This Week’s N.Y. Deal Sheet
The biggest New York City office deals of the week were both in the Financial District, a major win for the city's most downtrodden submarket.
TOP LEASES
Catholic Charities of the Archdiocese of New York has signed a 77K SF lease with A.M. Property Holding Corp. at 80 Maiden Lane. Catholic Charities has already been a tenant in the building, but it is expanding its operations to cover the 22nd through 24th floors, in addition to occupying part of the 14th floor, to consolidate its footprint from various offices in Midtown. The new lease term is for 30 years, and the landlord of the 25-story property is converting the not-for-profit's space in the building into a condo. A JLL team of Matt Astrachan, Greg Wang, Kristen Morgan and Hannah Bernstein repped the tenants, while CBRE’s Paul Amrich, Neil King, Jonathan Cope, Gerry Miovski and Masha Dudelzak repped the landlord.
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The New York City Department for the Aging is moving to 80K SF at 14 Wall St. in FiDi, Commercial Observer reported. The department plans to move from three floors at 2 Lafayette St., where it has been since the 1980s. It applied to move because the city-owned building is overdue for upgrades that are necessary for the mostly senior clients who visit the agency’s office. The property at 14 Wall belongs to Alexander Rovt, a Ukrainian billionaire who acquired a majority stake in the 840K SF building over a decade ago for $294.4M.
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Mount Sinai West has renewed its 22K SF at The Feil Organization’s 200 W. 57th St. building, according to a release. The hospital chain stayed put in the Midtown Manhattan spot for a further 15 years. Newmark’s Chris Mongeluzo repped the tenant, and the landlord was represented in-house by Andrew Wiener and Kevin Driscoll. Asking rents were $65 per SF, Commercial Observer reported.
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Media and tech company ITN Holdings has subleased 15K SF at 747 Third Ave. to Helmsley Spear, Commercial Observer reported. ITN signed a 35K SF lease in the property for 15 years in 2017 and expects to stay in the building but with Helmsley Spear now taking the entire 11th floor. Helmsley Spear has already moved its headquarters into the 450K SF, Sage-owned building after relocating from 444 Madison Ave., a similarly sized space but one the brokerage shared with Falcon Pacific Construction. Daniel Horowitz, Jeffrey Peck, Roi Shleifer, Jacob Stern, Simon Chu and Yoni Bettinger of Savills handled the deal on behalf of the sublandlord, while Randy Sherman and Eric Lassoff represented the subtenant in-house.
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A Jewish religious school covering pre-kindergarten through high school has signed an 18K SF lease in Brooklyn’s Gravesend neighborhood, Commercial Observer reported. Yeshivat Darche Eres signed an 18K SF lease for five years covering the entire two-story property at 1870 Stillwell Ave. Asking rents were $40 per SF. Tri State Commercial Realty’s Avi Akiva handled the deal for both the tenant and the landlord, Solleah Realty.
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Circle Internet Financial, a crypto finance company, is uprooting from Boston and moving to NYC, Commercial Observer reported. The crypto company signed a 34K SF sublease deal at 1 World Trade Center, which is owned by the Port Authority of New York and New Jersey and the Durst Organization, taking space on the 87th floor leased by software firm Celonis. Circle plans to open in the Western Hemisphere's tallest building at the start of 2025.
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Swimwear manufacturer In Mocean Group has signed a 6K SF lease at 463 Seventh Ave., bringing its total occupancy in the building to 65K SF, according to a release. The space will be used for offices as well as for showrooms. Asking rents were $49 per SF. Landlord The Arsenal Co. was repped by Adams & Co.’s David Levy. In Mocean Group was repped by Benchmark Group New York LLC.
TOP FINANCING DEALS
Mack Real Estate Group and the State Teachers Retirement System of Ohio netted a $159M loan from Apollo Global Management, Commercial Observer reported. The refinancing covers a 368-unit, 40-story building at 21 India St. in Brooklyn’s Greenpoint neighborhood. The luxury building, known as The Greenpoint, opened in 2018. The loan was arranged by Jordan Roeschlaub, Chris Kramer and Peter Griesinger of Newmark.
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Goose Property Management refinanced its recently finished 137-unit multifamily property in Astoria to the tune of $68M, according to a release. Affinius Capital provided the loan for Astor on Third II, at 2-24 26th Ave., to lease the luxury building to stabilization. Henry Bodek of Galaxy Capital arranged the deal.
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Northwind Group has agreed to lend $75M to David Werner Real Estate Investments and Metro Loft Management for an office-to-residential conversion in Midtown East, according to a release. Werner and Nathan Berman's Metro Loft are teaming up to take the 10-story, 291K SF office at 219 E. 42nd St. and combine it with 235 E. 42nd St. to create a 29-story, 540K SF luxury multifamily building. Max Herzog, Marko Kazanjian, Andrew Cohen and Max Hulsh of IPA Capital Markets, a division of Marcus & Millichap, arranged the acquisition loan.
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Prestige Properties & Development reached a deal with JPMorgan Chase for a $280M refinancing loan covering two Bronx properties, PincusCo reported. The buildings are a shopping center at 2100 Bartow Ave. and a retail building 2134 Bartow Ave. in Co-op City. The properties have a combined 567K SF between them.
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ZD Jasper Realty scored a $117.5M construction loan from Maxim Capital Group to develop an 11-story, 128-unit apartment building at 430 W. 37th St., Commercial Observer reported. The building will also feature commercial space on the ground floor and cellar level. The loan retires existing financing and will also fund the final stages of the building’s construction. Morris Betesh of Meridian Capital Group brokered the loan. The site was previously owned by Extell Development, which wanted to build a 32-story property but ended up selling to ZD Jasper for $51.7M in 2022.
TOP SALES
A hotel union fund dropped more than $70M to acquire the office and retail spaces at 636 Sixth Ave., The Real Deal and Commercial Observer reported. The Employee Benefit Funds group of Hotel and Gaming Trades Council and the Hotel Association of New York City acquired the office portion of the Flatiron building from Clarion Partners, while it bought the retail space from Nuveen Real Estate and Union Investment. CVS had previously occupied the retail part of the building, but closed that location in 2022, while the office part has been completely vacant. Daniel Kaplan, Doug Middleton, Jack Stillwagon and Justin Arzi of CBRE arranged the deals.
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Falcon Properties has sold 152 W. 36th St., an office building in Midtown South, for $23.8M, The Real Deal reported. The buyer was a joint venture between Flatiron Equities and self-storage developer Mequity Cos., which has plans to convert the eight-story building into a 16-story self-storage facility to be operated by Manhattan Mini Storage. Dylan Kane and Zach Redding were part of the Colliers team that arranged the financing.
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The sale of a Hell's Kitchen office building in the works since June has closed, PincusCo reported. Related Fund Management bought 321 W. 44th St. in 2018 for $152.5M but sold it to a joint venture of Namdar Realty Group, Empire Capital and Mason Asset Management for $40.5M. Namdar holds a 92.5% stake in the property, while the entities belonging to Empire and Mason hold 5% and 2%, respectively.
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Nonprofit the Doe Fund has acquired 2738 Creston Ave. from SKF Development for $26M, PincusCo reported. The property is a new, 65-unit building in the Bronx’s Bedford Park neighborhood.
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A nursing home in the Queens Far Rockaway neighborhood has changed hands for $47.3M, Commercial Observer reported. Sentosa Care CEO Benjamin Landa sold the building to an LLC linked to nursing home owners Robert and Norman Rausman. The buyer didn't use a broker, but Jeffrey Vegh and Joe Schiff of Forest Healthcare Properties handled the deal for the seller.
