This Week's NY Deal Sheet
The week in New York Real Estate deals seemed to cool with the weather, although some major deals came through. Whole Foods will become the first major grocery store in Hudson Yards, a Goldman Sachs executive flipped a townhouse and Sam Chang nailed down a construction loan for his new Times Square hotel.
TOP LEASES
Brookfield Properties and Swig Inc. took over the management of 1100 Sixth Ave. signing a long-term net-lease with Eugene A. Hoffman Management Inc. The 386K SF Midtown office building faces Bryant Park. Brookfield and Swig plan to redevelop the building in 2019 after Time Warner’s HBO television brand moves to 30 Hudson Yards. CBRE brokers Darcy Stacom and Bill Shanahan represented Eugene A. Hoffman.
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Whole Foods is on the verge of closing a 60K SF sublease in two floors of 5 Manhattan West, which would make the grocery chain the first to settle in Hudson Yards. Ground-floor retail rent ranges from $250 to $400/SF. The Commercial Observer reports the chain is in talks to sign for 20 years. JLL’s Patrick Smith, Michael Goldban and Mark Kostic are representing the landlord, Brookfield, while SCG Retail’s Chase Welles and Jacqueline Klinger are repping Whole Foods.
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Rauxa signed a 50K SF lease at the Brookfield-owned 225 Liberty St. with plans to move before the end of the year. The move doubles the ad agency's office space to part of the 43rd and the entire 44th floor of the building. Asking rent in the 11-year lease was $75/SF. JLL’s Paul Glickman, John Wheeler, Michael Berman and Clayton Kline represented Brookfield, while JLL’s Steven Rotter, Justin Haber and Richard Miller of Transtar Real Estate represented Rauxa.
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Insurance firm Argo Group signed a 48K SF deal at 413 West 14th St. taking the entire third and fourth floors, plus a 2,300 SF penthouse. Asking rent in the Meatpacking District building for the 15-year deal was $100/SF, according to Crain’s New York Business. Argo Group was represented by CBRE brokers Christopher Mansfield and Gerry Miovski while landlords Rockpoint Group, Highgate Holdings along with the Meilman family were represented by the CBRE team of Paul Amrich, Neil King and James Ackerson.
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E-Lo Sportswear, the women’s clothing company, and its subsidiary Zaralo, are moving to the Garment District. The company signed a 10-year lease for 34K SF on the top two floors of 469 Seventh Ave. from Meyer Equities. Asking rent for the space was $55/SF. Ken Salzman, Mitchell Kunikoff and Andrew Lesser of Lee & Associates represented E-Lo Sportswear, while Marty and Eric Meyer of Meyer Equities represented the building in-house.
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Ricoh USA, a digital printing and business services company, has signed a 10-plus-year lease to take 30,500 SF at 711 Third Ave. for its New York headquarters. CBRE brokers Joseph Mangiacotti and Carolyn Sica represented Ricoh USA, and Howard Tenenbaum and Gary Rosen represented the landlord, SL Green, in-house.
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Buzzfeed has subleased 27K SF of offices to Teacher Pay Teachers, an online marketplace for educators to buy and sell school supplies. The company will take the 11th floor of 225 Park Ave. South. Asking rent was $80/SF. Steve Marvin of Olmstead Properties brokered the deal for Buzzfeed, while Michael Mathias and Erik Schmall repped Teachers Pay Teachers.
TOP SALES
The REIT Columbia Property Trust acquired 149 Madison Ave. from the Schwalbe family. The 127K SF, 12-floor office and commercial building built in 1916 has asking rents between $37 and $45/SF. The deal is expected to close later this year, the land is valued at close to $90M, or $692/SF.
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Gary Barnett’s Extell Development sold three adjacent walkup apartment buildings at 310, 312 and 314 East 86th St. to Izaki Group Investments, headed by Eldad Blaustein, for $42M. JLL’s Glenn Tolchin, Yoav Oelsner and Anthony Ledesma brokered the deal. The three buildings come with as-of-right air rights allowing Izaki to develop a 71K SF building up to 210 feet tall.
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CEO of fabrics maker Cameron Industries Inc. Soheil Khayyam has purchased a six-story rental building from Benchmark Real Estate Group for $31M. The 37-unit 25,600 SF building at 65 Bank St. was purchased by Benchmark in 2011 for $15.2M.
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Ferdinand Carillo bought a 109K SF warehouse at 134 Morgan Ave. in Williamsburg in Brooklyn from Richard Perlen for $30M.
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Ram Sundaram, who heads Goldman Sachs’ Principal Funding and Investment Group has flipped a townhouse. The four-story property containing two rental units and a 1,200 SF garden he bought last year for almost $21M at 269 West 11th St. has sold for $27.4M to MCY Real Estate LLC.
TOP FINANCING DEALS
Wharton Properties, managed by Jeff Sutton, secured a $125M loan to refinance its six-story retail building at 100 West 125th St. in Harlem. The loan, provided by JP Morgan Chase and Morgan Stanley, replaces $102M in financing from Natixis Real Estate Capital.
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Sam Chang's McSam Hotel Group secured $120M in financing for a 520-room Hyatt Place hotel at 350 West 39th St. near Times Square. Bank of the Ozarks provided a $95M senior loan while Square Mile Capital Management provided $25M of preferred equity.
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A joint venture between Juster Properties and Clear Rock Properties secured a $15M loan on 9 East 38th St. from Lincoln Financial Group.
