This Week's N.Y. Deal Sheet
The year may be drawing to a close, but the last Deal Sheet of 2018 is fuller than a Christmas stocking with major transactions.
TOP LEASES
Google announced it plans to occupy the 1.3M SF St. John’s terminal building, owned by Oxford Properties, on Monday. The tech giant is also leasing space at Jack Resnick and Sons’ 315 Hudson St. and at Trinity Real Estate’s 345 Hudson St., and plans to invest $1B in the area. The 1.7M SF campus will make Google one of the biggest office occupiers in the city and provide space for it to double its current workforce in the city to 14,000 people.
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Blackstone is expanding at The Rudin Family’s 345 Park Ave., adding 149K SF to its lease there. The firm now has around 575K SF across 16 floors at the 44-story building, according to a release from Rudin. Blackstone was represented by Neil Goldmacher of Newmark Knight Frank, and Rudin was represented by Tom Keating of Rudin Management Co.
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The Metropolitan Transportation Authority renewed for 47K SF at 1 Pierrepont Plaza, owned by Forest City New York, Commercial Observer reports. The MTA took the space in 2013, and the new 10-year lease deal starts next March. The authority is paying $50 per SF, and rent will go up 1.25% every year. Forest City is handing over a tenant improvement allowance of $1.95M, according to CO. CBRE's Howard Fiddle, Evan Fiddle, Eric Sears, Evan Haskell and David Caperna represented Forest City. Cushman & Wakefield brokered the deal for the MTA.
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Knotel announced approximately 180K SF in new leases over the last week. At the Rosen family's 27 West 23rd St., the flexible workspace provider is taking 51K SF. It also announced a 38K SF lease at OTB’s 220 West 19th St. and a 30K SF lease at 30 Broad St. in the Financial District, owned by TriBeCa Associates, among other deals.
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Milstein Properties and its tech incubator, Company, inked 93K SF worth of leases at its building 335 Madison, now known as The Company Building, The Real Deal reports. Facebook is leasing 40K SF, while BlueVoyant, a cybersecurity firm, is leasing just shy of 12K SF. Narrativ, an online retail search engine, also took 12K SF. Parity Partners, 8VC, Nomad Health, Timescale, Mint House, Project Hilltop, Anvyl, 645 Ventures and Republic also signed leases there. The asking rents in the building are $65 to $75 per SF.
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Phillips Auction House is taking 55K SF in the retail space of Macklowe Properties’ supertall 432 Park. The auction house is taking 30K SF of underground space with direct access to Park Avenue and space in the Park Avenue Cube, a planned glass structure at the northwest corner of 56th Street and Park Avenue, according to a release.
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SKF Development has signed a 99-year ground lease at 1760 Boone Ave. in the Bronx, paying $82M, The Real Deal reports. Yearly payments begin at $200K and rise up to $2M. Westbridge Realty Group’s Steven Westreich and Isaac Shrem brokered the deal.
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Blue State Digital is taking 21K SF at the Pioneer Building at 41 Flatbush Ave., The Real Deal reports. Quinlan Development Group and Building and Land Technology own the building, and the tech firm is moving to Brooklyn from 101 Sixth Ave. Cushman & Wakefield represented the landlords, and Blue State was represented by CBRE.
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RP Management, the investment manager for pharmaceutical royalties firm Royalty Pharma, inked a renewal and expansion at 10 East 59th St., owned by Jack Resnick & Sons. The company is growing its space to 30K SF in a 10-year deal. The asking rents in the building are at $90 per SF. Jack Resnick & Sons Executive Managing Director Brett Greenberg and Managing Director Fran Delgorio represented the landlord in the deal.
TOP SALES
Clarion Partners is paying the Blackstone Group $282M to acquire 114 West 41st St. The 22-story building in Bryant Park spans 349K SF. NKF’s James Kuhn, Edward Maher, David Colen and James Tribble brokered the deal.
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JPMorgan Chase paid $208M to Grand Central Terminal's owners, TF Cornerstone and MSD Capital, for nearly 667K SF of development rights, The Real Deal reports. The purchase is for the development of a new, 2.5M SF skyscraper to replace its office building at 270 Park Ave.
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Savanna closed on its $90M purchase of 48 West 25th St. according to property records filed with the city last week. Savanna reportedly entered into contract to buy the 126K SF building in October. The 1920s-era building was owned by the Klapper family, which bought it in the 1970s. A Cushman & Wakefield team of Adam Spies, Adam Doneger and Josh King represented the seller.
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Atlas Capital Group paid $72.2M for 2841-2847 Broadway, Commercial Observer reports. College Resident Club is the seller of the building, where Barnard College leases space for student housing. The building, between West 110th and West 111th streets, also has alternative address of 601 West 110th St. Valley National Bank provided a $45M loan for the purchase.
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Windsor Management Corp. paid $59M for 44 East 32nd St., Commercial Observer reports. The seller was Basset Properties. NKF’s Paul Davidson, Roy Lapidus, David Noonan, Jennifer Schwartzman and William Lee brokered the sale for the seller. LSL Advisors’ Daniel Lolai represented the buyer.
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Peter Fine paid $28.5M for almost a full block along Second Avenue between 102nd and 103rd streets, The Real Deal reports. The purchase features eight parcels at 1986-1998 Second Ave., and the seller is Charles Dayan’s Bonjour Capital. Venture Capital Properties’ Itan Rahmani brokered the sale with Rotem Elias.
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Alchemy Ventures has purchased a nine-property Bedford-Stuyvesant portfolio from IWC General Partners for $24.6M, according to the broker on the deal, B6 Real Estate Advisors. The properties include 879 DeKalb Ave., 419 Marcus Garvey Blvd., 421 Marcus Garvey Blvd., 654 Putnam Ave., 319 Malcolm X Blvd., 829 Halsey St., 804 Macon St., 808 Macon St. and 814 Macon St. B6’s DJ Johnston brokered the deal.
TOP FINANCING DEALS
Highgate scored almost $247.5M from the Blackstone Mortgage Trust for its purchase of the Park Central Hotel, The Real Deal reports. Blackstone provided three loans, according to the publication, for the acquisition of the hotel at 870 Seventh Ave., for which the purchase price was $366.1M.
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The developers of TSX Broadway scored $780M in new equity following a round led by UBS. The majority of the equity came from UBS' global network of high net worth and family office investors, according to a release from developers L&L Holding Co., Maefield Development and Fortress Investment Group. Goldman Sachs provided a $1.1B construction loan, and construction on the development at 1568 Broadway will start next year.
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Square Mile Capital loaned the Moinian Group $131.5M for its tower at 2 Washington St., The Real Deal reports. The money includes a senior loan of about $64M, a building loan of around $60.5M and a project loan of $6.9M. The company is doing a partial residential conversion at the building.
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Bank of America provided $40M to Atlas Hospitality to build a 128-key hotel in the Financial District, The Real Deal reports. Called Hotel Indigo, the 26-story building is planned for 120-122 Water St., and it is set to open in 2020.
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Mesa West Capital provided $225M to GreenOak Real Estate Advisors for the purchase of the Biltmore, Commercial Observer reports. The firm is joining with Slate Property Group to buy the rental tower at 271 West 47th St. for $280M from The Jack Parker Corp.
CORRECTION, DEC. 19, 3:30 P.M. ET: The Rosen Family owns 27 West 23rd St. An earlier version of this story misidentified the owner. This story has been updated.
