This Week’s N.Y. Deal Sheet
All forms of commercial real estate transaction activity slowed to a crawl last week in advance of the long weekend and the unofficial start of summer.
TOP LEASES
Nonprofit human services organization Rising Ground has signed a 30K SF lease for the entire eighth floor at Empire State Realty Trust’s 1333 Broadway, according to a release. The nonprofit expects to move its 125 staff into the space during Q4 2024. OPEN Impact’s Lindsay Ornstein, Stephen Powers, Arthur Skelskie, Alexander Smith and Kendall Elliott repped Rising Ground in the lease agreement.
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Law firm Greenspoon Marder has signed a 42K SF sublease with CBS Broadcasting at 1345 Sixth Ave., according to a release. The law firm is relocating and expanding from its 25K SF spread at 590 Madison Ave. and will occupy the entire 22nd floor of the Fisher Brothers-owned office building. Fisher Brothers completed a $120M capital improvement project on the 50-story property during 2021, which included upgrades to the lobby and exterior in addition to a new amenity suite featuring a tenant lounge and hybrid meeting spaces. Savills’ Jeffrey Peck, Daniel Horowitz, Thomas Capocefalo and Jacob Stern represented Greenspoon in the deal.
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The Dermatology Specialists have signed an 11K SF lease at GFP Real Estate’s 10-27 46th Ave. property in Long Island City, where the firm first moved in 2019, according to a release. The Dermatology Specialists initially took a little over 5K SF on the third floor, with this new lease almost doubling its footprint in the building. The practice has 40 locations across Manhattan, Brooklyn, Queens and Long Island, and will use the Long Island City space — previously occupied by educational training group The Leadership Academy — for its general, administrative and executive offices. The property, built in 1903, is a former industrial building and was fully renovated in 2018. Compass’ Michael Yadgard repped the tenant in the deal, while GFP had in-house representation from Eric Gural and Martin McGrath.
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Electronics maker Samsung has signed a 36K SF lease with Vornado Realty Trust at Penn 1, The Real Deal reported. Samsung will move from its Chelsea spot at 123 West 18th St., where it leased 15K SF in 2014, although Commercial Observer reported that it is unclear if the company’s footprint has changed since then. Vornado has been carrying out a $450M renovation of the 2.5M SF Penn 1 tower, formerly known as One Penn Plaza, on which it had spent $385M as of the end of March, according to Vornado's most recent earnings report. The building was 81.3% occupied at the end of last year. JLL’s Matthew Astrachan and Simon Landmann repped Samsung, while Vornado’s Josh Glick and Jared Silverman provided in-house representation for the landlord.
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The National Academy of Design has signed an 8K SF lease at 519 West 26th St., a mixed-use Chelsea property owned by Walter Schik, Commercial Observer reports. The academy, a society for artists and architects that is almost two centuries old, is relocating its offices and gallery with the seven-year lease for space at the base of Schik’s building. The property has 49 units of housing and is nine stories tall. Lauren Davis of Denham Wolf brokered the deal on behalf of the tenant, while Savills’ Kirill Azovtsev and Allison Buck worked on behalf of Schik.
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Terreno Realty has signed Citi Bike operator Motivate to a 49K SF lease in Long Island City, Commercial Observer reported. Motivate plans to move into 42-11 Ninth St. in September as part of its plan to consolidate a series of its New York City storage facilities. The deal also gives Motivate a 4K SF parking lot at the space, which is two blocks from the East River and was purchased by Terreno in March for $23M.
TOP SALES
Affordable housing developer Tredway bought 2930 West 30th St., an 818-unit development spanning three buildings in Coney Island, from Arker Cos. for $150M, according to a release. Tredway, which bought the properties in a joint venture with Gilbane Development Co. and ELH Mgmt., expects to invest $20M in the housing complex — which is currently a mix of income-restricted and market-rate apartments — to upgrade the 50-year-old property’s energy systems and improve common spaces. Tredway said existing tenants will keep their housing, according to The Real Deal, which first reported the story, and all units will be designated as affordable housing in the future, with some reserved for previously homeless New Yorkers and some kept as senior affordable housing. An Ariel Property Advisors team that included Victor Sozio, Shimon Shkury, Benjamin Vago and Remi Mandell represented the seller.
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Slate Property Group, Avenue Realty Capital and KABR Group paid $120M to purchase 600 Columbus Ave., according to a release. The joint venture plans to upgrade the 166-unit, 175K SF Upper West Side building, bringing new apartment interiors, hallways and improvements to common areas including the lobby, plus a new luxury amenity package including a roof deck and a fitness center. The purchase was financed by a $68M loan from an affiliate of Apollo Global Management. Last year, ARC and Slate bought a development site at 159 Boerum St. in Brooklyn, where they plan to build 161 units, 30% of which will be affordable. A JLL team led by Bob Knakal repped both the joint venture and the seller in this deal.
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Greenbrook Partners has sold three Brooklyn buildings for $9.5M to an entity linked to the Carlyle Group, The Real Deal reported. Townhouse Rental II purchased 140 Frost St. in Williamsburg, 171 Cooper St. in Bushwick and 516 Fairview Ave. in Ridgewood — three of the five multifamily properties covered by a loan that was placed on a lender watchlist earlier this month after its debt service coverage ratio fell to a point where rent rolls couldn't cover Greenbrook's debt obligations. Greenbrook execs told TRD in an email that the sales were “pure profit.”
CORRECTION, MAY 31 2023, 3:20 P.M. ET: A previous version of this article misstated the name of the Apollo Global Management affiliate involved in the purchase of 600 Columbus Ave. This article has been updated.
