11 West 42nd Street — Entire 14th Floor
One Bryant Park — Entire 50th Floor
510 Fifth Avenue — Purchase of Entire Building
417 West Broadway — Retail
Elie Tahari’s lease was expiring on Seventh Avenue and 36th Street. His space was depressing, dark, and obsolete. His needs were for a unique space that would attract new customers, as well as inspire him to create new products.
We secured for him a seven and a half year sublease on the Entire 48th floor of 1114 Avenue of the Americas which was formerly the executive offices of Peter Grace. The rent was $22.00 for half the term and $24.00 for the second half, where the sublessor was asking $35.00.
Elie Tahari’s sales went up 300% and secured him as one of the top designers in the world.
We later rented him eleven additional spaces totaling approximately 300,000 square feet, including the Entire 8th Floor of 1114 Ave of the Americas, Entire 50th Floor of One Bryant Park, Entire 4th & 5th Floors at 510 Fifth Avenue, Entire 2nd & 3rd Floors of 520 Fifth Avenue, Entire 2nd Floor at 501 Fifth Avenue, Entire 14th, 31st & 32nd Floor of 11 West 42nd Street and a 190,000 square foot warehouse in New Jersey which was later purchased by Elie Tahari.
Elie Tahari will tell you that a major portion of the success of his business came from the deals which were negotiated by Norman Bobrow & Co., Inc.
In 2007 Elie Tahari rented the Entire 50th Floor of the soon-to-be-completed One Bryant Park for a total of 30,000 square feet. While the economy was thriving in 2008, Elie Tahari felt that the property would be too risky to carry despite paying $75.00 below market rental. Due to Bank of America’s rapid growth in the building and the increasing market, we were able to negotiate a cancelation of this obligation for a penalty of only one month of rent. All this occurred six months before the market collapse in September of 2008.
In 2010, we negotiated the sale of Elie Tahari’s property 510 5th Avenue, for one of the highest prices paid per foot of any office building and four times the amount he paid for the property in 2001. Simultaneously, we leased back three floors for his continuous use for 15 year at $10.00 per square foot below market.
In 2004, Giorgio Armani who occupied the Entire 14th at 11 West 42nd Street was paying $56.00 per square foot which was increasing to $62.00 per square foot. Armani sublet their space to Elie Tahari for seven years at an incredibly low $29.00 per square foot with no increases. The space was truly a diamond in the rough as it had high-end features such as custom marble, glass and sheetrock throughout the space which was valued at $6,000,000. In January 2011, one year before lease expiration, we renegotiated his 38,000 square foot lease for a new fifteen year term at $20.00 below market. This included a $3,000,000 concession package (which could all be converted to free rent) even though the space was in mint condition.