This Week's N.Y. Deal Sheet
The week back from Labor Day is always big for deals, and 2018 is no different, with six-figure leases and nine-figure sales and loans crossing the wires in the Tri-State area.
TOP LEASES
One of Trump Tower's largest tenants has signed a big lease elsewhere. The Industrial and Commercial Bank of China has completed a deal to take about 100K SF of offices at SL Green's 1185 Sixth Ave., The Real Deal reports. It is unclear whether the lease is an expansion or if ICBC will relocate from its 25K SF Trump Tower offices to SL Green's skyscraper, along with a concurrent lease expiration at 725 Fifth Ave. ICBC's new lease would also be more cost-efficient than its space at the president's signature property: asking rent at 1185 Sixth is a reported $75/SF, whereas its Trump Tower lease is for $95/SF.
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Jay Suites has signed a lease for its ninth coworking location in New York City, agreeing to fill 50K SF at the Gural family's 515 Madison Ave. The deal isn't as big a Jay Suites' 90K SF lease signed six months ago at 15 West 38th St., but it brings the company's New York footprint above 700K SF. The lease is for coworking on the ninth and 10th floors, with a Jay Conference center on the building's eighth floor. MHP's Rich Doolittle represented both parties.
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Ankura Consulting has expanded its office footprint with landlord SL Green for the third time in less than two years. The firm signed a 15-year, 30K SF lease at 485 Lexington Ave., doubling the space it committed to in January. It now leases 60K SF at the building across the ninth and 10th floors. It initially signed a 12K SF lease at 750 Lexington Ave., but has grown rapidly enough that it has quintupled its space in just a handful of years. The newest 15-year lease was brokered by JLL's Don Preate on behalf of the tenant and JLL's Paul Glickman, Ben Bass, Diana Biasotti and Jon Fanuzzi on behalf of SL Green.
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The nonprofit school founded by members of the Blue Man Group has signed a deal for a large facility in the shadow of the South Street Seaport. The Blue School announced it would open a 45K SF independent school at 156 William St., renovating and expanding the building that is already there. The school, designed by David Rockwell, would serve fourth- through eighth-graders from Manhattan and Brooklyn. The Blue School will continue to operate a 4,500 SF facility for preschool through third grade at 233 Water St.
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Higher Ground Education signed two deals for a combined 27K SF in Manhattan to open two new Montessori schools. The new locations will be in 16K SF at 12 East 79th St. and in 11K SF at 775 Columbus Ave. Both schools will be Polis World Schools, Mandarin Immersion programs for preschool-aged children. JLL's Nick Carey and Newmark Knight Frank's Jordan Gosin represented Higher Ground in the deals.
TOP SALES
The W Union Square Hotel is now under the ownership of Westbrook Partners. The private equity real estate firm paid $165.6M to Host Hotels & Resorts, according to city property records filed this week. Westbrook simultaneously took out a $100M loan with HSBC to finance the acquisition. The final price is representative of the tough New York City hotel market: Host, a Bethesda, Maryland-based REIT, paid $185.3M for the property in 2010, Commercial Observer reports.
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Michael Dell's equity vehicle is providing the backing for a development project on the Upper West Side. MSD Partners paid $50M for 2503-2509 Broadway, according to city property records, but The Real Deal reports that Adam America Real Estate plans to develop a condominium building at the site, and MSD only serves as a lender in the transaction so far. Susan Carmel Lehrman sold the site, which is currently home to a one-story commercial building.
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Marx Realty has paid $48.5M to acquire two office buildings along the Bowery. Caspi Development, RWN Real Estate Partners and Artemis Real Estate Partners sold 135 and 161 Bowery to Craig Deitelzweig-run Marx Realty in a deal brokered by Avison Young's James Nelson, Real Estate Weekly reports. The two office buildings are 100% leased, and Marx bought them via a 1031 tax exchange.
TOP FINANCING DEALS
In Hoboken, New Jersey, Angelo Gordon, Prism Capital and Parkwood Development landed a $64M construction loan from Bank OZK, formerly called Bank of the Ozarks, to build the 89-unit, five-building luxury residential project dubbed Wonder Lofts, Bisnow can first report.
The $120M project will renovate buildings that used to house production of Wonder Bread into a complex with amenities like a golf simulator and an outdoor pool. Interior demolition work is already complete on the site, and the joint venture, which came together last year after Parkwood experienced delays getting construction started, plans to begin building in Q4 2018.
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The joint venture that owns the Dumbo Heights office complex in Brooklyn has received a cash infusion from its lender. Kushner Cos., RFR Holding and LIVWRK refinanced the $425M Citi Real Estate Finance loan secured last year — which drew heavy scrutiny after Jared Kushner and Citi's CEO met in the White House — for $480M. The partners executed on the larger deal after buying Invesco out of its stake in the property last year, The Real Deal reports.
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APF Properties has secured a major loan to finance its acquisition of 183 Madison Ave. from Tishman Speyer. LoanCore provided the New York firm with a $182M mortgage, which combined $82M in new debt with the $100M still owed to previous lender Morgan Stanley by Tishman Speyer and its joint venture partner, Cogswell Lee Development Group. APF paid $222.5M to acquire the 19-story, 275K SF tower.
