Faith Hope Consolo, vice chairman, and Joseph A. Aquino, managing director, of Garrick-Aug say they did the deal. Consolo calls the transaction "the most unique use in Times Square because it's not just another media company or themed restaurant. Who would ever think of a 100,000-sf toy store in Times Square?"

Consolo goes further to say that the deal "changes the complexion of the whole area and makes it more about family." Seems pretty clean-cut with a happy ending and everything, but nothing is what it seems.

C. Bradley Mendelson, executive managing director; David Green, executive director; and David LaPierre, director, of Insignia/ESG, inked the deal, explaining that their names appear on the contract. So, according to public record Insignia is the broker, but Garrick-Aug is not giving up without a fight, and Consolo wants her commission. Litigation between Garrick-Aug and building owner Charles Moss has been ongoing since the deal was closed this past summer. Insignia is not involved in the suit. Representatives from building ownership would not comment on the fight.

According to representatives from both brokerage firms, the Insignia team had the exclusive on the building for three and a half years, but after several failed deals, they lost their claim. "Building management wanted to see if they could do better and got some new blood involved by hiring another broker," recounts Mendelson.

At this point Consolo and Aquino came in to handle the retail leasing, but Insignia didn't give up on the building. "In the interim we didn't abandon the project," says Green. "We decided that we had a better shot at closing a deal because of our history with the location."

Exactly who brought Toys to the table, and how much of the deal was done before Insignia got involved again is unclear, pending the outcome of the on-going litigation. But what is clear is that Toys was, at the very least, in talks with Consolo.

"Insignia found out that Toys 'R' Us had been looking at this building unbeknownst to us," reports Mendelson. "Once we found out that they were looking at the building, it became apparent that this was a building that they wanted to become involved with."

Given that Insignia admits Toys was looking at the building, there is the inclination that Toys was talking with Consolo to some degree. On top of this statement, Insignia tacks on that they were able to finish the deal in 90 days despite several obstacles that had to be overcome before Toys would ink the deal.

Problems like getting zoning for Toys' docking privileges, getting permits to change the building use from theater to retail and moving the Jockey and ABC signs to get Toys the frontage they were seeking were all resolved in a mere 90 days. David Green of Insignia says that the company's history with the building and the caliber of the people they put together to address these issues facilitated the speed of the transaction.

In the end, after all the speculation is laid aside and the facts come out, the courts will decide each party's level of involvement. Until that point, the only known fact is that Toys is on tap to open its new flagship store by the fall of next year.

--Anthony Garritano is assistant editor of Real Estate New York and Real Estate New Jersey.

Instant Insights /

Times Square Tiff: Litigation Clouds Credit, Compensation for Toys R Us Deal

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