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What’s the Deal: Developer to Revamp Three-Building Site

A roundup of real-estate news in the Greater New York region

Brooklyn: Developer to Revamp Three-Building Site

The Hudson Cos. has secured $26.9 million in financing for its office conversion of an industrial complex in Brooklyn’s East Williamsburg area.

Hudson, in partnership with principals at ABS Partners Real Estate LLC, obtained the loan from M&T Bank to finance the acquisition of the property at 314 Scholes St. and to pay for remodeling work to the complex’s three buildings, said Alison Novak, a Hudson principal.

The developers have hired S9 Architecture to design the 100,000-square-foot office and retail complex. Plans call for 82,000 square feet of office space and 8,000 square feet of retail space.

The conversion also will add a 3,000-square-foot rooftop restaurant and bar on the three-story building, create a courtyard and other outdoor space and put glass storefronts on the single-story buildings, Ms. Novak said.

One of the single-story buildings has high ceilings and large wooden beams that would work for a retailer, she said.

“I think that as a matter of the workforce evolving and changing people want to work in Brooklyn,” Ms. Novak said.

Keiko Morris

Manhattan: Tech Firm Lands Short-Term Deal

A technology company is moving a few neighborhoods north, from Hudson Square to the Murray Hill area, so it can bring its employees all under one roof and have room to grow. ShopKeep.com Inc., known as ShopKeep, has subleased 23,400 square feet on two floors at 450-460 Park Ave. South, a 12-story building owned and operated
by the Moinian Group.

The company’s 140 New York City employees now work out of about 17,000 square feet in two buildings, at 143 and 137 Varick St.

“The [new] office had the right vibe,” said Michael DeSimone, chief executive of ShopKeep, which provides iPad-based payment and operations management technology. “When you walked in, it felt like a tech company.”

Also important to ShopKeep was finding a built-out space equipped with the right technological requirements and a short-term lease of four or five years at the most, said David Hoffman Jr., a Cushman & Wakefield vice chairman who represented ShopKeep.

“It was pretty rare to find the space we were looking for and not pay a fortune,” said Mr. Hoffman, who noted the limited supply of built-out space in the 20,000-square-feet range that is available for short-term lease.

Bryan Boisi, a vice president at Cushman & Wakefield, also represented ShopKeep.

— Keiko Morris

Manhattan: U.S. Bank Subleases Space from MetLife

U.S. Bank is moving its Midtown headquarters about a block to an office building that will lose its most prominent tenant, MetLife, early next year.

The financial services company is subleasing 68,636 square feet at 3 Bryant Park from MetLife, according to Michael Burlant, executive director at Cushman & Wakefield, which represented U.S. Bank in the deal. The space is roughly the same that U.S. Bank occupies now at 461 Fifth Ave.

U.S. Bank’s sublease will run until spring 2029, which is when MetLife’s lease ends, Mr. Burlant said. He declined to disclose details of the rent. Met Life is moving to 200 Park Ave.

Though U.S. Bank’s old and new offices are similar in size, the larger floorplates at 3 Bryant Park allow for more efficient use of space, which reduces the square footage needed for each employee, Mr. Burlant said.

“This new office will provide our employees with an enhanced work environment that will support the continued growth of our business,” said Leslie Godridge, vice chair and co-head of wholesale banking for U.S. Bank.

—Emily Nonko

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