The jewelry manufacturer is relocating and expanding into 13,300 square feet at 31-00 47th Ave., also known as the Falchi Building. It's been located at 64 W. 48th St. in the Diamond District, a neighborhood where asking rents are on the order of $40 to $50 per square foot, for more than 20 years. Walter Hollenberg of Midtown Commercial Real Estate represented Quality Casting.
The tenant will receive up to $3,000 in tax credits for each of its 55 employees every year for up to 12 years under the city's Relocation and Employee Assistance Program, and as additional employees join after the relocation, they are qualified as well under REAP. Another tax break came in the form of the city's Commercial Expansion Program, which provides rent abatement up to $2.50 per square foot for commercial, industrial and manufacturing businesses. However, Unger tells GlobeSt.com that the tax breaks aren't the only factor.
"While many tenants are attracted to the Falchi Building because it is pre-qualified for these incentives, the building's location, access to major highways and mass transit, amenities and hands-on management" help strengthen its appeal, he says. Originally built as a Macy's warehouse, the five-story, 640,000-square-foot property has been owned by Kalmon Dolgin since 2005.
When Kalmon Dolgin bought the Falchi Building four years ago for a reported $61 million, VP Joshua Dolgin commented, "We intend to attract office users from Manhattan, high-end jewelry manufacturers and distributors from Manhattan's famed Diamond District and firms that require impressive showroom space." Today, Unger says, "In addition to jewelry and light manufacturing firms, the Falchi Building is also home to administrative and back-office facilities for a wide variety of firms."
The building's current occupancy rate is over 94%, compared to 89% when Kalmon Dolgin bought the property, Unger says. He adds that recent leases there have ranged from 5,000 square feet to 60,000 square feet.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
