This Week’s N.Y. Deal Sheet
New York City commercial real estate deal-makers may have been making the most of the summer, with leases, sales and lending all slowing across New York City.
TOP LEASES
The New York City Housing Development Corp., the city government agency tasked with approving, financing and preserving affordable housing developments, will relocate to Silverstein Properties’ 120 Broadway from its Financial District office at 110 William St. The NYCHDC is moving to the entire second and third floors of the building in a 109K SF deal. NYCHDC was represented by Newmark’s Lance Korman and Kevin Sullivan, while the landlord was represented in-house by Joseph Artusa, Keith Cody and Harlan Strader III, along with Newmark’s Erik Harris, Scott Klau and Brian Waterman. Silverstein recently spent $50M to renovate the 107-year-old, 40-story tower.
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The Alliance of Resident Theatres/New York has signed a 20-year lease for 32K SF at GFP Real Estate’s 520 Eighth Ave., according to a release. The theater company management organization will occupy the entire third floor of the 860K SF Fashion District tower, whose other tenants include rehearsal space company Ripley Grier and fellow theater company The Barrow Group. GFP’s Matthew Mandell represented both the landlord and tenant in the deal.
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Brookfield Properties has signed an alternative credit asset manager to a 26K SF lease at 660 Fifth Ave. 400 Capital Management LLC, which specializes in structured credit, is planning on doubling its current footprint in a 2024 move to the office tower built in 1957, which is undergoing a $400M redevelopment to upgrade its lobby, elevators and facade. The project's anchor tenant is another financial services firm, the Macquarie Group, which signed a lease for six floors of the 39-story, 1.2M SF property in May. CBRE’s David Hollander and Brad Auerbach represented 400 Capital, while Brookfield was represented in-house by Duncan McCuaig, Dave Caperna and PJ Massey, alongside Cushman & Wakefield’s Bruce Mosler, Josh Kuriloff, Ethan Silverstein, John Santora, Matthias Li, Nicholas Dysenchuk and Howard Cross.
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Pennrose Holdings has signed budget grocery store Fine Fare to a 20K SF lease for 25 years at 50 Pennsylvania Ave. in East New York, The Real Deal reported. The grocery store will sit within Pennrose’s development, which cost $106M to build, features 218 rental units and was completed in December. Booth Capital Advisors’ Greg Parassio and Brian Doyle represented Pennrose in the deal, which had asking rents of $40 per SF and was completed under the city's Food Retail Expansion to Support Health, or FRESH, program.
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Slate Property Group has signed a lease doubling its office footprint to 11K SF at Samco Properties’ 440 Park Ave. South, Crain’s New York Business reports. JLL’s Brett Harvey represented Samco, which owns the 1913-built Class-B office building in Manhattan’s NoMad district, while Colliers’ Robert Gallucci provided representation for Slate.
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Global Holdings Management Group has leased 42K SF of its 22-story 410 Park Ave. office tower across four deals, according to a release. Private equity firm Glendower Capital signed a 10-year lease for 14K SF on the 10th floor, doubling its footprint in the building, with representation from Cresa’s Gregg Cohen. Lender China CITIC Bank also signed for 14K SF over 10 years on the 11th floor, with representation from CBRE’s Clyde Reetz. Incentrum Group, a global merchant bank, also signed a decadelong lease expanding its footprint by 9K SF to take up the entire 18th floor, with representation from Cushman & Wakefield’s David Mainthow, Troy Elias and Nick Masi. JFI Family Office signed the smallest lease, both in length and size, taking 4K SF in a three-year renewal with representation from JLL’s Benjamin Bass. The landlord was represented by a JLL team including Bass along with Paul Glickman, Diana Biasotti, Kristen Morgan and Harrison Potter.
TOP SALES
Elysee Investments has acquired a nine-building portfolio of mixed-use buildings in Harlem for $32M, Commercial Observer reported. Flushing Bank reportedly loaned Elysee $21.8M for the purchase from seller KLM Equities, which bought the properties in the early 1990s through three LLCs. This is Elysee’s second big move in recent months, having acquired a 10-building, 419-unit multifamily portfolio in the Upper Manhattan neighborhood of Washington Heights for $92.2M three months ago. Elysee’s new purchase has more than 200 residential units spread between 2714, 2718 and 2470 Frederick Douglass Blvd.; 271 West 144th St.; 1941, 1968, 1972 and 1979 Adam Clayton Powell Jr. Blvd.; and 203 West 118th St.
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Sherwood Equities has sold a nine-building portfolio of industrial properties to Silverman Group for $76M, Commercial Observer reported. The portfolio, which totals 372K SF and is concentrated in Long Island’s Melville and Farmingdale submarkets, was originally built for $5M in the 1970s by father-son duo Ira and Jeffrey Katz and is 98% leased, although average asking rents are reportedly half the market rate at $8.10 per SF.
TOP FINANCING
Sage Realty scored a $127.5M refinancing deal for its Financial District tower, 77 Water St. ACORE Capital is the lender, according to a release. The 614K SF, 26-story property, built in 1970 by the William Kaufman Organization, will use the loan for upgrades including renovations to the building’s lobby, arcade and plaza.
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Bank OZK has loaned Domain Cos. $295M to refinance its 420 Carroll St. development, including a $167M construction loan, according to a release. The loan will go toward the ground-up development of two mixed-use properties in Brooklyn’s Gowanus neighborhood, which will feature 360 residential units between one 20-story tower and one 15-story tower. The development, scheduled to complete in December 2024, will also have almost 28K SF of commercial and retail space. The deal was brokered by a JLL Capital Markets team including Christopher Peck, Nicco Lupo, Jeff Julien, Rob Hinckley and Jonathan Faxon.
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Slate Real Estate Capital, the lending arm of Slate Asset Management, has agreed to loan Prime Group $147M to refinance three self-storage properties, Commercial Observer reported. The 2017-built storage facilities are at 31-07 20th Ave. in Astoria, Queens, 1260 Zerega Ave. in The Bronx and 1084 Rockaway Ave. in Brooklyn. Drew Anderman and Ben Nevid brokered the deal.
