This Week's N.Y. Deal Sheet
Deal volume ramped up this week with major sales, like KKR's purchase of the Hudson Yards observation deck, and large office leases, like a federal government renewal in Lower Manhattan.
The General Services Administration signed a 72K SF lease renewal at Nuveen Real Estate’s 86 Chambers St., Cushman & Wakefield announced. David Hoffman, Jonathan Fein and Whitnee Williams of Cushman & Wakefield along with CBRE’s Edward Welbourn and Marcy Owens Test brokered the deal for Nuveen. Cushman & Wakefield is also marketing another 3,167 SF availability in the 409K SF building for $55 per SF, according to its website. The GSA leases space on behalf of federal agencies; the office of the U.S. Attorney for the Southern District of New York has an office at 86 Chambers.
***
Outerstuff signed a 51K SF, 10-year lease renewal at AB & Son’s 1412 Broadway, after flirting with the idea of moving from its office of 10 years to Brooklyn or New Jersey, Cresa announced. The company’s offices span three floors and asking rent was $45 per SF. The 400K SF property, known as the Fashion Gallery Building, boasts tenants such as Escada and Fintech Studios, according to MetroManhattan. Simeon Weber of Cresa represented Outerstuff, while Newmark’s Howard Kessler brokered the deal for the landlord.
***
Camera rental company ARRI Rental took 42K SF at JDA Realty Corp.’s 47-27 36th St. in Long Island City, Cushman & Wakefield announced. ARRI plans to consolidate locations in Brooklyn and New Jersey into the Queens space, where asking rent was around $21 per SF, Commercial Observer reports. The company plans to make its new space its North American headquarters. Joseph Grotto, Joseph Meyerson and Michael Deutsch of Cushman & Wakefield brokered the deal for the landlord, while DY Realty’s Justin Butts represented the tenant.
***
Biotech venture capital company SOSV inked a 25K SF, 10-year lease at The Feil Organization’s Seven Penn Plaza, also known as 370 Seventh Ave. SOSV will open a location for IndieBio, an accelerator for the companies the VC firm has invested in. The space will be built out to include labs, office and conference rooms. New York state recently gave SOSV a $25M grant in an attempt to accelerate the growth of its burgeoning life sciences sector.
TOP SALES
KKR paid Related Cos. and Oxford Properties Group $509M for a 75% stake in The Edge at 30 Hudson Yards, the neighborhood's observatory that opened weeks before the pandemic shook the city. This is the second investment KKR has made in the building — it bought two office condos in 2019 and is its anchor tenant.
***
Yucaipa Cos., helmed by Pittsburgh Penguins co-owner Ron Burkle, paid Clarion Partners $155M for 86 Trinity, also known as the American Stock Exchange Building, in Downtown Manhattan, Crain’s New York Business reports. Located near the World Trade Center, the building was once the site of the American Stock Exchange and the seller transformed the building into mixed-use hotel and retail space, Commercial Observer reports.
***
KKR bought an apartment building at 1056-1066 Manhattan Ave. in Brooklyn for $87M, property records show. Bruman Realty sold the 80-unit seven-story luxury multifamily building, developed in 2019, which contains 27 affordable units, according to New York YIMBY.
***
In a second Brooklyn multifamily transaction, KKR also paid Bruman Realty $126.2M for 1134-1152 Fulton St., property records show. This eight-story luxury rental property, located in Bed-Stuy, contains 116 units and was built in 2019, according to StreetEasy. In August 2020, The Real Deal reported KKR was joining forces with Dalan Management to purchase 14 buildings from Bruman at $860M. The deal was under contract at the time.
TOP FINANCING DEALS
KKR and Related secured $391M from Carlyle Group for the recapitalization of the Hudson Yards observation deck, the Edge, PincusCo. Media reports. KKR bought a 75% stake in the building from Related earlier this week for $509M.
***
Trinity Place Holdings Co. scored a $167M inventory loan on its condo tower at 77 Greenwich St. for $167M, JLL announced. Macquarie Capital provided the debt. The 42-story, 90-unit building delivered last year, per StreetEasy, and sales range from $1.4M to over $5M per unit. JLL’s Geoff Goldstein, Steve Klein and Alex Staikos brokered the deal.
***
Stawski Partners secured a $93M loan from Apple Bank for Savings to refinance the office buildings at 565 Fifth Ave. and 1212 Sixth Ave., PincusCo. Media reports. The Fifth Avenue office building spans 23K SF and has two office spaces available, according to CBRE’s website, and the 23-story Sixth Avenue property spans 250K SF and has a 22K SF retail availability, according to Cushman & Wakefield’s website. The new debt replaced old debt that included one of the borrower’s Queens properties as well, per Pincus.
