This Week's NY Deal Sheet
As the commercial real estate industry tries to wrap up its final deals before the holidays, Kevin Hoo’s Cove Property Group closed the biggest acquisition financing of the last week for a Midtown West office buy.
The $220M loan was provided by Deutsche Bank to finance Cove and Baupost Group's $330M acquisition of the eight-story, 423k SF 441 Ninth Ave (pictured) from Emblem Health, which bought the property for $31M in 1994 and is expected to leave within the year, The Real Deal reports.
The deal was announced in August, but closed yesterday. Emblem was repped by a Darcy Stacom led-CBRE team and team from Venable, who also repped the medical company for its seven-story building in East New York. CBRE Capital Markets' Shawn Rosenthal and Jason Gaccione locked down the acquisition loan.
Cove's planning a 150k SF expansion for the building, which has 210k SF of floor-area-ratio available for incorporation.
Sitting across the street from Brookfield Property Partners’ 67-story, 2.1M SF One Manhattan West and a block away from the Related Cos and Oxford Property Group's Hudson Yards, the property was built in 1962 as a warehouse and converted into an office in 1983, now boasting 50k SF floor plates.
This is Cove Property's second acquisition in 2016. In March, the firm partnered with Bentall Kennedy and bought 2 Rector St, a 26-story office building, from Jared Kushner’s Kushner Cos for $225M.
It was just one of a handful of major deals the West Side saw over the past few days.
TOP LEASES
The world’s leading investment management firm, BlackRock, signed a 20-year, 850k SF lease to set up its new global HQ on 15 floors in 50 Hudson Yards (pictured). BlackRock employees will have their own elevator entrance. JLL’s Peter Riguardi, Kenneth Siegel, Matthew Astrachan and Joseph Messina repped BlackRock, while Related and Oxford were repped in-house by Stephen Winter. BlackRock received a 10-year, $25M tax credit from New York State in the move.
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The NHL signed a 160k SF lease for five floors in Brookfield's One Manhattan West, as well as a 15k SF retail lease for a new NHL store in the complex. The hockey organization was repped by CBRE’s Michael Laginestra and Michael Geoghegan. Brookfield was repped in-house by Jerry Larkin and Duncan McCuaig, alongside Cushman & Wakefield’s Bruce Mosler, Robert Lowe and Ethan Silverstein.
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Intercept Pharmaceuticals signed an 85k SF lease for the 23rd through 25th floors of the 51-story, 1.3M SF 55 Hudson Yards. The $2.6B pharma firm also signed a short-term, 49k SF lease for the 40th floor of the 1.7M SF 10 Hudson Yards, where it'll stay as 55 Hudson Yards is constructed. Newmark Grubb Knight Frank’s Paul Ippolito, Ira Rovitz and Seth Weinstein repped Intercept, while Related’s Stephen Winter repped the landlord in-house alongside CBRE’s Robert Alexander, Howard Fiddle and Emily Jones.
Landmark Worldwide LLC signed a 15-year, 49k SF renewal for the entire concourse level of SL Green Realty's 315 West 33rd St (pictured), also known as The Olivia. The 36-story mixed-use tower's other commercial tenants include an AMC Loews movie theater and Music Choice. Newmark Grubb Knight Frank's Dan Gronich and Robert Shapiro repped Landmark, while David Kaufman repped SL Green in-house.
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Toyota Tsusho America signed a six-year, 43k SF renewal for the 17th and 18th floors at Charles S. Cohen’s 31-story, 600k SF 805 Third Ave. Cohen Brothers Realty Corp property manager Marc Horowitz repped the landlord in-house, while CBRE's Paul Myers and Sarah Pontius repped Toyota. The tower's other tenants include the YES Network, Meredith Corp and Extell Development.
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Fisher Brothers signed two leases totaling 39k SF at the 1.1M SF 605 Third Ave. The Permanent Mission of Finland and the Consulate General of Finland in New York signed a 15-year, 19k SF lease for the full 35th floor and law firm Podell, Rothman, Schechter & Banfield signed a 10-year, 20k SF lease renewal for the entire 18th floor, where it's been since 1993. The Finnish organizations were repped by Savills Studley's Michael Goldman and Brad Wolk, while Fisher was repped in-house by Marc Packman and Clark Briffel, alongside Cushman & Wakefield's Bruce Mosler and Michael Baraldi. Packman repped Fisher in the Podell deal. Podell's rep wasn't disclosed.
Law firm Montgomery McCracken signed a 10-year, 28k SF lease extension for a portion of the 23rd floor and entire 24th floor of 437 Madison Ave (pictured). The firm's been at the tower since 2012, but under the new agreement, the firm will expand into redesigned space, with build-out slated to begin next September. There were no outside brokers.
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Crossix signed a 10-year, 28k SF lease for two floors at Westbrook Partners' 27-story, 513k SF 1375 Broadway. Savitt Partners' Marc Schoen and Brian Neugeboren repped Crossix, which is currently leasing 18k SF at 1001 Avenue of the Americas, while CBRE's Paul Amrich, Neil King, Patrice Meagher and Meghan Allen repped Westbrook.
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Documentary production company Jupiter Entertainment signed a 10-year, 20k SF lease for the entire fourth floor of Madison International Realty's 361k SF 136 Madison Ave. Relocating from 1250 Broadway, Jupiter was repped by Cushman & Wakefield's Adam Nelson and Mitch Arkin, while Colliers International's Andrew Roos and Michael Cohen repped Madison.
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Adams & Co signed 10 deals totaling 17k SF at Ten West Thirty Third Associates' 13-story, 319k SF 10 West 33rd St, also known as the Fashion Accessories Center. Adams & Co repped both sides for nine out of the 10 deals, and only repped Ten West Thirty on Cameo Public Relations's 1,463 SF lease renewal. Cameo was repped by Adams & Co's Jeffrey Buslik.
TOP SALES
Phipps Houses sold the eight-building, 894-unit Kips Bay Court complex to the Blackstone Group for $620M. Although announced in August, the city's largest multifamily deal of the year closed last week. Phipps Houses developed the complex in 1975, and hired a Darcy Stacom-led CBRE team to market it.
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RLJ Lodging Trust sold a pair of New York Hilton hotels (the 298-room 63 West 35th St and the 280-room 152 West 26th St) to an undisclosed buyer for a total of $286M. RLJ worked out a 4.7 cap rate on the deal.
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Alexander Scharf’s Esplanade Venture Partnership sold a 14-story, 185k SF luxury senior housing facility at 305 West End Ave on the Upper West Side to a JV of Ran Eliasaf’s Northwind Group, Harrison Street Real Estate Capital and the Engel Burman Group for $150M.
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Ares Management sold a portfolio of 10 rent-stabilized Queens buildings to A&E Real Estate Holdings and Daniel Benedict’s Great Neck-based Benedict Realty Group for $133M. The portfolio totals 531 rental apartments and 404k SF. The deal was brokered by Rosewood Realty Group's Aaron Jungreis and is A&E and Benedict's first partnership.
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Beacon Management sold 112 East 11th St in the East Village to Mallory Management for $72M.
A JV of Westbrook Partners and Largo Construction sold The Berkley (pictured), a 95-unit luxury apartment building at 223 North 8th St in Williamsburg to a JV of Trinity Place Holdings and Pacolet Milliken Enterprises for $69M.
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Extell Development sold the 12-story, 33k SF 30 East 23rd St in Flatiron to Terrence Lowenberg and Todd Cohen’s Icon Realty Management for $26.5M. The vacant property was one of the last properties Extell still had in its 14-building Ring portfolio, which the firm bought in 2013 for $450M. The rest have been sold or ground-leased.
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Castellan Real Estate Partners sold the six-story, 84-unit, 40k SF elevator building at 515 West 168th St in Washington Heights to an Urban American and Dixon Advisory JV for $18.2M, three times the $6.3M Castellan paid in September 2010.
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Cherso Realty Inc sold 178 Mulberry St in Nolita to Houston-based Winther Investment for $15M.
Sales data provided courtesy of Reonomy.
TOP FINANCING DEALS
Goldman Sachs closed on a 10-year, $400M loan to Vornado for 350 Park Avenue in Midtown. The loan has a fixed rate of 3.9%. Vornado bought the property, which is fully leased, for $542M in 2006.
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Wells Fargo and Deutsche Bank closed on $396M and $126M loans to the Related Cos and Vornado for the 540k SF 85 10th Ave (pictured) in Chelsea. While Related bought the office building for $430M from Somerset Partners in 2007, Vornado has a 50% stake in it. The loans replace a $270M acquisition loan.
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Wing Lung Bank closed on two loans, totaling $172M, to the undisclosed buyer of RLJ Lodging Trust's pair of Hilton hotels.
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Key Bank closed on a $110M loan to a JV of Ran Eliasaf’s Northwind Group, Harrison Street Real Estate Capital and the Engel Burman Group for its $150M acquisition of 305 West End Ave on the Upper West Side.
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Signature Bank closed on a $105M loan to Himmel + Meringoff Properties for 521 West 57th St in Midtown West.
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Signature Bank closed on a five-year, $101M loan to Jeff Sutton’s Wharton Properties to refinance a two-story, 19k SF retail building at 21 West 34th St. The loan replaces a $100M mortgage from Wells Fargo and comes with an option for a five-year extension. In May, jeans retailer Superdry signed a seven-year lease for the entire building.
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Apollo Global Management closed on a $65M loan to Gary Barnett's Extell Development for a block-long East Harlem development site. The loan consolidates a $35M loan from Signature Bank with $30M from Apollo subsidiary Apollo Commercial Real Estate Finance. Barnett hasn't disclosed what he'll build on the site once he demolishes the supermarket there.
Acore Capital closed on a $58M loan to Chris Xu's United Construction & Development Group for its $100M acquisition of the 780k BSF mixed-use development site at 39-08 Janet Place (pictured) in Flushing. The loan was originated by Cushman & Wakefield's Morris Betesh.
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Holliday Fenoglio Fowler procured a 10-year, $42.5M floating-rate acquisition loan for the Trinity Place Holdings and Pacolet Milliken Enterprises JV's $69M acquisition of the Berkley apartment building. The loan came through Freddie Mac’s CME Program.
Financing data provided courtesy of Reonomy.
