Creating a new office space and a new name were a priority for 50-attorney Otterbourg when the New York-based firm signed a 15-year extension for 45,000 square feet at 230 Park Ave. Formerly called Otterbourg, Steindler, Houston & Rosen, the firm has “streamlined its name” as part of a rebranding.
The landmark Park Avenue tower, constructed in 1929, is a 34-story, 1.4-million-square-foot building also known as the New York Central Building. It is owned by Monday Properties and Invesco Real Estate.
Andrew Herz, of counsel at Patterson Belknap Webb & Tyler, represented Otterbourg. Also assisting in the lease negotiations were Otterbourg’s chairman Daniel Wallen, and partners Kenneth Miller, David Morse and Richard Stehl.
Mark Maltz, a partner at Davis & Gilbert, represented the ownership.
The asking rate is reportedly about $65 per square foot.
Otterbourg has been a tenant at 230 Park Ave. for more than four decades. A gut renovation was a “critical factor” in the lease renewal, Wallen said. Renovation of its space on the 29th and 30th floors, which took place over the course of one year, included completely updated technology and design features, restoration of original woodwork and the use of contemporary opaque glass walls.
“Our ability to adapt is reflected in the decades-long relationships we maintain with many of our clients. Now, it is also reflected in our new name and logo and the exciting space we have created in an iconic New York City building that combines historical offices with modern design and technology,” Wallen said in a statement.
The law firm was established in 1909 by Edwin Otterbourg, a trial and appellate lawyer; Emanuel Steindler, a real estate and trusts lawyer; and Charles Houston, who handled business issues. After the Great Depression, Aaron Rosen, a bankruptcy lawyer, joined the firm.
Otterbourg represents banks, asset-based lenders, hedge funds and private equity firms in complex transactions.
Barneys New York is returning home to Chelsea with a new store along Seventh Avenue between 16th and 17th Streets. Slated to open in 2017, the Seventh Avenue store will be Barney’s second flagship after its largest store on Madison Avenue.
Equity One Inc., which focuses on the development and redevelopment of high-density urban areas, acquired the Seventh Avenue retail condominium space in 2011. The space has been leased by retailer Loehmann’s which recently filed for bankruptcy.
Barneys will occupy a major portion, nearly 57,000 square feet of contiguous retail space, across five floors. It will have 200 feet of frontage with a main entrance along Seventh Avenue, wrapping around the corner to 16th Street.
David Brooks, a partner at Paul Hastings and cochair of the firm’s real estate group, advised Barneys on the lease. Barneys’ in-house counsel was Marc Perlowitz, executive vice president and general counsel, human resources and real estate.
Richard Abramson, member of Cole, Schotz, Meisel, Forman & Leonard, represented the landlord.
Barneys would not estimate the value of investment capital toward the renovation and the opening of the new store. Equity One declined to comment on the retail lease.
The asking retail rate for ground-level space in the Midtown South near Seventh Avenue is about $400 per square foot and for other retail space is about $100 per square foot, according to The Real Estate Board of New York.
Barneys had a “long-standing goal to return downtown,” Mark Lee, Barneys New York CEO, said in a statement. “We believe the robust and growing downtown market is under penetrated in terms of a larger specialty retailer.”
Barneys first opened a discount store at the same Chelsea location in 1923. The retailer, then-spelled Barney’s, was initially a clothing store for men, at Seventh Avenue and 16th Street. It later expanded north along Seventh Avenue to 17th Street with the opening of a women’s clothing store. The retailer remained at this location until 1997.
With the departure of Loehmann’s, the Rubin Museum of Art, a next-door neighbor at 150 W. 17 St. at Seventh Avenue, welcomed the new Barneys. “A healthy retail environment is great for the Chelsea neighborhood and the Museum,” a spokeswoman said. She noted that museum’s space was once part of Barneys’ original store.
Barneys also has locations in the Upper West Side, SoHo and Brooklyn with other flagship stores in Beverly Hills, Chicago, Seattle, Boston, San Francisco, Las Vegas, Los Angeles and Scottsdale as well as 25 other stores and outlets across the country.
As of 2013, Equity One has 144 properties in portfolio with a total market capitalization of $4.3 billion, with properties across the country, such as New York, California, Connecticut, Florida, Georgia, Louisiana, Massachusetts and North Carolina, according to its website.
Michael Berfield, an executive vice president, development, at Equity One internally handled lease. He was assisted by Ripco Real Estate Corp.
Jeffrey Roseman, an executive vice president and a founding partner of Newmark Grubb Knight Frank retail, brokered the lease for Barneys.
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