This Week's N.Y. Deal Sheet
This week, Tishman Speyer locked down a new tenant for its upcoming Hudson Yards tower, The Spiral, hundreds of Section 8 housing units sold and the iconic Helmsely Building on Park Avenue was refinanced.
TOP LEASES
Turner Construction leased the entire third floor of The Spiral at 66 Hudson Blvd. The firm, which is serving as the project's general contractor, is moving to 75K SF in a 13-year deal, landlord Tishman Speyer announced Monday. The 2.8M SF tower is due for completion next year. CBRE’s Mary Ann Tighe, Rob Hill, Brendan Herlihy and Elliot Bok advised Turner on the deal. Tishman Speyer was represented by its in-house team.
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ReadySpaces, a flexible warehouse space startup, inked a deal for 90K SF at 59-10 Decatur St. in Ridgewood, Queens. The industrial loft building is owned by Isaac Chetrit — this is ReadySpaces' first location in New York City, The Real Deal reports.
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Fisher Bros. has locked down three tenants at 1345 Sixth Ave., the landlord announced. The largest lease is for investment management Man Investment Holdings, which is taking nearly 34K SF on the 21st floor. Philanthropic advisory service the ELMA Philanthropies is taking nearly 18K SF on the 23rd floor, while investment firm Aegis Capital Holdings is set to take 12K SF on the 27th floor.
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Kohn Pedersen Fox renewed and expanded its lease at 11 West 42nd St., which is owned by Tishman Speyer, the New York Post reports. With an extra 38K SF added onto the lease, the architecture firm will have more than 100K SF at the property. The rent was in the low $60s per SF, the Post reports, and KPF has been given a year of free rent on its new floor as part of the deal.
TOP SALES
Camber Property Group has spent $105M acquiring the Triboro portfolio, which encompasses 300 affordable housing units in three properties in three boroughs. The units have project-based Section 8 contracts on them, which means residents don't pay more than 30% of their household income on rent, according to Camber. Omni New York was the seller on the portfolio, TRD reports.
The buildings in the portfolio include Grace Towers, a two-building property with 168 units in Brooklyn; Target Apartments, an 83 unit-property in the Morris Heights section of the Bronx; and the Madison Apartments complex, a 55-unit property on Madison Avenue between 130th and 131st streets in East Harlem. The deal with the New York City Department of Housing Preservation and Development means the units will have 60 years of extended affordability, per the release from Camber.
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The Shokai Group paid Victor Group and Lendlease $80.9M for 22 unsold condominiums at the luxury tower 277 Fifth Ave, The Real Deal reports. The 22 units have just over 31K SF between them, according to the publication, and TRD reports they were sold at a roughly 20% discount from their listing price.
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Aurora Capital closed on the purchase of the retail condo at 530 Fifth Ave. from Brookfield, according to documents filed with the city. The sale price was $192M for the property, about a third less than what Brookfield paid for it in 2014, according to The Real Deal, which reported on the sale in September. The property is around 60K SF and counts Duane Reade and Chase Bank as tenants.
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Safehold paid $32.3M for the ground underneath 202 Tillary St. in Downtown Brooklyn, PincusCo reports. Joy Construction sold the land and executed a leasehold that runs 99 years to November 2120. Safehold, owned by iStar, has made concerted effort to focus on ground leases in the last few years, and it has acquired at least eight in the past two years, per the publication.
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Hope Street Capital sold 22-22 Jackson Ave., a 175-unit rental building in Queens, to the Carlyle Group for $85M. The sale was financed with a $63.5M acquisition loan from Citibank, per PincusCo.
TOP FINANCING DEALS
Taconic Partners and National Real Estate Advisors reeled in a $204M construction loan from Union Labor Life Insurance Co., according to Avison Young, which arranged the financing. The debt is for the 33-story building the two companies are building at 312 West 43rd St. The property is set to have 330 luxury units and is due to be completed in 2024. Avison Young’s Tri-State debt and equity finance group arranged the deal.
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Bank Leumi USA, alongside Leumi Partners and Israeli Discount Bank, provided $95M to Fetner Properties and Lions Group for a Long Island City multifamily development, the companies announced. The loan is for the construction of the 27-01 Jackson Ave. project, a 27-story multifamily building in Long Island City that would feature 164 units with 30% set aside as affordable. The companies are co-developing the building; it is the first project Fetner Properties has launched in Queens, per the release.
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RXR Realty scored $670M from Morgan Stanley to refinance 230 Park Ave., known as the Helmsley Building, per PincusCo. The financing replaces a $785M acquisition loan from American International Group. RXR bought the property at 230 Park Ave. for $1.2B in 2015.
