The Deal Sheet
Financing
M&T Bank heads a syndicate of lenders (also New York Community Bank, Mercantil Comercebank, and Union Labor Life Insurance Co) that has lent Extell Development and Starwood Capital $100M to buy the fee and leasehold interests to 250 South St. Bingham's Richard Fries, Scott Stern, Neil Cohen, and Lisa Wertheimer arranged the deal, which closed March 15. The developers plan to demolish the Pathmark there, at the base of the Manhattan Bridge, to make room for a luxury high-rise apartment building with ground-floor retail and a parking garage.
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The $925M bridge financing for SL Green's $1.1B acquisition from Sony of the 853k SF 550 Madison Ave has closed. The financing--a $600M senior loan from the Bank of China, $175M in senior mezz debt from a private investment manager, and $150M junior mezz debt from SL Green (half of which was sold upon closing)--matures at the same time as Sonys leaseback expires. Ironhound Management advised SL Green.
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HFF's Steven Klein and John Bourret arranged $38.9M for Clarion Partners' acquisition of the 353-room Hanover Marriott at 1401 Mount Pleasant Ave in Whippany, NJ.
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Eastern Union's Ira Zlotowitz and Dov Zabrowsky arranged $9.8M from Investors Bank for the acquisition of a 50k SF industrial property on Grand Street in Brooklyn.
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GCP Capital Group's Paul Greenbaum arranged $6.8M for 71 apartments and 1,200 SF of commercial space in two buildings on Fourth Avenue in Brooklyn.
Leasing
The Port Authority board of commissioners approvedThe Port Authority of New York and New Jersey and The Durst Org's selection of Legends Hospitality to develop and operate the 1 WTC observation deck, One World Observatory. It'll be 120k SF on floors 100 to 102. Legends will lease the deck for 15 years for a total of $875M.
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WeWork leased 121k SF in L&L Holding's 222 Broadway, the collaborative workspace provider's seventh Manhattan location. L&L's David Berkey and Andrew Wiener repped the landlord in the 16-year deal, and WeWork's Mark Lapidus and JLL's Sean Black repped the tenant.
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PepsiCo signed a five-year lease for its first Manhattan office: 20k SF in Trinity Real Estates 350 Hudson St. Trinity was repped internally by Jason Pizer and Charles Laginestra, and CBRE's Gerry Miovski and Sam King repped Pepsi.
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Premier Motor Lines leased 97k SF in RREEF Management's 2 Colony Rd warehouse in Jersey City. CBRE's Matthew Corpuel repped the tenant, which is relocating from 397 E 54th St in Elmwood Park, NJ, and his colleagues Bill Waxman, Mindy Lissner, and Nicholas Nitti repped the landlord.
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Vitech, repped by Lee & Associates' Dennis Someck, renewed its 42k SF lease in Meringoff Properties' 401 Park Ave S at 28th Street for 10 years. Meringoff's Mark Stein and Jason Vacker also worked on the deal.
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Hitachi Power Systems America, repped by Newmark Grubb Knight Frank's Merrill Roth, renewed 50k SF at Liberty Corner Executive Center at 645 Martinsville Rd in Bernards Township, NJ. Murray Construction's Brian Fitzsimons, Douglas Friedrich, and Michael Nachtome repped the landlord internally.
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Springs Global leased 11k SF for 10 years at 100-104 Fifth Ave in Union Square for its HQ and showroom. Kaufman Org's G rant Greenspan repped the owners, and JLL's Gil Ohls repped the tenant. Kaufman and Inveso spent $9M to reposition the building, now 98% leased.
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ABC Supply Co, represented by Schaker Realty's Philip Schwom, expanded to 20k SF at Long Island Industrial's 600 W John St in Hicksville, repped internally by Tommy Tsiolis. Tommy also repped LII in a 5,600 SF lease to Double R Equipment at 90 13th Ave in Ronkonkoma. Metro Realty Services Doug Donatelli repped the tenant. Soms Realty Services' Richard Someck repped Long Street Home Equity Corp in a 5,100 SF lease at LII's 6851 Jericho Tpke in Syosset, and Island Swimming Sales, repped by Ashlind Properties' Richard Cohen, leased 9,600 SF at 523 Commack Rd in Deer Park.
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Savanna has donated 8,400 SF in 100 Wall St to Lower Manhattan Cultural Council for studios, rehearsal space, and workshops.
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Advance Auto Parts signed 6,800 SF for 10 years at Muss Developments Eltingville Shopping Center at 4310-4370 Amboy Rd in Staten Island. It'll open in the fall. Muss' Nicholas Forelli repped the landlord, and Pliskin Realty & Development's Marvin Harman repped the tenant.
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Varta Microbattery leased 6,200 SF in Faros Properties' International Corporate Center at Rye (555 Theodore Fremd Ave), relocating from White Plains. Newmark Grubb Knight Frank's Greg Frisoli and Larry Ruggieri repped the landlord, and CBRE's Ian Ceppos and Al Guiterrez repped the tenant.
Sales
Diamond Chemical Co, repped by Cushman & Wakefield's Stephen Elman and Jeffrey Prezant, acquired the 40k SF, Class-A warehouse at 29 Park Way in Upper Saddle River, NJ, from Campmor.
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Massey Knakal's Thomas Gammino Jr., arranged the $800/SF sale of a 10k SF apartment building at 539 E 87th St between York and East End avenues for $8M. Colleagues Bob Knakal and Michael DeCheser sold 156-164 Delancey St, a development site that can accommodate 20k SF, for $6M to Ashkenazy Investments.
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Gebroe-Hammer Associates' Joseph Brecher, David Jarvis, and Steven Follman arranged the $13.4M sale of 88 garden-apartment units at 101-104 Van Ness Court in Maplewood, NJ.
Development
The New York City Council approved The Howard Hughes Corps Uniform Land Use Review Procedure to redevelop South Street Seaport. Construction is delayed until after Labor Day following Sandy damage and will finish in 2015. The project will include a locally and regionally sourced food market to open by October '14.
