This Week's N.Y. Deal Sheet
The month of April has kicked off with some major deals, including Forest Realty Trust's sale of a Brooklyn building for $156M.
TOP LEASES
IEX is moving into Silverstein Properties’ 3 World Trade Center, and is taking a full-floor, 45K SF lease at the building, Silverstein Properties announced Tuesday. Right now, the stock exchange platform has a 13K SF office at 4 World Trade next door. The company first leased space at 7 World Trade in 2013. “They started with a small space, the kind we call ‘sliver tech,’ at Seven World Trade. They needed more and ended up at Tower Four," before expanding again into the under-construction 3 WTC, Larry Silverstein told told the New York Post.
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Jay Suites, a co-working company, is taking 90K SF at 15 West 38th St. as a 17-year sublease from Hudson’s Bay. Rosen Group owns the building, The Real Deal reports, and the asking rent was $45 per SF. The lease is Jay Suites’ eighth location in the city, and the company wants to spend in excess of $10M to renovate the 12-story building.
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Events space Glasshouses inked a deal to take 75K SF at 660 12th Ave., The Real Deal reports. The asking rent was $80 per SF, and the lease is for 30 years. Bay Ridge Auto Group owns the building, and two floors will be constructed above its Toyota showroom. One room will be built for Glasshouses' events and another for amenities and VIP space, according to TRD.
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IBM is taking almost 28K SF at ABS Partners’ 19 Union Square West. The computing company is taking the ninth through 11th floors, having previously held a 9K SF sublease with fantasy sports operator FanDuel. The asking rent was $80 per SF. ABS represented itself on the lease, on the other side of the table from CBRE's Carl Ericksen, representing IBM.
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Yotpo, a marketing startup, is increasing its presence at 33 West 19th St., signing a lease for 23K SF, Commercial Observer reports. The firm already has nearly 12K SF in the Pan Asia Properties-owned building, and the increase is a short-term lease that will allow the company to grow, according to CO. Asking rents in the deal were $70 per SF.
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Time Out Market New York is opening up in a 21K SF space at the warehouse-turned-office building on the Dumbo waterfront, Empire Stores, the New York Post reports. The market, featuring 20 yet-to-be-named eateries, is slated to open later this year.
TOP SALES
Forest Realty Trust announced the sale of its 63-unit rental building in Brooklyn's Pacific Park to Principal Global Investors for $156M, The Real Deal reports. The building, at 461 Dean St., was the last asset it owned alone, having sold a major share of the development to Greenland USA. Last month, Forest City announced it would not pursue a corporate sale, despite attracting offers from around 50 buyers.
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Lightstone Group is paying $60M for the Hilton Garden Inn in Long Island City. A group of investors led by Sagamore Capital and Ranger Properties owns the property, The Real Deal reports. The hotel, at 29-21 41st Ave., features 183 rooms and opened in 2015, according to the publication.
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Lightstone Group has also closed on a deal to buy a collection of four Bronx multifamily buildings for $50.6M, Commercial Observer reports. The four buildings — at 105 East 177th St., 2151 Davidson Ave., 831 Bartholdi St. and 3520 Dekalb Ave. — have 266 apartments in total. Belmar Realty Corp. is the seller.
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The Safra family is paying $23.5M to JRSE Acquisitions for a five-story, mixed-use building in SoHo. The building at 13 Prince St. features 20 apartments and three commercial units, The Real Deal reports.
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Real Estate Discovery Ventures is paying $23M for a retail building on Coney Island. The seller is an LLC, The Real Deal reports. The building at 2857 West 8th St. is fully leased.
TOP FINANCING DEALS
The team that developed The Lewis, the 12-story, 186-unit apartment building close to Hudson Yards, has secured a refinancing deal worth $86M from private equity giant KKR, The Real Deal reports. The building opened in February and is 25% leased, Joy Construction Corp., which built the project with Maddd Equities, told TRD. The loan replaces a $79.4M construction loan package from Wells Fargo in 2014.
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Himmel + Meringoff has secured a $60M refinancing for its office-and-retail building at 729 Seventh Ave. in the Theater District, Commercial Observer reports. The 17-story building, which is home to Playbill, among other theater-related businesses, and once contained a private office for William Randolph Hearst, was refinanced through a loan from Signature Bank.
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Fresh Direct has restructured its $50M bridge loan for its Bronx headquarters and manufacturing facility, according to city property records. The new agreement, which amends its June bridge loan from Signature Bank, splits the loan into a new, $5M note and the initial, $45M note. The online grocery company built a 650K SF facility on land owned by the New York City Industrial Development Agency.
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A subsidiary of Davbel Properties, run by David and Bernard Jacobowitz, has closed on a $29M gap mortgage from Sterling Bank for 520 Wythe Ave., a recently built, 42-unit apartment building. The property, built in 2015, already has a $36M nonrevolving credit facility from Sterling Bank attached to it.
CORRECTION, April 4, 9:12 a.m. ET: Jay Suites is a co-working company. An earlier version of this story misspelled its name. The story has been updated
