This Week's N.Y. Deal Sheet
This week, two Manhattan hotels scored financing and Harry Macklowe closed on the last development site needed for his planned supertall.
TOP SALES
Alloy Development paid $52M for two connected buildings at 42-50 Jay St. in Dumbo, the company announced last week. The seller was Phoenix House, an inpatient-care rehabilitation company, according to JLL, the brokerage that represented both sides. The building spans 79K SF, and Alloy plans to turn it into a 46-unit building with townhouses, lofts and penthouse units. JLL’s Bob Knakal, Stephen Palmese and Michael Mazzara arranged the deal.
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Orin Wilf’s Skyline Developers bought two homes and an office building for a combined $75M, The Wall Street Journal reports. The three properties are at 9-11 West 54th St., and if they were to be converted into a single home, it would span 22K SF, one of the largest in Manhattan. Corcoran Group’s Cathy Franklin brokered the deal.
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Prime Storage paid $100M to the Fruchthandler and Schron families for a warehouse at 62 Imlay St. on the Brooklyn waterfront, The Real Deal reports. Christie’s has a lease on the property and uses it for storage. Capital Property Partners’ Daniel Rahmani brokered the deal for both sides.
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Developer Harry Macklowe paid $44M to Noam Management for 5 East 51st St., The Real Deal reports. The site, home to a six-story rental building, is the last piece of the assemblage the developer needs for his planned, 1,500-foot office tower dubbed Tower Fifth.
TOP FINANCING DEALS
Red Apple Group, led by John Catsimatidis, scored $200M from Santander Bank for its Downtown Brooklyn building at 86 Fleet Place, Commercial Observer reports. The loan for the rental tower replaces and consolidates a $170M loan from Bank of America in 2015.
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RXR Realty scored $157M from Bank of America, The Real Deal reports, to refinance its leasehold at 470 Vanderbilt Ave., an office building in Brooklyn. The money included a gap mortgage of $15M, according to the publication. Meridian Capital Group’s Rael Gervis and Richard Sutton arranged the financing.
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PCCP, previously known as Pacific Coast Capital Partners, loaned $152M to Quinlan Development Group and Building & Land Technology for the Pioneer building at 41 Flatbush Ave., The Real Deal reports. The money will be used for recapitalization and lease-up and replaces a $132M loan provided by KKR in 2017.
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Capital One provided a $135M Freddie Mac loan to Cammeby’s International Group to refinance Shorecrest Towers at Trump Village, The Real Deal reports. The apartment buildings feature 800 units, and are located at 2940 and 3000 Ocean Parkway.
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Bank Leumi USA has provided $45M to Maddd Equities and Joy Construction for a planned hotel project at 305 West 48th St., The Real Deal reports. They are joining with Atlas Hospitality to build the 203-room project, per TRD.
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Deutsche Bank loaned $160M to Sam Chang’s McSam Group for the refinancing of the Hyatt Place hotel at 350 West 39th St., The Real Deal reports. The hotel is under construction, and the financing replaces $95M of debt from Bank OZK in 2017.
TOP LEASES
Clothing company HanesBrands expanded its lease at 260 Madison Ave. by 36K SF. Hanes now has 96K SF in The Sapir Organization-owned building. The asking rent in the deal was in the high $60s, according to CBRE. CBRE's Peter Turchin, Gregg Rothkin, Brett Shannon, Tim Freydberg and Jared London are the leasing agents at the building and arranged the expansion.
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Alliant Insurance Services is taking 49K SF at 101 Park Ave., landlord H.J. Kalikow & Co. announced. The deal is for 11 years and will see Alliant taking the 12th and 14th floors, according to a release. Cushman & Wakefield’s John Cefaly and Nicholas Dysenchuk brokered the deal for the landlord. Colliers International’s Joseph Cabrera and David Glassman represented the tenant.
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New York Studio Factory is taking 17K SF in the office part of the William Vale Hotel at 55 Wythe Ave., The Real Deal reports. The deal is the first office tenant for the building. The 183-room hotel is owned by developers Yoel Goldman and Zelig Weiss, according to TRD. EXR’s Brendan Thrapp brokered the deal for both sides.
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Design firm for live events Bednark Studio took 62K SF at Building 28 in the Brooklyn Navy Yard. The 10-year lease is for production and flex space, and Bednark Studio will move there from Bushwick, according to the Brooklyn Navy Yard Development Corp.
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The Manhattan District Attorney’s office is taking 77K SF at 4312 Second Ave. in Brooklyn's Sunset Park, Commercial Observer reports. The lease will go until May 2020. The agency — which has already been in the space on a month-to-month arrangement — will pay $21 per SF, which will go up to $29 per SF over the course of the lease.
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Columbia Property Trust has played 18 holes and is now in the clubhouse at its West 18th Street property after signing a golf company to the last available space in the building. Drive Shack, which owns and operates golf-related leisure and entertainment businesses, agreed to take 13K SF across the third floor of the building at 218 West 18th St., CXP announced last week, bringing the building to 100% leased. The lease term and asking rents were not made public.
