This Week’s N.Y. Deal Sheet
A trio of high-profile Manhattan retail spaces found new tenants this week, including a megadeal for space at the bottom of a new Billionaires Row building.
TOP LEASES
Cosmetics retailer Sephora has signed a 6K SF lease to open a shop at Brookfield Properties’ Manhattan West project close to the High Line, according to a release. Sephora previously had a store in the nearby, Related-owned Hudson Yards shopping mall, but it was one of several brands that left the property after the pandemic hit, Commercial Observer reported. Its new neighbors in the 8-acre complex will include Silver Mirror and Peloton Studios. Virginia Pittarelli and Christine Jorge of Retail by MONA repped Sephora in the deal, while Brookfield was represented in-house by Jason Maurer, Elisa Young and Robin Dinkin. The store is planned to open next year, joining Sephora's 27 other outlets across the city.
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London-based auction house Bonhams is relocating to 42K SF at 111 W. 57th St., the New York Post reported. Bonhams is leaving 30K SF at Minskoff Equities’ 590 Madison Ave to expand into the bigger space at the super-skinny supertall. It will take over the landmarked former Steinway & Sons piano showroom at the 1,428-foot condo tower’s base. Newmark’s Jackie Totolo, Pierce Thompson, Adam Weinblatt and Robert Cohen represented the tower's owners, Apollo Commercial Real Estate Finance, JDS Development Group and Property Markets Group. Cushman & Wakefield’s Kenji Ota and Jennifer Konefsky represented Bonhams.
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Athletic apparel company Under Armour has sublet 24K SF of its space at BXP’s 767 Fifth Ave. building to Italian fashion brand Moncler Group, the New York Post reported. The space covers two levels at the 2M SF, 50-story tower in the General Motors Building. Moncler plans to open a new boutique and a store for its luxury Stone Island clothing line in the space, which it will operate in addition to existing New York City stores at 99 Prince St. and 611 Fifth Ave. Under Armour has leased the space, which totals 53K SF, since 2016, with plans to open a flagship store. But that store opening was delayed, with Under Armour first putting it up for sublease in 2021, Commercial Observer previously reported.
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Fisher Brothers has signed Virgo Business Centers to a 41K SF renewal at 1345 Sixth Ave., according to a release. The new lease at the 50-story office property runs for 11 years, with Virgo continuing to occupy the building’s entire second floor. The building recently underwent a $120M capital improvement and renovation program, adding a 20K SF amenity center, a 200-person conference center and a fitness center. A CBRE team of Peter Turchin, Howard Fiddle, Bill Iacovelli, Ben Joseph and Gregg Rothkin is in charge of the property’s leasing campaign, but Fisher Brothers’ David Cheikin, Marc Packman, Clark Briffel and Josh Fisher repped the landlord in-house in this deal while CBRE’s Anthony Dattoma repped Virgo.
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The Winter Organization has signed beverage brand Vita Coco to 23K SF at 111 Fifth Ave., according to a release. Vita Coco is relocating its corporate offices from 250 Park Avenue S. to the second floor of the boutique Flatiron District office. Asking rents in the 13-story building were in the mid-$80s per SF, with CBRE’s Jason Frazier and Jesse de la Rama representing the tenant in negotiations.
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Switzerland-based elevator company Schindler Elevator has signed for 23K SF at the Durst Organization’s 1133 Sixth Ave., Commercial Observer reported. The seven-year lease will see the elevator company relocate from Kato International’s Tower 49 at 12 E. 49th St. Schindler Elevator joins a tenant roster including Charles Schwab, Industrious and Interactive Brokers Group. The landlord was represented in-house by Thomas Bow, Rocco Romeo and Nora Caliban, and the tenant was represented by Mohr Partners’ Andrew Grabis, Erik Schwetje, Nate Solomon and Nicholas Solomon.
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The New School has renewed its 20K SF lease at West Village artist housing complex Westbeth Artists Housing, according to a release. The property has been home to The School of Drama at The New School since 2003. The new lease extends that run for another 10 years. Christopher Turner, Kate Hrobsky and Lauren Davis of Denham Wolf Real Estate Services negotiated on behalf of Westbeth, while The New School was repped by CBRE’s David Hollander, Larry Weiss and Maxwell Tarter.
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Landlord Josef Buchmann has signed investment management firm Christofferson, Robb & Co. to 19K SF at 680 Fifth Ave., according to a release. The investment manager will relocate from 720 Fifth Ave. to two full floors at the 205K SF building near Central Park and will also get access to a private terrace as part of the deal. The lease follows other recent agreements in the 27-story tower with Swarovski, Jen Partners and Lampe Conway. Buchmann was represented by a JLL team that included David Kleiner, Carlee Palmer and Margaux Kelleher. Newmark’s David Falk and Eric Cagner represented the tenant.
TOP SALES
Bob Knakal's new firm, BK Real Estate Advisors, closed its first deal, advising on the $27M sale of the 67K SF office building at 37 E. 18th St., Knakal said on LinkedIn. Zar Property NY acquired the building from longtime owners Norman Sheer, Sari Greenbaum and Steve Kerler, PincusCo reported. Zar adds the property close to Union Square to its existing NYC office portfolio spanning 64 Wooster St., 349 Fifth Ave. and 250 W. 54th St., Commercial Observer reported.
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Alchemy-ABR Investment Partners shelled out $33.7M to Parkoff Organization and Prize Network Group for a development site on the Upper East Side, The Real Deal reported. The 88K SF property spans 1482 and 1484-1486 First Ave., where a vacant medical building that was previously occupied by Weill Cornell Medicine and a mixed-use property with a Dunkin’ Donuts on the ground floor now sit. The off-market deal includes air rights from two neighboring properties. Ido Tzaidi of IDRE Commercial Realty brokered the deal.
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Jewish community group Romemu has sold 176 W. 105th St. to South Korea-based Christian group World Mission Society Church of God, according to a release. Romemu sold the 10K SF building for $10M after deciding it was no longer necessary to keep it, Crain’s New York Business reported. The buyer plans to continue to use the space, which has classrooms, a rooftop play area, commercial kitchens and a full floor meeting space, for religious purposes. Stephen Powers and Alexander Smith of Open Impact Real Estate repped Romemu, while Michael Marcus of EXP Realty repped World Mission Society.
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Brooklyn-based development firm Pro-H Development acquired the location of what was once destined to be NYC’s tallest modular hotel, Crain’s reported. Robert and Helen Chun sold the 842 Sixth Ave. property for $30M to the development firm, which is run by Hung Pin Hung and recently completed a six-story, 24-unit rental property in Bedford-Stuyvesant. The site was planned to be a Marriott-operated, 168-key hotel spanning 26 stories, but was halted by the pandemic after its owners demolished the mixed-use building that previously occupied the site. Hung plans to develop condos on the site, The Real Deal reported.
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Bayrock Capital has acquired an eight-story building in Lenox Hill for $19.9M, PincusCo reported. Himmel + Meringoff Properties sold the medical office building at 1114 First Ave., Crain’s reported.
TOP FINANCING DEALS
JCS Realty nabbed a $165M gap mortgage from MF1 Capital for its One38 apartment project in the Bronx’s Mott Haven neighborhood, according to a release. The 12-story building at 138 Bruckner Blvd., which has 579 units including 135 affordable units, launched its leasing in June. JCS’ Jacob Schwimmer first acquired the ground lease for the property for $55M from Montgomery Street Capital in 2022, The Real Deal reported. MF1 took over the existing $105M mortgage from S3 Capital and added $60M in additional gap financing as the project leases up, per TRD.
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Goose Property Management scored a $98M refinancing from Affinius Capital for the Northern I and II at 38-27 32nd St. in Astoria, according to a release. The Northern I has nine stories and 64 units, while the Northern II has 10 stories and 129 units. Galaxy Capital’s Henry Bodek arranged the loan, which will be used to complete the remainder of the outstanding construction as well as the leasing process.
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A joint venture between T&E 1 Development and Israel-based partner Minrav Group netted a $63M senior construction loan from Northwind Group for a residential condo building at 305 First Ave., according to a release. The loan will fund the construction of 54 luxury units plus 18 parking spaces and amenities including a rooftop terrace, a doorman and a residents’ lounge. Polsinelli’s John Vavas repped Northwind in the transaction, while Richard and Ryan Horowitz of Cooper Horowitz arranged the financing.
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M&R Hotel Management notched a $38.7M refinancing from Israel Discount Bank for 532-540 W. 48th St. in Hell’s Kitchen, PincusCo reported. The sum is a loan modification and extension of IDB’s previous $43M loan on the property, which was originated in 2019.
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Goldman Sachs provided Triangle Equities with loans totaling $31.5M for two office buildings in the Queens neighborhoods of College Point and Springfield Gardens, PincusCo reported. The first loan was for $16.4M and covered 30-56 Whitestone Expressway, a 58K SF building, replacing a $15M loan. The second loan was a $15.1M sum for 168-35 Rockaway Blvd., a 39K SF building with a previous loan of $8.8M. The loans replaced mortgages from Provident Bank.
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Citibank has agreed to lend $28.3M to Double U Realty for a residential project in Greenpoint, PincusCo reported. The loan is a refinancing for the 48-unit building located at 723 Manhattan Ave., replacing a $15.7M loan from Colorado Federal Savings Bank.
