This Week's N.Y. Deal Sheet
Tropical Storm Isaias knocked the power out for 60,000 New Yorkers this week and it seems to have knocked the power out in the New York City real estate capital market as well. It was a slow week for sales and big leases, but a few big financing deals closed.
TOP LEASES
Marketing firm Mother New York inked a 15-year lease for 61K SF at the Roulston House at 94 Ninth St. in Gowanus, Brooklyn, The Schoen Group of Savitt Partners announced. The new area will be a big move for Mother, which is now located at 595 11th Ave. in Midtown Manhattan. The Schoen Group’s Michael Schoen, Marc Schoen and Harrison Katzman brokered the lease for the tenant. The building's owners, Industrie Capital Partners and Aurora Capital Associates, were represented by ICP Realty’s Joseph Hamway and Josh Sloan.
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Social justice nonprofit The Nathan Cummings Foundation inked a 12-year, 14K SF lease with Silverstein Properties at 120 Wall St., the landlord announced. The nonprofit currently leases space at 475 10th Ave. and will move into its new location at the beginning of next year. Silverstein’s in-house leasing broker, Harlan Strader, represented the landlord while Cushman & Wakefield’s Carri Lyon, Yarden Drimmer and Matthew Fisher represented the tenant.
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Despite the upheaval in New York's restaurant industry, Ted’s Montana Grill renewed its lease at the Rockefeller Group’s 1271 Sixth Ave., the landlord announced. The restaurant has occupied the 6,100 SF space since 2006. Ted’s Montana Grill is open for takeout and delivery right now, but it is unclear when indoor dining, in any capacity, will be allowed in the city. CBRE’s Eric Gelber and Jordan Kaplan brokered the lease for the landlord along with its in-house representation, Ed Guiltinan and Jennifer Stein.
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Nonprofit Graham Windham, founded in 1806 by Eliza Hamilton, Alexander Hamilton's widow, is expanding its footprint in Brooklyn. The organization, which provides abused and neglected children with a range of services spanning from adoption to after-school activities, will take up 6K SF at 25 Chapel St., Crain’s New York Business reports. The asking rent was $40 per SF. Stephen Powers, Arthur Skelskie, Jake Cinti and Alexander Smith of Transwestern represented the tenant. The landlord was represented in-house.
TOP FINANCING DEALS
Maimonides Medical Center secured $141M to fund a construction project that will expand its intensive care unit, more than double the size of its emergency department and add more lab space on 4802 10th Ave. in Borough Park, Crain’s New York Business reports. The financing was provided through bonds through the U.S. Department of Housing and Urban Development. The Brooklyn hospital is set to break ground this fall and deliver the project within three years. Life sciences have been considered a bright spot amid the coronavirus pandemic, and real estate experts say that the city’s economic future could rely on the expansion of the sector.
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Brack Capital Real Estate secured a $110.8M loan for its condominium conversion project at 720 West End Ave., PincusCo. Media reports. Apollo Global Management led a group of investors providing the debt. Brack reportedly planned to convert the building when it bought it in 2014 and plans, designed by Morris Adjmi Architects, indicate that the final product would add 120 new units, according to New York YIMBY. The building was previously a senior residence operated by the Salvation Army. Part of the debt is a $72M bridge loan, according to PincusCo.
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Multifamily refinances continue to dominate the lending landscape. Landlord Eric Miller scored $31.3M from New York Community Bank to refinance four of his properties in Brooklyn, PincusCo. Media reports. The debt includes $9.6M for Miller’s 72-unit apartment building at 135 Ocean Ave., $9.6M for his 66-unit apartment building at 231 Ocean Ave., $6.2M for his 52-unit building at 505 Ocean Ave. and $6.2M for his 54-unit building at 150 Ocean Ave.
TOP SALES
Affordable housing developer K + R Preservation purchased the 581-unit building, Spring Creek Gardens Apartments at 902 Drew St. in Lindenwood, Brooklyn, for $79M, Real Estate Weekly reports. New Orleans-based Domain Cos. sold the building, according to property records. K + R Preservation is a partnership between Francine Kellman and Brian Raddock. The company owns several affordable housing buildings, including East River Apartments in East Harlem and Trinity Apartments in the Bronx, according to its website. It also owns properties in New Jersey, the Hudson Valley and Upstate New York. Spring Creek Gardens was built in 1988.
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Kushner Cos. became the sole owner of Pier Village in Long Branch, New Jersey, as the developer bought out partner Extell Development in a deal valued at $181M, The Real Deal reports. The property contains 492 residential units and 90K SF of retail space.
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Jeffrey Farkas purchased a 40-unit multifamily building for $10M at 229 West 105th St., The Real Deal reports. Delf Estates sold the Upper West Side building to Farkas, who secured a $6.7M mortgage from Santander Bank to fund the acquisition, according to property records. It has a retail space on the bottom floor. Farkas owns multifamily properties in Queens, the Bronx and Manhattan.
