This Week’s N.Y. Deal Sheet
Manhattan's office leasing market saw a strong end to 2023 carry into the new year. Several developers also landed major construction loans to close out the year, deals that were somewhat concentrated in the outer boroughs.
TOP LEASES
Vornado Realty Trust started 2024 with a 175K SF lease at its 2M SF office tower at 1290 Sixth Ave., the New York Post reported. Law firm King & Spalding is set to move in 2025 from SL Green’s 1185 Sixth Ave., where it has been for two decades, to Vornado’s 43-story building a few blocks north. The law firm will also expand slightly in the move, growing from its 169K SF at SL Green’s property to a slightly larger space on the 13th through 15th floors of Vornado’s building. Asking rents were reportedly $105 per SF in the building, in which former President Donald Trump owns a 30% stake. Just 200K SF remain available in the 1963-built property, where investment manager Neuberger Berman is the largest tenant with 400K SF.
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The Major League Baseball Players Association is relocating its headquarters to 50K SF at Paramount Group’s 1325 Sixth Ave., Bisnow has learned. The lease in the 34-story, 1989-built property runs for 15 years, with an asking rent of $77 per SF. The property was recently renovated, according to its website, to modernize its infrastructure and create a new lobby. The MLBPA will be relocating from its current digs at Kato International’s Tower 49 at 12 E. 49th St., a few blocks south. The players union’s new Sixth Avenue lease covers the 29th and 30th floors, with Cushman & Wakefield’s Patrick Murphy and William Yeatman repping the tenant and JLL’s Frank Doyle, David Kleiner, Clark Finney and Andrew Coe repping Paramount Group. The MLBPA and Kato didn't immediately respond to Bisnow’s request for comment.
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MetLife is staying put at 200 Park Ave. after renewing its 400K SF lease for 11 years at the property known as the MetLife Building. The insurance company has extended its term in the 3.1M SF property, co-owned by The Irvine Co. and Tishman Speyer, until 2038, according to a release. The property is 96% leased, scoring more than 800K SF in new leases, extensions and renewals since 2020, according to Tishman Speyer. Cushman & Wakefield’s Patrick Murphy and Peyton Horn led the team repping MetLife, while ownership was repped in-house by Tishman Speyer’s Megan Sheehan and Sam Brodsky.
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Law firm Smith Gambrell & Russell has signed a lease to relocate and expand within Paramount Group’s 1301 Sixth Ave., Bisnow has learned. The 41K SF lease gives the law firm the entire 15th floor for a 10-year period, adding more than 10K SF to the 30K SF the firm currently occupies within the property. Asking rent at the 1.7M SF building was $84 per SF. JLL’s Doyle, Kleiner, Finney and Coe brokered the deal on behalf of building ownership, while Colliers’ Brian Given and Michael Cohen repped the law firm in the deal.
Catholic Guardian Services has signed two leases totaling 50K SF in the Bronx, according to a release. The nonprofit community organization signed for 25K SF apiece at 1990 Westchester Ave. and 1780 Grand Concourse, both of which are owned by an LLC called Jac Sla Realty, Commercial Observer reported. The company has owned both the properties since at least the 1960s, with Catholic Guardian Services renewing the Westchester Avenue location for 10 years and the Grand Concourse location for five years. Christopher Betting and Dean Rosenzweig repped the landlord, while Stephen Powers, Lindsay Ornstein, Jake Cinti and Julia Fish of Open Impact Real Estate repped the tenant.
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Ralph Lauren has renewed a 28K SF lease for its flagship store in the Rhinelander Mansion with annual rent ranging between $6M and $9M, Women's Wear Daily first reported. The lease gives the luxury fashion house another decade at 867 Madison Ave., which is owned by an LLC tied to a UK-based law firm, Commercial Observer reported. The beaux arts-inspired mansion was designed in the 1890s, according to Ralph Lauren’s website, with the fashion house moving into the space in 1983 when it renovated and restored the property before turning it into its flagship space.
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Olshan Properties signed two leases totaling 21K SF at 99 Hudson St., its office and retail condo property in Tribeca, according to a release. Community College Campus Inc. has signed a 9K SF lease for its new headquarters in New York City, taking part of the 12th floor in a planned November relocation from 138 Spring St. HR&A Advisors also renewed its lease in the building, signing for 12K SF across the entire third floor for a five-year term. Handler Real Estate’s Darell Handler and Kyle Galin repped Community College Campus, while Cushman & Wakefield’s Michael Mathias repped HR&A Advisors. Olshan Properties was repped by Newmark’s Eric Cagner, Jon Franzel, Claire Koeppel and David Falk. The property was first built in 1920 for industrial use and was most recently renovated in 2019 to upgrade its lobby and elevators.
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Two small tenants opened their first New York City offices with leases in Lower Manhattan. Boston-based car finance company Lendbuzz signed for 5K SF at 107 Greenwich St., taking part of the 22nd floor at Trinity Church Wall Street’s mixed-use Trinity Commons project in the Financial District. Asking rents were $79 per SF in the deal, which was brokered by JLL’s Jeff Szczapa and Edward DiTolla on behalf of Lendbuzz. Sports and entertainment private equity firm Otro Capital signed a 3K SF lease for an office at One Hanover Square, taking part of the second floor of the property, which has been partially owned by developer SomeraRoad since 2022, according to previous reporting from The Real Deal. Asking rents were $75 per SF. JLL’s Andrew Coe and Margaux Kelleher represented the landlords in both deals, while John Wheeler also repped Trinity Church in the Lendbuzz deal.
TOP FINANCING DEALS
Clipper Equity scored an $85M refinancing deal for its luxury Casa Hope property in Williamsburg, Commercial Observer reported. Valley National Bank provided the debt in a deal brokered by Leah Paskus of Landstone Capital Group. The 143-unit building has studio, one-bedroom and two-bedroom apartments across six stories, in addition to 43 units set aside as affordable housing as a condition of the now-expired 421-a tax break that applies to the property. The deal isn't the first time that Clipper and Valley National have worked together, with the bank providing a $123M construction loan in August for a mixed-use development in Crown Heights.
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Triangle Equities nabbed a $50M mortgage from Centennial Bank for a 425K SF industrial development in College Point, Queens, according to a release. The loan will replace existing debt and fund the pre-development and design of a multistory industrial asset on the nearly 10-acre lot at 30-02 Whitestone Expressway. Geoff Goldstein, Rob Hinckley and Tyler Peck of JLL arranged the financing on behalf of Triangle Equities.
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Valley National Bank originated a $105M senior construction loan to Avdoo & Partners Development for a 243K SF luxury condo development in Brooklyn’s Boerum Hill, Commercial Observer reported. The seven-story project at 323 Bergen St. will include 25K SF of amenities with individual condo sales planned to start this year. Avdoo was also responsible for another recent luxury condo development in the neighborhood, the 100-unit 55 Saint Marks Place.
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Extell Development landed a $220M construction loan for a planned 31-story hotel close to Rockefeller Center, PincusCo reported. Extell landed the sum for a 534-key Diamond District hotel at 32 W. 48th St. from Banco Inbursa. Foundation work on the project began in 2022, per Commercial Observer, but legal disputes over an 18-inch strip of land delayed plans by more than three years, according to previous reporting from The Real Deal.
TOP SALES
Hospitality and gaming REIT Vici Properties has purchased the ground lease under three properties within the Chelsea Piers entertainment complex for $342.9M in a leaseback agreement, PincusCo reported. The properties are 111A, 111B and 111C 11th Ave., with Vici Properties now acting as the ground tenant with the Hudson River Park Trust. The ground lease expires in 2065. Vici will also act as the sublandlord and signed a 32-year sublease with Chelsea Piers that spans 780K SF across 28 acres of sport and entertainment options. Vici Properties is a major owner of Las Vegas casinos. It was formed as a spinoff from Caesars Entertainment's Chapter 11 bankruptcy in 2017. Chelsea Piers is the NYC-based REIT's first New York property.
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Bridge Industrial has acquired an industrial property spanning 127K SF in Maspeth, Queens, for $57M, PincusCo reported. The sale price works out at roughly $446 per SF for the property at 58-95 Maurice Ave. Seller Turnbridge Equities purchased the property for $39.5M in 2019 and has since satisfied the $24M acquisition loan from Ares Commercial Real Estate.
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An LLC owned by Robert Favata has shelled out $48M for a 310-unit rental property in Queens’ Rego Park neighborhood, PincusCo reported. The seven-story building at 99-19 66th Ave. was owned by an LLC called Fannwood Estates that belongs to Richard and Andrew Goldberg. The 338K SF property has a sale price of $142 per SF.
