Milk Studios an Udder Hit
New York Post– December 20, 2011:
The Milk Studios building in the Meatpacking District has a lot to — er — moo about.
Longtime tenant inVentiveHealth has just renewed and expanded to 75,000 square feet, bringing the building at 450 West 15th St. to 100-percent occupancy.
The building owners are also relocating the ugly loading docks from what is turning into a luxury shopping district on West 14th Street to its West 15th Street side by capturing some land next door from the outgoing Mobil station, some of which will be redeveloped into retail by the Millers of Real Estate Equities.
Public documents show Milk Studios also reserved the right in the future to create a new deck by the High Line — at least 4 feet above the roof of the new retail stores that will be developed by the Millers. As reported by eater.com, the coffee bar Blue Bottle is also moving into a new stop to the east of the 15th Street lobby. The company already has a concession stand on the High Line, and its new 800-square-foot spot at Milk Studios was negotiated by Karen Bellantoni of RKF.
According to Ryan Jackson of Stellar Management, which owns the Milk Studios building, the loading dock relocation will provide a contiguous 14th Street retail corridor.
“It’s a benefit for the neighborhood, and that was the genesis of the transaction,” said Stellar’s Jackson. “Now the fun really begins, in implementing and executing.”
The building’s pioneering tenant, inVentive, moved to its more than 50,000-square-foot space on part of the sixth and the entire seventh floor about a decade ago. They will now expand into the last block of 21,000 square feet on part of the fourth floor.
“The space overlooks the High Line, which used to be grass and rust, and now they have the beautiful High Line Park,” added Jackson.
Paul Myers and Michael Movshovich of CBRE represented the tenant in the renewal and expansion deal. Michael Dreizen, Brian Waterman and Jimmy Kuhn of Newmark Knight Frank represented Stellar in the lease, which had an asking rent in the $60s per square foot — yes, you read that right — as desirability and lack of space in the area is seriously pushing rents.
As for the adjacent Mobil station, public documents revealed Real Estate Equities’ Michael Miller and son Brandon have finally closed on the $26,278,098 land lease of the site from Erez Shternlicht, who also owns Milk Studios.
We first reported on this ongoing transaction several years ago, which was arranged by Douglas Harmon of Eastdil Secured. Documents show the 48-year lease includes an option to buy in the first seven years.
Now, the Millers tell me they plan to build approximately 25,000 square feet of brand new retail along that short but prominent Tenth Avenue blockfront between West 14th and 15th Streets. Signage can be larger than that allowed in the rest of the Meatpacking District, even though it faces the West Side Highway.
To close the deal, Steve Fenster of the Carlton Group arranged equity and a $12.5 million mortgage with Dominick and Michael Alfieri of New Jersey. They are now part of the venture with the Millers.
The Millers said asking rents for the new, approximately 17,000 square feet of retail space along Tenth Avenue will be $375 a foot. A 9,000-square-foot lower level is also planned.
Permits are in place for demolition, and construction will follow.
About Stellar Management
For over 25 years Stellar Management has acquired and improved properties across the country. Founded by Laurence Gluck, Stellar has built its track record on ownership, management, and revitalization of rental housing in metropolitan areas on the East Coast of the United States. Stellar Management is an owner-manager of more than 20,000 apartment homes and two million square feet of office space in New York City, Metro Washington D.C., San Francisco and South Florida. Stellar Management employs approximately 800 people, and has offices and management teams based in New York, Metro DC and San Francisco. Stellar’s principals are Laurence Gluck, Paula Katz and Robert A. Rosania.
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Media Contact:
Representing Stellar Management
John Marino
The Marino Organization
212-889-0808
john@themarino.org
