Is the Cloud Club a White Elephant For Daimler-Chrysler?Last fall, when Daimler Chrysler leased out the former Cloud Club The Cloud Club occupied the 66th, 67th and 68th floors of the Chrysler Building in New York City. It opened in July 1930 with a membership of 300, including Edward F. Hutton, Condé Nast and the boxer Gene Tunney. -- floors 66 through 68 of the Chrysler Building Chrysler Building, in midtown Manhattan, New York City, at Lexington Ave. between 42d and 43d St. The ultimate art deco-style skyscraper, it was commissioned by Walter P. Chrysler, designed by William Van Alen, and built in 1926–30. -- they reportedly paid $100 a SF for space where Walter Chrysler once held court. But the auto maker's plan to establish a virtual headquarters here subsequently fell through, so within the last few months, the Equis Corporation, which manages Daimler Chrysler's worldwide real estate, has been seeking to sublet sub·let tr.v. sub·let, sub·let·ting, sub·lets 1. To rent (property one holds by lease) to another. 2. To subcontract (work). n. the space. A spokeswoman from Daimler Chrysler had no comment on the 17-year lease. Still, one can assume that the space -- all 18,392 SF -- is hemorrhaging money every day it remains vacant. And in the opinion of several brokers it will be difficult for Daimler Chrysler to find a tenant willing to pay such a steep rent in this market. One broker said in confidence that the best they could do is $75 a SF -- and the powers at Tishman Speyer, which owns the building, know it, said the broker. Daimler Chrysler's urgency to fill the space may also be responsible for a curious marketing ploy -- the procuring broker wins a two-year lease to a Mercedes Benz 320 CLK CLK Clock CLK Clerk CLK CDC2-Like Kinase CLK Corel RAVE (file extension) CLK Chep Lap Kok (Hong Kong airport) CLK Ceska Lekarska Komora (Chech) convertible. The space is being pitched by Equis as "the most spectacular space in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ," a claim that isn't far from the truth according to brokers who have seen it. Still, Fernando Murillo, a broker from Equis who is apparently handling this space, chose not to comment on this "spectacular" opportunity. One broker credited Tishman Speyer for negotiating the $100 a SF lease last fall. The broker called that price "still very high" considering the inflated 2000 market. The three floors constitute 18,393 SF, boast 360-degree panoramic views of the city and can be subleased through 2016. The three floors must be leased out in toto in toto (in toe-toe) adj. Latin for "completely" or "in total," referring to the entire thing, as in "the goods were destroyed in toto," or "the case was dismissed in toto." IN TOTO. In the whole; wholly; completely; as, the award is void in toto. . "It's great space but I don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. who would go into it. Maybe a super high-end restaurant? Even so, they'd have to make a fortune to afford it at $100 a SF," said the broker. The broker did refer to the space, which he has visited on several occasions, as "gorgeous." But he dismissed the likelihood of finding the deep-pocketed tenant willing to pay three digits for it. The broker even wondered around why, during the dot-com heyday of recent years, a bold dot-corn firm hadn't rented the space, thereby making the ultimate statement by leasing out such a high-profile office. "This space is geared towards someone who wants to make a statement. For the right tenant, Tishman Speyer [the landlord] could reach a deal under $100 a SF," said the broker. Greg Conen, Tishman Speyer's leasing agent for the building, chose not to comment on the space. As for a restaurateur res·tau·ra·teur also res·tau·ran·teur n. The manager or owner of a restaurant. [French, from restaurer, to restore; see restaurant. tenant, this broker said that would be a hard sell. "We've all been waiting to see this done for the past fifteen years. It is the most incredible three-floor package around. It is bewildering be·wil·der tr.v. be·wil·dered, be·wil·der·ing, be·wil·ders 1. To confuse or befuddle, especially with numerous conflicting situations, objects, or statements. See Synonyms at puzzle. 2. why it isn't occupied already," said the broker. A few floors below, the 7,154 SF 62nd floor is listed on Costar for $92 a SF. |
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