This Week's N.Y. Deal Sheet
There was more activity in the debt markets in New York this week as several developments scored financing deals to start construction.
TOP FINANCING DEALS
JPMorgan Chase sold its loan backed by Extell Development's development site at 570 Fifth Ave. to South Korea-based IGIS Asset Management, PincusCo reports. The loan is for $185M and is secured by 13 parcels on Fifth Avenue, West 46th and West 47th streets. The original loan was $340M in 2019, The Real Deal reported. Extell, run by Gary Barnett, is pursuing an 1,100-foot-tall building on the site.
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The Department of Housing and Urban Development, the New York State Housing Finance Agency and TD Bank provided $109.2M to Catholic Homes New York for a Mott Haven residential project, Crain’s New York Business reports. The group, part of the the Catholic Charities of the Archdiocese of New York, is planning a 12-story rental building at 799 East 152nd St. in Mott Haven. A $47.4M construction loan came from TD Bank, while HUD and the state financing agency contributed $61.8M in tax credits and subsidies.
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Madison Realty Capital secured $40M from Maxim Capital Group for its mixed-use complex at 65 and 75 Dupont St. in Greenpoint, The Real Deal reports. Madison plans to build 471 units, as well as a grocery store, spa, retail and 189 parking spots across 400K SF on a 10-lot assemblage. The project is meant to be finished in two years, but doesn't yet have a construction loan, per TRD.
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Maryland-based Realterm locked down a $95M building loan and a $23M project loan from JPMorgan for 154-68 Brookville Blvd. in Jamaica, Queens, The Real Deal reported. The site is near JFK International Airport, and while it was not immediately clear what Realterm plans to do at the site, the company develops industrial properties and airport infrastructure.
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Cadence Property Group, in a joint venture with HOH Capital Partners and Deal Lake Capital, locked down a $41.5M acquisition and construction financing loan from Benefit Street Partners. The joint venture is using the financing to secure 360 West 52nd St., the second parcel for its planned condominium development in Hell's Kitchen. The loan was arranged by JLL’s Evan Pariser and Aaron Niedermayer. Peter Carillo of HKS Real Estate Advisors represented the JV in the acquisition. Cadence locked down 354 West 52nd St. in June, paying $15.5M, per The Real Deal, and it is planning to develop a seven-story, 32-unit condo property.
TOP LEASES
American Outcomes Management, an infusion provider focused on intravenous immunoglobin infusion therapy, signed up for nearly 14K SF at Industry City, owned by a joint venture of Belvedere Capital, Jamestown and Angelo Gordon. The deal is for seven years and will see AOM opening lab and patient care facilities, according to a press release. The company will move into the space in October. Kelly Koukou and David Newton from Lee & Associates NYC brokered deal for the tenant, and Nick Shears and Jeff Fein represented the landlord in-house, according to Crain’s New York Business.
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Empire State Development is leasing 117K SF across five full floors at Durst Organization’s 655 Third Ave. office tower. The landlord said the economic development agency will take space on the second through sixth floors of the 30-story building. The deal is one of the largest relocations in Midtown so far this year, per the landlord representatives. Tom Bow, Ashlea Aaron and Bailey Caliban represented Durst in-house. Moshe Sukenik and Brian Cohen of Newmark and Joan Brothers of Manhattan Boutique Real Estate represented ESD in the deal, which sees it move down the street from 633 Third Ave.
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Matrix Development Group inked a 927K SF lease with Tesla at the Matrix Logistics Center in Newburgh in Orange County. The property is a two-building industrial complex at 1396 Route 300. Tesla will be using the property as a distribution facility for automotive parts, starting in October. Elon Musk's automaker was attracted by Newburgh’s proximity to both New England and the mid-Atlantic corridor and the property’s immediate access to the New York State Thruway, I-84 and Route 300, according to the release. The deal length and the rent terms weren't disclosed.
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Amazon has leased about 300K SF in new and renewal leases at WeWork spaces in Midtown. The tech giant leased 90K SF at the WeWork space at 75 Rockefeller Plaza, which is owned by RXR Realty, and renewed for 210K SF at CIM Group’s 1440 Broadway. Amazon is still set to open its 500K SF office at the Lord & Taylor department building at 424 Fifth Ave., which it bought from WeWork, Amazon spokesperson Zach Goldsztejn told CoStar. The deals were some of the biggest tech leases in the city this year.
TOP SALES
Cofinance sold 137 Second Ave. in the East Village to an unnamed buyer for $18.95M, the New York Post reports. The building was the former home of the now-shuttered women’s-only coworking company The Wing. The company had leased the entire building in 2019, paying rent in the high $60s per SF, per the Post, until it was closed by parent IWG in 2022 after a troubled few years. Cofinance paid $18M for the building in 2019. Cushman & Wakefield’s Hunter Moss, Michael DeCheser and Bryan Hurley represented the seller. Paul Wolf, Christopher Turner and Kate Hrobsky of Denham Wolf were on the buyer’s side.
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Boston Properties has sold a 45% stake in its planned Grand Central office project to an unnamed institutional investor. After agreeing to the deal last week, the REIT locked in a 99-year ground lease with the Metropolitan Transportation Authority for the site at 343 Madison Ave., a proposed 900K SF tower. The lease includes a provision that allows the joint venture to terminate the agreement after building the entrance and be reimbursed for the work, which is expected to take two years.
