This Week's N.Y. Deal Sheet
The leaves are falling but the big deals are picking up, such as Madison Square Garden Entertainment staying put after signing a huge lease renewal and an iconic film studio changing hands.
TOP SALES
Edison Properties sold the 18-building, 3.1M SF, 56,000-unit Manhattan Mini Storage portfolio to StorageMart for $3B, The Real Deal reports. The deal is the latest in a series of major self-storage sales this year, as the industry booms amid the coronavirus pandemic. Edison Properties is a New Jersey-based company that has focused on parking facilities and storage units.
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Hackman and Square Mile dropped a reported $600M on another iconic film production studio after buying Silvercup Studios earlier this year. Kaufman Astoria Studios, an affiliate of The Kaufman Group, sold the 11-soundstage property at 34-12 36th St. to the joint venture, which turned around and dropped $1.8B on a large studio property in Los Angeles this week. The content filmed at Kaufman Astoria over the years includes Sesame Street, Orange is the New Black and The Irishman.
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Realterm Logistics paid Ohio-based RLR Investments $70M for a warehouse at 512 Gardner Ave. in Brooklyn, property records show. The 16K SF building sits on 4 acres, per Realterm’s website, and has 52 doors and about 4K SF of office space. It sits next to the Brooklyn-Queens Expressway and lies along Newtown Creek, which separates Brooklyn from Queens.
TOP LEASES
Madison Square Garden Entertainment signed a 20-year, 428K SF renewal at Vornado Realty Trust’s Two Penn Plaza, the landlord announced. The company’s lease next door on the iconic 18,000-seat stadium it operates goes until 2023 and the company plans to ask city council to extend it indefinitely.
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Industrious inked a 10-year management agreement with landlord The Sapir Organization for a 43K flexible office space at 261 Madison Ave., the landlord announced. The two-floor space was previously leased to WeWork. Sapir took the now-public coworking giant to court after it allegedly failed to pay $17M in rent it owed, Crain’s New York Business reported last month. WeWork claimed it doesn't owe the rent, instead alleging that ousted former CEO Adam Neumann, as the guarantor on the lease, is on the hook.
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Investment banking company William Blair has agreed to lease 80K SF at Edward J. Minskoff Equities’ 1166 Sixth Ave. in a new expansion, JLL announced. The company will double its presence in the building from the 40K SF it signed for in 2018 after leaving 666 Fifth Ave., The Real Deal reported. JLL’s Paul Glickman, Jonathan Fanuzzi, Cynthia Wasserberger, Diana Biasotti and Minskoff’s Jeffrey Sussman brokered the deal for the landlord, while CBRE’s Silvio Petriello, Ben Friedland, Ramneek Rikhy, Joseph Fabrizi and Cara Chayet represented William Blair.
TOP FINANCING DEALS
Young Cos. and Phil Craft scored a $77M bridge loan from Cerberus Capital Management on the developer’s 114-unit residential development at 585 North Ave. in New Rochelle, Greystone Capital announced. The loan refinances existing debt on the building, which also contains 21K SF of commercial space. The Greystone Capital Advisors’ Drew Fletcher, Matthew Klauer and Jesse Kopecky brokered the debt for the borrower.
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Wells Fargo and U.S. Bank provided the Gotham Organization with a $212M construction loan for the 430K SF mixed-use building it is developing with Goldman Sachs at 550 10th Ave., Crain’s New York Business reports. The developers bought the building from youth homelessness nonprofit Covenant House for $80M, and are set to build a 47-story tower with 453 apartments over 9K SF of retail. Lionheart Strategic Management provided a $35M mezzanine loan for the project, which will include an office for Covenant House, Crain's reports.
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Wells Fargo loaned $82.2M in a financing deal to the transfer of ownership of 590 Fifth Ave., property records for two separate loans show. SL Green announced last month that it sold the property a year after taking it over from Thor Equities after a UCC foreclosure. In deeds filed with the city on the same day as the financing, an LLC in care of SL Green transferred ownership to another LLC in care of SL Green. When last month’s sale was announced, sources familiar with the transaction confirmed to Bisnow that Effy Jewelry, owned by the Hematian family, bought the property from SL Green.
