Sunday, December 5, 2010

"Brokerage Leases Office in Jersey City,"by David M. Halbfinger,

September 2, 1997, New York Times, "Brokerage Leases Office in Jersey City,"by David M. Halbfinger,


Oops!


In a coda to a government-subsidized deal that lured a foreign exchange company, Exco Noonan, to Manhattan from Jersey City, another New York company has taken over the office space that Exco Noonan abandoned in Jersey City.
Spear Leeds & Kellogg, the New York brokerage house, has more than doubled the space occupied by its Troster Singer division at 10 Exchange Place, the sharp-tipped tower on the Jersey City waterfront, with the lease of nearly 50,000 square feet that is being vacated by Exco Noonan. Troster Singer, a market maker on the Nasdaq stock exchange, had occupied only 36,000 square feet in the building, which is owned by the Prudential Insurance Company.
Troster Singer, which was represented by Cushman & Wakefield, has been at 10 Exchange Place for seven years. In 1994, when Spear Leeds, the parent brokerage, threatened to move its 700 workers to Jersey City, New York officials granted it $2.4 million in tax breaks. The company moved to 120 Broadway instead. The tax incentives included $500,000 that was dependent on the company's hiring additional workers in New York.
Exco Noonan, a division of Exco P.L.C., said on Aug. 14 that it would move its 219 workers to the World Trade Center in return for $6.3 million in incentives from city and state agencies. Exco Noonan, which was represented by Jones Lang Wootton, assigned its lease at 10 Exchange Place to Troster Singer.
DAVID M. HALBFINGER
LARGEST WTC LEASE OF 1997 ANNOUNCED BY WTC NEW YORK 

http://world.wtca.org/awtc/news9.html

NEW YORK -- The Port Authority of New York and New Jersey, owners and operators of  WTC New York, announced recently that it had signed the largest WTC lease of 1997 with Aon Risk Services, Inc. of New York, a global brokerage and consulting organization, to take seven full floors of Two World Trade Center.  The transaction is the second largest lease to be executed in Downtown Manhattan in 1997. 

Port Authority Executive Director Robert E. Boyle said, "The World Trade Center has enjoyed a surge in leasing activity this year, executing leases for nearly 1.5 million square feet of space in 1997.  Aon's lease follows major lease signings with Bankers Trust, Dow Jones, Thacher, Proffitt & Woods and Exco Noonan.  Only one large contiguous block of space remains in the entire complex. 

The WTC houses a full spectrum of business and government agencies involved in international commerce, with 435 tenants from 26 countries. 

Regus Opens New York's World Trade Center Space 45 Percent Leased: Regus Adds 50,000 Square Feet to Network of 400 Centres in 50 Countries,

June 13, 2001, Business Wire, "Regus Opens New York's World Trade Center Space 45 Percent Leased: Regus Adds 50,000 Square Feet to Network of 400 Centres in 50 Countries,"

Business Editors

PURCHASE, N.Y.--(BUSINESS WIRE)--June 13, 2001

Regus Business Centres (Nasdaq: REGS), the global leader in supplying outsourced officing solutions, launches its new Two World Trade Center location today with 45 percent of its space under contract. 

"Interest in this space is very robust," said Jim Howland, CEO Regus Americas. "Everything about this location is unique, especially our lease terms and the ease of entry we provide into this and other world markets. Unlike a conventional lease or sublease, Regus allows companies to determine the exact amount of space they need, only for the time they need it. The strength of this opening tells us we are providing the market with a product it wants."

Regus presence in the World Trade Center affords companies needing individual or multiple offices, whether Fortune 500 corporations or consultancies, the opportunity to locate at one of the world's most prestigious business addresses. According to Bob Gaudreau, EVP Sales and Corporate Development, "the World Trade Center management leases in half-floor minimums of 25,000 square feet. The Regus opening affords companies needing less square footage access to this prominent location below what it would cost to operate in a much less desirable building." 

Cost comparisons provided by Regus illustrate the cost benefit to companies of varying sizes. For example, over the course of a 36 month lease Regus can save a company employing 10 people in 2,500 square feet approximately $240,000.

Regus' New York portfolio includes two business centres at 245 Park Avenue. That property is 85 percent leased. 

Located in 50 countries with nearly 400 business centres, Regus is the world leader in supplying outsourced offficing solutions. With 70,000 workstations, Regus' global breadth allows clients to match their workforce to exactly the workspace they need, when and where they need it, for as long as they need it. This approach empowers companies to remain agile in a highly unpredictable business climate. Regus' full menu of business support services includes video-conferencing, desktop publishing, administrative support and concierge services.

"Insurer consolidates 4 Manhattan locales. (Rollins Hudig Hall Group Inc. subleases commercial space at Two World Trade Center, New York, New York)"

September 29, 1993, Real Estate Weekly, "Insurer consolidates 4 Manhattan locales. (Rollins Hudig Hall Group Inc. subleases commercial space at Two World Trade Center, New York, New York)"

(Lease after 1993 bombing. 650 people into 172,000 square feet, or 264 s.f. per person. Should have still been at WTC on 9/11, according to the terms of the sublease.)

The international insurance firm Rollins Hudig Hall Inc. has subleased 172,000 square feet of space at Two World Trade Center. 

The commitment is one of the year's largest Downtown, and represents a major consolidation for Rollins Hudig Hall, which had previously been housed in four Midtown and Downtown offices.
Rollins Hudig Hall, an international insurance brokerage and reinsurance company, is subletting its space at Two World Trade Center from Smith Barney/Shearson, and will occupy all of floors 102, 103 and 105 as well as part of 104. The sublease has a term of eight years, seven months.
 
Rollins Hudig Hall was represented in the Two World Trade transaction by ESG's Michael Geoghegan, consulting director, Carol Nelson, executive vice president, Bruce E. Surry, managing director, and Mary Ann Tighe, executive managing director.

The consolidation is prompted by the combining of the operations of Frank B. Hall Co. and Rollins Burdick Hunter. The company is currently occupying space at 605 Third Avenue, 261 Madison Avenue, 88 Pine Street and One Liberty Plaza. The consolidation at Two World Trade Center will involve some 650 employees.

Separately, ESG has negotiated a sublease of Rollins Hudig Hall's former space at 605 Third Avenue. In an expansion move, Neuberger & Berman, a current tenant in the building, will sublease 58,000 square feet for a term seven years, coupled with a long-term extension.

The ESG team that negotiated the 605 Third Avenue sublease, on behalf of Rollins Hudig Hall, comprised David Berkey, Richard Karson, managing director, Carol Nelson, executive vice president, and Mary Ann Tighe, executive managing director.

"Financial Software Maker Pays '97 Price for Trade Center Space,"

March 10, 1999, New York Times, "Financial Software Maker Pays '97 Price for Trade Center Space," by John Holusha,

Eighteen years ago, Rob Patterson founded his company, Baseline Financial Services, in the basement of his home in Madison, N.J.
His space needs have grown considerably since then. He recently signed a 15-year lease for 60,000 square feet on the 77th and 78th floors of Two World Trade Center.
Although rental rates for Class A space in downtown Manhattan have surged in recent quarters as vacancy rates have declined, Mr. Patterson was able to lock in a lower rate by assuming the lease of another company that was negotiated two years ago.
''In late 1997, the market for Class A space downtown was in the low to mid 20's,'' said David Rosenbloom, a director of Cushman & Wakefield, the real estate services company, referring to the annual cost in dollars of a square foot of space. ''Today that same space is in the high 30's to low 40's.''
But a previous tenant in the building, Georgeson & Company, an adviser to companies on proxy issues, had sold some of its operations and is negotiating to relocate to smaller space in the Trade Center. The larger space, which was partly built but not ready to move into, was available at 1997 rates.
''This lease transaction allows Baseline to operate in a Class A property at below market rates,'' because of the existing lease, Mr. Rosenbloom said. Class A properties are in the newest and most technically advanced buildings.
With an assumed lease, the tenant pays the rent directly to the landlord, rather than to the previous tenant, as would be the case with a sublease. Nevertheless, the previous tenant remains on the lease and is ultimately responsible for the rent payments.
Trade Center managers had an incentive to allow Baseline to assume the previous lease because of the gains it had in the interior construction of the Georgeson space -- an investment it could have lost if a new tenant demanded a different layout, Mr. Rosenbloom said.
In addition to the favorable terms, Mr. Patterson said, he was attracted to the Trade Center towers because of their large, 45,000-square-foot floors. The company will have the entire 77th floor, with the rest on the 78th floor. The two floors are connected by an escalator.
Mr. Patterson said most of the company's 140 employees would be on the 77th floor, with some executive offices, meeting rooms and a reception area on the 78th.
Baseline is a software development company that produces products that help financial portfolio managers in making investment decisions. Its clients include more than 700 major banks and other financial institutions, 180 of which were added last year.
The company's revenues have grown 35 percent annually in the last five years, leading to the demand for space. Baseline is a subsidiary of the Primark Corporation, a publicly traded company, specializing in information technology.
Baseline's space requirements are driven by considerations similar to those of many other information technology and new media companies that have fueled the revival of commercial property in lower Manhattan.
''Software is produced by teams,'' Mr. Patterson said, ''so it is important that people can easily meet face to face.'' Putting all the people actively involved in developing the products on one floor is expected to increase this interaction.
The company hopes to move into the Trade Center in August, leaving its current location at 61 Broadway, where it occupies 32,000 square feet. Staying at that location, where floors are 17,000 square feet, would have meant spreading the company over many floors, interfering with the needed teamwork.
As it was, the company was fortunate to stay put for as long as it did. When it first moved to 61 Broadway, it started with 2,700 square feet of space. ''We got lucky and some people moved out, so we are able to take their space,'' Mr. Patterson said.
Should the company continue to grow, it may be able to stay at the Trade Center for a while, as well. Mr. Rosenbloom said that the previous tenant had negotiated the right to occupy some expansion space, should it become vacant, and that that right was assumed by Baseline.
The company will be able to move more quickly than might otherwise be possible because much of the interior construction was under way.
''The 77th floor is about half finished, but the 78th floor is still raw space,'' Mr. Rosenbloom said. He said the layout of the 77th floor was largely acceptable to the new tenant and would proceed. He added that the materials purchased and the construction funds reserved for the 78th floor were included by the landlord as part of Baseline's assumption of the lease and that the company was hiring someone to design the upper-floor offices.
Mr. Patterson said although it might seem glamorous now to be the president of a company that was started in a basement, ''at the time it didn't seem very glamorous.''
''We started 18 years ago, and I guess we were a little ahead of the wave,'' he said. ''Baseline makes products for PC's,'' or personal computers, which did not come into widespread use until the mid-1980's. ''It took about eight years of trial and error to figure out what worked,'' he said.

"Trade Center Sweetens Deal to Keep Brokerage Firm,"

January 29, 1997, New York Times, "Trade Center Sweetens Deal to Keep Brokerage Firm," by Mervyn Rothstein,

After flirting with New Jersey, Cantor Fitzgerald, a major institutional-bond brokerage firm and provider of financial information services, has decided to remain at 1 World Trade Center and expand its space. The company has leased an additional 75,000 square feet, bringing its total in the building to 175,000 square feet. The deal involves New York City tax incentives, including sales tax relief, valued at about $2 million.

The company has renewed its lease for the 104th and 105th floors---the top office floors in the 110-story, 4.7 million-square-foot tower---and has added the 103d and part of the 101st floors. The 15-year lease in the building, which is owned by the Port Authority of New York and New Jersey, has an aggregate value of about $75 million.

Cantor Fitzgerald has 2,200 employees, about 1,000 of them at the Trade Center.

Scott Pudalov of the Insignia/Edward S. Gordon Company, who represented Cantor Fitzgerald with David Levinson, Michael Geoghegan and Janet Pierce, said Cantor Fitzgerald had considered moving to Jersey City, possibly to the Harborside Financial Center, a nearly 2 million-square-foot complex next to the Exchange Place PATH station. But Mr. Pudalov said the Port Authority had agreed to provide Cantor Fitzgerald with increased electrical and air-conditioning capacity and emergency backup power.

Cherrie Nanninga, the Port Authority's director of real estate, said many tenants at the Trade Center have requested such provisions.

Thursday, December 2, 2010

"The Bastards Finally Brought it Down"

September 13, 2001, CoStar Group, by Tim Trainor,

"The Bastards Finally Brought it Down"

Heat from fire, not structural damage from impact, called likely cause of tower collapses.

Clearly, the real estate angle in the story of the apparent terrorist attacks on New York City and the Pentagon in Arlington, VA, has no importance compared with the tragic loss of life and the terror instilled in those who experienced the horror firsthand, or watched dumbstruck as yesterday's events unfolded.

Other news organizations are far-better equipped and capable of covering the more important aspects of these events than we are.

But in keeping with our news purpose and the professional interest of our readers, we will focus on the implications for real estate/business owners affected by the destruction of more than one-tenth of the office space in Lower Manhattan.

Click here for information and data regarding the World Trade Center Complex.

Beyond their importance as an international icon of free enterprise and capitalism, the twin towers of the World Trade Center were an engineering marvel. Part of a seven-building complex designed by architect Minoru Yamasaki covering eight city blocks, more than half of the trade center, including the twin towers and the adjacent hotel, rested on an 800 x 400-ft foundation box, 65-ft-deep and with 3-ft-thick retaining walls.

But the real marvels were the twin towers. Framed in structural steel, the building exteriors created a rectangular tube surrounding a central steel core. The core carried gravity loads only, supporting the weight of the floors. The exterior tube provided all the lateral resistance, holding the whole structure upright. Horizontal steel trusses spanned 60 ft from the exterior wall to the core.

It will take weeks if not months before structural engineers fully assess the structural failure that led to the collapse of the twin towers that defined the Manhattan skyline for almost 30 years.

But given the catastrophic damage sustained after hijacked commercial jets crashed into each of the towers, and having watched their subsequent collapse, structural engineering experts speculated that the intense heat from burning aviation fuel, not the damage from the crashes themselves, eventually compromised the structural integrity of the 110-story towers beyond the breaking point.

"We were hopeful at first," Kevin Parfitt, an architectural engineer and instructor at Pennsylvania State University told The Washington Post. After all, the twin towers were among the strongest structures ever built, able to withstand earthquakes and hurricane-force winds. "But the longer the fire burned, the more we feared the outcome."

Experts speculated that the initial explosions likely blew away much of the fire insulation surrounding the towers' steel girders, exposing them to the jet fuel fires. Steel begins to weaken at 800°F. Fireproofed steel is designed to withstand 1,500° to 1,600° F, well above what would be found in a typical office fire. However, jet fuel burns at an exceedingly high temperature, more than 2,000° F.

The north tower, which had a large communications antenna on top, was hit by the first airplane at 8:45 a.m., just above the 70th floor. The south tower was hit at 9:03 a.m., but at a lower elevation.

Though hit second, the south tower collapsed first, at 10 a.m.; the north tower followed at 10:29 a.m. Later in the afternoon, the 47-story World Trade Center Building 7 also collapsed. Building 6, the U.S. Customs House, did not fall, but is likely damaged beyond repair.

Jon D. Magnusson, chairman and CEO of Seattle-based Skilling Ward Magnusson Barkshire, a successor firm to the structural engineer for the World Trade Center, told Engineering News-Record, an engineering and construction industry trade publication, "From what I observed on TV, it appeared that the floor diaphragm, necessary to brace the exterior columns, had lost connection to the exterior wall."

No longer able to support the weight of the floors above them, the exterior columns buckled outward, allowing the floors above to drop down onto floors below, overloading and failing each one as it went down in a progressive collapse, Magnusson said.

But Magnusson and other engineers said the amazing thing was that the towers remained standing so long after experiencing such a devastating blow, which they attributed as a testament to the design and the engineering skills of the designers. They also said there is no way to build a structure that could withstand the devastation created from the impact and fire of a fully fueled jetliner. Both the cost of construction and weight of the materials would be prohibitive.

"We can build them to withstand hurricanes, earthquakes, even electrical fires, but not something on the magnitude of this," said one architect.

After a terrorist bomb exploded in the World Trade Center's underground parking garage on Feb. 26, 1993, security measures were tightened at the 12-million-square-foot complex. The blast ripped out sections of three structural slabs in the basement levels between the north tower and the hotel, but fortunately did little damage to the north tower's structural tube.

The car bomb used in that attack compromised major utility lines in the basement and the central core wall, allowing soot and smoke to shoot up the building core, filling stairwells and elevator shafts. Six people died as a result of the explosion and evacuation.

A book documenting the first attack, Two Seconds Under the World, describes an exchange between an FBI agent and the man charged and eventually convicted of masterminding the bombing, a Pakistani national named Ramzi Yousef.

As the agents transported Yousef by helicopter to a federal courthouse in Manhattan for his trial, one of the agents escorting Yousef pointed to the gleaming towers and commented how his plan had failed. "See, you didn't get them after all," the book quotes the agent saying to Yousef. "Not yet," the terrorist responded quietly.

Recalling the incident for a reporter this week, one architect observed, "It looks like the bastards finally brought it down."