Real Estate

Joint venture at 685 Third

TIAA-CREF has transferred a 49.99 percent interest in 685 Third Ave. through a joint venture to the Melbourne, Australia-based Future Fund Board of Guardians for what we’ve learned was $100,332,537.

Through a complicated series of LLCs, we’ve discovered it also transferred a 0.2 percent stake to “125 Unit Holders,” and expects the main entity will elect to become a Real Estate Investment Trust for tax purposes.

Back in August, TIAA bought the 31-story building from the downsizing Pfizer for $190 million. According to CoStar data, about 612,000 square feet is available for lease through a CB Richard Ellis team.

The Future Fund is an Australian government-targeted investment vehicle and this appears to be its first investment in the US. TIAA intends to make other investments in prime commercial real estate with the Future Fund.

Last September, Omnicom was sniffing around to cut a 300,000 square foot deal for BBDO at 685 Third but instead renewed at 1285 Ave. of the Americas. CBRE and TIAA reps declined comment.

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Renowned artist and collector Hunt Slonem is expanding again and moving his antiques, flea market finds, tropical birds, art studio and offices to 22,500 square feet comprising the entire third floor of the four-story 509 W. 34th St.

Until the June move, the entire kit and caboodle will remain in smaller space at 545 W. 45th St. just nine blocks further north.

Carri Lyon of Cushman & Wakefield represented Slonem in the 10-year deal for the bare space in the industrial building owned by Sherwood Equities. Fred Rosenberg of Sherwood handled the transaction in-house. The asking rent was in the high teens but the West Side site may be developed in the future.

“It’s a cube, there aren’t even toilets in there,” said Lyon. “But it is a dramatic open space with lots of large windows and high ceilings to allow him to paint his large scale works.”

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The long-stalled sliver project at 179 Ludlow Street is on its way to becoming a good citizen of its Lower East Side block. This six-story gut rehab next to Katz’ Delicatessen is one of three stalled sites on the block.

The others include a proposed, 18-story hotel at 180 Ludlow which just renewed a permit for a hoist, and 163 Orchard, which runs through to Ludlow and renewed its new building permit for a 12-story hotel in February. Both are Serge Hoyda projects and need additional permissions to move forward. A call to his office was not returned by deadline.

Meanwhile, lender Michael Goldberg finally got the keys to No. 179 after the foreclosure auction on March 23. He immediately got its city Stop Work Order partially lifted and began cleaning up the site. According to Curbed, some years ago the retail there had been shown to Madonna for a Kabbalah Center by a previous developer.

Goldberg has already met with the architect and engineer to get the project back on track, but this time, he says, rather than a hotel or condo, the market dictates it will become a rental.

“With luck it will be done by the end of the summer,” Goldberg said.

Local building owner Michael Forrest, CEO of Forrest Partners, who also heads the LES Business Improvement District, said, “I own two buildings on Ludlow St. and it’s great for me to see and hear this will be done.”

Yesterday, HBO was filming its series “How to Make it in America” both on the street and in Forrest’s storefront at 164 Ludlow St. which is a fashion shop in the series

The No. 164 storefront may also become a fashion shop in real life. Forrest declined comment but other sources told us a lease is out for that 1,800 square foot space with Jay Z‘s Rocawear. Keep an eye on these blocks as retail asking rents are around $100 a foot and a Steve Madden store has already located at 132 Ludlow at Rivington St.

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ACC Apparel has signed a lease for three floors totaling 13,350 square feet at 1369 Broadway on the corner of 37th Street.

Abe Labaton of Vicus Partners represented the tenant while Ralph Sitt and David Sitt of Sitt Asset Management represented themselves. The dramatic space was originally designed by Marc Ecko and has an internal spiral staircase connecting all three floors. The asking rent was $40 per foot.

“ACC Apparel received naming rights outside the front of the building along with two tremendous flagpole banners, one on each side of the building,” said Labaton.

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The largest US Asian-American owned radio and television group, Multi- Cultural Radio Broadcasting, will be relocating to 40 Exchange Place. The 15-year lease for 31,000 square feet includes both of fice and studio space.

MRBI was represented by Diane Dickin son of Prudent ial Douglas Elli man in the deal that will relocate the broadcaster from 449 Broadway. Charles Beyda and Judah Sutton of JUD Leasing Corp. represented the ownership in the transaction that had an asking rent of $25 per foot. Lois@BetweenTheBricks.com