NY Deal Sheet: Tommy Hilfiger Moves To 285 Madison Ave.
Tommy Hilfiger is moving markets, packing its flag-branded bags from West Chelsea to three blocks from Grand Central on Madison Avenue.
Tommy Hilfiger and RFR Realty CEO Aby Rosen, in the lobby of 285 Madison Ave. in Manhattan
The retailer, a division of PVH Corp., will take 200k SF over nine floors in 285 Madison Ave., owned by RFR Realty. The lease keeps the momentum of six-figure square foot relocations going in 2017.
Hilfiger and RFR CEO Aby Rosen inked the deal yesterday at the 26-story, 510k SF office tower that sits at the corner of Madison and 40th Street. The building was vacant when Rosen bought it in 2012, RFR said in a release. The Hilfiger deal brings it to 85% occupied, with 350k SF of leases signed since 2016 began.
The deal was brokered by JLL, with Matthew Astrachan and Mitchell Konsker leading the tenant rep team and Alexander Chudnoff and Dan Turekwitz leading the landlord rep side, along with RFR's AJ Camhi. The building underwent a $65M gut renovation and now sports the art piece in front of which Hilfiger and Rosen posed, "Not Warhol (Brillo Box, 1964)," by Mike Bidlo, courtesy of the Lever House Art Collection.
Here's what else happened in New York City CRE last week.
TOP LEASES
The Royal Bank of Canada put the kibosh on any discussion of a nearly half-million SF relocation when it signed an early renewal at Brookfield Place. The bank and its Canadian landlord agreed to a 400k SF extension to keep it at 200 Vesey St. until 2032 in a deal brokered by Cushman & Wakefield’s Bruce Mosler for RBC and an in-house team at Brookfield.
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The New York Times signed a one-year sublease for about 160k SF with Time Inc. at the Time-Life Building in Midtown, owned by the Rockefeller Group. The Times is moving temporarily as it consolidates its offices on Eight Avenue, which will open up eight floors for it to take a turn as sublandlord. Newmark Knight Grubb Frank’s Andrew Sachs repped the paper on the deal, which is filling the last year on Time’s deal after it moved to Brookfield Place.
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KPMG is growing, but it is staying in Midtown for the next decade. The Big Four accounting firm has signed an expansion for 19k SF at SL Green’s 1350 Avenue of the Americas, another expansion in the market after a slumping 2016. KMPG now occupies 112k SF in the 33-story, 590k SF building. CBRE’s Patrick Murphy and Jamie Dennison repped KPMG, while Howard Tenenbaum and Gary Rosen repped SL Green in-house.
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Entertainment production company AEG Live signed a 28k SF new lease at 53 West 23rd St. in Midtown South near Madison Square Park. Landlord Twenty Three R.P. Associates just completed a $3M renovation on the building, where asking rent is $66/SF. AEG was repped in the deal by NGKF’s Lance Korman, and Adams and Co.’s James Buslik, Alan Bonett and Bradley Cohn repped the landlord.
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Law firm Adam Leitman Bailey P.C. is expanding into a 28k SF sublease at One Battery Park Plaza. It will vacate its 10k to 13k SF lease with Silverstein Properties at 120 Broadway, terminating it three months early, according to the Commercial Observer. NGKF’s Neil Goldmacher and Chris Mongeluzo led the leasing team repping sublandlord Hughes Hubbard & Reed, while CBRE’s Adam Foster repped Bailey.
TOP SALES
60 Wall St.
The biggest building sale of 2017 so far has closed. The sovereign wealth fund of Singapore paid $1.04B for 95% of 60 Wall St., Deutsche Bank’s 1.6M SF U.S. HQ. Paramount Group sold all but 5% of its share of the tower to GIC, and Morgan Stanley, which had a majority stake in the property, sold all of its interest. HFF’s Andrew Scandalios brokered the deal. Deutsche’s lease for the full building, built 29 years ago, expires in 2022.
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Lexin Capital paid $1,030/SF for a 151k SF office building at 551 Madison Ave. in Midtown. Barings, which acquired the building for $128M in 2012 when it was known as Cornerstone Real Estate, sold it for $155M. CBRE’s Darcy Stacom, Bill Shanahan and Eric Negrin repped Lexin Capital, owned by Metin Negrin.
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David Windmiller sold the New York Sports Clubs and attached apartments in Boerum Hill to Hidrock Properties for $30.5M. The properties, at 96 and 110 Boerum Place, also come with 12,500 SF of air rights. Steven Hidary told The Real Deal the family firm isn’t planning on altering the property at the moment.
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The Brodsky Organization sold a penthouse unit in its condo development at 135 East 79th St. An entity listed as Westeros LLC paid $17.3M for unit PH17E in the 20-story building on the Upper East Side. (There's perhaps no nation that is in more desperate need of financial stability than Westeros, which is recovering from a devastating civil war and gearing up for invasions from the north and east, not to mention the new King in the North.)
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Unit 615 in the Residences at the Plaza sold for $13.9M last week, turning a hefty profit for its previous owner. After the Plaza’s partial conversion from hotel to condos, the anonymous first buyer of 615 paid $8.8M for the 3k SF pad. The deal is more striking considering Plaza owners were just breaking even on their condo sales two years ago.
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Aulder Capital acquired a 32-unit Harlem walk-up apartment building for $7.3M. The firm, formerly BZ Investments, bought the property from Castellan Real Estate Partners. In December, Castellan sold an 84-unit Washington Heights building for $18.2M, tripling its investment.
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A Bushwick retail strip with residential or community facility development potential traded hands for $7.2M. Sophene Realty sold 1165 Broadway, adjacent to the Kosciuszko Street J Train Subway stop. The buyer is an entity registered as J&R Broadway LLC, which can build up to a 75k SF community facility building, or add 22k SF of residential development on top of the 12-year-old structure.
Sales data provided courtesy of Reonomy
TOP FINANCING DEALS
Gary Barnett’s Extell Development secured a $250M loan to refinance existing debt with Blackstone on the assemblage of parcels that will become Central Park Tower, its Nordstrom-anchored supertall. The deal gives Barnett some breathing room as he tries to secure a mammoth construction loan for the 1,550-foot planned tower.
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Premier Equities has consolidated its loans on the assemblage of Upper East Side properties it is combining with Thor Equities to build a 100k SF residential project. The loans combined for $41M on the properties at 1297 and 1299 Third Ave. The JV will likely need to acquire construction financing before proceeding with its 31-story project.
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Meredith Marshall’s BRP Cos. refinanced its loans on its affordable condo development at 2239 Adam Clayton Powell Jr. Blvd. in Central Harlem with Goldman Sachs for $27.8M.
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After locking down a $90M construction loan in Bushwick in December, Joseph Brunner has secured a $43M construction loan for its apartments-over-grocery project in Bed-Stuy at 1134 Fulton St. The building, at the corner of Franklin Avenue, will have 189 apartments, 20% of which will be affordable, with an 18k SF grocery store and a 72-space parking garage. Centennial Bank was the sole lender on the deal. A Key Food and a Popeye’s on the site have already been demolished.
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An LLC registered to Marvin Kagan furniture store on 57th Street secured two loans for a combined $38.5M on 29 West 30th St. in Midtown South. New York Community bank provided the financing on the 83k SF commercial building.
Financing data provided courtesy of Reonomy
