This Week’s N.Y. Deal Sheet
The debt markets were more active than the sales and leasing markets in New York City over the course of a sopping wet week.
TOP FINANCING DEALS
Macklowe Properties landed a $300M loan for its unsold condo inventory at One Wall Street, The Real Deal reported. The private wealth division of Deutsche Bank provided the loan on the property, where the current pace of sales would mean it would take more than a decade to sell out the property, per a TRD analysis. The Financial District property is an office-to-residential conversion that delivered 566 units with average asking prices for two-bedroom units at around $2,500 per SF. The loan is secured against some of the property’s 479 unsold units. Qatar’s billionaire former Prime Minister Sheikh Hamad Bin Jassim Bin Jaber al-Thani is Macklowe’s equity partner on the project. The new loan brings One Wall’s total costs to $2.6B.
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Acadia Realty Trust nabbed a $33M refinancing package from Bridge Investment Group for a luxury nine-story loft building in NoHo, according to a release. The property, which was designed by Macy’s Herald Square architects in 1896, has 21 residential units and approximately 4K SF of ground-floor retail space, which is fully occupied by tenants including salon service Glosslab and apparel retailer Kith Kids. A JLL debt team led by Stephen Van Leer repped Acadia in the transaction.
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Brooklyn developer Kingsdel Real Estate snagged a $34M construction loan for a planned two-building condo property in Prospect Leffert Gardens, Commercial Observer reported. The sum will facilitate the construction of 90K SF in total, located at 625 New York Ave. and 447 Fenimore St. Demolition for the project, which will also have 25 parking spaces, outdoor cabanas and a community space among its shared amenities, has already started. The transaction is Kingsdel’s sixth with lender Urban Standard Capital. Kingsdel has nine developments in total after being founded last year.
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Customers Bank has provided a $64M construction loan to NYC-based real estate management firms Stellar Management and Karten Organization for a 197-unit property in the Bronx’s Mott Haven neighborhood, CO reported. The planned development is a recipient of the now-expired 421-a tax abatement and will provide 59 income-restricted apartments in addition to 140 luxury units. Construction is already underway for the development at 580 Gerard Ave., which will eventually provide a mixture of one- and two-bedroom units to the neighborhood, along with tenant amenities including a fitness center, a rooftop terrace and a pet spa. Walker & Dunlop’s Aaron Appel, Jonathan Schwartz, Adam Schwartz, Keith Kurland, Christopher de Raet and Ari Hirt brokered the deal.
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CW Realty, Cheskie Weisz's Brooklyn development firm, has scored a $31M refinancing package for a Williamsburg multifamily property, Commercial Observer reported. The sum replaces a $20M construction loan for the 69-unit property, which sits at 280 Meeker Ave. and contains 21 income-restricted apartments. The property, named The Vertex, is made up of studios, one-, two- and three-bedroom units. Weisz also developed the 96-unit Kent House at 187 Kent Ave. and the 98-unit property at Crown Heights’ 1499 Bedford Ave. The refinancing package for the eight-story Meeker Avenue property was brokered by Leah Paskus and Pinchas Vogel of Landstone Capital on behalf of both CW Realty and lender Bank of Princeton.
TOP LEASES
Finance automation platform Ramp has signed for 66K SF at Williams Equities’ 28 and 40 West 23rd St., according to a release. The deal is actually a sublease agreement, per The Real Deal, which reported that the sublandlord is tech giant Microsoft. The two-building property in Flatiron is anchored by Home Depot on the ground floor, lower level and mezzanine, while other tenants include Estee Lauder brand Aramis. Williams Equities has performed capital improvements in the 561K SF mixed-use property in recent years, adding new lobbies and cooling towers, and it has plans for a roof deck for tenants. Ramp was repped by Cushman & Wakefield’s Michael Mathias and R.J. Johns, while Colliers International’s Andrew Roos, Michael T. Cohen and Jessica Verdi also repped Williams Equities.
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Stawski Partners has signed a new tenant to its 28-story office property at 505 Fifth Ave., according to a release. Onyx Renewable Partners, a clean energy company, has signed for 11K SF, taking the entire 14th floor of the building for 10 years. It joins tenants including Norges Bank and investment firms Brean Capital and Brownstone Investment Group and will relocate from 230 Park Ave. once its space in the Fifth Avenue property is completed in early 2024. The landlord of the 2006-built property was represented by JLL’s Paul Glickman, Diana Biasotti and Kristen Morgan, while JLL's Clark Finney and T.J. Hochanadel repped Onyx alongside Newmark’s Brian Goldman, Scott Gutnick and Josh Berg.
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GFP Real Estate signed more than 12K SF of renewals at its 20-story Financial District office tower 40 Exchange Place, according to a release. Tech firm Mobilo signed for 6K SF on the 13th floor after first moving into the building a year ago. Creative branding agency Loyalkaspar signed a two-year extension for 6K SF on the building’s 15th floor after moving into the property in September 2019. Z&Li Wellness Acupuncture, which has been in the building since August 2018, signed a five-year renewal of its existing 17th-floor space, which is smaller than 1K SF. Asking rents were roughly $45 per SF in the building, although asking rents for the deals weren't disclosed. The building was first constructed in 1893 and is known as the Lord’s Court Building. The site was previously the headquarters for the New York Stock Exchange between 1856 and 1865. GFP’s Allen Gurevich and Matthew Colavita repped the landlord and the tenants.
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Several tenants have signed for space at Princeton International Properties’ 90 Broad St., totaling a little over 11K SF, CO reported. The largest lease was signed by FHI Studio, which is relocating from 11 Hanover Square to 5K SF on the 11th floor of 90 Broad. Colliers’ Sheena Gohil, Jack Senske and Marissa Fleischhacker represented FHI in the deal. Other leases signed in the building included Student Sponsor Partners, which signed for more than 4K SF on the fourth floor, and Then and Now Windows, which signed for a little over 2K SF. Newmark’s Dan Appel, Hal Stein and Jason Greenstein brokered the deal for Student Sponsor Partners, Then and Now Windows handled the deal in-house, and Cushman & Wakefield’s Aron Schreier, Edward Mombello and Max Mond repped Princeton International Properties.
TOP SALES
Empire State Realty Trust has bought two adjacent mixed-use properties in Williamsburg for $26.4M, PincusCo reported. The seller was the Mann Group, which had purchased 157-159 Wythe Ave. and 161 Wythe Ave. in 2019 for $8.5M. The low-rise property at 157 Wythe Ave. is zoned mixed-use and has six residential units, while 161 Wythe Ave. is a three-story building with one residential unit, per StreetEasy. A JLL team of Ethan Stanton, Brendan Maddigan, Stephen Palmese, Michael Mazzara and Winfield Clifford brokered the deal to ESRT and also brokered the sale of the property to Mann Group four years earlier.
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Orange Management has sold a development site in Gowanus to Joyland Group for $30.5M, PincusCo reported. The transaction took place on the same day that Orange Group bought out its partners on the property, having bought the site at 125 Third St. in February 2022 for $21.6M. Joyland takes control of the development of an 84-unit, 73K SF multifamily property, which is already underway after receiving permits in May 2022.
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An industrial site in Brooklyn’s Gowanus neighborhood has changed hands for $19.5M, PincusCo reported. The property, 130 Third St., has one construction project plan filed for the site that would add 14 units of housing to the area, but it hasn't yet received permits. The seller was Yosef Rabinowitz, while the buyer was Frank Shyi-Fuh Ng.
