This Week's N.Y. Deal Sheet
This week brought New York's biggest affordable housing portfolio sale of the year, a law firm renewing its Manhattan office lease for more than 200K SF and the developer of a new Queens residential project scoring construction financing.
TOP SALES
Fairstead and Invesco Real Estate partnered to acquire 48 buildings with 2,000 affordable housing units in the Bronx, the companies announced in a statement. The deal is the largest New York affordable housing purchase this year, per the announcement. The seller is Property Resources Corp. and the deal is valued at $350M, Crain’s New York Business reports. The units, spread across the Morrisania, Longwood, Crotona Park and Tremont neighborhoods, will be maintained as affordable.
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Treetop Development, led by Adam Mermelstein, paid $76M to purchase a portfolio of 13 apartment buildings in Brooklyn from the Knoll family in an off-market deal, The Real Deal reports. The buildings have 389 rent-stabilized units across properties in Williamsburg, Sheepshead Bay and Midwood, per the publication. Steven Vegh and Phil Goldstein of Westwood Realty Associates arranged the deal for both sides of the transaction.
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Columbia Property Trust sold its office property at 218 West 18th St. to Meadow Partners, The Real Deal reports. The buyer paid about $170M, and the deal, arranged by Cushman & Wakefield's Adam Spies, Adam Doneger and Rachel Humphrey, closed earlier this month. It comes after Pacific Investment Management Co. agreed to acquire Columbia Property Trust for $2.2B in cash in a deal announced in September.
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Vornado sold its 9K SF retail condominium at 501 Broadway in SoHo for $27.5M, Avison Young announced. The buyer is Crane Partner Asset Management, and the property is currently leased by Capital One. Avison Young’s James Nelson, Brent Glodowski and Eric Karmitz arranged the deal.
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Tishman Speyer closed on its purchase of 10 of the 11 building sites that make up Edgemere Commons in Far Rockaway Queens from Arker Cos., per PincusCo. Tishman Speyer paid $90.4M in the deal, which it announced in November. When all 11 buildings are developed, Edgemere Commons is set to feature 2,050 apartments, including 237 put aside for seniors. The 2.2M SF mixed-used development is set to have 38K SF of publicly accessible open space, including a plaza.
TOP LEASES
Fintech firm Melio leased 25K SF at RAL Development Services’ and Junius Real Estate Partners’ Zero Irving in Midtown South, the developers announced. Melio is the first tenant at the property, at 124 East 14th St., and is paying $125 per SF, according to Commercial Observer. Melio is moving from a WeWork on West 18th Street. Andrew Stein and Gabi Koshgarian of Vicus Partners represented Melio in the deal, while JLL’s Mitch Konsker, Benjamin Bass, Dan Turkewitz, Kristen Morgan and Carlee Palmer handled leasing for the building.
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Ivanhoé Cambridge and Callahan Capital Properties locked down a big renewal at 3 Bryant Park when law firm Dechert renewed for 241K SF, Commercial Observer reports. The company has been in the 1.3M SF building for 20 years. Cushman & Wakefield’s Mark Weiss and Jon Herman represented Dechert and CBRE’s Bob Alexander arranged the deal for the landlord.
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Law firm Barnes & Thornburg has signed a 33K SF sublease at 390 Madison Ave., Bloomberg Law reports. L&L Holding owns the property, but the sublandlord wasn't reported. The deal means the firm is tripling its space in New York City in the move from 445 Park Ave. JLL‘s Daniel Posy, Guthrie Garvin, Joe Messina and Ian Lipman represented Barnes & Thornburg. The deal is for 14 years.
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Nonprofit JCCA leased 68K SF at Meadow Partners’ 57 Willoughby St, Crain’s New York Business reports. The Brooklyn office lease was arranged by Savills' Marc Shapses and Roi Shleifer on the tenant side and JLL’s Whitten Morris and Joseph Sipala on the landlord's.
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Venture capital investors 16z leased 34K SF at 200 Lafayette St., the New York Post reports. The company is expanding from its smaller office at 11 Madison Ave. Adam Henick and Brandon Charnas of Current Real Estate Advisors repped 16z, while the landlord was represented by JLL’s Barbara Winter and Carlee Palmer. Swiss RE owns the third to seventh floors of the property, and Brookfield owns the ground and second-floor retail spaces.
TOP FINANCING DEALS
Wells Fargo lent Taconic Partners and Clarion Partners $130M to refinance their Eastchester Heights in the Bronx, Commercial Observer reports. The affordable housing complex has 1,416 rent-stabilized units and this new funding retires Capital One’s $115M 2018 loan on the property, and provides money for renovations, per the publication.
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RB Realty Capital scored $125M from Madison Realty Capital to build its 22-story building at 98-08 Queens Blvd. The construction loan is to fund the development of a building that will have 155 rentals and 31 condos, per The Real Deal.
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Ladder Capital loaned $37.5M to ZG Capital Partners acquisition of 836 Broadway in Manhattan’s Union Square, Commercial Observer reports. ZG signed a contract to pay $39.3M in October. Newmark’s Dustin Stolly, Jordan Roeschlaub, Daniel Fromm and Eden Abraham arranged the financing.
