
$2,500 per square foot. [WSJ]

… [more]

Fifth Avenue’s Takashimaya building, which hit the market last month, is reportedly drawing a slew of high-profile bidders, and several have already been selected to submit second-round offers by the end of the month. According to the Post, Vornado Realty Trust, a group led by David Werner, a team of Jeff Sutton and SL Green Realty and an unidentified luxury retailer are among those prepping their second bids for the 693 Fifth Avenue spot. … [more]