Both 1100 Ave. of the Americas (lower left) and the Grace Building overlook Bryant Park.
NEW YORK CITY—Brookfield Property Partners and The Swig Co. have signed a long-term net lease for 1100 Ave. of the Americas, overlooking Bryant Park. The partners also announced their intention to redevelop the 386,000-square-foot office and retail building, owned by the Nickerson Family. Redevelopment is set to begin in 2019.
On the corner of 42nd Street, 1100 Ave. of the Americas is adjacent to—and shares a plaza with—the Grace Building, which is owned jointly by Brookfield and Swig. The terms of the agreement were not disclosed. CBRE’s capital markets team, led by Darcy Stacom and Bill Shanahan, represented the owner in arranging the net lease.
“At the epicentre of Midtown, Bryant Park has become one of the most sought-after office and retail destinations in New York,” says Ric Clark, senior managing partner and chairman of Brookfield Property Group and Brookfield Property Partners. “The addition of 1100 Ave. of the Americas into our portfolio provides a major opportunity for us to reposition the property while enhancing the shared Grace Plaza, significantly benefitting both buildings.”
Adds Ken Perry, CEO of The Swig Co., a San Francisco-based firm, “As the original developer and long-term owner of The Grace Building we have long recognized the area around Bryant Park as one of midtown Manhattan’s most vibrant commercial districts. Our successful partnership with Brookfield provides a further opportunity to add long-term value to the neighbourhood.”
“We are delighted to partner with Brookfield and Swig on the redevelopment of the property,” asserts William H. Nickerson, president of Eugene A. Hoffman Management, which is the general partner of 1100 Avenue of the Americas Associates, the building owner. “Our family has owned the land for over 150 years and will continue to own the land throughout the term of the lease.”
He continues, “We are confident that working with Brookfield and Swig will be the best way to maximize the advantages of our outstanding location. The office space is presently leased by HBO/Time Warner with whom the family has had a 35-year relationship, and we wish them well as they move to new premises in 2019.”
Developed in 1971, and continuously owned by The Swig Co. since then, The Grace Building, at 1114 Ave. of the Americas, is a 49-story, 1.6-million-square-foot office building. It features 42,000 square feet of retail space and a 30,000-square-foot outdoor plaza that is activated year round by Arts Brookfield, Brookfield’s arts and events program.
The Grace Building office tenant mix is comprised of companies in a wide array of industries, and it houses a mix of food and dining options, including Bluestone Lane, Gabriel Kreuther, Joe & the Juice, Kreuther Handcrafted Chocolate, Sweetgreen and STK.
Overlooking Bryant Park and centered between Grand Central terminal and Times Square, both 1100 Ave. of the Americas and the Grace Building feature convenient access to most Manhattan subway lines.