This Week’s NY Deal Sheet
Apart from some big portfolio buys, the market saw another slow sales week. Leases and mortgages were still chugging along—highlighted by a 500k SF deal—although financing waned slightly.
TOP LEASES
New York-Presbyterian has signed a 500k SF lease at RXR Realty’s 237 Park Ave in Manhattan. RXR acquired the 1.2M SF tower from Lehman Brothers in October 2013 for $810M, then invested $50M in renovations. 237 Park Ave boasts a tenant roll including JP Morgan Chase, Jennison Associates and J. Walter Thompson. It's not currently known who repped either side.
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Law firm Hodgson Russ signed a 10-year, 20k SF lease for the 23rd floor of 605 Third Ave (pictured) in Manhattan. Relocating its HQ from 1540 Broadway, Hodgson is expected to move in 2017, during the firm's 200th anniversary. The landlord, Fisher Brothers, completed a $25M capital improvement program, including a new lobby and digital glass windows made up of 900 translucent tiles designed and programmed to function as giant kaleidoscopes. Fisher Brothers was repped in-house by Marc Packman and Jessica Kanfer, while Hodgson Russ was repped by Newmark Grubb Knight Frank's Moshe Sukenik, Kyle Ciminelli and Brian Cohen.
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Tokio Marine North America signed a 22k SF, 15-year lease at the 2.5M SF 1221 Avenue of the Americas in Manhattan. JLL's Cynthia Wasserberger and Michael Berg repped the tenant, while the landlord, The Rockefeller Group, which recently completed $30M in improvements on the building's lobby, was repped by a Cushman & Wakefield team led by John Cefaly.
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IMG Worldwide signed an 18k SF lease for the sixth floor at SL Green Realty’s 304 Park Ave South. The global talent agency now occupies 131k SF across seven floors of the 210k SF, 12-story building, and is leased at the building until 2029. CBRE's Michael Laginestra, Rocco Laginestra, Christopher Mansfield and Brian Dooley repped IMG, while SL Green was repped in-house by Howard Tenenbaum and Gary Rosen.
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Embassy Row, a Sony Pictures production company, signed a 10-year, 19k SF expansion at 325 Hudson St in Manhattan, now taking up 31k SF across the building's sixth and seventh floors. NGKF’s Eric Cagner and Kyle Ciminelli repped landlords Jamestown and Netrality Properties, while Savills Studley's Erik Schmall and Allyson Bowen repped Embassy Row.
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Thuzio, a talent-networking company, and NOMAD Editing Group signed full-floor leases at the 112k SF 114 West 26th St in Chelsea. Repped by C&W's Michael Baraldi and Colliers International's Josh Goldsmith, Thuzio will occupy the 9,300 SF fifth floor for five years and two months. NOMAD will take the sixth floor for 10 years, and was repped by Spaces Commercial's Jack Cohen. Adams & Co's Jeffrey Buslik and David Levy and Benchmark Properties' Michael Beyda repped the landlord, Delta Enterprises, in both deals.
Lyft has expanded its lease at Jamestown's 31-00 47th Ave in Long Island City by 7k SF, now taking up 12k SF at the 96-year-old, five-story, 658k SF property. The Falchi Building (pictured) also houses the NYC Taxi & Limousine Commission and Uber. C&W’s Kelli Berke, Haley Fisher, Michael Blanchard and Mitchell Arkin and JRT Realty Group's Greg Smith repped Jamestown, while JLL's Steven Rotter and Justin Haber repped Lyft.
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Speaking of Uber, the ride-share giant signed an 11-year, 11k SF lease on the Falchi Building's ground floor. Uber now occupies 25k SF total in the building, signing for 2,200 SF on the second floor and 23k SF on the ground floor last October. JLL’s Alexander Chudnoff and Dan Turkewitz repped Uber, and Jamestown was repped by the same C&W and JRT Realty team.
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The Falchi Building also saw a new tenant with the Doughnut Plant, which has signed a 10k SF lease, including a 400 SF retail section in the Jamestown building's food hall. Cushman & Wakefield's David Tricarico repped Jamestown, while NGKF's George Graf repped Doughnut Plant.
Extell Development has renewed its 24k SF, full-floor lease at Charles S. Cohen’s 805 Third Ave (pictured) for another 10 years. Cohen Brothers Realty head of leasing Marc Horowitz repped the landlord in-house, while it's not clear if Extell was repped by a broker. Marc says only units ranging from 2k to 8k SF remain at the 31-story, 600k SF tower, as the rest of the space is filled by massive companies like the Meredith Corp and the YES Network.
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Zurich American Insurance Co, the US division of the Zurich Insurance Group, signed a 132k SF lease for three floors at Silverstein Properties' 4 World Trade Center. Silverstein head of World Trade Center leasing Jeremy Moss and CBRE’s team, led by Mary Ann Tighe repped Silverstein, while JLL's Martin Horner and Robert Romano repped the tenant.
TOP SALES
New Jersey-based Treetop Development sold the 16-story, 503k SF Saxon Hall apartment complex at 62-60 99th St in Queens to Madison Realty Capital and Arel Capital for $135.5M. This is the largest-ever investment sale in the neighborhood. Treetop purchased the property in 2013 for $85.3M.
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Acting under an entity known as Adar Holdings LLC, M. Fried, a manufacturer of display cases and other retail fixtures, sold a 92k SF warehouse at 101 Varick Ave to the Rabsky Group for $43.3M. After M. Fried, which has owned the warehouse since 1991 and is relocating its HQ to Red Hook, vacates the space, Rabsky plans to build a 285k SF office and retail project.
Black Spruce sold 949 Anderson Ave, 951 Woodycrest Ave and 953 Anderson Ave in the Bronx to BFC Partners and K&R Preservation for $23.6M. This is part of a $60M, eight-building portfolio that covers properties in both Brooklyn and the Bronx (pictured). Black Spruce, led by Josh Gotlieb, bought the properties last April for $43M, as part of a 42-building portfolio sold by Normandy Real Estate Partners and Westbrook Partners.
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Ariel Property Advisors sold a 100-unit, 107k SF multifamily portfolio in Northern Manhattan and Brooklyn to ABJ Properties for $21.1M. The deal includes a Lenox Avenue portfolio, which includes three mixed-use walk-up buildings on the corner of West 138th St and Lenox Ave in Central Harlem and 1848-1845 Eastern Parkway, a three-story, 26k SF walk-up building located between Atlantic Avenue and Pacific Street.
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First Management Corp sold 88-05 171st St in Queens to Zara Realty Holding Group for $17.8M.
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An entity acting for controversial developer Howard Neu sold 827 Ave of the Americas in Manhattan to an entity known as 6-29 Street Realty LLC for $17.2M.
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Icon Realty Management sold 170 West 83rd St in Manhattan to XL Real Property Management for $17.1M.
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SMRC Management Co sold 65 Lenox Road in Brooklyn to Goldmont Realty for $16M.
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Black Spruce sold 182 East 93rd St in Brooklyn to BFC Partners and K&R Preservation for $14.4M, another aspect of the eight-portfolio deal.
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Woodhaven Real Estate Services sold 86-50 77th St in Queens to Margules Properties for $12.6M.
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The Besen Group sold 247 Audubon Ave in Washington Heights to Audubon Realty for $12.3M.
Sales data provided courtesy of Reonomy.
TOP FINANCING DEALS
The Related Cos closed on a $346M loan for one of its 35 Hudson Yards (pictured) tenants at 560 West 33rd St in Manhattan.
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New York Life closed on a $133.7M loan to Douglaston Development for a lot on Kent Avenue in Brooklyn.
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JP Morgan Chase closed on a $100M to Rudin Management Co to refinance the 24-story, 448k SF BlackRock office tower at 40 East 52nd St and a smaller property, 39 East 51st St, in Manhattan. The new mortgage replaces a $56.8M loan from New York Life.
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Deutsche Bank closed on a $70.5M loan to Madison Realty Capital for 62-60 99th St in Queens. This was part of a $112M acquisition financing Madison Realty Capital collected to acquire the Saxon Hall apartment complex, with $96M funded now and $16M for future property improvements. The financing includes $17.2M in building and project loans, $70.5M in existing debt and $8.6M in gap mortgage. Madison and Arel closed on the 419-apartment complex in June.
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Freddie Mac provided $55M in financing to BFC Partners for 820 Jackson Ave in the Bronx, 286 East 91st St in Brooklyn and the other properties in an eight-building multifamily portfolio acquired with K&R Preservation this week.
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Banco Popular North America closed on a $43.5M loan to 44 Development LLC for 229 West 44th St in Manhattan.
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The NYC Housing Development Corp closed on a $39M loan to an entity known as Story Avenue East Residential LLC for a lot on Story Avenue in the Bronx.
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JP Morgan Chase closed on a $38.4M loan to Emily Cruz Ali for 88-41 249th St, a single-family home in Queens.
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Signature Bank closed on a $37M loan to SDG Management for 80 Grove St in Manhattan, the site of the Monster LGBT club.
Financing data provided courtesy of Reonomy.
