This Week's N.Y. Deal Sheet
Financing deals slowed in the aftermath of Memorial Day weekend, but leasing and sales stayed steady in the NYC market.
TOP SALES
SL Green is selling a 139K SF office condo at 609 Fifth Ave. for $101M, it announced Monday. The space, formerly leased to WeWork, was purchased by a "domestic investor,” the REIT said in announcing the deal. The coworking giant gave up the space last year, paying SL Green $11.4M in a settlement over the lease termination. SL Green also sold the 29K SF retail space at the base of the building last month for $168M.
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Two properties in the Mount Hope neighborhood of the Bronx sold for a combined $9.85M, or $405 per SF, according to a release. Verv Capital purchased 101-109 East Burnside Ave. and 2054-2056 Morris Ave. from the Vanbarton Group in a sale brokered by Ariel Property Advisors’ Jason Gold, Victor Sozio and Daniel Mahfar.
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60 Guilders sold approximately 30K SF of office condos across three floors in Midtown. Empire State LLC bought the 11th floor at 20 West 33rd St., while JLA Home, a furnishing company, took the 12th and 13th floors, Commercial Observer reported and a source confirmed to Bisnow. The 13-story building sits directly across from the Empire State Building and now has just one half-floor unit available. Trystan Polsinelli and Aidan Latham handled the transactions in-house for 60guilders.
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Slate Property Group and Fortress Investment Group joined forces to buy two Manhattan properties for a total of $78M, Crain’s New York Business reports. The multifamily properties — 340 East 52nd St. in Midtown East and 231 East 76th St. on the Upper East Side — were sold by Rose Associates. The acquisition of the two apartment buildings, which have 150 units between them, is in line with Slate principal David Schwartz's comments to Bisnow Monday about 421-a's expiration — he said the firm would look to acquire more apartments, rather than develop them.
TOP LEASES
PNC Bank has signed a renewal for 65K SF at RXR Realty’s 340 Madison Ave., Commercial Observer reports. The bank has been a tenant in the 22-story building since 2008 and will remain in the space for another five years. PNC was represented by David Simson and David Falk of Newmark, while an RXR team including William Elder, Andrew Ackerman and Alexandra Budd negotiated the deal in-house.
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Brooklyn is getting a new medical center. The Memorial Sloan Kettering Cancer Center and the New York Cancer & Blood Specialists signed a 39K SF lease at 2236 Nostrand Ave., Commercial Observer reported. The two health practices will operate separately in the shared space, owned by landlord The Hakimian Organization, after the lease begins in August.
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Flex space provider NYC Office Suites signed up for 31K SF at The Chanin Building on 122 East 42nd St., according to a release. The 10-year lease will be NYC Office Suites' sixth in Midtown. CBRE’s Roger Griswold and Arkady Smolyansky represented the tenant in the deal with landlord The Stahl Organization.
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Clarion Partners has two new short-term tenants at 100-104 Fifth Ave., totaling roughly 20K SF in leases with asking rents of $86 per SF, according to a release. Financial services company Accrue Savings is taking 10K SF on the third floor for two years, while internal workflow platform Superblocks is taking a little over 10K SF on the ninth floor to serve as its headquarters for three years. JLL’s Scott Vinett represented Superblocks, Voda & Co. Real Estate’s Warren Hershkowitz represented Accrue, and the Kaufman Organization’s Michael Kaufman and Grant Greenspan represented the landlord in both deals.
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Three new tenants signed leases at JEMB Realty’s 1 Willoughby Square, totaling over 25K SF, the New York Post reports. Gloria Steinem’s Ms. Foundation for Women will occupy the 20th floor, taking up 11K SF in a deal brokered by JLL’s Whitten Morris and Joseph Sipala on behalf of the foundation. Fintech firm Propel signed on for 10K SF and was represented by Cushman & Wakefield's Haley Fisher, Helen Paul and Jason Kroeger. Nonprofit Walnut Ridge signed a 5K SF lease for part of the 16th floor with representation from Open Impact Real Estate’s Lindsey Ornstein and Stephen Powers plus Transwestern Real Estate Services’ Casey Noel. CBRE represented the landlord in all three deals.
TOP FINANCING DEALS
RXR Realty scored a $105M loan from Rialto Capital Management to refinance a mixed-use residential building in New Rochelle, the firm announced. Rialto initially provided a loan for development of the 28-story property located at 360 Huguenot St. in 2019, Commercial Observer reported. The building is one of several multifamily properties developed by RXR in New Rochelle since it was designated the area’s master developer, following the recently completed 1 Clinton Park, also 28 stories, and an adjacent building to be delivered in 2024. 360 Huguenot includes 28 affordable units and 252 market-rate units, in addition to five ground-floor retail spaces. The refinancing deal was brokered by a team from JLL Capital Markets including Joy Dracos, Phil Cadorette, Jillian Mariutti, Kelly Gaines, Michael Gigliotti and Mike Tepedino.
