This Week's N.Y. Deal Sheet
Investment sales and leasing activity remained slow this week but big financing deals closed around the city, including a $1.1B refinancing deal for two Manhattan office buildings.
TOP LEASES
The biggest office lease signed in the New York City area this week was in the suburbs: The First National Bank of Long Island will take up over 39K SF across the first and second floor at CLK Properties’ 275 Broadhollow Road in Melville, CBRE announced. Asking rent was $35 per SF and CBRE’s Matt Manoogian, Martin Lomazow and Phil Heilpern brokered the deal for the tenant.
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Holt Construction inked a 10-year lease for nearly 7K SF at 875 Sixth Ave. at an asking rent of $54 per SF, Commercial Observer reports. Lee & Associates NYC’s Dennis Someck, Justin Myers and Peter Braus brokered the deal for the landlord, identified as 875 LLC & New 875 LLC in CO’s report. Sierra Real Estate holds the mortgage title to the building through the entity Old 875 LLC, property records show. Armano Real Estate’s Joseph Armano and Evan Elias brokered the deal for the construction firm, which hired its first female CEO in its 100-plus-year history in February.
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A Naples, Italy-based pizzeria is coming to New York City. L’Antica Pizzeria penned a lease at Sky Management Corp.’s 2 Bank St. in the West Village, The Real Deal reports. The pizzeria will take up a total of 5,600 SF of retail space across two floors for the next 12 years. The six-story building, constructed in 1926, contains 20 apartment units, including three-bedrooms, which rented for nearly $5K per month this year, according to StreetEasy. Brad Schwarz and James Ficelman of Lee & Associates NYC arranged the deal for the landlord and Piero Massimino and Francesco Cirrillo of UBIQ New York brokered the deal for the tenant, according to TRD.
TOP SALES
Yellowstone Real Estate bought The Watson Hotel, the 600-key hotel at 440 West 57th St. from Woodridge Capital Partners for $170M, Bloomberg reports. The buyer took out a $90M loan from BVK-Immobilient to pay for the deal, PincusCo. reported this week. The transaction is one of the biggest hotel sales of the pandemic era. Property records filed this week show the hotel changed hands for $154.9M; hotels are often sold for more than their listed deed price to reflect the value of other assets.
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Gaia Real Estate sold eight condos at Nine52, 416 West 52nd St. in a bulk deal for $16.4M, property records show. Attorney Zvi Hahn signed for the buyer, Acro 416 West 52nd St. LLC.
Gaia Real Estate and the Acro Group teamed up to purchase 416 West 52nd St. for $156.5M in 2015, Commercial Real Estate Direct reported at the time. This is the latest bulk condo sale in Manhattan, where investors are taking advantage of low prices and buying anywhere from three to 100 condos at a time. The eight-story building contains 155 units, ranging from studios to three-bedrooms, which sold this year for between $826K for a studio and nearly $3M for a three-bedroom, according to StreetEasy.
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Church Home Associates sold a 30K SF piece of vacant residential land on Lenox Avenue between West 114th Street and West 115th Street in Harlem for $16.1M, property records filed this week show. The buyer was West 114th Acquisition LLC.
TOP FINANCING DEALS
Bank of America, Citigroup and Wells Fargo & Co. are underwriting a $1.1B CMBS refinancing for The Durst Organization at two Manhattan office buildings, Bloomberg reports. The 45-story, 1.1M SF 1133 Sixth Ave. office building has Bank of America and the National Basketball Players Association as tenants, and the six-story, 658K SF 114 West 47th St. office building is leased to tenants such as Convene and IFM Investors. The loan will be used to retire approximately $800M of existing debt and allow Durst to take out $283.5M of equity from the building and cover closing costs, according to Fitch Ratings, which reviewed the CMBS offering.
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Multifamily lending was popular this week. Invesco Real Estate scored $65.6M in debt on its 37-unit Brooklyn apartment building portfolio at 310 Menahan St., 312 Menahan St., 1236 Halsey St., 752 Bushwick Ave., 1312 Bushwick Ave., 978 Bedford Ave., 106 Harman St., 79A Cooper St., 1310 Putnam Ave. and 756 Lincoln Place, PincusCo. Media reports. The buildings are all two-to-four-family buildings. Greenbrook Partners and The Carlyle Group financed the loan.
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In another multifamily financing deal, Orix Real Estate Capital lent Avenal Development $48M for its 322-unit Harlem apartment building at 89 Lenox Ave., PincusCo. Media reports. The 11-story building, located between West 114th and 115th streets, was built in 1981.
