This Week's N.Y. Deal Sheet
This week saw Maefield Development buy out its partners in a Times Square tower in a deal that pegs the building's value at $1.53B.
TOP SALES
Maefield Development announced this week that it is acquiring the hotel and retail building at 20 Times Square, or 701 Seventh Ave. The company is buying out its partners in a move that values the building at $1.53B, The Real Deal reports. Natixis provided around $2B in financing for the purchase, according to TRD.
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Mount Sinai Health System paid $71.5M to La Scuola d’Italia for an 11-story building it used to own at 432 West 58th St., The Real Deal reports. Mount Sinai previously sold the property to La Scuola in 2015 for $55M.
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The Shariati family paid $22.3M, or $1,441 per SF, for three mixed-use buildings at 119-123 Kent Ave. in Williamsburg. The buildings feature 17 apartments, three retail units and an office space. The sellers were CW Realty, Joyland Group and Meral Property Group, according to Marcus & Millichap, which represented the buyer. Nat Rockett and Steven Dweck were the brokers.
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Bernard Miller Entities bought two residential apartments at 3508 Kings College Place and 3511 Putnam Place in the Bronx for $20.6M. The seller was MPNY Realty Inc., The Real Deal reports. Friedman Roth Realty brokered the deal.
TOP LEASES
Law firm Latham & Watkins signed on to take floors 25 to 34 at Rockefeller Group’s 1271 Sixth Ave. The 15-year lease is for a total of 407K SF and means the firm will be moving its New York City headquarters from the Lipstick Building at 885 Third Ave. CBRE's Mary Ann Tighe, John Maher, Howard Fiddle and Evan Haskell are on the CBRE landlord representation team at the building, and CBRE's Scott Gamber and Craig Reicher represented the law firm in lease negotiations.
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McDermott Will & Emery is taking 106K SF at SL Green’s One Vanderbilt. Newmark Knight Frank's Moshe Sukenik and Noel Flagg represented McDermott Will & Emery, and CBRE's Robert Alexander, Sarah Pontius, Ryan Alexander and Emily Jones brokered the deal for SL Green and its partners. The law firm will move from its current offices at 340 Madison Ave. when it moves to the supertall office tower in 2020.
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Global Holdings Management Group inked a deal for DWS Group, previously known as Deutsche Asset Management, to take 82K SF at 875 Third Ave. Asking rents in the 15-year deal were $92 per SF, The Real Deal reports. DWS is moving from the Rudin Management-owned 345 Park Ave. JLL’s Ken Siegel and Peter Riguardi represented DWS while JLL’s Paul Glickman, Diana Biasotti and Harley Dalton handle leasing at 875 Third, which is owned by Global Holdings Management Corp.
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Kind Snacks is subleasing 33K SF from Thomson Reuters at Rudin Management’s 3 Times Square, Commercial Observer reports. The asking rent was $55 per SF and the lease will run until 2022. Collier International’s David Glassman, Brendan Cavender, Steve Maneri, Sydney Cowles and Matt McKeever represented Reuters. CBRE’s David Kleinhandler and Michael Politi represented Kind Snacks.
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The William Kaufman Organization and Travelers Cos. signed two companies on for a combined 21K SF at 437 Madison Ave. ACT Commodities signed on for nearly 13K SF at th building, Commercial Observer reports. The lease is a 10-year deal and the asking rent was $85 per SF. Additionally, private equity firm Landmark Partners leased almost 8K SF. The asking rent in that deal was $95 per SF. Savills Studley’s Craig Lemle and Nick Zarnin represented ACT Commodities. Byrnam Wood’s Gordon Ogden and Nick Gilman represented Landmark Partners.
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Gemini Trust, a cryptocurrency exchange company, is expanding its presence to 51K SF at Columbia Property Trust’s 315 Park Ave. South, Commercial Observer reports. The firm, formed by twins Cameron and Tyler Winklevoss, is expanding there by more than 17K SF. L&L Holding Co.’s Andrew Wiener and David Berkey represented the landlord while Ross Zimbalist and Michael Blum represented the twins.
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The William Kaufman Organization linked six leases and renewals for 29K SF at its building at 777 Third Ave. in Midtown East, the landlord announced this week. The renewals include Benenson Strategy Group (11K SF), private investment firm Hudson Hill Capital L.P. (3K SF), Candlewood Investment Group (4,224 SF) and Grisanti Capital Management LLC (3K SF). The legal services group Tully Rinckey PLLC is leasing 4K SF and professional services firm SCSI Inc. is taking 3K SF. The rents were in the high $60 per SF range, according to WKO. Michael Lenchner of Sage Realty Corp., the leasing and management division of WKO, represented building ownership in all six transactions.
Newmark Knight Frank’s Brad Needleman represented Benenson Strategy Group. Tim Freydberg of CBRE represented Hudson Hill Capital, and Amy Lerner from Ambar Realty Group represented SCSI.
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Dailymotion, a video streaming service, is taking nearly 22K SF sublease space from Soundcloud at Two Trees Management Co.'s 50 West 23rd St., Commercial Observer reports. Douglas Regal and Evan Algier of Cushman & Wakefield brokered the deal on behalf of Dailymotion. Colliers represented Soundcloud, an audio sharing service.
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Chicago law firm Chapman and Cutler LLP is expanding its footprint at 1270 Sixth Ave. to nearly 31K SF. It is the firm’s second expansion, and it will now occupy a portion of the 29th floor and the entire 30th floor and in the building. CBRE’s David Kleinhandler and Ken Rapp represented the tenant, and the landlord Tishman & Speyer was represented in-house. The lease term is for 10 years.
TOP FINANCING DEALS
Gary Barnett’s Extell Development scored a $118M loan from Landesbank Hessen-Thüringen, The Real Deal reports. The financing is for Barnett’s 10-lot site on the Upper East Side.
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Natixis provided $100M to Madison International Realty for the Queens Place mall in Elmhurst. The loan replaces and consolidates a $77M loan from Northwestern Mutual Life Insurance Co. and includes a $23M gap mortgage, Commercial Observer reports.
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Mack Real Estate Credit Strategies provided a $65M bridge loan to Cape Advisors and Wainbridge Capital for their purchase of a development site in Astoria. The block-through site is at 30-77 Vernon Blvd. Cape Advisors and Wainbridge are planning a five-building development for the site that will feature 770 affordable and market-rate apartments.
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Related Cos. scored $225M to refinance One Hudson Yards, Commercial Observer reports. Landesbank Baden-Württemberg is leading the refinancing, and the loan consolidates $200M from JPMorgan Chase and provides an additional $25M.
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Madison Realty Capital provide $35M in a mezzanine loan to Sumaida + Khurana and LENY for their condominium at 611 West 56th St. The financing is a portion of the $155M construction loan package that MRC and Apollo Global Management have offered to the developers.
CORRECTION, MAY 1, 5:38 P.M. ET: The William Kaufman Organization owns 437 Madison Ave. An earlier version of this story misidentified the landlord. This story has been updated.
