This Week's N.Y. Deal Sheet
Another muted week for commercial real estate deals was highlighted by one of the last 421-a projects in New York City landing a construction loan and multiple properties selling out of bankruptcy.
TOP FINANCING DEALS
Santander and Related Cos. have teamed up to finance one of the last 421-a-eligible projects in the city in Crown Heights, Brooklyn. The Hudson Cos. secured $135M in construction financing from the lenders for the development of 975 Nostrand Ave., an under-construction apartment building spanning 328 units. Thirty percent of the apartments are expected to be set aside for families earning 130% or less of the area median income when the project opens next year. The project is also planned for a 21K SF Fresh supermarket and an additional 4,100 SF of retail space. Cushman & Wakefield's Gideon Gil, Zachary Kraft and Sebastian Sanchez arranged the debt.
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Madison International Realty refinanced two properties in Fort Greene, Brooklyn, with Voya Investment Management. The Manhattan-based investor secured $69M for the building at 625 Atlantic Ave. and an adjacent building on Fort Greene Place, PincusCo reports. The debt replaces a previous $88M loan at the property from Voya.
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Developer 601W Cos. has accomplished a rare feat, securing new debt for an existing office building. The Manhattan-based investor landed a $65M loan from Northwind Group to refinance the 33-story Harborside 5 office building in Jersey City, The Real Deal reports. The building was acquired last year from Veris Residential, formerly Mack-Cali Realty Corp., as part of the REIT's unwinding of its office portfolio. It was the first office loan Northwind has originated in three years, founder Ran Eliasaf told TRD.
TOP LEASES
Technology firm Ekimetrics is relocating from Midtown South to the Financial District with a new lease at Silverstein Properties' 120 Broadway. The data science solutions firm is relocating its U.S. headquarters from 155 W. 23rd St. to 24K SF on part of the 29th floor in a 10-year lease, the landlord announced. Ekimetrics was represented by Colliers Vice Chairman Eric Ferriello, while Newmark's Erik Harris worked with Silverstein's Harlan Strader on the landlord side of negotiations. It is unclear if the move is an expansion or contraction, but it represents a win for Lower Manhattan, which has struggled to attract as many office tenants as Midtown South and Midtown in recent years.
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High-end grocery store Dumbo Market is relocating its Queens location after signing a nearly 14K SF lease at an upcoming development in Long Island City. The grocer plans to open in 2025 at Jasper, a $370M, 499-unit rental building being developed by The Domain Cos., LMXD, the Vorea Group and Bridge Investment Group. The store will replace the grocer's Urban Market location and double its size across the street, the New York Post reported. The lease for the location, which joins two Brooklyn spots and an upcoming one in Hoboken, was brokered by Igloo.
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AI-powered, wellness-focused gym Continuum has signed a 25K SF lease to take over the ground floor at 666 Greenwich St. in the Archive Building. The club's first location only expects to welcome 250 members, all of whom can track their overall wellness using wearable technology after undergoing a series of body scans. Corcoran Group's Steve Gold arranged the deal, Commercial Observer reported.
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DXL Big + Tall is relocating its apparel store for large men a block south of its current Chelsea location. The Massachusetts-based retailer signed a 10K SF lease for a corner storefront at 675 Sixth Ave. with landlord GFP Real Estate, according to a release. DXL is vacating its store at 703 Sixth Ave. because of a construction project, according to GFP, and backfills space vacated last year by Harmon Face Value. Asking rents at the 123-year-old building at the corner of 22nd Street weren't disclosed. GFP's Jeffrey Gural worked with Newmark's Benjamin Birnbaum and Andrew Taub on the lease, and DXL was represented by Cushman & Wakefield's Joanne Podell and Michael Shalom.
TOP SALES
A sumptuously designed commercial building in Flushing, Queens, has traded hands in a bankruptcy auction for $23.1M. Weizhen Chen acquired the 67K SF building at 34-20 Linden Place after Linden Center LLC, run by Yong Chun Guo, Henry Lam and Rita Lam, filed for bankruptcy last year, PincusCo reports. Northgate Real Estate Group's Greg Corbin brokered the sale, and New Era Life Insurance Co. provided Chen a $16M loan for the purchase.
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In more borough bankruptcy sale news, a multifamily development in Crown Heights has been sold at an auction to Rabsky Group for $18.8M, The Real Deal reports. Simon Dushinsky's firm was the winning bidder for the redevelopment of the former Nassau Brewing facility at 945 Bergen St. after Crow Hill Development's lender placed the project in bankruptcy in 2021. The auction sale was led by Newmark's Dan O'Brien and Maurice Suede.
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Zar Property Group and HPNY partnered to acquire the office building at 26-30 W. 61st St. from The Brodsky Organization. The buyers, led by David Zar and Ivan Hakimian, paid $15.1M in cash for the 57K SF property, Zar wrote in an email. The building is triple-net leased to the New York Institute of Technology for another 24 months. NYIT uses the building for career services and its resident life offices as well as a student lounge, according to its website.
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Madison Realty Capital sold a 62-unit apartment building in Clinton Hill, Brooklyn, for $27.5M, PincusCo reports. Witnick Real Estate Partners acquired the seven-story building at 97 Grand Ave. and 96 Steuben St. and financed the acquisition with an $18.3M loan from Arbor Realty Trust that was assigned to Fannie Mae. Alpha Realty's Lev Mavashev arranged the deal for both sides, per PincusCo.
