Report: Alexander's deal done

Real Estate Weekly, May 2, 2001

Financial news service Bloomberg, LLP was expected to agree Friday to build a 54- story tower on the former site of the Alexander's department store at Lexington Avenue and 59th Street, according to published reports.

The deal has been on-again-off-again with Bloomberg wrestling with Vornado Realty Trust, the owner of the site, over just about every detail. Several times, talks broke down completely. The announcement, expected to come after REW's deadline, would end nearly three years of heated negotiations.

Much has changed in that period. For one, Bloomberg has exploded in size, making the company's founder, Michael Bloomberg, not only even wealthier than he was but a celebrity in his own right, which may or may not lead to a mayoral run this fall. But the owner of the site, Vornado, has grown in stature in the industry as well, submitting the high bid- but one which was ultimately rejected- for the World Trade Center net lease.

According to reports, Bloomberg would move about 4,000 employees to the tower, scheduled to open in 2004, and pay in the low $70s in rent. They would occupy about 700,000 of the 900,000 SF of space in the tower, which would also include a retail component. H&M, the European clothing store, has al ready signed for 40,000 SF of ground floor retail space at a reported $150 per SF.