Urban Outfitters is staking out a 21,000-square-foot spot in the base of the brand-new 180 Broadway — right next to the new Fulton Transit Hub.
The fashion retailer has leased 1,500 square feet on the first floor as well as 6,700 square feet on each of the entire second and third floors and a lower level of 6,000 square feet, sources said.
The economics make the deal worth $50 million over its 15-year life to building developer/owners Jeff Sutton, SL Green Realty Corp. and Harel Insurance.
Sutton, known for his ongoing retail orchestrations, represented the ownership, while Stephen Plourde and Wade McDevitt of the McDevitt Co. represented their brotherly neighbor, the Philadelphia-based Urban Outfitters.
Pace University has leased the top of this 24-story building for a 600-bed dorm, which should be open for the fall semester.
As we told you last week, Urban Outfitters is also thisclose to a 61,000 square-foot deal with Malkin Properties for the former Conway site located at 1333 Broadway.
No one returned calls for comment prior to deadline.
***
Spring has sprung out a number of large tenants trolling for space or angling for expansions or renewals.
Entertainment giant Sony is out in the market for a whopping 550,000 square-foot nest now that its 550 Madison tower headquarters is in contract to Joe Chetrit for $1.1 billion through Eastdil Secured.
For the new leasing assignment, the Japan-based giant has hired CBRE’s local leader and prolific dealmaker, Mary Ann Tighe, and her partner, Gregory Tosko, to ferret out an appropriate home to replace its current 850,000 square feet, which was too much elbow room.
Tighe also represents 4 World Trade Center, where the Port Authority will be moving its headquarters offices over the next year or so. After 9/11, the Port took space at 225 Park Ave. South and 233 Park Ave. South, which will be vacated when they move, while 4 WTC also has openings, along with 1 WTC, which is repped by Tara Stacom at Cushman & Wakefield.
Across West Street, Brookfield Financial Properties also has enough room at 225 Liberty at the World Financial Center, aka Brookfield Place.
Sony is also considering both 1 Madison and 11 Madison Avenue in case CS First Boston doesn’t renew its deal. That building will go on the market once a decision is made on the renewal, and Sony could cut a deal with a new owner or a potential buyer.
Sources said the search is not restricted to any area, and the company is looking “everywhere.” Tighe and Tosko declined comment through a company spokesman.
To ensure Sony has enough time to identify a location, negotiate a new lease, fit out the space and move, it will be leasing back the building until around 2015.
In the meanwhile, Chetrit and his partner, David Bistricer, will flesh out their redevelopment plans, which include creating a hotel and residences. A restrictive covenant now requires Sony and its successor to operate a boatload of free public space.
These include: 10,473 square feet for the Sony Wonder Technology Lab, a 10,000 square-foot glass atrium with tables and chairs that runs between E. 55th and E. 56th streets behind the tower, public bathrooms and roughly 7,125 square feet of retail space.
The duo would have to get City Planning permission to modify these requirements or incorporate more retail space, but no application for any changes has been received, a spokeswoman said.
***
The other big gorilla in the market is Amazon, which is being represented by Marcus Rayner of Cresa Partners. Back in June, the online retailer expanded by about 25,000 square feet at SL Green Realty Corp.’s 1350 Sixth Ave., where it now has 92,493 square feet.
Last fall, we heard the cagey Rayner started gathering intel about availabilities without mentioning the assignment was for 250,000 square feet and would double over time.
Such a lease would involve a leap of faith for a building owner, who would 1) need space expiring as Amazon needed the growth, 2) force Amazon to lease it all and short-term sublease what it didn’t need, or 3) allow Amazon to lease what it needed with puts on the future space, which would make it harder for the owner to lease the rest in the interim.
The company is exploring all the big blocks at Brookfield Place and the World Trade Center as well as options in Midtown and St. John’s Center.