This Week's NY Deal Sheet
South Korean luxury hotel operator Lotte Group has closed on the purchase of the 909-key New York Palace Hotel in Midtown for $805M from John Kukral's Northwood Investors.
The sale's been in negotiations since May. Hodges Ward Elliott, which brokered the deal, reportedly says it's the biggest single American asset to be bought by a South Korean company. Lotte's portfolio includes 18 hotels around the world. The hotel will now be branded as the Lotte New York Palace. Northwood picked up the property in 2011 for $400M, and sunk $160M into a renovation that included redesigned rooms and a 24k SF event venue.
MORE SALES
Fortis Property Group has closed on its $240M buy of the multi-building, 542k SF Long Island College Hospital complex in Cobble Hill, Brooklyn.
Stellar Management has picked up 130 Second Ave, a two-story, 4,800 SF commercial property, for $12M. The site allowed for 9,500 SF of new development. JP Morgan Chase, which operates a branch in the building, was the seller, and was repped by Avison Young’s NYC investment sales team.
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Extell Development picked up 152 West 24th St, a three-story, 8,900 SF office and retail building in Chelsea, for $8.7M. The building comes with 17,500 of development rights, which could be transferred to 142 West 24th St, which Extell also owns. The seller was IATSE Local 798. Extell’s Dov Hertz repped the buyer in-house. Denham Wolf’s Paul Wolf and Stephen Powers repped the seller.
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154 Stanton St, a two-story, 3,600 SF mixed-use building, sold for $4.75M. Highcap Group’s Josh Goldflam repped the buyer and Highcap’s Michael Ferrara repped the seller, artist Kristen Copham.
EXECS
Bob Gordon has joined Avison Young’s New Jersey office as SVP of consulting and advisory. Bob will draw on his background in M&A and other strategic advisement in the healthcare sector, most recently at APM Management Consultants, to help Avison Young grow its healthcare real estate practice in New Jersey.
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Hodges Ward Elliott has brought on two new execs to its NYC office. Paul Gillen will take the title of managing director. Paul’s worked on over $15B in commercial real estate transactions over his career. His most recent role was CBRE SVP in the NYC investment sales group. Daniel Parker will join the firm as an SVP. Daniel was most recently a VP at The Related Cos, where he led a management team that oversaw a portfolio of 2,700 residential units.
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Cesare Berardi has joined Colliers International’s NJ office as director of project management. Before joining Colliers, Cesare served as VP of project management for Foit-Albert Associates, where he oversaw all aspects of project management in the development of the Port Authority of NY & NJ’s HQ and police department at the World Trade Center.
LEASES
Fan Duel signed a 41k SF lease at 300 Park Ave South. Colliers’ Robert Kennedy and Mintz & Gold’s Heath Loring repped FanDuel, and Cushman & Wakefield’s Mikael Nahmias and Hunton & Williams’ Anthony Bonan repped the landlord, Rockrose Development.
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Prime Office Centers signed a 10-year, 16k SF renewal at 521 Fifth Ave. ABS Partners’ Alan Friedman and Robert Finkelstein repped the tenant. SL Green’s David Kaufman repped the landlord in-house.
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Covington Fabric & Design signed a 7,200 SF lease at 470 Seventh Ave. Savitt Parterns’ Marc Schoen and Brian Neugeboren repped the tenant.
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Lululemon signed a 6,400 SF lease at 50 Bond St. RKF’s Jeremy Ezra and Karen Bellantoni repped the tenant. The landlord, Thor Equities, repped itself in-house.
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Union Market has signed a 4,500 SF lease at 342 Flatbush Ave in Brooklyn. Augenbaum Realty’s Josh Augenbaum and Allie Beyda repped the tenant and the landlord.
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Fields Good Chicken signed a 4k SF lease at 275 Madison Ave. Newmark Grubb Frank Knight’s Benjamin Birnbaum, Marc Frankel and Jeffrey Roseman repped the tenant. The landlord, RFR, was repped in-house by Jordan Claffey.
SoulCycle signed a 3,300 SF lease at 342 Flatbush Ave in Brooklyn. Augenbaum Realty’s Josh Augenbaum and Allie Beyda repped the tenant and the landlord.
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Brandy Melville signed a 1,600 SF lease at 90 Fifth Ave. Cushman & Wakefield’s Alan Napack repped the tenant. The landlord, RFR, was repped in-house by Jordan Claffey.
ABS Partners signed a 1,500 SF lease for its fourth NYC office at 99 Scott St in Bushwick. ABS’s Ben Waller repped ABS in-house, as well as the landlord, Bushwack Capital.
FINANCING
Madison Realty Capital provided a $107M loan to Fortis Property Group for the $240M purchase of the Long Island College Hospital complex in Cobble Hill, Brooklyn.
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Ceruzzi Holdings and Shanghai Municipal Investment USA secured a $150M acquisition financing package from JP Morgan Chase, with mezz financing from Fisher Bros. HFF’s David Nackoul and Christopher Peck brokered the debt, which will go toward acquiring a development site at 520 Fifth Ave.
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Gaia Real Estate closed on a $123M acquisition loan from TPG Real Estate Finance Trust for the purchase of 416 West 52nd St, a seven-story residential building on Manhattan’s far West Side. Meridian Capital Group’s Ronnie Levine and Jeff Berkes brokered the debt.
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Cayuga Capital Management closed on a $28M construction loan for a 64-unit, 60k SF residential building at 600 Bushwick Ave in Brooklyn. The lender was Santander Bank.
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Meridian Capital Group’s Charles Grussgott arranged a $12M financing package for Kahen Properties’ purchase of 80, 86 and 90 Livingston St in Downtown Brooklyn, three buildings with a total of 20 residential units and seven retail units and a total of 32k SF. The financing comes with an $8M senior loan at a rate of 3.37% and a $4M junior loan at a rate of 3.5%.
