SL GREEN & RUDIN BUY BIG; THE DEAL SHEET
| NYC’s largest office landlord keeps getting bigger. This morning, SL Green and an unnamed institutional partner announced it entered into an agreement to buy the 37-story SF 10 E 53rd St (which you may know as Harper Collins’ HQ) from Cariplo Pension Fund for $253M. | ||
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| The 390k SF Plaza District building is 91% leased, but over the next three years, approximately 60% of the rentable SF expire, allowing SL Green to take advantage of below-market rents. Planned: a significant capital improvement program and repositioning. The seller was repped by Hines, an asset manager, and CBRE’s Darcy Stacom and Bill Shanahan. | ||
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| And Downtown, the Rudin family acquired the Rose family’s 50% interest in One Battery Park Plaza for an undisclosed price, taking full ownership of the 35-story, 885k SF office building. The families jointly built the tower in 1970, but the partnership goes back to 1962, when patriarchs Samuel Rudin and David Rose first began assembling the site for the building, also known as 24 State St. Other Downtown office buildings owned by the Rudin family include 80 Pine, 55 Broad, One Whitehall St, 110 Wall St, and 32 Avenue of the Americas. | ||
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| SALES TIAA-CREF purchased a retail condo (9,300 SF above grade and a 5,200 SF basement) at 2300 Broadway from the Bromley Cos for nearly $45M. The property is leased for the long-term to Chico’s and Charles Schwab. Studley’s Woody Heller, Will Silverman, and Eric Negrin repped the seller.*** Massey Knakal brokered four sales: two adjacent walk-up apartment buildings at 73 and 75 E 3rd St, totaling 49 units, for $15.5M cash (brokers: John Ciraulo and Craig Waggner; buyer rep: Flank Brokerage’s Tim Crowley); a six-story elevatored multifamily building at 105 Avenue P, Bensonhurst, Brooklyn for $5.5M cash (brokers:Jeffrey Shalom and Stephen Preuss); a 18k SF warehouse at 413-421 Troutman St, North Bushwick, Brooklyn for $2.4M cash (brokers:Michael Amirkhanian and Paul Smadbeck); and a mixed-use building at 51 Hester St for $2.2M cash (broker: Michael DeCheser). *** Ascot Properties purchased an 8,100 SF retail condo at 129 Greene St for $6.9M. The unit is currently occupied by a Cite Furniture store. Salmon & Marshall’s Kevin Salmon and Matthew Marshall repped both sides of the deal. NOTE SALES | ||
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| Ariel Property Advisors closed on a package of notes consisting of three South Bronx multifamily buildings totaling 134 units and one retail store: 1201 University Ave, Highbridge (pictured); 957 Kelly St, Morrisania; and 876-882 Bryant Ave, Hunts Point, which have a combined outstanding principal balance of $10.5M in first and second liens. The firm’s Shimon Shkury, Scot Hirschfield, Michael Tortorici, and Victor Sozio advised the seller.*** Massey Knakal sold four senior notes; at the time of sale, the PAR value for the collateralized notes was $5.7M. The properties are: a seven-unit, four-story walk-up 173 E 117th St (broker: Bob Knakal) and a 10-unit, five-story walk-up at 217 W 115th St (brokers: Knakal and Lev Kimyagarov), both in Harlem; and a 3,800 SF commercial building at 1300-1304 Flatbush Ave (brokers: Knakal and Edward Gevinski) and the two-building, mixed-use 283-285 Graham Ave(brokers: Knakal and Mark Lively), both in Brooklyn. LEASES | ||
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| Liz Claiborne (soon to be Fifth & Pacific Cos) renewed for 67k SF at 1440 Broadway. Newmark Knight Frank’s David Falk and Jason Greenstein repped the tenant, while Jordan Berger repped owner Monday Properties in-house.*** Pace University inked a 20-year, 50k SF lease at Fulton Crossing,140 William St. Newmark Knight Frank’s David Falk and Kyle Ciminelli repped the tenant, while Lee & Associates NYC’s Peter Braus, Jim Wacht, Gabe Isaacs, Peter Levitan, and Garry Steinberg repped owner Crikos. *** Dentsu McGarry Bowen inked a 47k SF expansion at the Starrett-Lehigh Building, adding to the 110k SF it currently leases. To accommodate this, Harry Fox Agency and Tommy Hilfiger USA were released from their leases and the space then leased to DMB. Tommy Hilfiger then took an additional 21k SF (phew). CBRE’s David Hollander and Sacha Zarba repped DMB; Studley’s Greg Taubin repped HFA; and JLL’s Matthew Astrachan repped Tommy Hilfiger.RXR Realty is the landlord. *** The Leading Hotels of the World signed a long-term, 43k SF lease at 485 Lexington Ave for its new corporate HQ. Studley’s Daniel Horowitz and Jeffrey Peck repped the tenant, while David Kaufman and David Amsterdam repped owner SL Green in-house. *** Desmarais inked a new 22k SF lease for the entire 25th floor at 230 Park Ave, doubling its presence. Cushman & Wakefield’s David Stockel, Peter Van Duyne, and Chris O’Callaghan repped the tenant, while Jordan Berger repped owner Monday Properties in both transactions. *** Adams & Co’s Joseph Friedman brokered over 20k SF in deals, including: Manhattan Graphics’ five-year, 4,000 SF lease at 250 W 40th St (landlord rep: BMS Realty’s Morris Franco); Learn It Systems’ five-year, 4,000 SF lease at 40 Exchange Pl (tenant rep: Jud Leasing’s Charles Bedya); Salmons & Brown’s two-year, 3,200 SF lease at 1411 Broadway (landlord rep: CBRE’s Anthony Dattoma); and Pono Associates’ five-year, 2,400 SF lease at 347 W 36th St. *** Winoker Realty brokered four deals: two five-year, 4,500 SF leases for OFS at 251 W 39th St. (broker: David Simon); Trove’s seven-year, 2,400 SF lease at 214 W 29th St (tenant rep: Winoker’s Stephen Deflorio and Corey Abdo; landlord rep: Walter & Samuels’Harve Schuster); Borstein Legal Group’s 2,300 SF lease at 1500 Broadway (tenant rep: Simon; landlord reps: CBRE’s Forrest Durkee and Dan Bodner); and UpSpring PR’s three-year, 1,500 SF lease at 276 Fifth Ave (broker: Elliot Klein). *** CPEX’s Eric Altschul and Ryan Condren brokered four leases: a restaurant operator’s 1,200 SF lease at 214 E 49th St (the former Mama Mexico restaurant); a radiology office’s 6,200 SF lease at 345 St. Nicholas Ave, Ridgewood, Queens; a pediatric dental practice’s 2,000 SF lease at 150 4th Ave, Park Slope, Brooklyn; and a high-end day spa’s 4,500 SF lease at 525 Court St, Carroll Gardens, Brooklyn. *** Tumi expanded to 14k SF at 261 Fifth Ave. The tenant was repped in-house by Eugene Messina, while Brian Feil and Randall Briskin repped owner The Feil Org in-house. *** Pret A Manger inked two new long-term retail leases: 3,900 SF at 350 Hudson St (landlord rep: Trinity Real Estate, in-house); and 3,000 SF at 62 W 45th St (landlord rep: Andover Realty, in-house). RKF’s Joshua Strauss and Jackie Totolo repped the retailer in both deals. *** Tudor Realty Services Corp signed a 12k SF renewal at 250 Park Ave South. The tenant was repped in-house by Andrew Lazarus, while Brian Feil and Robert Fisher repped owner The Feil Org in-house. *** | ||
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| Joe Vericker / PhotoBureau | ||
| The Sunshine Bronx Business Incubator, the first City-sponsored business incubator in the borough, opened in 11k S F at the BankNote Building at 890 Garrison Ave, Hunts Point. The space will provide approximately 180 workspaces, comprised of virtual offices, co-working spaces, conference rooms, classrooms, and common areas. The NYC Economic Development Corp provided a $250k grant to establish the incubator. Joining Mayor Mike above are Marlene Cintron on behalf of the Bronx borough prez, Congressman Jose Serrano, Council member Maria del Carmen Arroyo, stealth Council speaker Christine Quinn, The Institute for Virtual Enterprise's Stuart Schhulman, Sunshine Realty’s Cheni Yerushalmi, and SuperMango Media’s Dan Allen.*** Forevermark US inked a 6,000 SF lease at 300 First Stamford Place, Stamford, Conn. through 2017. RHYS’s Christian Bangert repped the tenant, while Jeffrey Newman, Kimberly Zaccagnino, and Tara Long repped owner Malkin Properties in-house. Malkin Construction will build out the space. *** Daum and Haviland inked a 4,500 SF lease on the lower level of 499 Park Ave. Newmark Knight Frank’s Jonathan Krivine repped the tenant, while Cushman & Wakefield’s Alisa Amsterdam, Gene Spiegelman, and Michael O’Neill repped owner Hines. *** Potbelly Sandwich Shop signed a 10-year, 2,100 SF lease at 366 Fifth, where it plans to open in the spring. Joseph P. Day Realty Corp repped the tenant, and the landlord is New York Accessories Exchange. FINANCING GCP Capital Group arranged over $39M in financing, including:$36.5M for a package of 12 multifamily properties totaling 200 units in Brooklyn, with a fixed-rate interest of 4.25% for 35 years (arranged by Paul Greenbaum); and assumption of mortgage for $3M for a 16-unit, six-story walk-up on St. Mark’s Place (arranged by David Sessa). *** Meridian Capital Group arranged nearly $30M in new mortgage financing, including: $8.3M for a 54-unit, six-story multifamily building on Avenue F, Brooklyn (arranged by David Ostrov); $8M for a 228-unit co-op building on East 86th Street (arranged by Steve Geller and Nicoletta Pagnotta); $7M for a 11k SF commercial condo on West 75th Street (arranged by Avi Weinstock); and $3.3M for a 12-unit, eight-story multifamily building on Flushing Avenue, Brooklyn (arranged by Isaac Filler). *** Meridian Capital Group also arranged two other deals: $28M in financing for the recently modernized 136-21 Roosevelt Ave, Flushing on behalf of Pi Capital Partners (arranged by Cary Pollack) and $6.3M in acquisition financing for the purchase of a 92-unit, seven-story multifamily property on Bronx Boulevard between East 222nd and 223rd streets, Bronx (arranged by Charles Grussgott). FUND Hudson Realty Capital had the final close of Hudson Realty Capital Funding V, which targets middle-market debt transactions, new originations, note acquisition and DPO purchases, and existing loan purchases. The $250M fund targets investments in the $5M to $35M per-asset range. CONSTRUCTION & DEVELOPMENT The Feil Org is renovating the building lobby and entryway at 7 Penn Plaza. Construction is slated to start early this year, with completion in Q3. Goldstein, Hill & West Architects is the architect. BUSINESS Cresa (formerly CresaPartners) and Savills formed a JV called SavillsCresa to pursue and service companies that are not clients of either firm with the simplicity of signing a single contract for worldwide real estate services. This JV expands above the strategic partnership formed by the two companies earlier this year. *** GSREA and its affiliates rebranded to Talmage and opened a new office at 430 Park Ave. The company, which is led by CEO Edward Shugrue III and COO Grant Rogers, is an active investor in and advisor/special servicer on large and complex CRE transactions. *** Grubb & Ellis’ common stock began trading under GRBE on the OTCQB marketplace last Friday, as the NYSE announced that its common stock traded under the symbol GBE will be suspended from trading on the NYSE because the company had fallen below listing standards. Grubb & Ellis plans to appeal the decision. *** Distressed Asset Acquisition Group established a hard-money real estate lending division, initially concentrating on residential and small commercial properties in the Eastern seaboard. The company will also consider incomplete or failed construction and land development projects. EXECUTIVE MOVES Richard Arnitz joined American Realty Capital as executive director of its broker-dealer subsidiary, Realty Capital Securities, to direct the company’s strategic sales initiatives to raise $3B of equity capital for two of its sponsored offerings, American Realty Capital Healthcare Trust and American Realty Capital Retail Centers of America. He was previously CEO of Grubb & Ellis Capital Corp and Grubb & Ellis Securities, and held positions at Cole Capital Markets and AIG. *** Joseph French and his team of investment specialists (Thomas Dalzell, Schuyler Boylan, and Amie Segel) joined Marcus & Millichap, where he’s now senior director of its national retail group. He was previously with Sperry Van Ness, and held positions at the Hutensky Group, Landau & Heyman, Brandenberg Realty, and C .S. Brown Associates. He’s a Southern Illinois University and NYU grad. *** Daniel Flynn and Joseph Lopresti joined JLL’s Long Island office as VP. Daniel will focus on non-profit orgs throughout LI and Queens, while Joseph will focus on Nassau County’s office market. Daniel was previously with Concorde Real Estate and held positions with Shorenstein, Pepitone Industries, and Cushman & Wakefield. He’s a University of Florida and Hofstra grad. Joseph also comes from Concorde and is a Hofstra grad. *** Leah Ozeri rejoined Prudential Douglas Elliman as SVP and associate broker. She has also worked at Corcoran and Town. *** Michael Power joined Lockton as SVP and Northeast real estate practice leader, responsible for biz development and client advocacy for those in the real estate and hospitality industries. He was previously with Willis and held positions at Maryland Casualty Co,Leonard Newman Agency, Sedgwick James, and Wells Fargo Insurance Services. He’s a LeMoyne College grad. *** Acadia Realty Trust promoted Christopher Conlon to EVP and COO; Jon Grisham to SVP and CFO; and Richard Hartmann to SVP and chief accounting officer. *** Rosenberg & Estis promoted Eric Orenstein to partner of the law firm. He was an associate in the firm’s transactional department since ’05, repping owners and developers of commercial properties in the Tri-State and providing other legal services for RE transactions. He’s a SUNY Binghamton and Hofstra grad. |
