This Week's N.Y. Deal Sheet: 25 Kent Lands An Anchor
Williamsburg's first ground-up office development in decades has landed its anchor tenant. Fashion brand Kith has inked a deal at 25 Kent, the landlords announced Tuesday.
The company is moving from SoHo and taking nearly 58K SF of the building's 87K SF of manufacturing space.
“25 Kent was designed as a new kind of workplace: a commercial ecosystem that reflects the dynamic nature of how companies work today,” Rubenstein Partners Director of Investments Jeff Fronek said in a statement. “Today, we took a significant step towards realizing that vision. Kith brings an extremely high level of creative energy to the property, and we’re excited to announce them as our anchor tenant.”
The building, which was built by a joint venture of Rubenstein Partners and Heritage Equity Partners, also has 350K SF of office space and 70K SF of retail.
The tenant was represented by Compass’ Michael Yadgard. The landlord was represented by Gregory Tannor, Jaime Schultz, Brad Schwarz and Jeff Lopez of Lee & Associates NYC, along with Peter Riguardi, Howard Hersch, Sam Seiler and Brett Harvey of JLL.
Here is a look at the other major deals of the week:
TOP LEASES
Next Jump, a loyalty rewards company, leased 41K SF at Vornado’s 512 West 22nd St., Crain’s New York Business reports. The space is for the top three floors of the 11-story building. The company is moving from 261 Fifth Ave. and paying $160 per SF for the new space.
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Bowery Farming, a startup that builds indoor farms, is taking nearly 18K SF at 151 West 26th St., owned by the Rosen family, Commercial Observer reports. Asking rent in the deal was $63 per SF and the space is for the entire 12th floor.
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Chegg, an education tech company, inked a deal for 24K SF at 31 Penn Plaza, at 132 West 31st St., Commercial Observer reports. Asking rent was $60 per SF in the seven-year deal, and the lease is for the entire 12th floor of the Vanbarton Group-owned building. JLL’s Mitchell Konsker, Matthew Astrachan and Kyle Young brokered the deal for the landlord, while Newmark Knight Frank’s Scott Brown represented the tenant.
TOP SALES
Two Trees closed on its $150M purchase of 87 and 105 River St. in Williamsburg and revealed its plans for a brand new mixed-use development dubbed River Street. Con-Ed was the seller, according to public records. The Bjarke Ingels Group-designed project would feature 1,000 new units — 250 of which will be below-market rate — as well as a 47K SF YMCA, 30K SF for retail and 57K SF for office space. It will also feature nearly 3 acres of public space, per a release from the company.
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Naftali Group paid Vornado $71M for two side-by-side retail and apartment assets on the Upper East Side, The Real Deal reports. Naftali is planning to develop condo buildings at 1167 Madison Ave. and 50 East 86th St. per TRD. JLL’s Andrew Scandalios, Jeff Julien, Bob Knakal and Tom Gammino brokered the sale on both sides.
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Glenwood Management sold 207 East 94th St. to Hirschfeld Properties’ Elie Hirschfeld for $28.5M, The Real Deal reports. Kassin Sabbagh Realty’s Bunny Escava, Dan Myers and Jared Rahmanan arranged the transaction. The five-story office building spans 39K SF.
TOP FINANCING DEALS
Citigroup and Rexmark loaned $700M to Extell Development for two Manhattan apartment buildings with a combined 760 units, Commercial Observer reports. The loan is for 510 East 14th St. and 555 10th Ave., per the publication. The loans feature a $485M senior CMBS loan from Citi, per CO, and a $215M mezzanine loan from Rexmark.
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Square Mile Capital announced two financing deals in New York City. The company loaned $200M to The Chetrit Group for Park Hill City, a three-building property with 481 units in Jamaica, Queens. The deal, arranged by Henry Bodek and Martin Bodek of Galaxy Capital Solutions, will retire the current construction loan and provide funds for finishing the building and leasing it up.
Square Mile also provided $180.3M to Hope Street Capital for a Brooklyn development at 550 Clinton Ave. and 539 Vanderbilt Ave., per the release. The funding, arranged by Aaron Appel, Jonathan Schwartz and Michael Diaz of AKS Capital Partners, is for the construction of a 29-story 284-unit apartment building.
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Macerich locked down $487M from JPMorgan Chase to refinance Kings Plaza Shopping Center, The Real Deal reports. The loan features $60M in new financing, per the publication. Macerich has owned the complex in the Mill Basin neighborhood of Brooklyn since 2012, when it paid Vornado $751M to acquire it, per TRD.
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Invesco scored $115M from Fifth Third National Bank, for its retail condo at 1466 Broadway, Commercial Observer reports. This new financing features $7.9M mortgage and also takes over $110M loan United Overseas Bank provided seven years ago.
