This Week’s N.Y. Deal Sheet
This week saw a flurry of leasing activity on Manhattan’s Sixth Avenue, plus the sale of one of New York City’s largest remaining parcels of undeveloped land.
TOP LEASES
Fisher Brothers has signed New York Stock Exchange owner Intercontinental Exchange to 143K SF at 1345 Sixth Ave., Commercial Observer reported. ICE signed a 15-year lease at the 50-story property, giving it the fifth through eighth floors. ICE currently has two Manhattan offices, one at the NYSE Building at 11 Wall St. and the other at Park Avenue Plaza in Midtown South. It is unclear whether the NYSE plans to leave either of these addresses following the lease at 1345 Sixth Ave. The 1960s-built office tower, which spans 2M SF, underwent a $120M renovation, resulting in asking rents for ICE’s deal in the low $80s. The deal is Fisher Brothers’ second lease for over 100K SF in as many months, with the landlord signing 2023’s biggest office lease at the end of December.
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Tax advisory firm CohnReznick is subleasing part of its space at 1301 Sixth Ave. to media group Nexstar, Commercial Observer reported. Nexstar is taking 68K SF of CohnReznick's 125K SF footprint in the building. CohnReznick moved into the property in 2015 and was paying $78 per SF in its original lease, CO previously reported. It is unclear if the firm is trying to sublet more of its space at 1301 Sixth Ave. and how much space it currently occupies. Nexstar will relocate from its space at BentallGreenOak’s 685 Third Ave. for the seventh floor of the Paramount Group-owned 1301 Sixth Ave. Peter Gross of Avison Young acted as the subtenant broker in the deal.
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Law firm Dentons renewed its 160K SF lease at Rockefeller Group’s 1221 Sixth Ave., Commercial Observer reported. Dentons has 160 offices across 80 countries, including another New York office at 22 Little W. 12th St. in the Meatpacking District. Robert Lowe, Paige Engeldrum, Daniel Organ and Pierce Hance of Cushman & Wakefield are listed on the building’s website as the landlord’s in-house leasing team.
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Three tenants signed for a total of 33K SF at Brooklyn’s Industry City, according to a release. Third-party logistics startup Highline Commerce is adding 15K SF to its existing 27K SF at the campus’s Building 7. Solar power product manufacturer Pvilion signed for 14K SF in Building 8, and Citibin, a designer and manufacturer of trash and recycling containers, signed for 5K SF in Building 26. Cresa’s Bert Rosenblatt repped Citibin, which is vacating space in New Jersey and Red Hook, while an in-house team led by Jeff Fein repped the owners of the 35-acre, 16-building mixed-use complex.
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Marx Realty announced it signed a total of 24K SF of leases at 10 Grand Central. The Completed Life Initiative took 8K SF on the 10th floor for 10 years, with representation from Lantern’s Matthew Seigel and Jessica Adler. On the same floor, Rebalance Management and Bancorp Bank took 3K SF apiece, with JLL’s Scott Ansel repping Bancorp and Spaces Commercial Real Estate’s Jack Cohe repping Rebalance. Freedman Normand Friedland took 5K SF on the ninth floor, with representation from CBRE’s David Kleinhandler. On the 33rd floor, GSTQ renewed its 5K SF for three years, with representation from Colliers’ Michael Joseph and Aidan Campbell. JLL's Mitchell Konsker, Kyle Young, Carlee Palmer, Simon Landmann and Thomas Schwartz handle leasing for Marx Realty. Asking rents ranged from $68 to $108 per SF.
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BGO signed three leases totaling 27K SF at 757 Third Ave., according to a release. The Consulate General of Portugal is relocating to 7K SF in the property from 866 Second Ave. Reinsurance company BMS Group has signed a renewal and expansion, taking 13K SF across the entire 16th floor, having previously leased 7K SF. Software company Endava also relocated internally, moving from 7K SF on part of the 18th floor to the full 26th floor. JLL’s Konsker, Landmann, Clark Finney and Lance Yasinsky repped BGO, while the Consulate General of Portugal was repped by Bert Rosenblatt of Cresa and Endava by Cresa’s Thomas Sullivan and Nicholas Markel. Stephen Bellwood of Cushman & Wakefield repped BMS Group.
TOP SALES
A joint venture of the Carlyle Group and Gotham Organization shelled out $265M for The Aire, a 43-story, 310-unit building on the Upper West Side. The luxury residential property, which has an address of 200 W. 67th St., was sold by A&R Kalimian Realty. A&R Kalimian Realty, which developed the building in 2013, had fallen delinquent on its loans for the building, taking out a $225M senior loan with JPMorgan Chase in 2013 that it then packaged into a commercial mortgage-backed security. That sum matured on Nov. 1 and was marked delinquent and nonperforming in December. The sale price indicates the loan could be repaid in full.
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Prologis acquired an undeveloped 16-acre plot in Brooklyn from National Grid for $51M, Commercial Observer reported. The parcel at 2731 W. 12th St. is close to Coney Island Creek and has been on the market since December 2020. The lot is zoned for manufacturing and comes with 1.5M SF of buildable potential, but Prologis reportedly plans to use the land as parking for delivery vehicles and passenger cars. JLL’s Hall Oster, Brendan Callahan, Gabrielle Harvey, Ethan Stanton, Jordan Yarboro and Braedon Gait repped National Grid in the deal.
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RH, previously known as Restoration Hardware, paid $57.7M to acquire Delshah Capital’s 55 Gansevoort St., PincusCo reported. The property landed in technical default two months earlier, The Real Deal reported, with RH closing on the deal on Jan. 31. Delshah Capital bought the property in 2012 for $15.6M. The Meatpacking District building is home to RH’s boutique hotel, RH Guesthouse.
TOP FINANCING
RXR and GO Partners, a joint venture from Black Spruce Management and Orbach Affordable Housing Solution, nabbed a $146M refinancing for a luxury residential tower in Manhattan’s Lenox Hill neighborhood, Bloomberg reports. The new debt on the 209-unit property replaces a $154M CMBS loan that was originated in 2016. The 37-story building is known as Two Sutton Place North and has an address of 1113 York Ave. The new lender is an affiliate of Apollo Global Management, while the prior debt was held by a CMBS trust, PincusCo reported.
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Optimum Asset Management scored an $81.8M refinancing for three properties spanning 52 residential units on the Lower East Side, PincusCo reported. Lender Zusatzversorgungskasse des Baugewerbes, a German pension, retirement, health, and welfare fund manager, provided the loan, which replaces $79.6M in debt from Madison Realty Capital and covers 232 E. Broadway, 228 E. Broadway and 226 E. Broadway.
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TD Bank has agreed to lend family-owned development and construction firm Brisa Builders $47.7M for a construction project in Far Rockaway, Queens, PincusCo reported. There are two active construction projects on the lot at 13-04 Nameoke Ave., neither of which has been permitted, that are proposed to bring a total of 276 residential units. Last year, Brisa was selected as one of several partners working on an affordable housing complex in Brownsville in an initiative overseen by the New York City Department of Housing Preservation and Development, as well as part of a private team awarded a repairs contract with the New York City Housing Authority.
