JLL has completed a series of transactions that enabled J.Crew Group Inc. to relocate to 325,000 s/f of Bank of New York Mellon Corp. sublease space at 225 Liberty Street.
The deal also allows a current tenant, Facebook, to expand into 295,000 s/f at 770 Broadway that was previously occupied by J.Crew.
As part of the interdependent transactions, 770 Broadway owner, Vornado, paid J.Crew a reported $35 million to exit the 295,000 s/f it occupied on the 10th through 13th floors four years ahead of its lease expiration.
J.Crew then entered into a 16-year sublease with Bank of New York at 225 Liberty Street in Brookfield Place, leaving its space ob Broadway available for Facebook.
JLL represented all parties in the series of transactions. Peter Riguardi, chairman and president of the tri-state region; Robert Martin, vice chairman; and Joe Messina, executive managing director, represented J.Crew in the buy-out at 770 Broadway. Martin, Messina and TJ Hochanadel, senior vice president, represented J.Crew in the sublease with Bank of New York. Riguardi; Frank Doyle, vice chairman; Michael Berg, managing director; and Clark Finney, executive vice president, represented Bank of New York in the sublease.
“This was an extraordinarily complicated series of transactions with multiple parties and many moving parts that all had to line up at the same time,” said Martin.
“But a creative approach and a lot of hard work produced a result that was beneficial to all involved. J.Crew was able to monetize the value of its below-market lease and to reduce its occupancy costs and upfront capital investment by relocating to nicely built sublease space at below-market rent, while the owners of 770 Broadway were able to accommodate an important tenant that wanted to expand in the building.”
“By working collaboratively with all parties, we were able to resolve a host of challenges that arose in this complex multipart transaction” said Riguardi. “The Bank of New York space at 225 Liberty Street was an ideal location for J.Crew.”