Outback Steakhouse making NYC debut

Real Estate Weekly, Jan 9, 2002

In a strong vote of confidence for New York City, Outback Steakhouse, which operates over 700 restaurants nationwide, will soon debut in Manhattan. The 8,000-SF eatery, to be located on the ground floor of 919 Third Ave. between 55th and 56th Streets, is scheduled to open in spring 2002.

Insignia/ESG's Retail Group represented both landlord and tenant. The retail team consisting of David Green, Bradley Mendelson, Gary Trock, and Jordan Roth acted for landlord Reckson & Associates in negotiating the 20-year lease, estimated to be worth an aggregate of $6 million. Insignia/ESG's Eric Gelber represented Outback Steakhouse.

"Outback has been focusing their attention on Manhattan for quite some time," said Gelber. "And their patience has paid off, as 919 Third is ideally situated within a densely populated office and residential market". "While Manhattan has been a primary target," added Gelber, "Forrest and Kimberly Smith, the New York City franchisees for Outback Steakhouse, have opened three other locations in Queens and Brooklyn that are among the top performers in the entire Outback chain."

"A Class-A midtown property with an outstanding roster of credit worthy tenants, 919 Third Ave. enjoys tremendous foot traffic," said Green. "In fact, this restaurant will be one of the few in the entire Outback chain that's open for lunch."

"We are very excited to finally have an Outback Steakhouse in Manhattan," said Smith. "We've had our eye on this location for three years and it's a wonderful coup to have achieved our objective and to have a presence in the world's most sought-after restaurant market."

According to Michael Berman of Reckson & Associates, "We are confident that the Outback Steakhouse will be tremendously popular among New York residents, business people and tourists alike. We welcome them as a retail tenant, and as a wonderful amenity to both the building and our office tenants. Most New Yorkers who have traveled within the country are familiar with Outback's reputation for excellent food at reasonable prices, so they are not entering Manhattan as complete unknowns, which is a distinct advantage."