This Week's N.Y. Deal Sheet
The start of 2019 kicked in with a bevy of deals across the market. Brookfield locked down a big chunk of financing for 666 Fifth Ave., the downtown leasing market scored a massive new deal and several properties sold in the Bronx.
TOP LEASES
NYC Health + Hospitals signed a deal for more than 500K SF at GFP Real Estate and Northwind Group’s 50 Water St., the groups announced Monday. The lease at the building, previously known as 7 Hanover Square, is for 25 years. The nonprofit corporation, which runs public hospitals and healthcare facilities, is taking a total of 527K SF in a $758M deal.
NYC Health + Hospitals will consolidate its offices at the building, reducing its footprint by 20% and saving $17M in real estate costs over the next five years, it said. The companies are rebranding the building as two separate entities with the addresses of 50 Water St. and 100 Pearl St.
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Hedge fund Citadel is expanding at 425 Park Ave., landlord L&L Holding Co. announced Tuesday. The Ken Griffin-led fund signed up for 200K SF at the building back in 2016, which was said to be the most expensive lease in the city’s history with rents as high as $300 per SF in the top two floors. Rumors were swirling that the firm had gone cold on the plans, with it reportedly hiring JLL to look for office space in Midtown.
However, it is adding another 120K SF to its leases there, bringing its total presence to 332K SF, according to L&L. The extra space is on floors nine through 14. L&L’s David Levinson, David Berkey and Andrew Wiener represented the landlord in-house. JLL’s Alex Chudnoff, Joseph Messina and Matthew Astrachan represented Citadel.
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Three companies signed up for space at Condé Nast’s former office at 4 Times Square, the New York Post reports. National Cable Communications leased 65K SF, Analysis Group leased 58K SF and SS&C Technologies is adding 31K SF to the 136K it already has in the building. The leases total 154K SF, and there are now 19 floors left to fill out of of the 817K SF the publisher left vacant when it moved to One World Trade Center.
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Digital financial firm Hudson River Trading is taking 135K SF at Silverstein Properties' 3 World Trade Center, the New York Post reports. It is moving from 4 World Trade, where it leased 69K SF back in 2016. 3 World Trade is now 40% leased as a result of the deal, which sees HRT taking four floors at the building, including an outdoor terrace on the 76th floor. CBRE’s Mary Ann Tighe, Ken Meyerson, Evan Haskell, Dave Caperna, Adam Foster, Rob Hill and Steve Eynon represented Silverstein. HRT was represented by Sacha Zarba, Chris Hogan and Chris Cornett, also of CBRE
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Online mattress retailer Casper Sleep is taking 70K SF at 3 WTC, The Real Deal reports. Rents were $80 per SF and the lease is for 15 years. The space will span the 39th and part of the 40th floor, according to the publication. Landlord Silverstein Properties was represented in-house by Jeremy Moss and by CBRE’s Tighe, Meyerson, Foster, Haskell, Eynon, Caperna, Hill and Stephen Siegel. CBRE’s Sinclair Li, Dan Wilpon, Lauren Crowley Corrinet and Will Trotsky represented the tenant.
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Life Time Fitness is taking 74K SF at Macklowe Properties' One Wall Street for its second location in Manhattan. The new gym will open in 2020 and will have space across four floors, Commercial Observer reports. The Dartmouth Co.’s Joe Mastromonaco and Fritz Kemerling represented Life Time in the transaction, while RKF’s Peter Whitenack represented Macklowe, along with Jackie Totolo and Scott Zinovoy.
TOP SALES
Centurion Property Investors paid approximately $227M to TIAA’s real estate investment arm for 200 West 72nd St., The Real Deal reports. The building has 196 residential units, and TIAA bought it from the Gotham Organization for $209M in 2011.
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Magna Hospitality Group paid McSam Hotel Group $113M for a development site at 140 West 24th St. in Chelsea, The Real Deal reports. The company had been planning a 45-story hotel with 510 rooms, and the architect for the firm said the hotel would go ahead. In a year, McSam, which is owned by hotel developer Sam Chang, nearly doubled its investment on the land.
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Realterm Logistics, a Maryland-based logistics real estate company, spent $115M on a Modell’s warehouse at 1500 Bassett Ave. in Morris Park in the Bronx, The Real Deal reports. The building spans 366K SF and is on a 17-acre lot. CBRE brokers Brad Cohen, Jacob Tzfanya and Jon Kamali represented the seller, Modell’s.
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Camber Property Group, Belveron Partners and the New York City Department of Housing Preservation and Development paid $75M for 11 apartment buildings in the Bronx, The Real Deal reports. A total of 100 apartments of the 434-unit portfolio will be converted from market-rate to affordable as part of the deal.
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Turnbridge Equities spent $56.2M on a 10-acre industrial development site in the South Bronx, Crain’s New York Business reports. The site is at 980 East 149th St. in Port Morris, and ACORE Capital provided a mortgage and mezzanine loan for the deal that together totaled $43.6M.
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Ashkenazy Acquisition Corp. paid $38M to the LeFrak Organization for a shopping center in Sheepshead Bay, The Real Deal reports. The 81K SF building at 3779-3861 Nostrand Ave. has been owned by the LeFrak family since the 1970s.
TOP FINANCING DEALS
Brookfield Asset Management scored $750M from ING Bank for 666 Fifth Ave., the troubled office tower it acquired from Kushner Cos. last year. Brookfield paid $1.3B for the 99-year ground lease on the building in August. Last week, the Canadian equity giant closed on the $750M mortgage from ING, which is part of a financing package of more than $1B that will fund a large-scale renovation.
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TF Cornerstone scored $700M from the city for its development at Hunters Point South. The financing included a $173.3M mortgage from the Department of Housing Preservation and Development for 52-03 Center Blvd., The Real Deal reports. The Housing Development Corp. provided $282.3M for that building and $245M for a tower at 52-41 Center Blvd.
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Delshah Capital scored $102.5M in construction financing for an apartment building at 22 Chapel St. in Brooklyn, Commercial Observer reports. The financing includes a $62M senior loan from Bank OZK and a $40.5M mezzanine loan from EverWest Real Estate Partners. JLL’s Aaron Appel and Michael Diaz brokered the deal.
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The Rabsky Group pulled in $88.2M from Berkadia for the refinancing of Leonard Pointe, The Real Deal reports. The project is a rental building at 395 Leonard St. in Williamsburg, and the financing replaces a $95M loan provided by TD Bank in 2015.
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Camber Property Group and partner Harlem Congregations for Community Improvement scored about $79M for Victory Plaza, an affordable housing project in Harlem. The New York City Housing Development Corp. is providing $46M in tax exempt bonds and subsidy. The New York City Department of Housing Preservation and Development is providing $7M in subsidy and Wells Fargo is providing $26M in equity from the sale of Low Income Housing Tax Credits, as well as a $39M letter of credit, according to a release from Camber. The building, due for completion in 2020 would feature 136 units, all of which will be affordable housing for seniors.
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Wells Fargo loaned Kenneth Cole $60M for the refinancing of the fashion company’s HQ at 601 and 615 West 50th St., The Real Deal reports. The deal includes a $10M gap mortgage and replaces debt originated by Natixis.
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BFC Partners locked down around $67M in state loans for the construction of Jamaica Avenue Apartments at 153-19 Jamaica Ave., The Real Deal reports. New Destiny Housing is developing the project with BFC, and the financing features a fee and leasehold mortgage for around $39.7M and a leasehold subsidy mortgage for around $27.1M.
