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Centerline Tries To Wriggle Out of Mega-Lease at 1095 Sixth

The numbing onslaught of bad real estate news shows no sign of abating.

Real Estate Weekly is reporting that Centerline cen·ter·line  
n.
1. A line that bisects something into equal parts.

2. A painted line running along the center of a road or highway that divides it into two sections for traffic moving in opposite directions, or, in the case of
 -- the real estate investment firm headed by Related Companies' Stephen Ross that the Wall Street Journal recently reported was in danger of defaulting -- is negotiating with Blackstone Group to wriggle out of its 100,000 square foot lease at 1095 Avenue of the Americas.

In 2007, Centerline clinched a deal for the third, fourth and fifth floors, totalling 100,000 square feet, at the hefty price of $125 a square foot (the price ultimately rose to $140 a square foot). The big numers were ostensibly justified by Blackstone's aggressive repositioning of the building, which includes a gut renovation and a brand new curtain wall.

But then the credit crisis hit, Centerline got slammed, and the deal began to look less advantageous.

Centerline wasn't the only firm to have second thoughts, according to REW n. 1. A row. :

...About six months before Centerline signed its deal at the end of 2007, the real estate financing REIT REIT

See: Real Estate Investment Trust


REIT

See real estate investment trust (REIT).
 iStar Financial took a little over 100,000 square feet, the entire 35th, 36th, and 37th floors for rents that begin at $132 per square foot and climb incrementally to $148 per square foot over the life of the 15-year deal. Late last year iStar too had buyer’s remorse after a rough earnings period in the fourth quarter and decided to sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner.  the entire block of space. Almost a year later, the company is said to be increasingly eager to find a taker tak·er  
n.
One that takes or takes up something, such as a wager or purchase: There were no takers on the bets.


taker
Noun
 for the space and brokers say that it is offering to sweeten sweet·en  
v. sweet·ened, sweet·en·ing, sweet·ens

v.tr.
1. To make sweet or sweeter by adding sugar, honey, saccharin, or another sweet substance.

2. To make more pleasant or agreeable.
 the deal by building out offices for a user.

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Article Details
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Author:Dana Rubinstein
Publication:The New York Observer
Date:Oct 24, 2008
Words:276
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