Queens Atrium Corporate Ctr. closes near 700,000 square feet in leases

Real Estate Weekly, Feb 2, 2000

Insignia/ESG has announced the closing of nearly 700,000 square feet of leasing agreements at the Queens Atrium Corporate Center located at 30-20 Thomson and 30-30 Thomson in Long Island City, NY. The occupancy at the former IDCNY Center nears 100 percent, according to Insignia/ESG officials.

MCI Worldcom Network Services signed a 15-year lease for 260,000 square feet. MCI was attracted to the building for its infrastructure and the ownership's ability to quickly close the transaction. The deal was closed in 90 days. The building ownership was represented by Richard Karson, Martin Lomazow and Adam Foster of Insignia/ESG, and Kevin R. Wang of KRW Realty Advisors. On this transaction, tenant representation was provided by Jeffrey C. Heller and Thomas M. Murray of Cushman & Wakefield.

Through innovative repositioning of the property and tough negotiations, Insignia/ESG also helped to secure a 12-year lease renewal and expansion of the New York City School Construction Authority for a total of 245,000 square feet. The building ownership was represented by Karson, Lomazow and Foster of Insignia/ESG, and Kevin R. Wang of KRW Realty Advisors. Tenant representation was provided by Michael Cohen and Barry Rosner of GVA Williams and Martin Polevoy of Bachner Tally Polevoy, et. al.

In a third major 15-year leasing agreement, DeVry Institute of Technology, of Chicago, IL, expanded its lease by 59,000 square feet. The school, which opened its new business college in the Fall of 1998, now leases 160,000 square feet at the Atrium. Building ownership representation was provided by Karson, Lomazow and Foster of Insignia/ESG and tenant representation was provided by Richard Schlesinger of Schlesinger & Company, LLC.

There were also several smaller leases secured in the last several months, including M.R. Technologies with 12,400 square feet, bringing the total leasing activity to nearly 700,000 square feet.

About the Queens Atrium

The Queens Atrium is located at 30-20 Thomson and 30-30 Thomson in Long Island City, NY. The building, designed by architect Gwath, was built in 1914. It originally housed the Adams (Chicklets) chewing gum production factory.

In the mid-1980's, owners Siegal & Associates sold the properties to an investment group lead by Lazard Freres, which invested $150 million to convert the property into the International Design Center of New York (IDCNY).

Renowned architect I.M. Pei oversaw the building's conversion into an economical campus-style setting for the design showroom and ancillary business sector housed within the Upper East Side's 58th Street corridor. Through the late '80's and mid-90's, the plan failed and the buildings remained empty - languishing in bankruptcies and work-out attempts.

In December 1996, the property was purchased and renamed the Queens Atrium Corporate Center. Insignia/ESG was hired to help reposition the property. The repositioning team, made up of Executive Director Richard Karson, Senior Managing Director Martin Lomazow and Managing Director Adam Foster, and property manager Nikolla Pjetri, worked strategically over the next three years to reposition the property in the changing market.

"Everyone questioned our logic and senses for taking on a project in an unproven market that had become a white elephant and languished for much of the late '80's to mid-90's," said Adam Foster, Insignia/ESG's Managing Director.

In early 1997, the complex had a 50 percent vacancy rate and one major leasee the New York City School Construction Authority with 160,000 square feet - was set to expire. "We looked ahead of the curve and saw the New York market tightening. We also projected the need for big-block space with large floorplates and affordable rents within close proximity to Manhattan," Foster said.

The Queens Atrium features 59,000 square-foot floors, ample parking, high slab heights of 13.5 feet; heavy floorloads in excess of 150 pounds per foot; and abundant power.

"Most of all, the property offered the owner/broker team with the resources to make deals," Foster said.