This Week's N.Y. Deal Sheet
This week saw sizable lease signings in major Manhattan buildings, as well as several notable loans, although large sales remained sparse.
TOP LEASES
Chelsfield Group, a London-based real estate investment firm, snapped up a 128K SF ground lease for SoHo’s 580 Broadway, The Real Deal reported. Chelsfield, which paid $50M for the ground under the office building, plans to renovate the property. BridgeInvest, a Miami-based lender, put up $35M for Chelsfield to buy the land from owner Nathaniel Mosery’s Broad Prince Realty. Chelsfield was active in NYC’s commercial real estate market during the 1990s and early 2000s, but shied away from the market after going private a few years before the 2008 recession. It returned to the NYC market in 2016, advising The Olayan Group on its acquisition of the Sony Building.
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Simone Development Cos. spent $32M acquiring Triangle Plaza Hub, a 50K SF grocery and retail space in Mott Haven built in 2015, according to a release. The Bronx-based developer purchased the space at 459 East 149th St. from Triangle Equities. The South Bronx building is 97% leased and LEED-certified. JLL’s Steven Rutman, Rob Hinckley, Karl Brumback, Andrew Scandalios and Madison Warwick brokered the sale on behalf of Triangle Equities.
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Park Slope’s The Church of the Holy Family in the City of Brooklyn sold for $11.3M, Crain’s New York Business reported. The church, which occupies 205 14th St. and 228 13th St., was bought by 205 14th Street LLC.
TOP FINANCING DEALS
A Newmark team facilitated a $590M loan for Class A-office space at 1540 Broadway, according to a release. The space previously known as the Bertelsmann Building went through a three-year-long, $40M capital improvement, including a new 27K SF Gensler-designed amenity floor. Apollo, MSD and Monarch provided the loan to Edge Fund Advisors and HSBC, with Newmark’s Jordan Roeschlaub and Dustin Stolly securing the financing.
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Connecticut-based developer National Resources secured $230M to repay a construction loan for the development of a 500K SF film production complex to be occupied by Lionsgate. The property, at 28 Wells Ave. in Yonkers, is part of National Resources' portfolio of Hudson River waterfront properties in the New York metro area, according to a release. Michael Zaremski, Michael Shmuely, John Flynn and Jimmy Cochran handled the transaction for National Resources.
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Slate Property Group scored a $167.5M refinancing deal from Two Bins Capital for a Harlem property with a 210-room Marriott Renaissance hotel, 24K of retail space and the historic Victoria Theater, according to a release. Lam Group and Exact Capital Group are the developers for the 233 West 125th St. property, known as the Victoria Tower, and have plans to build a second theater in addition to the Victoria Theater, with Apollo Theater operating both entertainment venues. Victoria Tower also includes 191 rental units, 103 of which are affordable housing, and it sits on top of ground leased by the Empire State Development Corp.
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The Chetrit Group has secured $70M from Madison Realty Capital for a mixed-use multifamily development at 260 South St., Commercial Observer reported. The Chetrit Group purchased the property for $78M from L+M Development Partners and CIM Group on Friday. Henry Bodek, of Galaxy Capital Solutions, secured the financing for Chetrit.
CBRE brokered one of the biggest leases so far this year, signing not-for-profit health system MJHS for 138K SF at 55 Water St., according to a release. The 30-year lease gives MJHS the 46th and 47th floors of the building in Manhattan’s FiDi neighborhood. CBRE represented both the landlord and the tenant in the deal. Howard Fiddle, Brad Gerla, Even Haskell and Mary Ann Tighe represented the landlord, New Water Street Corp., a subsidiary of the Retirement Systems of Alabama. Chris Mansfield, Harly Stevens and Zach Weil represented MJHS. The deal ensures the ongoing stability of 55 Water St., which is 95% leased.
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The Durst Organization has a new tenant at The Apex, 1155 Avenue of the Americas, according to a release. Global Relay USA, a provider of cloud-based electronic message archiving, supervision and e-discovery solutions for the global financial sector, signed on for 77K SF for 15 years. The lease gives Global Relay the 29th through 42nd floors. The Durst Organization had in-house representation from Tom Bow, Rocco Romeo and Tanya Grimaldo. Colliers’ Michael Cohen, Howard Kaplowitz and John Brazier handled the deal for Global Relay.
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TPG Architecture renewed its 40K SF lease at 31 Penn Plaza with landlord the Vanbarton Group, according to a release. The renewal gives the architecture firm seven more years at 132 West 31st St. JLL's Mitchell Konsker, Matthew Astrachan, Kyle Young and Thomas Swartz worked on behalf of the landlord, while CBRE's Mark Ravesloot, Michael Monahan and William Iacovelli provided representation for the tenant.
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Internationally renowned artist Hunt Slonem signed a lease for an entire building at 595 11th Ave., according to a release. Slonem’s lease gives the artist the space — a total of 37K SF consisting of a lower level, three floors and a roof terrace — for five years. Newmark’s Nick Berger represented the landlord, 595 Eleventh LLC, which is in the care of Marin Management. Cushman & Wakefield’s Carri Lyon represented Slonem, who also owns numerous U.S. properties including Searles Castle and whose work has been featured in New York museums including MoMa and the Guggenheim.
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One steakhouse may replace another at 7 West 51st St., as Maribella Hospitality Group signed a 17K SF lease with Sedesco Inc. The New York Yankees Steakhouse previously occupied the multilevel space, where Maribella plans to open a high-end Italian steakhouse, according to a release. Alan Schmerzler, Steven Soutendijk, Sean Moran and Chris Schwart of Cushman & Wakefield represented Sedesco, while Ripco’s Thomas Caliendo represented Maribella.
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Business data analytics software company Sigma Computing Inc. will take 15K SF at Zero Irving, according to a release. The five-year lease will see Sigma occupy the ninth floor of the 21-story trophy office building, owned by real estate development firm RAL Development Services. Newmark’s Jeff Rodgers, Stephen Cisarik and Brent Ozarowski handled the transaction for the tenant, while JLL’s Mitch Konsker, Benjamin Bass, Dan Turkewitz, Kristen Morgan and Carlee Palmer provided representation for RAL.
TOP SALES
