This Week's N.Y. Deal Sheet: Brookfield Sells 3333 Broadway For $324M
Brookfield Properties has exited its investment in the 1,193-unit apartment complex at 3333 Broadway.
Urban American, MSquared and a consortium of lenders including Bank of America Community Development Banking are now the full owners of the Morningside Heights property after buying out Brookfield for $324M, Commercial Observer reports.
The property is made up of five connected high-rises, and around half of the units are Section 8 housing. Daniel Parker, Gary Phillips and Will Silverman of Eastdil Secured negotiated the deal.
MSquared, led by former NYC Deputy Mayor Alicia Glen, is the lead investor. The property’s new ownership also landed $225M in Freddie Mac financing originated by Citigroup.
TOP SALES
Clothing manufacturer Haddad Brands paid $357M to Morgan Stanley in the final days of 2024 for the 853K SF office building at 2 Park Ave., PincusCo reported. The buyer plans to occupy the office space itself, according to Commercial Observer, which reported the deal in mid-December, before the transaction was recorded in public records.
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Investor and think tank founder Nicolas Berggruen has purchased nine Boerum Hill prewar mixed-use buildings for $25M, Crain’s New York Business reported. The properties at 525-541 Atlantic Ave. went under contract in August and closed in mid-December. Berggruen has been partnering with local developer Firebird Grove since 2020 to acquire distressed historic multifamily buildings in Brooklyn and Manhattan, although neither the 525-541 Atlantic Ave. properties nor the loans backing them appeared distressed, Crain’s reported. The seller of the nine properties was Thor Equities.
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Prologis is buying 440 Kingsland Ave., a site in Brooklyn’s Greenpoint neighborhood, from ExxonMobil for approximately $122M, Crain’s reported. The seller of the roughly 10-acre site near Newtown Creek was represented by TerraCRG's Dan Marks, Daniel Lebor and Ofer Cohen.
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Pace University has shelled out $62.4M to SL Green for part of its home in Manhattan’s Financial District, PincusCo reported. The deal covers two commercial condo units that together make up 126 Nassau St., where the university has a dormitory and an educational unit. SL Green developed the building for Pace, and the deal to sell it to the university was long planned.
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A mixed-use affordable housing project at 253 E. 142nd St. and 250 E. 144th St. has sold for $45.8M, Crain’s reported. The seven-story Mott Haven buildings, known as Morris Court, were built in 2014. The buyer was RJ Block, which was repped by Aaron Jungreis, Ben Khakshoor and Alex Fuchs of Rosewood Realty Group, while the seller wasn't disclosed but was repped by Mike Kerwin of Rosewood.
Artificial intelligence customer service company ASAPP subleased 18K SF of its space at One World Trade Center to Better Home & Mortgage, Bisnow has learned. Better Home & Mortgage, which was repped by David Berke and Brett Stein of Newmark, is relocating from 53 Beach St. in Tribeca. The sublease deal, which gives Better Home & Mortgage part of One World Trade’s 80th floor, runs through April 2030. JLL’s Andrew Coe, Margaux Kelleher and Jakob Cohn repped ASAPP in the sublease deal at the tallest building in the U.S.
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Healthcare-focused investment firm Altaris LLC has signed a 27K SF lease for the 17th floor of Paramount Group’s 31 W. 52nd St., Bisnow has learned. Altaris is relocating from SL Green’s 10 E. 53rd St. in an expansion deal. It was repped by Artisan Alliance’s Carleigh Bettiol and Sarah Pontius. SL Green didn't respond to Bisnow's request for comment. The landlord was represented by Frank Doyle, David Kleiner and Andrew Coe of JLL.
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Williams Equities has signed three tenants to a total of 57K SF at 136 Madison Ave. in recent weeks, including an 18K SF deal with Impact.com, according to a release. Impact.com renewed its lease in the building for another 10 years, with representation from Alex Leopold of CBRE. Peter Pennoyer Architects also renewed its 18K SF on the 11th floor for 11 years, while furniture company Bernhardt Furniture signed a 20K SF long-term extension for its flagship showroom and office. Colliers' Mac Roos, Andrew Roos, Michael Cohen and Jessica Verdi repped Williams Equities in all three deals. The four also have roles at Williams Equities, where Cohen and Andrew Roos are principals. Peter Pennoyer was repped by David Rosenbloom of Cushman & Wakefield, Commercial Observer reported.
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CBRE signed a 64K SF lease at Lever House for a new global financial HQ. The space spans six floors, with CBRE offices across four floors and a two-floor Industrious-run flex space targeting senior executives and serving as future potential expansion space for CBRE. Industrious will also manage and operate CBRE's dedicated offices in the building at 390 Park Ave. CBRE's John Maher, Peter Turchin, Caroline Merck, Alex Benisatto, William Hooks and Maxwell Tarter represented the landlords, Brookfield Properties and WatermanClark. Silvio Petriello repped CBRE in-house.
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Ken Griffin’s investment firm, Citadel, signed a 504K SF lease at the tail end of 2024, according to year-end reports from Colliers and Savills. The firm will move into Brookfield's 1.4M SF 660 Fifth Ave. Brookfield spent $400M renovating the building in 2022, after taking it over from Kushner Cos. in a $1.1B ground lease deal. The deal was Manhattan’s second largest in Q4, topped only by Bloomberg’s 925K SF renewal and expansion at 919 Third Ave.
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Kwenda Collegiate Girls Charter School is opening a 44K SF campus at 2520 Church Ave. in Flatbush. The charter school will occupy what was called in a release a turnkey educational space that was previously occupied by St. Gregory the Great Catholic Academy. The lease runs for 10 years, and Kwenda expects to open for the 2025-2026 school year. The building and grounds were recently renovated to include an outdoor classroom space, makerspace for hands-on art and science projects, and a performing arts wing, in addition to 14 indoor classrooms, a school library and a cafeteria. Kwenda Collegiate Girls Charter School was represented by Lindsay Ornstein, Jake Cinti and Kate Whitman of Open Impact Real Estate. The landlord, the Holy Cross Roman Catholic Church, was represented by William O’Brien of M.C. O’Brien Inc., Commercial Observer reported.
TOP FINANCING DEALS
Rockpoint Group netted a $123M refinancing deal for a 214-unit multifamily building on the Upper East Side, Commercial Observer reported. The funding came from a syndicate of lenders led by KKR Global Atlantic. Rockpoint acquired the property, The Wimbledon at 200 E. 82nd St., a decade ago from J.P. Morgan Investment Management for $218M. The 205K SF building was constructed in the 1980s and spans 28 stories. A Newmark team led by Jordan Roeschlaub and Chris Kramer arranged the fresh financing.
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Breaking Ground has secured a $120.8M rehab construction loan to convert a Carnegie Hill hotel into housing, PincusCo reported. The borrower plans to create 434 units of affordable housing at 1760 Third Ave., Crain’s reported in July, when the sale to Breaking Ground closed. The loan comes from the New York State Housing Finance Agency.
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InterVest Capital Partners scored a $200M refi from Deutsche Bank for 720 West End Ave., an Upper West Side condo building with a sellout price of almost $440M, PincusCo reported. The loan retires a $180.8M loan first provided in 2021 by Pacific Western Bank, which then assigned the debt to Security Benefit two years later. Less than two dozen of the 220K SF property’s 117 units are listed as available for sale on 720 West End Ave.’s website.
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Sioni Group signed a $76.9M refi from lender Starwood Property Trust for 4720 Third Ave., a mixed-use building in the Bronx’s Belmont neighborhood. The property has two commercial condos and a third residential condo with 160 units, PincusCo reported. The financing replaces an $87M loan from Valley National Bank.
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Hudson Cos. secured a $73M construction loan to build a five-story, mixed-income building in the Westchester town of Pelham, according to a release. The majority of the financing came from Santander and the Related Real Estate Debt Fund, Commercial Observer reported. Pelham House, at 217 Fifth Ave., will provide a total of 127 units, with five units reserved as affordable housing.
