Grubb & Ellis awarded 7 consulting jobs.
"The soft national economy and '9/11' residue unique to New York City have caused a divergent trend: rental rates for residences and offices have declined, while ownership values for condominiums and cooperative apartments, office buildings and land have generally risen," said Bob VonAncken, a New York Office-based Grubb & Ellis executive managing director of consulting services. The client programs noted are:
* For the Economic Development Corporation of the City of New York, Grubb & Ellis is assisting in the contractual renegotiation of land values, and resultant rents, for the ten-building, six million-SF MetroTech Center in Brooklyn. Forest City Ratner Corp. owns the buildings but leases the land from the City. Grubb & Ellis findings are expected during December 2002.
* For The Carlyle New York, a notable hotel at 76th Street and Madison Avenue, Grubb & Ellis is helping to determine the fair market rental value of all 13 of its retail stores. The findings were presented in September 2002.
* For Levi Strauss & Company, Grubb & Ellis is assisting in the rent arbitration for its 6,000-SF store at 750 Lexington Ave., opposite Bloomingdale's. Grubb & Ellis findings are expected in December 2002.
Grubb & Ellis has handled many land-value determinations where the land is rented on a long-term net lease and the ground rent is to be re-determined based on the land value. In such situations, Grubb & Ellis has represented both property and building owners as arbitrator and expert witness. Current assignments include:
* 650 Fifth Ave., a 400,000-SF, 36-story office building, where Grubb & Ellis represents the building owner and findings are expected during October 2002.
* 600 Fifth Ave., a 450,000-SF, 29-story office building where Grubb & Ellis represents the landowner and findings were provided this past spring.
* 853 Seventh Ave., a 17,500-SF parcel occupied by a 12-story apartment building, where Grubb & Ellis represents the landowner and findings are expected this December.
* For the New York Palace Hotel, at Madison Avenue and 50th Street, Grubb & Ellis assisted in the rental re-determination based upon the value of the land beneath the hotel. Findings were presented in September. "These hearings can become quite complex," said Grubb & Ellis' VonAncken. "During our work for 650 Fifth Avenue, for example, we were presented with a technical issue involving the transfer of development rights across zoning boundaries. We discovered that the City's Building Department had issued a letter ruling covering this issue to the favor of our client, and then persevered through litigation that awarded increased value to our client," he said.