In a deal more interesting than its modest size might suggest, British Airways is returning to Manhattan after a 25-year absence. The airline has leased 46,198 square feet at 2 Park Ave., relocating from the Bulova Building in Jackson Heights, where it’s been since 1987.
The 10-year deal is for the entire 11th floor in the 1 million square-foot tower.
In addition to serving as BA’s American headquarters, the new space will also be used by other participating lines in Oneworld Alliance, one of the three largest airline alliances under a centralized management team. Oneworld also includes American Airlines and seven other carriers.
Cushman & Wakefield’s Tara Stacom, David E. Green, Mitchell Arkin and Whitten Morris represented the owners of 2 Park Ave., an affiliate of Morgan Stanley. BA is repped by CB Richard Ellis’s Joan Meixner, Brad Needleman and Stuart Eisenkraft. The asking rent was $50 a square foot.
Stacom said BA was drawn to 2 Park Ave. by its “transit-oriented location, large efficient floor plates and beautifully restored Art-deco lobby, as well as strong and financially sound ownership.”
BA moved to Queens from a different Park Avenue address in 1987. It once had 180,000 square feet at the Bulova site, but downsized over time as units were moved elsewhere or consolidated, according to airline spokesman John Lampl.
He said BA will move into 2 Park Ave. next week. In addition, Oneworld’s own front office will soon move into the space from Vancouver.
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Housewares retailer Gracious Home has moved its corporate headquarters to 158 W. 27th St., where it took 10,000 square feet, the entire top floor. It’s the first new office tenant at the address since it was acquired by Himmel + Meringoff in December. Asking rents are $43 per square foot.
Gracious Home moved from 632 Broadway. The landlord was repped in-house by Mark S. Stein and Jason Vacker. Stein said the tenant was “attracted to the sun-drenched top floor with skylights and breathtaking views of Chelsea.” ReCom’s Josh Sand repped Gracious Home.
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Most large construction jobs are ringed by view-blocking wooden barricades. But at Extell’s Gem Tower site, chain-link fences on West 47th and 46th streets let everyone see that steel is rising.
Congrats to Extell chief Gary Barnett and development director Raizy Haas for getting the project out of the ground — and for letting us watch.
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Restaurateur Stephen Hanson has signed a lease for the former Japonais space at 111 E. 18th St. Hanson’s company, BR Guest, will probably create an “Asian-themed” eatery but no word yet on specifics.
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Why are there so many vacant stores on 57th Street?
Recently, when we reported that Moscow’s Café Pushkin was coming to the former Shelley’s space on the block between Fifth and Sixth avenues, Lansco’s Alan Victor told us there “seems to be a barrier going west” of Fifth for shoppers.
But Prudential Douglas Elliman’s Faith Hope Consolo, who’s seeking a subtenant for the former Gioia jewelry store at 110 E. 57th St., between Lexington and Park avenues, says, people don’t want to walk very far east, either. “The issue is crossing Park [going eastbound],” she told us. “It’s a dividing line and people’s noses bleed.”
In fact, except for between Park and Fifth avenues, much of 57th Street — once a premier shopping boulevard that was home to Henri Bendel and great art and antique galleries — is increasingly a wasteland of empty stores, a growing number of schlocky-looking tourist shops and even some empty lots.
Some retail brokers are in denial. They boast, what about Bergdorf Goodman and Tiffany!
But the block between Lexington and Park looks forlorn now that Borders has shut down. Large spaces also remain on the market at 135 E. 57th St.
There are also the hole in the ground at the northeast corner of Third Avenue and 57th Street, where a handsome old structure was demolished to make room for a new building yet to rise for a tenant yet to be named; numerous high-profile vacancies between Fifth and Seventh avenues; and proliferating uses that are just strange. Does anyone ever visit the Ana Tzarev gallery?
Spaces held off the market in preparation for new development and/or property sales are one issue — e.g., the northwest corner of Sixth and 57th, once home to Wolf’s deli but more recently to pop-up stores, and Extell’s former Hard Rock Café site.
Another problem, in Consolo’s view, is that some landlords “think every block is between Park and Fifth” — meaning they want $500 a square foot even in locations that will command half that.
We’ll advance another theory: that more stores, empty for whatever reason, give people less reason to go to 57th Street. Landlords, take note. scuozzo@nypost.com