The Palomar Transient Factory (PTF) is systematically charting the optical transient and variable sky. A primary science driver of PTF is building a complete inventory of transients in the local universe (distance less than 200 Mpc). Here, we report the discovery of PTF 10fqs, a transient in the luminosity 'gap' between novae and supernovae. Located on a spiral arm of Messier 99, PTF 10fqs has a peak luminosity of Mr = --12.3, red color (g -- r = 1.0), and is slowly evolving (decayed by 1 mag in 68 days). It has a spectrum dominated by intermediate-width H Delta *a (930 km s--1) and narrow calcium emission lines. The explosion signature (the light curve and spectra) is overall similar to that of M85 OT2006-1, SN 2008S, and NGC 300 OT. The origin of these events is shrouded in mystery and controversy (and in some cases, in dust). PTF 10fqs shows some evidence of a broad feature (around 8600 A) that may suggest very large velocities (10,000 km s--1) in this explosion. Ongoing surveys can be expected to find a few such events per year. Sensitive spectroscopy, infrared monitoring, and statistics (e.g., disk versus bulge) will eventually make it possible for astronomers to unravel the nature of these mysterious explosions.