This Week's N.Y. Deal Sheet
The macro trends of co-living and coworking left their imprint on New York this past week, with WeWork locking down yet another massive lease and a London-based co-living company picking up a Brooklyn development site for its new American flagship.
TOP LEASES
WeWork is taking the entire office portion of SL Green’s 609 Fifth Ave., which entails the firm leasing a total of 135K SF in the building. The deal is for the third through 13th floors, and the new location is due to open in the first half of next year. Asking rents were reportedly $85 per SF.
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Software company BounceX is taking 79K SF at One World Trade Center, the New York Post reports. It will move to the 74th and 75th floors of the Port Authority and the Durst Organization-owned building, leaving the New York Times Building on Eighth Avenue. The move allows BounceX to double its space, and brings One World Trade to 81% leased. CBRE’s David Hollander and Scott Bogetti represented the tenant. The landlord was represented by a Cushman & Wakefield team led by Tara Stacom and Justin Royce, as well as by the Durst Organization’s Eric Engelhardt. The move is a win for the Downtown market, which has slumped in 2018 as Midtown has surged.
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One William Street Capital Management, an alternative investment firm, is taking just under 30K SF at 299 Park Ave., landlord Fisher Brothers announced. The 12-year lease is for the entire 25th floor, and the company will be moving from 1290 Sixth Ave., in the spring. Scott Gottlieb, Andrew Sussman and Benjamin Friedland of CBRE represented the tenant. Fisher Brothers was represented in-house by Marc Packman and Charles Laginestra, along with Newmark Knight Frank’s David Falk, Peter Shimkin, Andrew Sachs, Eric Cagner and Andrew Peretz.
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Isaac Hager’s Cornell Realty Management leased almost 44K SF at 75 Metropolitan Ave., owned by Metropolitan 75 Realty. The company will redevelop and renovate the property, NKF said in a release. The brokerage will then re-lease the space. Ryan Gessin of NKF represented the tenant and the owner. A NKF team including Alyssa Zahler, Whitten Morris and Joseph Sipala also represented the owner.
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Knotel signed leases at two new locations totaling 22K SF, the flexible workspace provider announced. In one deal, the company took 11K SF at 12 West 27th St., across the seventh and 12th floors. It also took 10,500 SF at 12 West 21st St., on the fifth and ninth floors. Elie Reiss of Skylight Leasing represented Knotel, while the owner, Himmel + Meringoff, was represented by Jason Vacker and David Cohen in-house.
TOP SALES
The Collective, a co-living operator based in London, paid $54.3M for a residential development site at 277 Lorimer St., or 555 Broadway, in Brooklyn. The seller is Blesso Properties and Park-it Management, according to JLL Capital Markets, the brokerage that represented the seller in the deal. Brendan Maddigan and Ethan Stanton brokered the deal along with James Nelson, now with Avison Young.
The site has 251K SF of market-rate residential development rights and a total development capacity of around 329K SF, according to JLL. The new owners will build a $450M, 350K SF co-living community there, which will be the company’s flagship location in the U.S., according to a release from The Collective.
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Simon Baron Development paid $130.9M to take over partner Quadrum Global’s 97.8% stake in the rental building at 393 West End Ave., The Real Deal reports. Simon Baron is using a loan from Ascend Real Estate Partners to fund the acquisition, according to the publication. The building features 114 units and spans 134K SF.
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A Two Trees Management-linked LLC paid $62M for a sale-leaseback of a petroleum facility at 25 Pidge Ave., The Real Deal reports. The seller is Zenith Energy, and Amish Patel signed as the buyer in property records filed with the city. The LLC has its mailing address listed as 45 Main St. in Brooklyn, which is Two Trees’ address.
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Alexandria Real Estate Equities has reportedly paid $75M to Brickman Real Estate for 20-02 48th Ave. in Long Island City. The deal closed Monday, The Real Deal reports. Alexandria is the California-based real estate investment firm that joined with David Werner to pay $365M for the Pfizer building earlier this year. A Cushman & Wakefield team led by Josh King, Adam Spies and Doug Harmon brokered the deal on behalf of Brickman.
TOP FINANCING DEALS
PGIM provided $88.5M to Madison Capital and Lubert-Adler Partners for the refinancing of 71 Fifth Ave., Commercial Observer reports. The financing comes in the form of a bridge loan and will help the owners lease the building, which has just undergone an $11M renovation.
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German firm Landesbank Hessen-Thüringen loaned Stellar Management $75M for its Central Park Gardens apartment building at 28-70 West 97th St., The Real Deal reports. The mortgage replaces a $51M Capital One loan from 2014.
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McSam’s Hotel Group scored $76M in construction financing from S3 Capital Partners, which is part of Spruce Capital Partners, to finish off its hotel development at 292 Fifth Ave. The 88K SF building will feature 180 hotel rooms once complete, The Real Deal reports.
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Innovo Property Group locked down $36.8M from Pine River Capital Management for its purchase of 58-30 Grand Ave. in Queens, an industrial and logistics facility it is buying for $39M. The loan is a three-year, full-term, interest-only loan, Commercial Observer reports.
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Massachusetts Mutual Life Insurance Co. provided $85M to ABS Partners to refinance 162 Fifth Ave., a 145K SF office building that is leased to JPMorgan Chase and the Simons Foundation. ABS Altman Warwick, a capital markets advisory firm that ABS and Altman Warwick formed last year, provided the financing. It was a 30-year, self-amortizing loan, according to a release.
