Following its acquisition of Chewy.com in 2017 for $3.35 Billion, Petsmart hired us to handle the disposition of its media office at One Grand Central Place since it planned to consolidate to Chewy.com’s facility in Florida.
We listed the space to market as a sublease and generated tremendous interest within the first two weeks, including multiple tours and two offers.
Ultimately the goal was to absolve Petsmart of its entire liability, so we reached out to Empire State Realty Trust to get permission to market the space on a direct basis, with the purpose of replacing Petsmart with a new tenant.
After an intense marketing period and negotiation we were able to secure a replacement tenant owned by Berkshire Hathaway (an entity even stronger than Petsmart) and negotiated a meager penalty of 10% of the remaining $1.3 million liability as a termination fee.
Needless to say, Petsmart was extremely happy with the results that we were able to achieve as it exceeded their expectations.
“Your knowledge of/expertise in the NYC real estate market and understanding of our goals were the reasons that we chose Norman Bobrow & Co. The team’s approach to real state services was a refreshing approach and very appreciated...You will be our first call when anything else arises.”
Senior Real Estate Manager, PetSmart