This Week’s N.Y. Deal Sheet
New York City's leasing market cooled off after a hot start to spring, but plenty of big financing deals closed, particularly for upcoming and existing housing developments.
TOP FINANCING DEALS
Clipper Equity sealed a $430M deal with JPMorgan Chase to refinance Tower 77, a three-tower multifamily property at 77 Commercial St. in Brooklyn’s Greenpoint neighborhood, Commercial Observer reported. The debt on the 766-unit project refinances the $386M construction loan provided by Bank of China and SL Green in 2020. Henry Bodek of Galaxy Capital negotiated the building’s fresh financing, which follows its delivery in 2023 after it had been under construction since 2013. Around 230 units are reserved as affordable housing, with amenities including a pool, sauna, fitness center and pet spa.
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Ares Management has agreed to loan $340M to Brookfield Properties to refinance two of its residential developments in the boroughs, PincusCo reported. The buildings in the deal are 370 apartments at 2401 3rd Ave. in the developer's Bankside project in the Bronx and the 414-unit building at 1 Bell Slip in Greenpoint. The loan from Ares consolidates two separate deals from Otera Capital and Goldman Sachs totaling $378.4M.
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That wasn't the only huge residential loan Brookfield secured this week. It also refinanced its 1,193-unit rental building in Harlem at 3333 Broadway with a $232.1M loan from JPMorgan Chase, according to city property records. Brookfield owns the majority of the 49-year-old building in a joint venture with Urban American Management, which owns a small stake and manages the JV's 4,000-unit portfolio. The new debt refinances a floating-rate, $245M CMBS loan issued in 2017 that was set to mature in July, according to the Morningstar Credit database. PincusCo first reported the loan.
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Island Capital Group secured a $155M loan to refinance the Lexington Hotel at 511 Lexington Ave. from Hudson Bay Capital Management, PincusCo reported. The financing replaces a $125M loan from HPS Investment Partners. Island Capital acquired the property from DiamondRock Hospitality for $183.5M in June 2021. The 27-story hotel has 725 rooms and was built in 1929, with past guests including Marilyn Monroe, Joe DiMaggio and Ella Fitzgerald, according to the hotel’s website.
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Elie Pariente’s EMP Capital has scored a $102.4M loan for a residential development that would replace an industrial property along Atlantic Avenue in Brooklyn, Crain’s New York Business reported. QR Real Estate Capital provided the loan for 870-888 Atlantic Ave., where EMP and Y&T Development hope to build a 17-story rental property with 228 units, 153 of which are earmarked as affordable housing using the 421-a tax break.
TOP LEASES
One World Trade Center is now 95% leased after signing insurance and annuity company Venerable to 11K SF, according to a release. The 3.1M SF building is owned by The Durst Organization and The Port Authority of New York and New Jersey, which were represented in-house by Durst’s Eric Engelhardt and Karen Rose as well as Newmark’s David Falk, Peter Shimkin, Hal Stein, Jason Greenstein and Nathan Kropp in the deal. Venerable, which will occupy space on the 49th floor, was represented by Cushman & Wakefield’s Michael Mathias.
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ZG Capital Partners signed eight tenants to a combined 45K SF of leasing at 1450 Broadway, according to a release. The leases in the 42-story, 430K SF office tower follow investments to equip the second floor with amenities, including conference and lounge spaces, by the end of this year.
QVC signed for 13K SF, relocating from 71 Fifth Ave. in a deal brokered by CBRE’s Ramsey Feher on behalf of the tenant. Kohler Co. subsidiary Kohler Ventures signed for 4K SF to open its first NYC office with representation from CBRE’s Liz Lash. Private equity fund Good Springs Capital also signed for 4K SF, represented by JLL’s Evan Margolin, Daniel Posy and Ian Lipman. Iconix, a fashion company that has long been a tenant in the building, signed a 10K SF extension, represented by JLL’s Margolin and Ian Lipman representing the tenant. Kering Eyewear renewed and expanded its space in the building to occupy a total of 12K SF in the building, with representation from Cushman & Wakefield’s Deborah Van der Hayden and Joshua Cohen. Wealth data platform Masttro signed for 5K SF, relocating from 1407 Broadway with representation from CBRE’s Sinclair Li and Connor Desimone. Tech firm Good Inside took 4K SF with representation from Rob Kluge of Current RE. Finally, fashion brand SG Cos. signed for almost 5K SF with representation from JLL’s Bill Peters and Jan la Torre. A JLL leasing team of Mitchell Konsker, Greg Wang, Thomas Swartz and Lance Yasinsky represented building ownership.
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Kamber Management Co.’s Tower 45, at 120 W. 45th St., has signed two new tenants to a total of 16K SF, according to a release. Law firm Watson Farley & Williams took 13K SF on the 20th floor of the 458K SF tower, relocating from 250 W. 55th St. in a deal brokered by John Mambrino, Nick Farmakis and Michael Bertini. Morgan Stanley Energy Partners-backed company SolMicroGrid took 3K SF in the building, with representation from Cresa’s Mitchel Kunikoff and CLRE Advisors’ Ronnie Cannon. A JLL team led by Paul Glickman, Diana Biasotti, Kyle Young and Kate Roush represented building ownership. Kamber is finishing up renovations on the property’s exterior atrium.
TOP SALES
Acadia Realty Trust has sold a fully leased, 100K SF retail property in Maspeth, Queens, for $50M, Commercial Observer reported. The Shops at Grand Avenue is anchored by Stop & Shop, which has eight years left on its lease, and has tenants including CityMD, Starbucks, Party City and Five Below. Acadia acquired the 1963-built and 1996-renovated property in 2014 from AEW Capital Management, shelling out $56M at the time. The buyer this time around was J.P. Morgan Asset Management. Adam Spies, Adam Doneger, Josh King, Dan O’Brien and Monica Brendsel of Newmark were responsible for marketing the property at 74-25 Grand Ave.
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The Eis family sold an eight-property multifamily portfolio in the East Village for $38M, according to a release. The buildings, 110 E. 1st St., 60-62 Second Ave., 58 Second Ave., 105 First Ave., 107 First Ave., 109 First Ave., 425 E. 6th St. and 543 E. 6th St., span 99 residential units and nine retail units. The seller was represented by Avison Young’s Brandon Polakoff and Ryan McGuirl. The portfolio was split up and sold to three separate buyers, Commercial Observer reported. Lawrence Movtady, who founded real estate investment company MOVCAP in 2021, bought 105-109 First Ave. for $13M, while Alfred Sabetfard of the Sabet Group spent $18.8M on 58 and 60-62 Second Ave. and 110 E. First St. The remaining properties were purchased by Son Dinh Tran.
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Blackstone sold an industrial portfolio with a significant concentration in Queens for $246M, PincusCo reported. Terreno Realty bought the 1.2M SF portfolio, which includes 182-17 150th Ave., 179-02 150th Ave. and 145-30 157th St. Terreno has been acquiring other industrial properties in NYC as of late, Commercial Observer reported, including a Red Hook warehouse acquired for $27.5M and a $12M purchase of a distribution building in East Williamsburg.
