This Week's N.Y. Deal Sheet
The temperature in the city may be down, but deals are heating up. There were several big lease, sales and financing deals that closed this week.
TOP LEASES
The Hippodrome in Midtown penned two new leases, landlord Edison Properties announced. Artificial intelligence technology company Quantcast signed a five-year, 23K SF lease on the fifth floor of the building, located at 1120 Sixth Ave. The company previously subleased space in the building from the British Broadcasting Corp., which also inked a lease with Edison Properties recently.
BBC Studios will take up 36K SF for five more years in a lease renewal. Cushman & Wakefield’s Rob Lowe, Michael Burgio and John Cefaly negotiated the lease for the landlord, while JLL’s Lisa Kiell represented both tenants.
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Bankruptcy claims and notices company Prime Clerk inked a lease expansion at Madison Capital and Salmar Properties’ 850 Third Ave. in Sunset Park, Brooklyn, the landlord announced. Prime Clerk now takes up 52K SF in the building, an expansion on its current space, which totals about 19K SF on the third floor. The additional space in the new lease will include parts of the third and fourth floors.
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Clothing manufacturer Bestec Concept expanded its lease at New York City Economic Development Corp.’s Brooklyn Army Terminal, located at 148 58th St. in Sunset Park, Commercial Observer reports. The company penned a renewal for 79K SF, doubling its current 39,500 SF lease. The lease term is for 10 years. Heating and cooling company Avalanche Air expanded its 6,890 SF lease to over 19K SF in a new 10-year lease with NYCED at the terminal, according to CO.
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Los Angeles-based VideoAmp will take up 13K SF at 33 East 33rd St. in Murray Hill starting in January after signing a new five-year lease with landlord Kalimian Equities, Commercial Observer reports. Kirill Azovtsev and Matt Felice of JLL represented the tenant. Newmark’s Erik Harris and Zach Weil represented Kalimian Equities. The Class-C office building is 14 stories and was built in 1912, according to LoopNet.
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Canadian-based clothing retailer Arc’teryx penned a lease with Thor Equities for 6,800 SF of retail space across the ground floor and lower level of the six-story 139 Fifth Ave., the landlord announced. Isaacs and Co.’s Trevor Galina and Maven Retail Group’s Andrew Offierski represented the tenant in lease negotiations for the space, which sits between East 20th and 21st streets.
TOP SALES
Phoenix Hospitality Group purchased the under-construction, 526-unit hotel development at 140 West 28th St. for over $147M from Sam Chang’s McSam Hotel Group, Crain’s New York Business reports. Construction on the 45-story building is set to be complete by next spring. Chang has developed over 70 hotels and said last May he planned on retiring to focus on racing pigeons, but by October was buying a Midtown development site to build a new hotel.
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The Parkash Group paid The Morgan Group $11.9M for an apartment building at 2055 Anthony Ave. in the Bronx, Rosewood Realty announced. Rosewood’s Aaron Jungreis brokered the deal for both the buyer and the seller. The building is six stories with 80 units. The sale price was 10 times the rent roll, according to the brokerage, and the lowest listed rent price per unit is $2,009 per month, according to Apartments.com.
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Private equity giant KKR purchased two Brooklyn apartment buildings at 75 Ralph Ave. in Bedford-Stuyvesant and 10 Lexington Ave. in Clinton Hill for $77M from Bruman Properties, Crain’s New York Business reports. The Bed-Stuy property is a 57-unit, six-story building and the Clinton Hill property has 81 units across five stories.
TOP FINANCING DEALS
Silverstein Properties secured $165M in refinancing on its 35-story, 609K SF office building at 120 Wall St., Commercial Observer reports. Wells Fargo provided $95M while JPMorgan Chase provided $35M and Citigroup provided $35M of the total debt. The loan is 10-year interest-only with a rate of 3.2%, according to CO. Ackman-Ziff Real Estate Group reportedly brokered the debt for the landlord. The building is home to the American Institute of Chemical Engineers and the National Urban League.
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PGIM received a $107M loan from JPMorgan for its property at 180 Madison Ave. on the corner of 34th Street, PincusCo. Media reports. The 24-story, nearly 254K SF Class-B office building is home to tenants such as New York University.
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KKR secured $32.9M to buy two apartment buildings in Brooklyn, PincusCo. Media reports. The first property, at 10 Lexington Ave. in Clinton Hill, contains 81 units, the second at 17 Menahan St. in Bushwick contains six units. Berkeley Point Capital provided the debt.
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Invictus and MJM Associate Contracting scored a $27.5M loan from MetLife for its mixed-use property at 812-814 Amsterdam Ave., JLL announced. The building contains 44 residential units, from studios to two-bedrooms, and just over 12K SF of retail. Active listings for the space range from about $3K for a one-bedroom and nearly $3,500 for a two-bedroom, two-bathroom apartment, according to StreetEasy. JLL’s Scott Aiese, Peter Rotchford, Alex Staikos and Andrew Cohen brokered the debt for the borrower.
