This Week's N.Y. Deal Sheet
Welcome to another week of deals in New York City, in which a tech firm is moving its headquarters to Chelsea, another Queens last-mile site was snapped up and Goldman Sachs lent nearly $150M for the construction of a new Brooklyn apartment building.
TOP LEASES
Airport security tech company Clear inked a 15-year, 120K SF lease at Vornado Realty Trust and Related Cos.’ 85 10th Ave., which will serve as the company's headquarters, according to a regulatory filing from the tenant Thursday. Clear said it will receive 16 months of free rent at the start of the lease and a rent abatement to cover its current lease at Blackstone’s 65 East 55th St., also known as the Park Avenue Tower, through February 2027, per the filing. The lease also includes a five- or 10-year renewal option. The company’s new offices will be in an 11-story, 635K SF office building undergoing a renovation near the High Line. Newmark’s Jared Horowitz and Jason Perla brokered the deal for the tenant, while Vorndao’s Edward Riguardi and Anthony Cugini represented the landlord in-house, Commercial Observer reported.
***
Target signed a lease to take up 90K SF at Macerich’s Kings Plaza Shopping Center in Brooklyn, the landlord announced, taking over JCPenney’s old spot as one of the complex’s new anchor tenants. Ripco Real Estate's Jeffrey Howard brokered the deal for the tenant, The Real Deal reported. The lease follows Target announcing a Long Island City location in a 31K SF lease with Savanna at One Court Square.
***
Netflix will take up 11K SF of retail space at RXR Realty’s 5 Times Square for a Stranger Things-themed pop-up storefront during the holiday season, the landlord announced. Newmark’s Joshua Strauss and Scott Zinovoy brokered the deal for Netflix and also, along with their Newmark colleague Karen Bellantoni, represented RXR. The storefront is set to include set scenes, photos and other experiential activities, per the landlord.
TOP SALES
An unnamed foreign buyer scooped up an apartment building at 415 West 120th St., occupied by Columbia University students, from Tri-Hill Management and Pebb Capital for $84M, The Real Deal reported. The 14-story, 80-unit building, dubbed Monarch Heights, was developed last year, per StreetEasy. A three-bedroom, two-bathroom unit was recently leased for $8K while a studio was recently leased for $2,950.
***
The Steinberg family sold a 32K SF warehouse at 58-80 Borden Ave. in Maspeth to Sitex Group for $51M, The Real Deal reports. The 95K SF plot of land, developed in 1965, is near a Home Depot, according to its listing on the broker’s website. It is marketed as a potential build-to-suit, last-mile distribution center. Pinnacle Realty’s David Junik and James Tack brokered the deal.
***
New York City Housing Partnership paid New Jersey-based real estate investor Meyer Orbach $21M for two apartment buildings at 165 Manhattan Ave. and 169 Manhattan Ave., located near 108th Street on the Upper West Side, property records show. Both six-story prewar buildings have 24 units that are one, two or three bedrooms, according to StreetEasy.
TOP FINANCING DEALS
Arden Group has provided the owners of Margaritaville Resort Times Square a $57M mezzanine loan, the lender announced. Soho Properties, helmed by Sharif El-Gamal, was the lead developer of the project at 560 Seventh Ave., which opened earlier this year. The resort, which cost an estimated $300M to build, has 234 rooms as well as Margaritaville-themed restaurants and bars.
***
Maddd Equities and Joy Construction scored a $140M construction loan from Wells Fargo and New York City’s Housing Development Corp. for their affordable River Avenue project in the Bronx, Crain’s New York Business reported. The collection of buildings, including 1159 River Ave. and 1184 River Ave., are expected to yield over 700 units of affordable housing near Yankee Stadium and deliver by March 2023, per Crain’s.
***
Goldman Sachs has given Rabsky Group a $149M construction loan for the development of 69 Adams St., PincusCo. Media reports. The 26-story, 225-unit Dumbo project doesn't have a completion date yet, New York YIMBY reported this summer. The apartments would be constructed over 100K SF of commercial space, per YIMBY.
