This Week's N.Y. Deal Sheet
The leasing market was once again the most active sector in the city over the last week, but a Greenwich Village development landed significant construction financing and a developer bought out its partner at a Long Island City rental building.
TOP LEASES
WeWork is taking the entire office portion of Columbia Property Trust’s 149 Madison Ave., a 12-story building in NoMad, the companies announced Tuesday. The lease started earlier this month and is for 115K SF. The landlord will work alongside WeWork to “transform" the property, set to open next year, according to the release.
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Amazon has signed an 83K SF lease at Terreno Realty Corp.’s 26-15 Boody St. in Woodside, Queens, The Real Deal reports. The lease for Amazon's first distribution center in Queens County will begin Dec. 1. CBRE’s Brad Cohen, Jacob Tzfanya and Jon Kamali brokered the deal on behalf of the landlord.
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Frankfurt Kurnit Klein & Selz is taking 57K SF at Fosun's 28 Liberty St. The firm is moving from 488 Madison Ave., according to the landlord's announcement. The space is on the 35th and 36th floors of the building. The landlord was represented in-house by Thomas Costanzo and Isabella Chen, as well as JLL’s Mitchell Barnett, Peter Riguardi, Mitch Konsker, John Wheeler, Michael Berman, Daniel Turkewitz and Eliza Akers. Cushman & Wakefield’s Barry Zeller and Mitchell Barnett represented the law firm.
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Online ticket seller SeatGeek is moving to 902 Broadway in Flatiron, taking 73K SF there. The company will double its space when it moves from 400 Lafayette St. and East Fourth St. Savills Studley’s Nick Farmakis, David Goldstein, Brad Wolk and Chris Thompson represented SeatGeek, while the landlord was represented by Max Koeppel and David Koeppel of Koeppel Rosen. Asking rents are in the low $70s per SF.
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The New York City Office of Labor Relations is taking 54K SF at 22 Cortlandt St. in a 20-year deal, Commercial Observer reports. The space spans the entire 12th, 14th and 15th floors of the building and asking rents were $54 per SF. The agency is leaving 40 Rector St., according to the publication. NKF’s Barrett Stern represented the landlord, Mayore Estates, while CBRE’s Jonathan Cope, John Morrill and Yun Park brokered the lease on behalf of the Department of Citywide Administrative Services.
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Along with its new NoMad location, WeWork also announced it has taken 57K SF at 1450 Broadway, owned by Zar Property Group. The space there spans four floors, and WeWork will take the space from the beginning of January, with the opening slated for the first half of 2019. JLL’s Mitch Konsker represented Zar, and Jeff Winick from Winick Realty brokered the deal for WeWork.
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Edward J. Minskoff Equities inked three leases at 1166 Sixth Ave., for a total of 52K SF, the company and JLL announced. William Blair & Co. is taking 40K SF on the 20th floor, while D.E. Shaw & Co. expanded by nearly 7K SF to more than 200K SF there. Cross Lake Partners leased 5K SF on the 21st floor. The building is now fully occupied.
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In one of the biggest leasing deals signed in Downtown Manhattan this year, law firm Cahill Gordon & Reindel inked a deal for 200K SF at RXR Realty’s 32 Old Slip office building. Rents in the 20-year lease, which is for the 17th through 22nd floors, were $60 per SF, according to RXR. The deal means the firm is leaving nearby 80 Pine St., owned by Rudin Management.
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Coworking firm Bond Collective announced two new locations this week. At 156 Lafayette St., the company is taking 25K SF over six floors. In Greenpoint, it is taking 23K SF at 276 Greenpoint Ave.
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Related is filling space left empty by Toys R Us at Bronx Terminal Market with Food Bazaar Supermarket, which is taking 80K SF in the complex at 601 Exterior St. Food Bazaar will be the largest grocery store in the borough when it opens next year. The space was previously occupied by Toys R Us and Babies R Us. Asking rents in the long-term lease were not made public.
TOP SALES
Simon Baron has bought out its partner at another property, paying $313.2M for a 96.5% stake at the 467-unit rental building called ALTA LIC, The Real Deal reports. The 43-story, 380K SF building is at 29-22 Northern Blvd. and is home to Ollie's co-living flagship. Earlier this month, the firm bought a 98% stake at 383 West End Ave. from the same partner, Quadrum Global.
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Delshah Capital has closed on its 28-property portfolio purchase, paying $101.7M to Silvershore Properties for the buildings. The portfolio features buildings spanning 200K SF with 210 residential units and 17 retail locations, mainly in Bushwick and Bedford-Stuyvesant. Two of the buildings are in Downtown Manhattan, according to Meridian Capital Group. Rich Velotta and Abie Kassin of Meridian represented the seller and buyer.
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The Riverside Church in the city of New York paid $46.5M to Union Theological Seminary in the city of New York for McGiffert Hall, an 82-unit apartment building at 97-101 Claremont Ave., according to Cushman & Wakefield and property records. Union uses the property for student and faculty housing, and has leased the property back from the church. C&W’s Frank Liantonio represented the buyer, alongside Marc Nakleh. Mark Ehlinger arranged the acquisition financing.
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Taconic Investment Partners and Clarion Partners are buying two apartment buildings in the Bronx for $27.8M as an affordable housing joint venture called Quality Communities, The Real Deal reports. The seller of the properties, at 1537 Selwyn Ave. and 1197 Grand Concourse, is City Skyline Realty.
TOP FINANCING DEALS
Normandy Real Estate Partners locked down $187M from Apollo Commercial Real Estate Finance, Commercial Observer reports. The loan is for the construction of 797-799 Broadway and features a $77M mezzanine loan, along with a $97M assignment and refinance and a $13M building loan. Dustin Stolly and Jordan Roeschlaub of NKF Capital Markets brokered the deal.
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Fortress Credit loaned Arden Group $31M to buy the Viceroy Hotel in Midtown, Commercial Observer reports. Arden is buying the hotel, at 120 West 57th St., from New York REIT for $41M. The REIT, currently selling off all of its holdings, is reportedly selling it at a massive loss after buying it for $148.5M five years ago.
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Wharton Properties and Thor Equities scored $305M for three of their office and retail properties in SoHo from Morgan Stanley, The Real Deal reports. The loan on the buildings at 530-536 Broadway is for three years with two one-year options, according to the publication. JLL’s Aaron Appel brokered the financing.
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Bank of America provided Cassena Care $61.4M for its senior housing property at 520 Prospect Place in Crown Heights, The Real Deal reports. The loan included the previous $24.4M on the property, and $37.3M in new financing, according to the publication.
