NEW YORK CITY-Locally based Monday Properties has completed a lease renewal and extension with Macy's Inc. at 1440 Broadway. The department store signed for 105,000 sf at the 745,000-sf building. With the completion of the Macy's lease renewal and extension, the 1440 Broadway building is now almost fully leased, with just 2,600 sf left in the building. Monday Properties also has completed its joint venture with institutional investors in a fund managed by Prudential Real Estate Investors to recapitalize the property.
Monday Properties tells GlobeSt.com that the aggregate value of the Macy's lease is more than $40 million. Although they could not disclose further specific terms, they did say that asking rents in the building at $57 per sf.
Craig Panzirer, SVP and director of leasing for Monday Properties, represented the ownership of the building. Scott Gottlieb and Michael Laginestra of CB Richard Ellis Inc. represented the tenant. The 1440 Broadway building is located between West 40th and West 41st streets.
Monday Properties acquired 1440 Broadway in 1998 and directed a successful repositioning of the asset. The company now shares ownership of the class A office property with PREI and serves as the managing partner. Monday is also the property management and leasing agent for 1440 Broadway. Tenants at 1440 Broadway include Mizuho Capital, Liz Claiborne, Macy's, Condé Nast and Citibank.
“The lease extension and renewal with Macy's demonstrates the effectiveness of our positioning of 1440 Broadway as one of the highest quality, prewar buildings in the Times Square submarket,” says Panzirer in a release. “It has remained fully leased since Monday Properties acquired the property in 2002.”
Macy's has been a tenant at 1440 Broadway since 1983, occupying the sixth and seventh floors of the building, for a total of 70,000 sf. Its lease for the two floors was set to expire in 2011. Macy's signed a 10-year deal for the entire 13th floor, bringing its total space at 1440 Broadway to 105,000 sf. The 13th floor was previously occupied by Primedia.
In the recapitalization, Sidney Friedman, Michael Jaffe and Michael Mayerfeld of Kramer Levin Naftalis & Frankel LLP, and Jack Mandel of Bryan Cave LLP represented Monday Properties. Chris Price of Goodwin Proctor represented PREI. Adam Spies of Eastdil Secured advised the parties on the recapitalization.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
