This Week's N.Y. Deal Sheet: Stripe Subleases 147K SF At 28 Liberty
Payment company Stripe has signed the biggest Lower Manhattan office deal of the year in a sublease agreement with insurance giant AIG, Bisnow has learned.
Stripe has signed a sublease for 147K SF spanning the 45th through 48th floors of 28 Liberty, the 60-story tower in Manhattan’s Financial District formerly known as One Chase Manhattan Plaza, according to a source with knowledge of the deal.
AIG moved into 220K SF at the building in summer 2020 as it consolidated its New York City space into a new headquarters. The insurance company never formally put the sublease space on the market, the source said.
Stripe's deal is a relocation and expansion from its 125K SF spread at Jack Resnick & Sons' 199 Water St.
Downtown Manhattan has taken a beating in recent months, as companies have opted for shiny new Class-A and trophy assets in Midtown neighborhoods. The number of new leases in the submarket was 35% below the five-year average, according to a May report from the Downtown Alliance cited by Crain's New York Business.
Fosun International bought 28 Liberty for $725M in 2013, according to property records.
AIG was repped by JLL's Peter Riguardi, Joe Messina, Mike Shenot and Andrew Coe, while Stripe was repped by CBRE's Sacha Zarba, Jeff Fischer and Joe D’Apice. The brokerages declined to comment.
TOP LEASES
Skyline Developers has signed multiple leases at 1040 Sixth Ave. totaling 53K SF, Bisnow can first report. New tenants included healthcare law firm Daniel H. Cook, which signed a 7K SF lease for the whole 24th floor, and information technology company Terasky, which signed a 5K SF agreement for its first U.S. office. Other tenants signed extensions: Dice Career Solutions, a career hub for tech professionals, extended its 12K SF lease for a decade, Up Entertainment extended its 7K SF lease, and strategic consulting firm Sharp Decision signed a 4K SF extension. Law firm Meirowitz & Wasserberg expanded its office space by 12K SF, while Bochner IP, another law firm in the building, extended and expanded by 6K SF, bringing its total footprint in the property to 8K SF. The 24-story property underwent a full-scale renovation in 2016, which included restoration work on its art deco facade. Building ownership was repped by William Cohen, J.D. Cohen and Ariel Harwood of Newmark.
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Somera Road has signed two new leases at One Hanover Square totaling 9K SF. Stone Street Software, a tech startup backed by venture capital firm Saltoun Capital Partners, signed for almost 6K SF on the second floor, multiple sources confirmed to Bisnow. Asking rents in the deal were $75 per SF. Stone Street was represented in the seven-year lease by Newmark’s Will Grover and Ross Perlman. Data center company Switch has signed for around 3K SF on the second floor and was represented by JLL’s Mike Berg and Sofia Bruno. The landlord was represented by JLL’s Andrew Coe and Margaux Kelleher in both deals.
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Jack Resnick & Sons has signed investment firm Quest Partners to a full floor at 110 E. 59th St., according to a release. Quest will relocate from its digs at 126 E. 56th St. to 13K SF on the 36th floor of the Plaza District office building. Other tenants in the building include Cantor Fitzgerald, Estée Lauder and ZMC Advisors. CBRE’s Hugh McDonald and Munish Viralam repped the tenant, while Jack Resnick & Sons had in-house representation from Brett Greenberg and Fran Delgori.
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Temporary employment agency TemPositions has signed for 19K SF at Cohen Bros. Realty’s 622 Third Ave. property, Commercial Observer reported. Asking rents were $70 per SF for the 10-year lease. Newmark’s Matt Leon repped the tenant, and Cohen Bros. was repped in-house by Marc Horowitz.
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Blackstone is finalizing a deal to expand its headquarters at Rudin’s 345 Park Ave., upping its footprint from 750K SF to just over 1M SF. The deal would be one of the largest office leases in Manhattan in recent years and would see Blackstone extend its lease by six years to the end of 2034. The company’s stay in the 44-story building began in 1988 when it signed a deal for 70K SF. The expansion would mean Blackstone occupies 28 floors and approximately 55% of the 1.9M SF office building.
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Property & Building Corp.’s 452 Fifth Ave. has signed investment firm Brighton Park Capital to 16K SF, according to a release. The investment firm is relocating from 10 Bryant for the 10-year lease across the whole 21st floor of 452 Fifth Ave., formerly known as the HSBC Tower. Other tenants include investment firm Generate Capital and Tilden Park Capital. The landlord was repped by Paul Glickman, Benjamin Bass, Kristen Morgan and Kate Roush of JLL, while Brighton Park Capital was repped by Neil Goldmacher, Josh Friedman and Cooper Weisman of Newmark.
TOP FINANCING DEALS
MCR Development notched a $290M loan from Barclays for the landmarked TWA Hotel at JFK Airport, PincusCo reported. The hotel opened in 2019, following a $265M renovation financed by a $270M loan from Bank of America, which the new loan replaces. The hotel has 512 keys, a rooftop infinity pool and a cocktail lounge inside a 1958 airplane. Eastdil Secured advised MCR on the loan.
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Florida-based TZ Capital scored a $120M loan from Goldman Sachs for the ground-floor retail space at 680 Madison Ave., according to a release. The 34K SF space occupies almost a full block, including two corner spaces, and has luxury tenants including Tom Ford and Oscar de la Renta. A JLL Capital Markets team including Christopher Peck and Aaron Niedermayer arranged the financing.
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3650 REIT has agreed to lend $50M to Circle F Capital to finish up its construction of a 24-story luxury condominium project in Lower Manhattan, according to a release. The cash will help Circle F complete 1 Park Row, which had its construction interrupted by supply chain disruptions during the pandemic.
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Owners of the landmarked property The Mark Hotel scored a $335M refinancing deal, made up of $300M in CMBS debt and $35M of mezzanine financing outside of the CMBS trust, Commercial Observer reported. Goldman Sachs provided the CMBS loan on the 153-key property to owner Alexico Group, with Jordan Roeschlaub, Jonathan Firestone and Nick Scribani of Newmark arranging the deal.
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A joint venture of Tredway and ELH Mgmt nabbed a $97M acquisition loan from Wells Fargo for seven Section 8 multifamily properties in Fort Greene, Commercial Observer reported. The portfolio includes 80 Greene Ave., 36 Fort Greene Place, 56 Fort Greene Place, 35, 42 and 51 St. Felix St., and 221-225 Ashland Place. The JV aims to preserve affordability as it renovates the properties to include energy efficiency and lobby upgrades. Nonprofit The Jericho Project will provide social services to residents. The loan is backed by Freddie Mac and was brokered by Andy Daitch and Matt Kurzmann of Affordable Housing Advisors.
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A joint venture of The Carlyle Group and Sabharwal Properties scored a $100M loan from PGIM to refinance four self-storage properties in Brooklyn and Staten Island, Commercial Observer reported. The portfolio spans 443K SF and contains two CubeSmart Self Storage locations at 92 Caton Place in Brooklyn and 266 Wild Ave. in Staten Island. The other two properties are StorQuest Self Storage at 55 King St. and 507 Osborn St. in Brooklyn. The loan replaces a previous $75.8M sum from Bank OZK and Santander. Walker & Dunlop’s Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Ari Hirt, Bill Herring and Stanley Cayre arranged the new financing.
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J.P. Morgan Investment Management nabbed a $165M refinancing for a 387-unit multifamily property in NoMad known as The Capitol, PincusCo reported. The new financing came from Northwestern Mutual and replaces $130M from PGIM Real Estate.
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Two private owners of an East New York multifamily property have landed a $64M loan, Crain’s reported. Owners Nestor Vizhnay Dominguez and Blanca Criollo Criollo secured the sum from ICE Mortgage Technology. The property has an address of 151 Glen St.
TOP SALES
Gourmet Home Products is the latest occupier to become an owner, Commercial Observer reported. The homewares manufacturer and retailer acquired the 16-story 148 Madison Ave. office building for $31.3M from Steven Klein. The 15-year-old, 71K SF building will serve as Gourmet Home Products’ office and showroom. It plans to move from its current location at 357 Fifth Ave. when its lease runs out. Co-founder and President of Gourmet Home Products Jack Saadeh used a $19M acquisition loan from Interaudi Bank to make the purchase. Soly Halabi and Joshua Naza of Venture Capital Properties arranged the deal.
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Island Capital Group has purchased a multifamily property in Flatiron for $51.8M, PincusCo reported. The 116-unit property’s main address is 35 W. 21st St., although it has alternative addresses of 37 W. 21st St. and 39 W. 21st St., according to PincusCo. The seller was Canoe Brook Development. Island Capital Group acquired the property through purchasing a ground sublease.
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A Tashkent Supermarket affiliate shelled out $16M to Ilhanan Israilov for a 10K SF retail property in Brooklyn’s Sheepshead Bay neighborhood, Crain’s reported. The property has an address of 2837 Coney Island Ave. and last changed hands in 2017 for $12.2M, PincusCo reported.
