27.4.12
Thor Making Room for a Flagship?
There has never been a shortage of flagship stores on 5th Avenue and at Cubed Advisory, we expect that Joe Sitt is going to be adding space for one more.
As the Full Story below notes, Sitt's Thor Equities recently purchased 516-520 5th Avenue from Aby Rosen's RFR Holding. Currently a group of 3 tired and surprisingly short buildings, Thor paid $132M for the trio, which works out to an eye watering $838/SF buildable. But when bundled with the 139kSF of air rights that RFR added to the property in 2007, that comes down to a much more reasonable $444/SF buildable.
With a combined as-of-right and air rights buildable SF of almost 300kSF, it is likely that Thor will put up a tower of around 30 floors. Perhaps a few more depending on how the tower conforms to it's zoning envelope. Bonus FAR is available for public amenities. However, given the small footprint (10500SF), it seem unlikely that any sort of urban plaza is going to appear and bolster the buildings FAR. Offices above will be able to command solid rents with their views of Bryant Park, but it will be the ground floors that will be worth watching. After Uniqlo opened late last year further up 5th Avenue in a $300M, 15 year deal it seems all but certain that Thor will be marketing the first few floors of his new development to a large retail interest.
Full Story
As the Full Story below notes, Sitt's Thor Equities recently purchased 516-520 5th Avenue from Aby Rosen's RFR Holding. Currently a group of 3 tired and surprisingly short buildings, Thor paid $132M for the trio, which works out to an eye watering $838/SF buildable. But when bundled with the 139kSF of air rights that RFR added to the property in 2007, that comes down to a much more reasonable $444/SF buildable.
With a combined as-of-right and air rights buildable SF of almost 300kSF, it is likely that Thor will put up a tower of around 30 floors. Perhaps a few more depending on how the tower conforms to it's zoning envelope. Bonus FAR is available for public amenities. However, given the small footprint (10500SF), it seem unlikely that any sort of urban plaza is going to appear and bolster the buildings FAR. Offices above will be able to command solid rents with their views of Bryant Park, but it will be the ground floors that will be worth watching. After Uniqlo opened late last year further up 5th Avenue in a $300M, 15 year deal it seems all but certain that Thor will be marketing the first few floors of his new development to a large retail interest.
Full Story
Labels: Aby Rosen, commercial, development, Joe Sitt, Midtown, retail, RFR Holding, Thor Equities
4.4.12
What is Sitt Sitting On?
The short answer is an ever growing assemblage in Coney Island.
As the Full Story below describes, Joe Sitt and his firm Thor Equities, have just picked up another two lots in Coney Island. Thor currently owns all but 6 lots on the block bordered by Stillwell, West 12th, Surf Ave and, well... the ocean. With ownership of significant chunks of the two westerly blocks, Sitt is building a fine collection primed for something big.
Coney Island is historic and some elements of it can and should be preserved. But to call a ramshackle collection of amusements sitting on an ocean beach, with a boardwalk, next to an aquarium with a giant subway station across the street, an asset that is not currently at it's best and highest use- would be a gross understatement. Joe Sitt knows this too. Having just paid over $400/buildable SF, Thor Equities isn't planning to recreate 'shoot the freak' . Thor is looking very long term with an eye on the special Coney Island zoning district. The newish (2009) zoning doubles the available FAR to 4 for large sections of Sitt's holdings. It paradoxically also provides height limits and tower allowances that vastly outstrip what an FAR of 4 can typically do. However, when you own the whole block and leave half of it empty for 'amusements' that basically have zero FAR, then towers you shall have. The city has written the zoning to encourage the development of large projects with large open areas.
Hotels on the beach. Revitalized Coney Island amusements. Would someone please permit gambling on this strip too and really let the jobs flood into a part of town that could desperately use them?
Back in 2005 Sitt said he wanted to evoke the feeling of Vegas. Vegas doesn't have a beach- which is why Coney Island can be even better.
Thor is clearly biding it's time to capture the last remaining parcels. At Cubed Advisory, we can't wait to watch the development that will lead to a significant new NYC travel destination.
Full StoryLabels: Coney Island, development, Joe Sitt, Thor Equities