This Week's N.Y. Deal Sheet
A slew of investment sales shows the commercial real estate market is still moving in New York City despite the slowdown in lending activity.
TOP SALES
An apartment building in Crown Heights, Brooklyn, has sold for $24M, according to a release. The seller of 792 Sterling Place was Sterling Place Condo LLC, with Alfred Thompson of Owssum Builders LLC signing public records filed with the city. The buyer who signed the deed was Shiya Labin, who PincusCo reports also recently bought neighboring 796 Sterling Place for $24M. Alpha Realty Brokers' Lev Mavashev represented both parties in the off-market transaction, according to the release. The sale is the first time the 66K SF, five-story property has sold since it was built in 2009, with the development site selling two years prior in 2007 for $4.7M. The sale price puts the 82-unit property at $390 per SF and a 6.4% capitalization rate. The property also qualifies for the 421-a tax abatement until 2034.
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Slate Property Group and PCCP LLC have acquired a mixed-use property at 123 East 54th St. in Midtown East for $37.7M, according to a release. The 15-story building was built in 1977 and has 64 market-rate units and 9K SF of retail space. Slate Property Group plans to introduce cosmetic updates to the building’s interior, as well as updating the boiler system and light renovations for common areas. The acquisition was financed by Customers Bank, and JLL’s Guthrie Garvin represented both the buyer and the seller, the Kalimian family.
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FBE Limited has purchased a development site in Jamaica, Queens, for $51.5M, The Real Deal reported. The 110K SF site includes properties such as 89-01 165th St., 89-25 165th St., 89-29 165th St., 89-26 Merrick Blvd., 89-39 165th St., 90-06 Merrick Blvd. and 89-45 165th St. FBE reportedly plans to redevelop the site, which has 557K buildable SF, into a large, mixed-use project. The seller was represented in the deal by a Ripco team of Stephen Preuss and Kevin Schmit.
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Kimco Realty has spent $375.8M to acquire eight shopping centers in Long Island, according to a release. The portfolio includes The Gardens at Great Neck, Woodbury Common, The Market Place, Stop & Shop Shopping Center, Southgate Shopping Center, Green Cove Plaza and Syosset Corners in Nassau County and Sequams Shopping Center in Suffolk County. Kimco funded the acquisition through a combination of cash, redeemable units and $88.8M of 4.1% mortgage debt with a remaining term of six years. The 540K SF portfolio adds to Kimco’s position as one of Long Island’s largest grocery-anchored shopping center owners, bringing its portfolio to 3.5M SF across 36 assets in the region.
TOP LEASES
GFP Real Estate has signed nonprofit SKIP of New York, which helps chronically ill and developmentally disabled children and young adults access services to facilitate independent living, for 27K SF at 318 West 39th St., according to a release. The nonprofit is moving to the 107-year-old, eight-story building after previously subleasing 40K SF. GFP Real Estate’s Matthew Mandell represented the owners in the deal, while The Kaufman Organization’s Sam Stein repped the tenant.
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Tenants signed two leases totaling 17K SF at the Pioneer Building in Brooklyn at 41 Flatbush Ave., according to a release. Real estate investment firm Merit Hill Capital has expanded its occupancy to almost 13K SF on the fifth floor, while Wells Fargo has renewed a nearly 5K SF lease on the third floor. The 10-story, 269K SF building in Downtown Brooklyn has undergone capital improvements, creating a new lobby, renovated facade, landscaped rooftop and new windows. The landlord, a partnership between Quinlan Development Group and Building and Land Technology, had representation from Ron Lo Russo, Remy Liebersohn and Pierce Hance of Cushman & Wakefield, along with CBRE’s Joseph Cirone.
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Silverstein Properties' 120 Broadway has signed Rockefeller Philanthropy Advisors to 14K SF on the 34th floor for 10 years, Commercial Observer reported. Other tenants in the building include the New York City Housing Development Corp., The Original BARK Co., The Domain Cos., Kasirer, MBF Trading and Rothesay Asset Management US. Rockefeller Philanthropy Advisors will move from its Midtown office at 6 West 48th St. during Q2 next year and was represented by JLL’s Ellen Herman and K.J. Lee. Harlan Stradar provided in-house representation for Silverstein Properties.
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Coworking provider Jay Suites has signed on for a 60K SF location at Arline Hannon-Weinmann’s 159 West 25th St., according to CO. The 16-year lease gives the tenant 40K SF of coworking space and 20K SF of conference space on the second through fifth, seventh and eighth floors. Asking rents were reportedly $30 per SF in the 12-story building, whose only other tenant is Rand Engineering & Architecture. Brett Rovner of AKAM handled the transaction for the landlord, while Barry Fields of City Connections Realty brokered the deal for Jay Suites.
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NEO Philanthropy has signed for 12K SF at ABS Partners’ 1001 Sixth Ave., CO reports. The move will see NEO Philanthropy, a human rights organization, move just one block away from its current office. The nonprofit signed a 15-year lease for the entire 12th floor of the 25-story building, where asking rents were approximately $58 per SF.
TOP FINANCING
Related Cos. and Hudson Cos. scored a $185M construction loan from Wells Fargo and other private sources for the final building in its Roosevelt Island Riverwalk complex, Crain’s New York Business reported. Riverwalk 9, located at 430 Main St., is planned to reach 28 stories and will provide 253 market-rate apartments, 104 workforce housing units for the nearby Memorial Sloan Kettering Cancer Center, and ground floor office space for the joint venture’s Roosevelt Island Operating Corp. Wells Fargo provided $111M, with other private sources providing the remainder.
