Ownership buys back 295,000-square-foot J.Crew lease at 770 Broadway; J.Crew subleases 325,000 square feet of Bank of New York space at 225 Liberty Street
JLL has completed a complex series of transactions that enabled J.Crew Group Inc. to relocate to 325,000 square feet of Bank of New York Mellon Corp. sublease space at 225 Liberty Street while also allowing a current tenant to expand into 295,000 square feet of space at 770 Broadway that was previously occupied by J.Crew.
As part of the interdependent transactions, building ownership bought back J.Crew’s lease of 295,000 square feet of space on the 10th through 13th floors of 770 Broadway, making way for an existing tenant to expand within the building. At the same time, J.Crew entered into a 16-year sublease for 325,000 square feet of space with Bank of New York at 225 Liberty Street in Brookfield Place.
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.”
JLL is a leader in the New York tri-state commercial real estate market, with more than 2,600 of the most recognized industry experts offering brokerage, capital markets, property/facilities management, consulting, and project and development services. In 2017, the New York tri-state team completed approximately 40.9 million square feet of lease transactions; arranged investment sales, notes, debt and equity transactions valued at more than $1.6 billion; managed projects valued at $7.9 billion; and oversaw a property management, facilities management and agency leasing portfolio exceeding 147.8 million square feet.
About J.Crew Group Inc.
J.Crew Group Inc. is an internationally recognized omni-channel retailer of women's, men's and children's apparel, shoes and accessories. As of March 27, 2018, the Company operates 231 J.Crew retail stores, 121 Madewell stores, jcrew.com, jcrewfactory.com, madewell.com, and 175 factory stores (including 42 J.Crew Mercantile stores). Certain product, press release and SEC filing information concerning the Company are available at the Company's website www.jcrew.com.
Bank of New York Mellon Corp.
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment management and investment services in 35 countries. As of March 31, 2018, BNY Mellon had $33.5 trillion in assets under custody and/or administration, and $1.9 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. Our vision is to reimagine the world of real estate, creating rewarding opportunities and amazing spaces where people can achieve their ambitions. In doing so, we will build a better tomorrow for our clients, our people and our communities. JLL is a Fortune 500 company with nearly 300 corporate offices, operations in over 80 countries and a global workforce of 83,500 as of March 31, 2018. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit ir.jll.com.
