BY AL BARBARINO

An expansive development site at 39-53 Jay Street in Brooklyn has sold for $25 million and could bring in the big name retailers needed to anchor Vinegar Hill as the neighborhood undergoes a residential transformation.

The existing three-story manufacturing property, formerly used as a metal stamping and engraving facility, measures roughly 80,000 square feet, in addition to a partial basement and an annex building.

“This site has the largest footprint in Vinegar Hill, and possibly in all of the greater Downtown Brooklyn market,” said Massey Knakal Director of Sales Stephen Palmese, who exclusively handled the transaction. “The ability to offer big box retail could really change the landscape.”

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BY GUS DELAPORTE

Underground Visuals, a digital printing facility, has signed a ten-year signed on a 10,000-square-foot space at 263 West 38th Street, The Commercial Observer has learned. The asking price was $33 per square foot, according to Scott Galin, principal at Handler Real Estate, who represented the landlord. Peter Newman and Roseanne Lucarelli, also of Handler, represented the tenant.

The company currently occupies space at 307 West 38th Street and will relocate during the 3rd quarter of 2013, Mr. Galin said. The company’s search for new space lasted approximately 3 months, he added.

Underground Visuals is experiencing a period of growth and the new 10,000 square foot footprint will offer a better configuration than the company’s current office space, Mr. Galin noted.

263 West 38th Street is a 170,000-square-foot building with approximately 30 tenants, Mr. Galin said. Current tenants include the American Symphony Orchestra and non-profits such as the International Rescue Committee and Puppies Behind Bars. A number of professional firms are also headquartered in the building.

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BY BILLY GRAY

Random House continued its successful campaign to dispose of space in its namesake building at 1745 Broadway by leasing 30,000 square feet to the marketing firm Merkle.

David Falk and Jason Greenstein of Newmark Grubb Knight Frank represented the tenant. Richard Bernstein of Cassidy Turley represented the sublessor.

"We've subleased eight floors out of ten and disposed of about 218,000 square feet," Mr. Bernstein said of the campaign that "started in earnest about a year ago."

The Columbia, Maryland-based Merkle will occupy the entire 23rd floor of the 52-story, 674,000-square-foot building on Broadway at 56th Street, as reported by Crain's.

It has other offices in Boston; Denver; Hagerstown, Maryland; King of Prussia, Pennsylvania; Little Rock; Minneapolis; Montvale, New Jersey; Philadelphia; Pittsburgh; San Francisco; Seattle; and Shanghai. Asking rent was $50 per square foot through 2018.

Random House last year renewed through 2023 on floors two through 13 in the tower. Meanwhile, its subleasing campaign will continue.

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