This Week's N.Y. Deal Sheet
This week, another tech giant locked down office space on Manhattan's West Side, a Chinese firm made its first overseas investment with a Manhattan development site and an office building scored nearly $1B for refinancing.
TOP LEASES
Following months of speculation over where it would plant its flag in the city, Amazon leased 335K SF at 410 10th Ave., SL Green's redevelopment of 460 West 34th St. Amazon plans to fill the space with 1,500 employees, but said it won't receive any state or city tax breaks as part of the deal. Newmark Knight Frank's Brian Waterman, Scott Klau, Brent Ozarowski and Erik Harris. JLL’s Derek Trulson, Bill Peters and Josh Stuart represented Amazon. SL Green Director of Leasing Steven Durels said the building is now 96% leased.
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Cozen O’Connor is taking 77K SF at Silverstein Properties' 3 World Trade Center for 15 years, the landlord announced. The deal means the law firm is leaving its offices at 45 Broadway and 277 Park Ave. The office at 3 World Trade will span the whole 55th floor and part of the 56th floor, where the company plans to move toward the end of next year. Silverstein Properties’ Jeremy Moss and Camille McGratty brokered the deal for the landlord, with CBRE’s Mary Ann Tighe, Ken Meyerson, Adam Foster, Evan Haskell, Steve Eynon, David Caperna and Rob Hill. The tenant was represented by Avison Young’s Arthur Mirante, Michael Gottlieb and Jennifer Ogden.
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Advantage Sales & Marketing is taking a total of 20K SF at the Club Row Building at 28 West 44th St., NKF announced in a release. APF Properties owns the 22-story, 372K SF office building. Advantage is moving from 360 Lexington Ave. and 1500 Broadway. NKF’s Andrew Sachs, Tim Gibson, Josh Gosin and Matthew Augarten represented the landlord. Cushman & Wakefield’s Peter Trivelas and Jason Ward represented the tenant.
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Target locked down 33K SF at Tishman Realty’s E*Walk Retail And Entertainment complex at 233-267 West 42nd St., JLL announced in a release. The opening of the small-format store, which has been Target’s brick-and-mortar approach in recent years, is set for 2022. JLL’s Patrick Smith, Erin Grace, Corey Zolcinski and Matt Ogle are leasing representatives at the complex. Ripco’s Richard Skulnik represented Target in the deal.
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Brookfield announced it is opening a 40K SF food hall called Citizens in 5 Manhattan West, a piece of its sprawling mixed-use complex near Hudson Yards. C3, a subsidiary of sbe, is operating the hall, which will feature two full-service restaurants, several bars and a fast-casual market hall, per the release.
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Advertising company Interpublic Group of Cos. expanded its space 1400 Broadway and now has more than 101K SF in the building, Commercial Observer reports. IPG inked a deal for an extra 15K SF on the 30th floor in the Empire State Realty Trust-owned building. Asking rents were $75 per SF. JLL’s Scott Panzer, Robert Romano and Shannon Rzeznikiewicz brokered the deal for the tenant. Keith Cody arranged the lease in-house for ESRT, alongside NKF’s Scott Klau, Neil Rubin and Erik Harris.
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Duane Reade and I Love NY Gifts together leased a total of 12K SF at Thor Equities' 700 Eighth Ave. the landlord announced Tuesday. Duane Reade is taking 6K SF on the 44th Street corner of the property, while I Love NY Gifts is taking 5K SF on the other side of the property. Pat Smith and Mike Riley of JLL represented Duane Reade.
TOP SALES
Chinese developer Hopson Development Holdings is paying $113.5M for the site at 131-141 East 47th St. near Rockefeller Center, according to Asian real estate news website Mingtiandi. The company plans to build a 34-story tower with 200 units. Construction is slated to begin next year. The seller was New Empire’s Bentley Zhao.
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Hidrock Properties paid Baldwin Realty $36M for 72 Nassau St., The Real Deal reports. The sale of the site in the Financial District works out to be $300 per SF, per TRD, and Hidrock is planning to build a 125K SF mixed-use building.
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The Feil Organization paid $72.1M for the 95K SF building at 530 West 25th St., The Real Deal reports. Peter Armstrong of Rigby Asset Management partnered with Feil on the deal, per the publication, and bought the office building from its longtime owner, the Brown family. The deal closed on Friday, according to MHP Real Estate Services CEO David Sturner, who represented the seller. Robert Khodadadian and Daniel Shirazi of Skyline Properties also brokered the deal, per TRD.
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AAGS Holdings paid $27.5M to PMG Holdings for the former Eagle Electric building at 23-10 Queens Plaza South in Long Island City. AAGS Holdings is a joint venture of Gary Segal, the president and CEO of Dynamic Star, and Churchill Real Estate. The buyers plan to build a tower over the 135K SF building and create an office property. Meridian Capital Group arranged acquisition financing from Churchill Real Estate.
TOP FINANCING DEALS
Citi, Barclays, Goldman Sachs and BMO Harris Bank provided an $800M loan package to a joint venture, led by Vornado, for 650 Madison Ave., a 600K SF office tower, Commercial Observer reports. The loan retires about $800M in financing the JV used to buy the property from The Carlyle Group for $1.3B six years ago. Vornado controls the property with a 20% stake, and Oxford Properties Group, Crown Acquisitions and Highgate also have ownership in the building, per CO.
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Moin Development locked down $135M for the Mondrian Park Avenue Hotel at 444 Park Ave. South, JBA Equities announced in a release. The loan features a $110M senior mortgage and $25M in mezzanine financing. The senior mortgage was originated by KeyBank Real Estate Capital and the mezzanine loan was financed by South Korea-based Fidelis Asset Management, according to the release. JBA Equities’ Jonathan Aghravi, Charles Han and Eli Terry, along with Tal Bar-or of Lantern Real Estate, represented the borrower, David Moinian.
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Natixis loaned $130M to Maddd Equities and Joy Construction for 330 East 62nd St., The Real Deal reports. The money comes in the form of a five-year, commercial mortgage backed securities loan, and replaces $86.2M that was provided by the same lender last year. Progress Capital’s Brad Domenico arranged the financing.
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Deutsche Bank provided A&E Real Estate Holdings $97.5M to refinance its Rego Park portfolio, The Real Deal reports. The company bought the 539-unit Kestenbaum family portfolio in Rego Park for $129.5M last month. The loan covers the 18 buildings, 95% of which are rent-stabilized, and other business interests that the family owns, per TRD. The loan from Deutsche replaces financing from People’s United Bank, which most recently provided $18.5M in 2015.
CORRECTION, DEC. 10, 5:20 P.M. ET: MHP Real Estate Services CEO David Sturner represented the seller in the sale of 530 West 25th St. An earlier version of this story misidentified his role in the deal. This story has been updated.
