This Week's N.Y. Deal Sheet
The coronavirus may be roiling the markets and causing some schools and office buildings to close, but the deals didn't stop in New York City.
TOP LEASES
Kenneth Cole is leasing a floor at the building it sold to SL Green earlier this year. The retailer is taking 37K SF in a 10-year deal at 707 11th Ave., according to a release from the landlord. The space is for both offices and a showroom, Commercial Observer reports. Kenneth Cole had sold the building to SL Green for $90M earlier this year. Savills’ Woody Heller represented the tenant, while the landlord was represented in-house by Steven Durels.
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Memorial Hospital for Cancer and Allied Diseases, which is Memorial Sloan Kettering’s cancer treatment and research facility, leased 54K SF at 485 Lexington Ave., also owned by SL Green. The rents in the deal were $67 per SF, per Commercial Observer. Steven Durels negotiated the transaction on the landlord side.
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Hudson Yards Construction, Related’s construction arm, has signed a lease for 75K SF at 410 10th Ave. The deal is a renewal and expansion and runs for 25 years. Asking rents were $95 per SF and the company is adding nearly 17K SF to the space it already has in the building. The firm is now occupying the entire seventh and eighth floors. Steven Durels brokered the deal for landlord SL Green.
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MPB, an online marketplace for photo and video equipment, leased 20K SF at Brooklyn's Industry City for its U.S. headquarters and fulfillment center. The company is taking space at 147 41st St. in Sunset Park, according to a release. Chris Salizzoni of Capital Real Estate Advisors represented the tenant in the 10-year deal. Industry City’s Jeff Fein arranged the deal for the landlord. Rents at the complex range between $15 and $40 per SF.
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Beauvais Carpets is taking 18K SF at 36 East 57th St., which is at the base of 432 Park Ave., the supertall condo tower developed by CIM Group and Macklowe Properties. The carpet company is taking space on the second floor of the building in the 10-year deal, according to a release. Cushman & Wakefield’s Matthew Ball represented the tenant. CBRE’s Paul Amrich, Patrice Meagher and Neil King represented the landlord.
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Quotient Technology Inc. a digital promotions, media and analytics company, is expanding at 263 West 38th St., bringing its total space there from 10K SF to 15K SF. Handler Real Estate Organization owns the property, which is located between Seventh and Eighth avenues. Cushman & Wakefield’s Michael Burlant and Greg Herman represented the tenant in the expansion.
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New York City Health and Hospitals Corp. is bringing a new family health center to the Tremont neighborhood of the Bronx. Mastermind Development agreed to a 15-year deal with the city to operate a 22K SF facility at 1910 Webster Ave., Mastermind's Tremont Renaissance project. KZA Realty Group owner Kathy Zamechansky represented Mastermind, while Savitt Partners' Michael Dubin and Hector Rodriguez brokered the deal for the city, which will pay more than $14M over the span of the lease.
TOP FINANCING DEALS
A partnership led by Michael Shvo scored $545M for 711 Fifth Ave., known as the Coca-Cola Building, JLL announced in a release. The joint venture that owns the building includes Shvo’s eponymous company, Deutsche Finance America and BLG Capital. The financing was led by Goldman Sachs. The owners of the historic, 340K SF building are planning upgrades including lobby renovations and the expansion of outdoor spaces. JLL’s Michael Tepedino, David Sitt, Robert Tonnessen, Kristen Knapp and Sophie Gaylor arranged the deal.
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Ivanhoé Cambridge, Callahan Capital Properties and Swig Co. locked down $450M from Bank of China for the office building at 1411 Broadway, PincusCo reports. The financing includes a $35M gap loan, per the publication. The 40-story building was renovated in 2016.
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Finkelstein Timberger East Real Estate locked down $53.9M in permanent financing from Morgan Stanley for a six-property multifamily portfolio in the Bronx. The loan has a fixed rate of 3.58%, per a release from Black Bear Capital Partners. Bryan Manz, Rob Serra, Phil Bowman, Emil DePasquale and Brandon Harris of BBCP arranged the financing.
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Morgan Stanley provided a $15.5M loan to The Morgan Group for two multifamily properties in Bronx, according to Black Bear Capital Partners. The loan is for buildings in the Wakefield and Mt. Hope neighborhoods and feature 118 residential units. Bryan Manz, Rob Serra, Phil Bowman, Emil DePasquale and Brandon Harris of BBCP arranged the financing.
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Blackstone loaned Vanbarton Group $240M for its mixed-use building at 980 Sixth Ave., The Real Deal reports. The financing includes a senior loan note totaling $212M, per TRD. Gideon Gil of Cushman & Wakefield arranged the deal. The building has retail, office and residential space.
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Benenson Capital Partners and Mack Real Estate Group scored $81M from Helaba for their mixed-use property at 433 East 13th St. in the East Village, Cushman & Wakefield announced. Known as Eve, the eight-story property has 113 units and a 22K SF Trader Joe’s on the lower level. Cushman & Wakefield’s Steve Kohn, Alex Hernandez, TJ Sullivan and Emily Johansen represented the borrowers in the loan.
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SHVO, with Deutsche Finance America and BLG Capital, reeled in $210M in acquisition financing for the property at 530 Broadway in SoHo. LoanCore Capital provided the financing for the purchase of the 200K SF property, which Wharton Property Advisors and Thor Equities sold to the partnership for $382M, according to records filed with the city. JLL’s Michael Tepedino, David Sitt and Robert Tonnessen arranged the financing deal.
TOP SALES
German reinsurance company Munich RE closed on its purchase of 330 Madison Ave., according to city records, paying a total of $900M. The Abu Dhabi Investment Authority, the Gulf nation's sovereign wealth fund, sold the office property. CBRE’s Darcy Stacom and Bill Shanahan marketed the building, which went under contract last year.
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LIHC Investment Group paid $43.9M to DeMatteis Organization for 21 Spring St. in Nolita, PincusCo reports. The property has 153 residential units and spans 184K SF, meaning the sale price works out to roughly $209K per unit.
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Thor Equities and the Laboz family’s United America paid $42M to F&T Group, AECOM Capital and the Rockefeller Group for retail condominiums at 38-18 Union St. in Flushing, according to records and multiple reports. The property spans 30K SF, per Commercial Observer, and is part of the massive Flushing Commons mixed-use megaproject.
CORRECTION MARCH 10, 5:30 P.M. ET: Morgan Stanley provided a $53.9M loan to Finkelstein Timberger East Real Estate and $15.5M to The Morgan Group for properties in the Bronx. The Morgan Group is the borrower in one of the deals, not a lender, as a previous version of this story indicated. This story has been updated
