This Week’s N.Y. Deal Sheet
This week, SL Green locked down a series of deals, including a massive lease expansion and the sale of an office building, while an Australian industrial developer made its first New York City purchase.
TOP SALES
Naftali Group paid $72.6M for two five-story buildings on the Upper East Side, Commercial Observer reports. The properties are at 1481-1489 Second Ave., and together have 152K buildable SF, and 186K SF if affordable housing is included in any development. Sky Management Corp. was the seller and the deal, brokered by JLL's Bob Knakal and John Hageman, closed last week. JLL’s Max Herzog, Scott Aiese, Jillian Mariutti and Alex Staikos arranged financing for Naftali Group.
***
Taconic Partners and Nuveen, in partnership with Flatiron Equities, have bought a loft-style office building at 309 East 94th St. and 324 East 95th St. for $70M, the developers announced this week. The seller was the Karten family and the buyers paid all cash, Crain's New York Business reports. Newmark Senior Managing Director Barry Goodman represented the seller in the deal.
***
All Year Holdings has sold its apartment complex in Bushwick, the Denizen, to Atlas Capital Group for $506M, broker Meridian Capital Group announced. The sale is the largest single asset multifamily transaction in the country since 2018 — the property covers two city blocks across 770K SF and includes 911 units. The deal includes $367.5M in acquisition financing provided by Square Mile Capital. The sale required approval from U.S. bankruptcy court in New York, The Real Deal reported in September. Meridian’s Helen Hwang, Tamir Kazaz, Brian Szczapa, Yasmin Kheradpey and Karen Wiedenmann represented the seller. Meridian’s Morris Betesh and Alex Bailkin arranged the financing on behalf of Atlas Capital Group.
***
Meadow Partners is buying the office building at 110 East 42nd St. from SL Green for just over $117M, the seller announced. Meadow is acquiring the 304K SF property on behalf of a separately managed account, per SL Green. Newmark’s Evan Layne and Brett Siegel brokered the transaction. The sale is expected to close by the end of the year.
***
Australian industrial property owner and developer Goodman paid $128.5M for two properties in Astoria, PincusCo reports. The seller of the two assets was Bram Auto Group. The lot at 40-30 Northern Blvd. sold for $85.7M and 39-04 Northern Blvd. was sold at $42.8M, per the publication. Goodman could build the tallest warehouse in the city if it maxes out its zoning rights, The Real Deal reported.
TOP LEASES
Bloomberg expanded its footprint at SL Green's 919 Third Ave. by 191K SF, the landlord announced this week. With this extra space, on the 28th to 33rd floors, the company will occupy 748K SF at the property. Bloomberg is paying $85 per SF and the new deal is for six-and-a-half years, Commercial Observer reports. CBRE’s Craig Reicher and Howard Fiddle represented Bloomberg. SL Green was represented by Robert Alexander and Ryan Alexander, also of CBRE.
***
Fisher Brothers signed a quadrifecta of new leases at 299 Park Ave. in Midtown, the landlord announced Tuesday. Moving into the building will be real estate investor The Lightstone Group, which leased 20K SF on the 34th floor; private equity firm Kelso & Co., which leased 30K SF on the 30th floor; and Crescent Capital Group LP, which leased 30K SF on the 33rd floor. Lincoln International LLC expanded its footprint in the building to 57K SF on the sixth and seventh floors. The leases come after a $20M renovation to the 1.2M SF tower.
***
RFR locked in eight new and existing tenants at the Seagram Building in deals collectively spanning 46K SF, the landlord announced. Tenants Ehrenkranz Partners, Investindustrial, Brant Point Capital and Ontario Teachers’ Pension Plan all signed renewals and expansion deals. CapVest Partners, Decheng Capital, Pantera Capital and Skyway Equities completed new leases at the building at 375 Park Ave. RFR’s AJ Camhi and Paul Milunec represented the landlord in the leases.
***
Ben Soleimani, a luxury furniture and rug retailer, leased 12K SF at 601 Madison Ave., according to the brokerage on the deal, MONA. The landlord of the building is J-2, and the two-year deal means the retailer has 4,226 SF of ground-floor space, 4,270 SF on the second floor and 3,858 SF on the lower level. Ben Soleimani will replace the previous tenant, Tourneau, in a deal arranged by MONA's Brandon Singer. The landlord was represented by William Abramson and Matthew Olden from Buchbinder & Warren.
TOP FINANCING DEALS
Real estate finance and investment management firm PCCP loaned Bromley Cos. $170M for 122 Fifth Ave., The Real Deal reports. The money will be used to revamp the property as part of its repositioning, which landed Bromley a 150K SF deal with Microsoft at the property. Walker & Dunlop’s Aaron Appel and Jonathan Schwartz arranged the loan.
***
Wells Fargo provided a $170M construction loan to Lalezarian Properties, allowing it to restart building at 606 West 30th St., PincusCo reports. Construction had been paused at the residential tower, and only recently started again, according to New York YIMBY. The funding includes money to refinance the original $38M acquisition loan and $132M in the form of a construction loan.
***
DH Property Holdings, led by Dov Hertz, scored a $442M loan from JPMorgan for its massive distribution hub in Brooklyn, The Real Deal reported. DH Property is joining with Bridge Development Partners and Banner Oak Capital Partners to build a 1.3M SF multi-story warehouse facility in Sunset Park. Eastdil Secured is the broker on the deal.
***
K2 Real Estate Partners locked down a $68.5M construction loan from Slate Property Group’s Scale Lending, PincusCo reported. The loan is for 210 Clarkson Ave. in East Flatbush, where a 165-unit building is planned, per Commercial Observer. Meridian Capital Group arranged the financing.
