This Week's N.Y. Deal Sheet
Office leasing volume continued to roll this week, with Chubb signing on to fill nearly a third of a newly developed office building and a pet food subscription company relocating.
TOP LEASES
Insurance firm Chubb has signed a lease for 240K SF of office space at Olayan Group’s 550 Madison Ave., occupying nearly a third of the building. Rents for the space are likely to be north of $100 per SF, the New York Post reported. Olayan and development partner RXR Realty recently poured millions into renovating the building. This is a move and expansion for the insurance company, which occupies 184K SF at 1133 Sixth Ave.
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Bark, the company behind pet food subscription service Barkbox, inked a 15-year lease at Silverstein Properties’ 120 Broadway to take up 52K SF, Commercial Observer reports. The new tenant will move into the 40-story tower, also known as the Equitable Building, next fall. The recently renovated property is also leased to tenants like Macmillan and New York Life. Barkbox signed a 10-year lease for the sixth floor at the 33K SF 221 Canal St. office building in 2013.
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Financial technology company Squire Technologies Inc. signed a lease to take up 10K SF of office and retail space at L3 Capital LLC’s 216 Bowery, a boutique office building, Cushman & Wakefield announced. The company is taking over all five of the building's floors, including the street-level retail. David Hoffman and Sam Hoffman of C&W brokered the deal for Squire, while C&W’s Ethan Silverstein, Greg Kuhlman, Caroline Collins, Steve Soutendijk, Chris Schwarz and Sean Moran represented the landlord.
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Second Stage Inc. penned a 17K SF lease at Palace Funding’s 296-seat off-Broadway Tony Kiser Theater at 681 Eighth Ave., Avison Young announced. Avison Young’s Arthur Mirante and Patrick Steffens brokered represented Second Stage in the deal, while Palace Funding’s Richard Carroll and Ciro Salcedo brokered the deal in-house for the landlord.
TOP SALES
Tishman Speyer acquired 10 sites at the affordable housing development Edgemere Commons in Far Rockaway from Arker Cos. for $90M, Crain’s New York Business reports. Arker retained control of one site at the property, which it plans to develop with joint venture partner Slate Property Group into 194 apartments and a 20K SF grocery story, Crain's reports. Tishman plans to develop the rest of the property, which is slated to include 2,050 units of 100% affordable housing in addition to 38K SF of public space and 222K SF of commercial space, according to 6sqft. It is set to be finished in 2034.
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Brookfield Properties paid Dov Hertz's DH Property Holdings $45M for the ground lease at 55 Bay St., the site of an Amazon distribution center, The Real Deal reports. Hertz began development of the 83K SF Red Hook warehouse three years ago. Brookfield has been buying up industrial properties recently — last month, it bought a 19-acre New Jersey site, Real Estate Weekly reported.
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An LLC in the care of the real estate law firm Teitelbaum Gallagher paid Propco Holdings $16M for 3254 Parkside Place in the Bronx, property records show. There was a permit filed to develop the address into 97 apartments, New York YIMBY reported, and construction was finished on the building in 2020, according to PropertyShark.
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Okada & Co. purchased a seven-story office building in Chelsea at 109 West 24th St. for $16M, property records show. Montauk Rug and Carpet Corp., which has a storefront at the location, sold the 45K SF property.
Fortis Property Group scored $284M from G4 Capital Partners to refinance its 33-story, 74-unit condo building at 30 Front St. in Dumbo, Commercial Observer reports. The building, designed by Hill West Architects, wrapped up construction this year. There are 11 units on the market, according to StreetEasy, ranging from just under $1.8M to $12.9M. Douglas Elliman and Sotheby’s International are marketing the building. The new loan will refinance a 2020 $163M construction loan from Madison Realty Capital, per CO.
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Scale Lending loaned K2 Real Estate Partners $68M to finance the construction of a 165-unit apartment building at 210 Clarkson Ave., The Real Deal reports. The eight-story building will also include just under 19K SF of commercial space, according to 2019 permit filings reported by YIMBY.
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Related Cos. refinanced its 139-unit apartment building at 529 West 29th St. with a $42.7M loan from Wells Fargo, PincusCo. Media reports. The building, developed in 2014, is dubbed affordable on Related’s website.
