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700,000-SF Bloomberg Lease Finally Reality

NEW YORK CITY-The long-awaited lease deal between Bloomberg and Vornado Realty Trust at one of the most infamous development sites--the former Alexander's location--in the city has finally happened. Bloomberg has finally entered into an agreement.

By Amy Vaughn | Updated on May 01, 2001

NEW YORK CITY-Michael Bloomberg, most recently making headlines for his switch to the Republican Party and expected bid for mayor here in the upcoming race, as well as the resulting resurgence of interest in his settled lawsuit with a former employee, has added another installment to yet another story — the Alexander’s site story. As GlobeSt.com has been covering for months, Bloomberg lease at 59th Street and Lexington Avenue has been in such limbo speculation was growing the deal would fall through. Now, Bloomberg has entered into an agreement for 700,000 sf. The initial term of the lease is for 25 years and includes a 10-year renewal option.

The site was once an Alexander’s department store and is still an Alexander’s Inc. property. The REIT is exploring option to develop what is now one of the city’s most infamous holes in the ground. The plans call for 1.4 million sf of retail, office and multifamily housing property. Spokespeople for Alexander’s report the estimated cost for the project will run in excess of $650 million. Financing may come from the sales of assets and debt equity, all of which, they say, “may involved arrangements with Vornado Realty Trust.”

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