This Week’s N.Y. Deal Sheet
Activity has picked up in New York City's capital markets, defying the August doldrums with several investment sales and construction loans closing in the past week.
TOP SALES
The real estate office of billionaire James Dyson has purchased the Madison Avenue shop of luxury fashion house Versace, PincusCo reported. Weybourne Holdings paid $135M for three retail co-ops at 747 Madison Ave. through the entity 747 Madison Retail Owner LLC. The 11K SF retail sits below a 63-unit co-op property with a residential address of 30 East 65th St. The sellers were Jeff Sutton of Wharton Properties and the British billionaire Reuben brothers, who bought an undisclosed stake in the property in May, per The Real Deal.
***
A Long Island City hotel that recently became a migrant shelter has sold for $23M less than when it last changed hands in 2019, Commercial Observer reports. The Collective Paper Factory, located at 37-06 36th St. in Queens, sold for $35.6M to Jeffrey Zwick & Associates — a significant haircut from the $58M that UK-based The Collective paid for it four years ago. The property was first built in 1916 as the Garside & Sons Shoe Factory and was earmarked for landmark status in 2008 when the Dutch Kills neighborhood underwent a rezoning. The Collective turned the property into hotel rooms that also served as co-living spaces. The Long Island City Post reported that the hotel signed a deal with the city this month to serve as a migrant shelter.
***
Related has sold a luxury multifamily property in Chelsea for more than $180M, Commercial Observer reported. The Sierra, located at 130 West 15th St., is a 14-floor property with 213 units that was completed in 2002. The buyers were Pacific Urban Investors and the California Public Employees Retirement System in a deal brokered by Newmark's Doug Harmon, Marcella Fasulo, Avery Silverstein, Adam Doneger, Adam Spies and Josh King.
TOP LEASES
Global law firm Davis Polk & Wardwell LLP has signed a 25-year lease extension and expansion at RXR’s 450 Lexington Ave., according to a release. The extension added a further 30K SF to the firm’s lease, bringing its total footprint in the 40-story tower to just under 708K SF across 23 floors. RXR has agreed to invest $300M in capital improvements to the building as part of the deal including improvements to common areas, lobbies and workspaces and adding new amenities in the law firm’s space. RXR had in-house representation from William Elder and Andrew Ackerman as well as from a Fried, Frank, Harris, Shriver & Jacobson team led by Valerie Kelly and Neil Hood. Lewis Miller, Andrew Sussman and Munish Viralam of CBRE repped David Polk, as did Scott Newmark of Meister Seelig & Fein.
***
The Municipal Credit Union has renewed its 94K SF space in Manhattan’s Financial District, signing until 2040 at 22 Cortlandt St., Commercial Observer reported. The credit union has more than 600,000 members and $4.2B in assets under management. Mayore Estates and 80 Lafayette Associates own the building where the tenant has been located for three decades. The 19-story building’s other tenants include the New York City Office of Labor Relations and the New York City Department of Health and Mental Hygiene. Barrett Stern of Newmark repped the landlords and CBRE’s Andrew Sussman, Tim Freydberg, Munish Viralam, Ken Rapp, Ryan Luck and Jared London repped the tenant.
***
Tishman Speyer’s The Spiral is now 75% leased after signing three new tenants to a total of 112K SF. Global asset manager Marshall Wace is taking 79K SF for 14 years, while Maryland-based ProShares signed for 9K SF and a third, unnamed firm, described as an “international investment management” firm has signed for 24K SF. Tishman Speyer was repped by its own Greg Conen and Sam Brodsky in all three deals, while JLL’s Cynthia Wasserberger and Michael Pallas repped ProShares and Newmark’s Andrew Sachs and Bill Levitsky repped Marshall Wace.
***
TimesSquare Capital Management is coming to RXR’s 75 Rockefeller Plaza, the New York Business Journal reports. The equity manager is moving from 7 Times Square, where it has been for the past decade, to 14K SF at Rockefeller Plaza. The tenant was represented by CBRE’s Silvio Petriello, while a Cushman & Wakefield team featuring Bruce Mosler worked with RXR’s in-house agents Alexandra Budd and Daniel Birney on behalf of the landlord.
***
Circle Realty Group has signed a new tenant to its 14 Penn Plaza property, Commercial Observer reported. Law firm Capell Barnett Matalon & Schoenfeld is relocating from 1385 Broadway to 15K SF at the Midtown South building. Newmark’s Richard Kramer represented the law firm in the deal.
TOP FINANCING DEALS
Urban Edge Properties has scored a $38M refinancing for its 112K SF Bronx retail property, The Shops at Bruckner Retail Center, according to a release. Financing for the 1906 Story Ave. property came from Apollo Global Management and was brokered by a Newmark team including Chris Kramer, Jordan Roeschlaub and Dustin Stolly. The property is close to the landlord’s Bruckner Commons, a 396K SF shopping center anchored by ShopRite, Burlington and, starting in 2025, a new Target. The Shops, meanwhile, serve the Bronx neighborhoods of Soundview, Parkchester, Shore Haven, Clason Point and Castle Hill and has tenants including Aldi, Marshalls and Old Navy.
***
A multifamily development in Brooklyn’s Crown Heights neighborhood has nabbed a $233M construction loan from Goldman Sachs Asset Management’s Urban Investment Group, according to a release. The developer on the receiving end of the loan is Carmel Partners, Crain’s New York Business reports. The floating-rate loan will fund a 569-unit development at 54 Crown St. in a deal led by JLL’s Christopher Peck, Geoff Goldstein, Nicco Lupo and Rob Hinckley.
***
Clipper Realty has landed a $123M construction loan for a mixed-use project in Brooklyn, Commercial Observer reports. The sum came from a group led by Valley National Bank and included participation from Bank Leumi, Bank Mizrahi-Tefahot and Be Aviv. The project, which encompasses 953 Dean St., 1048-1050 Pacific St. and 643 Classon Ave., will bring 240 apartments to Crown Heights in addition to 167K SF of retail space split between two buildings. Clipper’s plans for the project were first reported by PincusCo last March.
