Thor Equities

Thor Equities is a global leader in real estate development, leasing and management of commercial, residential, retail, hotel and mixed-use assets, with headquarters in New York City, London and Mexico City.^[2] Thor Equities owns property in the United States, Canada, Europe, Russia, India and Latin America, with portfolio transactions and a development pipeline in excess of $10 billion and totaling more than 20 million square feet. Thor’s portfolio of assets includes London’s historic Burlington Arcade; 65 Avenue Des Champs-Elysees and 51-53 Boulevard Haussmann in Paris; 777 Saint Catherine Street in Montreal; multiple properties on Masaryk Boulevard in Mexico City; Palmer House Hilton in Chicago; and 693 Fifth Avenue, home to Valentino’s flagship location.^[3][4][5] In New York City, Thor owns retail, office and residential properties on Fifth Avenue and Madison Avenue as well as in, SoHo, Flatiron, the Meatpacking District, and Brooklyn including Coney Island. Thor also has investments in major U.S. cities including San Francisco’s Union Square; South State Street in Chicago; Georgetown in Washington, D.C.; Robertson Boulevard in West Hollywood; Collins Avenue, Lincoln Road Wynwood and the Design District in Miami; and Kirby Collection, a new mixed-use tower Thor is developing in River Oaks, Houston.^[6] Thor offers investment vehicles for institutional investors and foundations seeking to invest in global property markets through its Thor Urban Property Funds.^[7] Thor Equities also has several subsidiary companies including retail advisory and tenant representation firm Thor Retail Advisors.^[8]

Background

Thor Equities was founded in 1986 by President & CEO Joseph J. Sitt. His first investment was a property sold at tax auction on East Tremont Avenue in the Bronx, a chronically under served retail area, where he built a one-story retail structure with money from "family, friends, roommates, parents of roommates."^[9] He proceeded to secure national retailers Rite Aid Pharmacy and Payless Shoes after convincing them of the value of this location.^[10]

Ashley Stewart

Ashley Stewart in Roxbury, Massachusetts

From Sitt’s early realization of the retail gap that left broad swathes of inner city consumers largely underserved by major retailers, he founded Ashley Stewart (a name inspired by Laura Ashley and Martha Stewart) in 1991. Ashley Stewart sold modern and fashionable clothing to women.^[9]

Each Ashley Stewart store hired from within the community, and the company was recognized by President Clinton for its contribution to the nation’s innovative Welfare to Work program.^[11] Ashley Stewart quickly grew to over 380 stores in more than 100 cities, which prompted many national retailers to follow suit and helped change the urban retail landscape.^[9][11] Sitt was also part owner of the Children’s Place kids clothing chain as well as Marianne Stores, a retail outlet specializing in clothing for Latina women.^[11]

As business boomed, Sitt sold his interest in 2000 to concentrate on urban real estate through his company Thor Equities.^[9]

In 2004, Sitt was profiled by Crains New York in its annual "40 Under 40" issue, which celebrates those individuals in New York City who have achieved success in business before turning 40.^[10]

Development Activities

Thor Equities is a global full service real estate development and investment company specializing in acquisitions, financial management, development, property management, and leasing. Thor specializes in value-added investments in high street retail, shopping centers, malls, hotels and mixed-use urban projects. Today, Thor’s portfolio transactions and development pipeline total over 20 million square feet and is valued at more than $10 billion.^[12]

Thor also created an investment platform to allow institutional investors to harness the growth trends seen in urban property markets worldwide. Thor Urban Property Funds investors include investment banks, pension funds, top-tier college endowments, and foundations. The funds’ size is in excess of one billion dollars.^[7]

In recent years, Thor has expanded its holdings internationally to include properties in urban cities like Mexico City, London, Paris, Montreal, Cannes, Milan and Madrid.^[13] In a 2012 cover story, the Commercial Observer dubbed Joseph Sitt the “International Man of Mystery” for his organization’s growing international focus, scope, and reach.^[14]

Notable Global Developments and Acquisitions

Thor acquired London’s iconic Burlington Arcade in 2010 for £104 million. The property, located in the highly trafficked West End shopping district, was built in 1819 and is London’s first covered shopping street and a fabled shopping destination.^[15] Thor’s London assets also include 145 Oxford Street, 105-109 Oxford Street, 1 Dover Street, and Bond Street House at 14 Clifford Street.

In 2012, Thor acquired a major retail property at 65 Boulevard de la Croisette in the heart of Cannes, France. Current tenants there include Bottega Veneta, Balenciaga, Brioni, Burberry, Yves Saint Laurent, Paule Ka, Jimmy Choo, and Emilio Pucci. Cannes is a well-established international tourist and festival destination for wealthy consumers.^[16][17]

In Paris, the company has acquired several properties including 51-53 Boulevard Haussmann, a 30,225-square-foot building; 65-67 Avenue des Champs Elysees; and 102 Avenue des Champs-Elysees.^[18]

In February 2015, Thor acquired a prime retail property at 777 Saint Catherine Street in Montreal, a historical building located in the heart of Montreal’s shopping corridor that is currently occupied by Banana Republic.

In 2015 and 2016, Thor expanded its European holdings with the acquisition of 9 Puerta del Sol and 11 Puerta del Sol in Madrid, and 26 Via della Spiga in Milan.^[19]

Thor also owns several luxury retail properties in Mexico City on Avenida Presidente Masaryk, which is known as Mexico City’s Fifth Avenue, and attracted such retailers as Gucci and Salvatore Ferragamo to these properties.^[20][21] In 2016, Thor’s hospitality division debuted the Thompson Playa del Carmen, a premier boutique hotel in Playa del Carmen, Mexico.^[22]

Manhattan

Thor is a major retail property owner on New York’s Fifth Avenue and Madison Avenue. Its properties include the former Takashimaya building at 693 Fifth Avenue, now leased to Valentino for its flagship store; 685 Fifth Avenue leased to Coach and Stuart Weitzman; the Charles Scribner’s Sons building at 597 Fifth Avenue; 562 Fifth Avenue; 530 Fifth Avenue; 520 Fifth Avenue; 171 Fifth Avenue; and 164 Fifth Avenue.^[20][23] Sitt has been seen as one of the market makers on Fifth Avenue, helping push retail growth further below the traditional southern border at 49th Street.^[24]

In 2012, Thor purchased 680 Madison Avenue’s luxury retail condominium space, signing Qatari clothier Qela to 6,230 square feet in 2014, and exclusive eyewear collection Morgenthal Frederics. In April 2015, Thor leased 7,000 square feet of prime retail space at 680 Madison to high-end fashion house Brioni for its new flagship store.

Thor has also made significant investments in the Meatpacking District, betting on the area to continue its climb as a premier retail destination in Manhattan, driven in part by the High Line and arrival of the new Whitney Museum. The company’s significant Meatpacking investments have included 837 Washington Street with Taconic Investment Partners, 428 West 14th Street, and 446 West 14th Street.^[25][26]Thor leased 837 Washington to Samsung in 2014, and subsequently sold the building for a record price for the neighborhood.^[27]

Thor is also heavily active in New York’s SoHo area and owns numerous properties in the district. In 2013, Sitt partnered with several investors to purchase 529 Broadway for $150 million.^[28] In March 2015, the company leased its entire 15,000-square-foot building at 155 Mercer Street in SoHo to Dolce & Gabbana for the brand’s flagship retail store.

Other areas of Manhattan where Thor owns properties include Tribeca, Madison Avenue, Chelsea, Bowery, Flatiron, the Upper East Side, and its headquarters near Bryant Park.^[20]

In 2014 and 2015, Thor purchased a significant number of residential buildings in Manhattan including 98 Morningside Avenue and 838 West End Avenue, as well as a portfolio of more than two dozen apartment buildings such as 250 West 19th Street. In 2015 and 2016, the company acquired additional residential properties at 526 West 111th Street, 17 West 125th Street and 556-566 West 126th Street in Manhattan.^[29]

Brooklyn

Thor was the first institutional investor to enter this market and now owns a large portfolio of Brooklyn properties located in Brooklyn Heights, Cobble Hill, Boerum Hill, Downtown Brooklyn, Williamsburg, Red Hook, and Coney Island. Holdings of note include a large tract of oceanfront property situated between Ikea and Fairway in Brooklyn’s Red Hook neighborhood, and a 200,000-square-foot BJ’s Wholesale Club on Shore Parkway that won the award for the top NYC brownfield development in 2016, as well as several prime retail properties on Atlantic Avenue in the trendy Cobble Hill and Boerum Hill neighborhoods.^[20][30]

Another development of note is Albee Square Mall in Downtown Brooklyn. After Thor purchased the mall in 2001, it made various facility improvements in an effort to attract new tenants to the long underperforming property.^[31] Later in 2005, Thor announced plans to build the first tower at the site also known as City Point.^[32] The building was to be the tallest tower in Brooklyn. After the city changed its zoning to permit development of the site, Thor sold the site and development plan for $125 million to a financial company that wanted to execute on his vision for the property. Sitt felt his company had created the vision and improved the area, and that it was time to execute a return on investment for his investors and move on.^[33]

Coney Island

Thor owns a significant portfolio of property in Coney Island. In 2005, the company bought a parcel of land west of the amusement district in Coney Island for $13 million, and sold it 14 months later for $90 million. Thor then reinvested in more land on Coney Island along Stillwell Avenue as well as some Boardwalk property including Astroland. In 2006, Thor announced plans for a $1.5 billion Las Vegas-style amusement park resort to contain a huge glass-enclosed water park, rides, stores, and condominiums or time-share hotels near the beach, which required several zoning changes, and soon City Hall and Thor became involved in lengthy negotiations. The city had a competing vision for Coney Island and attempted to buy Thor’s land, but Thor did not accept the city’s offer. The negotiations continued and Astroland ceased operations on September 7, 2008. Interim amusement rides and a flea market opened in the summer of 2009 and closed later that year.

On November 11, 2009, Sitt reached a deal with New York City to sell part of his 12.5 acres (51,000 m2) of land in Coney Island for $95.6 million so that the city and Thor could jointly redevelop Coney Island into a world-class entertainment destination. The deal capped off a lengthy three-year negotiation.

In May 2015, Thor Equities unveiled Coney Art Walls, a public art wall project curated by former director of the Museum of Contemporary Art (MOCA) Jeffrey Deitch and Thor CEO Joseph Sitt. Located at 3050 Stillwell Avenue, the project featured more than 30 world renowned artists including legends such as Lady Pink, Crash, Daze, Futura and Kenny Scharf, as well as leading artists of the next generation including Shepard Fairey, Maya Hayuk and How & Nosm. Coney Art Walls returned in 2016 with 21 new murals.^[34]

Chicago

Thor bought the historic Palmer House Hilton Hotel in Chicago’s Loop area in 2005 for $230 million and proceeded to undertake a $150 million renovation.^[11][35] Thor won numerous awards including the Landmarks Real Estate and Building Industries Council Award for its “ongoing commitment to preservation and outstanding renovation,” The Chicago Commercial Real Estate Award for Redevelopment of the Year, The Construction Industry Service Corporation Award for Rehabilitation Project of the Year, and The Friends of Downtown Chicago Award for Best Renovation Project.^[36] The Lockwood Restaurant at the Palmer House was also named a James Beard Award winner. In October 2012, the company refinanced Palmer House Hilton in Chicago for $365 million.^[37]

Thor owns several retail properties on South State Street including 1-15 East Oak Street, home to the Chicago flagship of Barneys New York. South State Street is one of the main shopping streets located inside Chicago's Loop area, where vacancies were at a 10-year low in 2013.^[38] The area has seen a 114% population increase since 1999 and the Census bureau reported that the immediate two-mile area around Chicago’s City Hall (which includes the loop) has seen more retail growth in both absolute and percentage terms than any other American city including New York.^[39]

San Francisco

Thor owns the landmarked Phelan Building, a Victorian-style steel-framed structure reminiscent of New York’s Flatiron building, at 760 Market Street in San Francisco. Thor acquired the property in 2008 from the Westcore Group. The building is home to the San Francisco office of the Sears Corporation as well as Twitter co-founder Evan Williams' startup Obvious Corp.^[40][41] In a press release announcing the lease to Obvious, Joseph Sitt cited the growing trend of Silicon Valley tech companies moving to the surrounding area to set up shop.^[42]

Mexico

Joseph Sitt is chairman of Thor Urbana Capital. The company is based in Mexico City, and is currently developing more than 11 million square feet of property throughout Mexico and Central America. The venture’s first project was a full block high-end retail development along Playa del Carmen’s Quinta Avenida (Spanish for Fifth Avenue). Target markets include Metropolitan Mexico City, Guadalajara, Querétaro, Mérida, Puebla, Playa del Carmen, Los Cabos and Toluca.^[43][44]In 2016, Thor’s hospitality division debuted the Thompson Playa del Carmen, a premier boutique hotel. The company is also developing the Ritz-Carlton, Mexico City opening in the city’s financial district, a Montage hotel in Los Cabos, and a brand hotel in Toluca.

Subsidiary Companies

Thor Retail Advisors

Thor Retail Advisors, led by CEO Joseph Sitt, is an affiliate of Thor Equities that provides tenant representation, brokerage and advisory services to retailers seeking to expand their businesses in high street areas around the world. The company has offices in New York, London, Paris, and Mexico City.^[45][46] Coming from a retail background and citing his experience as a landlord and developer, Sitt believes his firm has a unique perspective on what retailers seek and how to navigate the real estate landscape for his clients. Thor Retail Advisors plans to further increase its international presence into non-traditional high growth markets that investors often overlook, such as parts of Africa and Latin America where population numbers are predicted to rise substantially in the coming years.^[14]

Non profit activities and honors

Global Gateway Alliance

Joseph Sitt is the chairman and founder of the not-for-profit Global Gateway Alliance (GGA), which was created in 2012 to address the infrastructure challenges that New York metropolitan area airports face. Sitt made an initial $1 million donation to start the group, which seeks to make New York’s airports among the best in the world. The group cites the increasing global competition between the world’s cities to win tourist and business travel, and the substantial economic activity and prestige that New York City stands to lose from not maintaining a world class airport system that it had many years ago.^[47][48] Board members include Kathy Wylde, CEO of the Partnership for New York City; Jared Kushner, President of the Kushner Companies; Mitchell Moss, Henry Hart Rice Professor of Urban Policy & Planning and New York University Wagner School of Public Service Vice President; Stuart Appelbaum, President of the Retail, Wholesale and Department Store Union; and David Hopkins, Director of Aviation for the New York City Economic Development Corporation.^[49]

The group’s efforts have been paying off, with Governor Cuomo focusing on its recommended modernization projects, and vital improvements in the passenger experience underway. In March 2015, Sitt was honored with the City & State Award for Outstanding Leadership” for his promotion and advocacy for the improvement of New York’s airports.

On July 27, 2015, Vice President Joseph Biden and Gov. Andrew Cuomo announced plans to modernize JFK and LaGuardia airports, which included many of the features Sitt and GGA long called for, including new terminals, greater passenger amenities, and increased transportation access. ^{[50][51][52][53]} Accordingly, GGA Chairman Joseph Sitt stated this was “an important step in bringing New York’s airports into the 21st century, and a win for the more than 117 million annual passengers that use our airports and for a regional economy that relies on the airports for more than $50 billion in activity.”^[54]

Additional non profit activities and honors

Joseph Sitt is an active board member of the Bedford Stuyvesant Restoration Corporation, one of the most respected community development organizations in the United States. He was instrumental in helping restore Restoration Plaza, the neighborhood’s Town Square and the BSRC’s main asset, and bringing to the area more retail options including its first family sit-down restaurant and supermarket.^[55][56] In 2007, Harvard professor Michael Porter and the Initiative for a Competitive Inner City (ICIC) honored him for his commitment to fostering healthy competitive business conditions and new opportunities in inner city neighborhoods.^[57]

Sitt is a managing director of Venetian Heritage, a not-for-profit organization that works to restore the Jewish museum and ancient synagogues of the Ghetto of Venice, and is Chairman of the Sephardic Heritage Museum.^[58]

Sitt is also a frequent speaker and lecturer at various universities including Columbia University, New York University, Baruch, and Notre Dame. He serves on the board of the Real Estate Roundtable in Washington D.C., the Department of Real Estate at Baruch College, and is a member of the Partnership for New York City.^[59]

Sitt has served on the boards of the Downtown Brooklyn Council economic development advocacy group, REBNY’s Board of Governors, and as co-chairman of the Brooklyn Fulton Street Business Improvement District.

He has spent much of his career in youth development and education, serving on the Boards of Brooklyn’s TAB High School and Flatbush High School, leading a teen program and acting as an ongoing mentor and guidance counselor to Brooklyn youth.

Mr. Sitt was awarded the 2014 Ernst and Young Entrepreneur of the Year Award, and has been named by New York Observer in its annual list as one of the Most Powerful People in New York Real Estate.

References

External links

• Official website
• Fred A. Bernstein, "A Hotel Looks Back to Its 1920s Glamour", New York Times, October 25, 2008