Cushman & Wakefield's Matthew Astrachan, Steven Bauer and Mitchell Konsker represented Calvin Klein in its lease negotiations with the landlord, 205 West 39th Street Corp. A team from CB Richard Ellis, namely Howard Fiddle, Kevin Powderly, Eric Deutsch, Bernard Weitzman and Jason Pollen, represented the landlord in the complex negotiations.
According to Astrachan, the lease renewal comprises all of the company's space in the 17-story building, including office and showroom space on the ground floor and lower level, as well as floors two-through-four and eight-through-twelve. "What we needed to provide was future flexibility with minimal disruption and expense to the business," says Astrachan. "This was all achieved in this transaction."
"CK's space was expiring in two tranches," explains Powderly. "Leases expired in both early 2004 and early 2007. We extended both leases, adding more years to the '04 lease so that it would end in January of 2017, and more to the '07 lease so that it would end in October of 2018. In doing so, we achieved an 18-month staggering of leases expiries, which met the landlord's objective of not having nearly 60% of the building vacant all at once."
Calvin Klein is now wholly owned by Phillips-Van Heusen Corp. PVH was represented in-house by Mike Shaffer, senior vice president of Retail Operations, and Evan H. Wasserman, real estate counsel. The attorneys representing Phillips-Van Heusen were Judi Scott and Larry Eisenberg of Katten Muchin Zavis Rosenman LLP, and Neil Botwinoff of Tannenbaum Helpern Syracuse and Hirschtritt LLP represented the landlord.
Built in 1922, 205 West 39th Street is a 257,000-sf office tower located between Seventh and Eighth avenues in Times Square South. The designer is the largest tenant in the building, occupying 10 of 17 floors. PVH's current space now extends from the basement to the fourth floor, in addition to floors eight through twelve.
According to a recent survey by PBS Realty, one of the fastest growing segments of the New York City real estate market is Times Square. In fact, of the 5.2 million sf currently under construction for office towers in New York City, more than 20% of that is located in Times Square.
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