Northeast Real Estate Business

NOV-DEC 2015

Northeast Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Northeast United States.

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54 • November/December 2015 • Northeast Real Estate Business www.REBusinessOnline.com Realty Partners; Brian Katz, Katz & Associates; Lee Spiegelman, Ripco Real Estate; Samuel Schneider, Im- perium Capital; Brad Cohen, Eastern Consolidated; Timothy King, CPEX Real Estate Services; and attorneys David Rabinowitz, Kenneth Sicklick, Brian Cohen, and Steve Schweiger of Goulston & Storrs. What follows is an edited transcript. NREB: Steve Stephanou, what activity are you seeing in New York, as com- pared to other areas in which you're working across the country? How is leasing quality and velocity here? Stephanou: Last year, we talked about some of the major projects in New York. One has opened since our last meeting, which is Brookfeld Place. Two other signifcant ones, one is close to opening in 2016 and that's the retail at the base of the World Trade Center, the Westfeld project, and then the Hudson Yards project, which is supposedly the most expensive in- vestment in real estate in the U.S., which is a mixed-use project that has about 1 million square feet of retail and that is scheduled to open in fall 2018. It will include a 50,000-square- foot Neiman Marcus store, which will be the company's frst and probably only store in New York City. We've been involved in those projects on the tenant rep side. My sense is that Brookfeld got ahead of the game be- cause it opened in March of this year essentially, although not all of the stores are open yet. On these large projects, the velocity has slowed and I think that tenants are being very cau- tious. Those are all big projects, but I think it's also refected on some of the streets as well. Where rents are high, sales may or may not justify the rents that the landlords are expecting and tenants are very cautious. It does not mean that deals aren't being made, but that is just my general sense. Jackson: I don't disagree with a lot of what Steve has to say, but I think for me, we were excited last year about what was going on in certain markets and I think that there is even more excitement right now in different ar- eas. The Meatpacking District slowed, and then The Whitney opened down there, and there was more traffc on the High Line, so you've got more activity down there. What seemed to be either going backwards or staying in place with regard to rents or activi- ties defnitely slowed down, and now we're seeing more activity. With the development we're seeing in the city, that's exciting. You're seeing big in- creases in rents where there's residen- tial development, like on 86th Street. You've got 57th Street that's seeing activity, and then you've got some of these developments that Steve spoke about — Hudson Yards, World Trade Center, Brookfeld Place — those deals sort of move out and impact other ar- eas surrounding it. What is cool? 34th Street is cool. There's activity there at Herald Square. Stephanou: Great bringing up 34th Street. I agree with you, 34th Street is literally on fre in a happy sort of way. Rents are high but sales there are strong. H&M opened its new 55,000-square-foot fagship across from Macy's, which is a great looking store. There have been two deals an- nounced in the existing Foot Locker space on 34th Street: Sephora, which is relocating a store into a bigger and better unit, and Foot Locker is recon- fguring its space, and there's another box that is part of that there. That's a market that just continues to improve. Cohan: We're thrilled with how things are going on 34th Street. Many of my retail clients will tell me that their business is 'consistently inconsistent.' With that statement more than ever, we look at Macy's where the lower level is now called One Below. It's for the millennials; a new restaurant will NEW PROJECTS, HIGHER RENTS RETAIL from page 1 Each year, our roundtable attendees come from various backgrounds and facets of the retail real estate industry. We asked each participant who they work for and what their expertise is. Kenneth Sicklick, Goulston & Storrs: I do real estate joint venture work and some corporate work. I get involved in the retail space generally on the joint venture side. Brian Cohen, Goulston & Storrs: I re- cently joined Goulston & Storrs as a partner here in New York. My prac- tice focuses on real estate acquisition, development, joint venture and leas- ing. I tend to get involved in a lot of retail real estate transactions in urban areas including New York City and South Florida, the Miami-area. Samuel Schneider, Imperium Capital: Dan Glaser and I founded Imperium Capital; we're an investment devel- opment frm based in New York. We have a focus on high street retail. We own a fair amount of retail in New York — Manhattan, Brooklyn — and Miami. Andy Graiser, A&G Realty Partners: We work with retailers that are disposing of their real estate or restructuring their real estate. We work with a lot of private equity frms as part of their acquisitions or disposition of any of their core retail assets. Patrick Breslin, Colliers International: I run the retail leasing platform for Colliers nationally in the U.S.; pre- dominantly tenant-based representa- tion and we are beginning to shift the focus to a lot of landlord representa- tion. Joseph French Jr., IPA Institutional Prop- erty Advisors: IPA is a division of Mar- cus & Millichap. We do investment sales and capital markets. David Rabinowitz, Goulston & Storrs: I'm with Goulston & Storrs. I'm the co-chair of our retail industry group. We have about 50 professionals in- cluding real estate lawyers and team leaders; basically anything a retail property owner needs in order to run and operate their business. My prac- tice is focused on retail development and leasing throughout the country and here in New York City, with a recent focus on working with foreign retailers. Brian Katz, Katz & Associates: We are a brokerage company that represents both landlords and tenants. Our pri- mary focus is suburban shopping centers, currently with offces in New York, North Carolina and Florida. Brad Cohen, Eastern Consolidated: I focus on retail leasing in New York City, with a primary focus on land- lord representation. Danielle Brunelli-Albrecht, R.J. Brunelli & Co.: We specialize in retail leasing, brokerage. We represent tenants and landlords mainly in New Jersey but we also do some national footprints as well. Timothy King, CPEX Real Estate Ser- vices: We're a full-service commission brokerage company in Brooklyn and an owner primarily focused in the outer boroughs. Richard Cohan, 34th Street Partnership: I wear two hats. I'm with the 34th Street Partnership; we're their retail consultants. We also have our own retail leasing company in the city, RA Company. Frankie Campione, Create Architecture Planning & Design: We are a large- scale developer-driven architecture frm. About 90 percent of our busi- ness is retail in the U.S. and Canada. Victor Menkin, Menkin Realty Services Inc.: I am a broker specializing in re- tail predominantly in the metro New York area. I have been in the indus- try for longer than I'd like to admit, 30-something years. I formerly ran retail for Olympia & York. I do pre- dominantly brokerage, but I also do consulting. My focus is specifcally retail, and I do both landlord and ten- ant representation work. Nina Kampler, Kampler Advisory Group LLC: I'm a lawyer by background. I've done lots of different things in our in- dustry and have worn many different hats over 30 years. I run a consulting frm and put virtual teams togeth- er, so I work on a variety of things, whether that's being a heat-seeking missile on behalf of a developer in targeting certain specialty retailers or working with retailers and then put- ting brokerage teams together, or per- forming strategic advisory work in a quasi legal business function. Stephen Stephanou, Crown Retail Ser- vices: I'm actually a reformed law- yer myself, although that was a long time ago. Crown Retail is a boutique brokerage frm; we're an affliate of Paramount Acquisitions based here in New York. Our work is predomi- nantly high street tenant represen- tation. We do a lot of work in New York City, but we also do work in a number of other high street areas like Chicago, San Francisco, South Flori- da and Beverly Hills. Predominantly our work is based in New York, and we have branched out into the tenant representation area very signifcantly in the last fve years to the boroughs. Lee Spiegelman, Ripco Real Estate: I run the real estate capital markets group at Ripco here in New York and our other offce is primarily focused on a lot of off-market investment sales and transactions. I also handle real estate fnancing; I do everything from debt equity and everything on the capital side in that respect. I also source a lot of development projects. Deborah Jackson, Cushman & Wakefeld: I'm not a broker; I'm on the valuation and advisory side, mostly advisory. My clients are companies like West- feld and Simon. I do a lot of urban consulting on their behalf. Steve Schweiger: I'm a fnance lawyer with Goulston & Storrs. I represent banks that are lending to those who are developing shopping centers. IN THEIR OWN WORDS

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