This Week's N.Y. Deal Sheet
Investment sales lagged again last week, with few major deals closing. Leasing activity has remained strong, with a coworking company leasing up 100K SF in a building on Park Avenue South.
TOP LEASES
Coworking provider Spaces, owned by IWG, is taking 101K SF at 287 Park Ave. South, which is the entire office portion of the building. The space is for the second through ninth floors, Commercial Observer reports. Beijing-based CL Investment Group owns the building, which is the former United Charities Building. Asking rents were in the $70 to $80 per SF range, but the length of the lease is not yet clear. Newmark Knight Frank’s Brian Waterman, Alexander Radmin and Brent Ozarowski represented the landlord. James Wenk and Kirill Azovtsev of JLL represented Spaces.
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Gen II Fund services has agreed to sublease 48K SF at 805 Third Ave. from Meredith. The firm will move its headquarters there later this year, and will take space across the 24th and 25th floors once building renovations are complete. Meredith is moving to Time Inc.'s space at 255 Liberty St. following its acquisition of Time. Earlier this year, Kroll Bond Rating Agency signed up to take 95K SF at the Charles Cohen-owned building. CBRE’s William Iacovelli represented the tenant in the transaction, while the sublandlord was represented by JLL’s Frank Doyle and Randy Abend.
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The New York Road Runners, which oversees the New York marathon, is expanding its space at the Tishman Speyer-owned 156 West 56th St., Crain’s New York reports, increasing by 8K SF to 48K SF. The asking rents were in the low $70s. New York Road Runners was represented by Colliers International Tristate President Michael Cohen and Vice Chairman Andrew Roos.
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Getty Images is taking 42K SF at 195 Broadway, subleasing the entire 10th floor from Sizmek. The building is owned by L&L Holding Co. and its largest tenant is Omnicom, the New York Post reports. Newmark Knight Frank’s Daniel Levine represented Getty, while Cushman & Wakefield’s Justin Royce represented Sizmek. The space Getty is leaving behind at One Hudson has already been subleased by Oscar Health, which recently signed up for 78K SF there.
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Fullscreen Media is doubling its space to 34K SF at Columbia Property Trust’s 315 Park Ave. South, the landlord announced this week. The company already has 17K SF in the building on the sixth floor, and will now extend to the fifth floor. The building — which Columbia Property renovated after buying it in 2015 — is now 95% leased.
TOP FINANCING DEALS
RPW Group secured $210M from Ullico for 275 Madison Ave., Commercial Observer reports, the largest deal for the insurance company as the sole lender, and the debt is at a 10-year fixed rate. Richard Horowitz of Cooper-Horowitz arranged the financing, which refinances a $240M acquisition loan from Blackstone Group and SL Green.
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Sioni Group, led by Ray Yadidi, landed $82.5M from Mack Real Estate Credit Strategies and Signature Bank for the $105M purchase of 240 West 40th St., Commercial Observer reports. Mack, one of the earliest developers to jump into the alternative lending space, provided $20.5M in mezzanine financing and Signature Bank provided a $62M senior mortgage.
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Azimuth Development Group scored around $107M from the New York City Housing Development Corp. for the new building at 1755 Watson Ave., the site of the Bronx Pentecostal Deliverance Center, Commercial Observer reports. The developer is planning to work with the church to build a nine-story, mixed-use development spanning 313K SF. It is reportedly the third-largest loan issued in Brooklyn so far this year.
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The NYHDC is providing a $73.1M loan to nonprofit group Fifth Avenue Committee for its planned senior housing complex at 161-11 132nd Ave., The Real Deal reports. Wells Fargo will be servicing the loan.
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Casco Development scored $50M from Bank Hapoalim for its project at 540-548 West 21st St., The Real Deal reports. The financing replaces a $30M loan from the same lender and included a $20M gap mortgage. The company is reportedly planning a 172K SF mixed-use building there.
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A group of lenders represented by Israel-based Mishmeret Trust Co. provided $66M to Pinnacle Group for its Upper West Side rental building at 323 West 96th St. The loan features a $20.4M gap mortgage, The Real Deal reports.
TOP SALES
Israel-based Gazit-Globe paid $47.3M for the retail condo of the Edge at 4 North Seventh St. in Brooklyn, The Real Deal reports. Madison Marquette sold the property, which spans 60K SF and is leased to VCS and Brooklyn Harvest Market.
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Yossi Ariel’s Sterling Town Equities paid $28M for 542 Atlantic Ave., a two-story commercial building, from a group of families, The Real Deal reports. The firm also scored a $15M mortgage on the building from Israeli institution Bank Hapoalim.
