This Week's N.Y. Deal Sheet

Activity in New York City didn't take a vacation last week, with a smattering of deals concentrated in Lower Manhattan, Midtown and Brooklyn.

TOP LEASES

The Rudin family and Allianz Real Estate signed four leases totaling 94K SF at their jointly owned One Battery Park Plaza in Lower Manhattan, according to a release.

Nationwide Mutual Insurance Co. is taking 38K SF over the 29th and 30th floors, made up of a 10K SF direct lease and a 28K SF sublease from Liberty Mutual, which Nationwide will take over when the Liberty's deal expires in November 2025. Law firm Cullen and Dykman signed a 28K SF lease and will relocate from 44 Wall St. to the Battery Park building, while law firm Abrams, Gorelick, Friedman & Jacobson is renewing its 8K lease in the building. The International Refugee Assistance Project also signed a 19K SF lease for the 33rd floor of the building, expanding and relocating from its 7K SF lease on the fourth floor. Rudin was represented in-house in all four transactions by Tom Keating and Kevin Daly. CBRE’s Paul Myers and Michael Rizzo represented Nationwide, Mike McKenna of Cresa represented Liberty Mutual, and CBRE’s Ken Rapp, David Hollander and Andrew Sussman represented Cullen and Dykman. Colliers International's Robert Gallucci represented Abrams, Gorelick, Friedman & Jacobson, and Savills’ Stephan Steiner represented the International Refugee Assistance Project.

***

Open Squash has signed a long-term agreement to open a new, 21K SF facility at 100 Pearl St., according to a release. This will be the nonprofit squash group's second location after its debut in Bryant Park. Open Squash will occupy the 14th floor at German investor Commerz Real's Pearl Street property, and it expects to buy the full-floor space this fall for an undisclosed amount. The Pearl Street location would open next spring, followed by the nonprofit’s plans to open its first Brooklyn location in spring 2024. The Open Squash deal brings 100 Pearl St. to 96% leased, with fellow tenants including NYC Health + Hospitals, the Securities and Exchange Commission and the New York Legal Assistance Group. Average asking rents are around $70 per SF in the building. JLL’s Robert Martin represented Open Squash, while Newmark’s Hal Stein, Andrew Peretz, Ben Shapiro and Daniel Appel represented the landlord with help from GFP Real Estate’s Allen Gurevich and Brian Steinwurtzel.

***

Boston Properties’ 767 Fifth Ave., otherwise known as the General Motors Building, has signed on investment firm Eldridge to a 37K SF deal, The Real Deal reports. Eldridge is increasing its NYC office footprint by 75%, moving from 350 Park Ave., where landlord Vornado is only issuing short-term leases as it prepares to start construction work. Eldridge will take the full 17th floor at the GM Building at a yet-unspecified date, joining the likes of current tenants Estée Lauder. private equity company J.C. Flowers & Co. and Perella Weinberg, a financial services firm. Boston Properties had in-house representation from Andrew Levin and Sophie Smolen, with additional help from CBRE’s Jacob Rosenthal, Christie Harle, Caroline Merck, Peter Turchin, John Maher and Ben Friedland. E.N. Cutler and Noel Flagg of Newmark represented E.N. Cutler and Noel Flagg.

***

Consumer review website Trustpilot is taking 34K SF at 50 West 23rd St., Commercial Observer reports. The website will take the entire 10th floor of the Two Trees Management-owned building, relocating from 5 Penn Plaza. Two Trees Management was represented in-house by Elizabeth Bueno and Alyssa Zahler. Sebastian Infante and Jamie Katcher, who at the time were at Cushman & Wakefield and have since departed to start Raise Commercial Real Estate’s New York office, handled the deal for Trustpilot.

***

Health insurer Empire BlueCross BlueShield has signed a 70K SF lease for $90 per SF at Vornado's One Penn Plaza, Crain's New York Business reports. The insurance company is moving from 14 Wall St., where it had a short-term deal. In a statement to Crain's, the company's CEO said it was transitioning from a traditional office environment to a hybrid model.

***

RFR has signed law firm Clayton, Dubilier & Rice to a 70K SF lease at 375 Park Ave., Crain's New York Business reports. RFR’s Paul Milunec and AJ Camhi represented the landlord in-house in the deal, while Newmark’s Andrew Sachs and Ben Shapiro represented the law firm.

TOP SALES

Private real estate investment manager Avanath Capital Management has purchased two Pacific Park buildings for $315M, according to a release. The properties, 38 Sixth Ave. and 535 Carlton Ave., are Avanath’s 100th acquisition and its first Brooklyn holdings. The two buildings are adjacent to the Barclays Center and have a mix of 601 affordable and market-rate units between them, as well as 43K SF of retail space and almost 3K SF of parking. The buildings qualify for NYC’s rent stabilization program and are part of the 7.3M SF Pacific Park project, which was launched as Atlantic Yards by Barclays Center developer Forest City Ratner. Greenland USA acquired the project from Forest City. The sale hasn't yet been posted in property records.

***

Investment firm and fund manager Be Aviv has sold 67-171 Chrystie St. for $64M to HUBB NYC Properties LLC, The Real Deal reported. The deal for the 78-unit rental building, which was developed using the 421-a tax abatement, on the Lower East Side was brokered off-market by Blackshore Realty Group’s Joseph Friedman and Julian Perla.

***

GAIA Real Estate Holdings has acquired three mixed-use walk-up buildings in Manhattan from SMA Equities, according to a release. The properties —177 Ludlow St., 99 Allen St. and 102 Norfolk St. — make up a total of 56 residential units and five retail spaces and sold for a combined $34.75M. JLL’s Guthrie Garvin, Jack Norton, Rob Knakal and Jon Hageman represented SMA Equities in the transaction, while Smith, Gambrell & Russell LLP’s Moty Ben Yona and Anne Pitter represented GAIA.

***

BlackRock has sold two properties in deals coming to $192M total, Crain’s New York Business reports. The first, 98 Riverside Drive, sold to Schreiber Realty for $90M and has all but three units currently occupied. BlackRock bought the building in 2008 for an undisclosed price, and the sale includes $35M in debt from Apple Savings Bank. The second sale was the Candela Tower at 56 Seventh Ave., which sold to Midwood Investment for $102M. The building has 158 units, 40% of which are rent-stabilized. 

TOP FINANCING DEALS

Fortress Investment Group affiliates have agreed to provide a $156M construction loan to Lex 47th Property Owner LLC for a luxury condo tower in Midtown West at 131-141 East 47th St., according to a release. The loan will retire a $50M acquisition loan originally issued by Emerald Creek Capital. A team from the New York office of JLL Capital Markets, led by Max Herzog and Scott Aiese, facilitated the loan.

***

GFP Real Estate scored a $60M debt package from Apple Bank to refinance its 12-story 200 Varick St. office property, Commercial Observer reports. The 3.55% fixed-rate, 10-year loan is interest-only for the first year and replaces a $56M 3.58% loan amortized at $70M, per CO. The property, first built in 1927, has signed more than 55K SF in new tenants over the past year and is now 91% leased.

***

Lower Manhattan waterfront luxury hotel and members club Casa Cipriani is getting a $100M refinancing via a three-year bridge loan with extension options, Commercial Observer reported. ACORE Capital will provide the loan for the 10 South St. property, also known as the Battery Maritime Building, to Midtown Equities, Centaur Properties and Cipriani S.A. Walker & Dunlop's Jonathan Schwartz, Aaron Appel, Keith Kurland and Adam Schwartz arranged the loan.

***

First Republic Bank will loan $85M to refinance 230 East 73rd St., Commercial Observer reports. The building is owned by 230 East 73rd Owners Corp., which public records say is in the care of Halstead Management.