This Week's N.Y. Deal Sheet
New York City's property market started Q3 with a whimper, as the only investment sales to close since the July Fourth holiday were a few small multifamily properties in the outer boroughs.
TOP LEASES
Raymond Chera’s RMC Assets inked a new lease with The Brooklyn Hospital for over 51K SF on 523 Fulton St. in Downtown Brooklyn, the landlord announced. Asking rent at the three-story building was $55 per SF. The hospital will use the space for offices. Schuckman Realty Inc.’s Justin Liniado and Trent Dickey negotiated for the landlord. RMC has agreed to spend $15M to renovate the space for the tenant.
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Wealth management company BBR Partners signed a 15-year, 30K SF with Fisher Brothers for the 18th floor of the landlord’s 55 East 52nd St., Commercial Observer reports. Newmark Knight Frank’s Brad Needleman and CBRE’s Jason Gorman negotiated for the tenant, while CBRE’s Howard Fiddle, Peter Turchin, Christie Harle, Benjamin Joseph and Roger Griswold, along with Fisher Brothers in-house staff Marc Packman and Charles Laginestra negotiated for the landlord. BBR is moving from 2 Grand Central Tower, where it has been since 2005.
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WeWork signed a 110K SF lease in Jersey City at 30 Hudson St., Business Insider reports. Merck, the parent company of WeWork’s future tenant, Organon & Co., signed the lease as guarantor. WeWork will lease the space from building owner Goldman Sachs, which fully occupied the tower when it was the tallest building in New Jersey. WeWork has struggled with rent collections and payments during the coronavirus pandemic — they are at roughly 75% and 85%, respectively, CEO Sandeep Mathrani told Bisnow in a recent interview. In the interview, conducted last week, Mathrani referenced a new "New York metro area" location WeWork was building on behalf of an already-committed tenant.
TOP SALES
Victor Tawil bought a co-living complex, The Prospect Quarters, at 1930 Bedford Ave. in Prospect Lefferts Garden in Brooklyn from Nik Lavrinoff, property records show. Tawil paid over $27.2M for the seven-story, 76-unit building developed in 2015. The building was designed to be a “WeWork for living,” a broker told the Bklynr in 2015. Tawil took out a $21.8M mortgage from New York Community Bank to pay for the building, PincusCo. Media reports.
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Related sold two of its Bronx multifamily properties to a private buyer for $13M, The Real Deal reports. The first property — at 1050 Wheeler Ave. in the Soundview neighborhood — contains 66K SF and 60 units. The second, 1085 Colgate Ave., also located in Soundview, is 25K SF with 24 units. Hodges Ward Elliott’s Daniel Parker represented the buyer. According to property records, Related bought the two properties, alongside two other multifamily buildings in the neighborhood, for a combined $27M in 2015. Both buildings are three stories and were built in 1950, according to StreetEasy.
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Group Gjonaj purchased a 50-unit multifamily property on 1150 Pelham Parkway South, in the Morris Park neighborhood of the Bronx, for $10M, PincusCo. Media reports. A & R Management sold the six-story building, which was built in 1953. Jonathan Squires and Robert M. Shapiro of Cushman & Wakefield first marketed the property for the seller in October.
TOP FINANCING DEALS
Namdar Group scored a $42.7M bridge loan for its mixed-use building at 97 Newkirk St. in Jersey City, law firm Cole Schotz P.C., who advised lender Lightstone Capital, announced. The 15-story building features 132 luxury residential units as well as 23K SF of commercial space, including a gym and office space. Leasing for the new building started in late March, YIMBY reported at the time. Greystone Capital Advisor's Drew Fletcher brokered the deal. Coworking operator CMPND resides in the building as well.
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Hotelier Jeffrey Dagowitz’s JHG Holdings and ousted WeWork CEO Adam Neumann scored $75M in refinancing on 123 West 23rd St., the address of the now-closed St. Vincent de Paul Church, announced law firm Cole Schotz P.C. who advised lender G4 Capital Partners. Dagowitz acquired the property in 2016 along with two other buildings in the neighborhood for $50.4M, property records show. The property has 243K SF of development rights. This loan refinances a $65M loan from 2017.
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A joint venture of Jack Resnick & Sons and The Ruben Cos. secured $100M in refinancing for its 19-story office building at 52 Broadway, Jack Resnick & Sons announced. PGIM Real Estate was the primary debt provider. The 426K SF building, which is headquarters to the United Federation of Teachers, has been owned by the partners for more than 40 years.
