This Week's N.Y. Deal Sheet
This week, a planned new tower on Manhattan's west side locked down its first tenant, a SoHo office complex scored nearly $1B in financing and a trio of Chelsea buildings changed hands.
TOP LEASES
Brookfield reportedly locked down a major agreement for a lease at Two Manhattan West. Law firm Cravath Swaine & Moore is expected to move to the tower, which is to be built between Hudson Yards and Penn Station, from One Worldwide Plaza. The deal is for 350K SF and means the firm will be downsizing from the 617K SF it occupies on West 50th Street.
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McCann Worldgroup is staying at 622 Third Ave., the New York Post reports. The firm's parent company, Interpublic Group, extended its 450K SF lease at the Cohen Brothers Realty-owned building, where McCann has been since 2000. Cohen was represented in-house by Marc Horowitz and the landlord was represented by JLL.
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SL Green locked down a 28K SF lease for Sentinel Capital Partners at One Vanderbilt, the landlord announced Monday. The deal will see the private equity firm taking the entire 51st floor in a 15-year deal. The 1,401-foot Midtown East tower, which is due to top out this summer, is now 59% leased. Newmark Knight Frank’s Lance Korman and Brian Waterman brokered the deal for Sentinel Capital Partners. CBRE’s Robert Alexander, Ryan Alexander, Emily Jones and Alex D’Amario represented the landlord.
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WeWork leased 212K SF at RXR Realty’s 620 Sixth Ave., and will move into space previously occupied by Spotify and Mediaocean, the New York Post reports. Spotify is going to Four World Trade Center and Mediaocean to 120 Broadway. The lease is a direct deal between WeWork and RXR, and a WeWork representative told the newspaper it is not yet sure how the space will be used.
TOP FINANCING DEALS
Stellar Management and Imperium Capital locked down a $900M loan for the refinancing of One SoHo Square, the firms announced in a release. Goldman Sachs in the lender, and the financing is a five-year CMBS loan, according to Commercial Observer. The property includes the 15-story One SoHo Square East and the 13-story One SoHo Square West, and has tenants like MAC Cosmetics, Glossier, Flatiron Health, Warby Parker and Aetna Life Insurance. A Cushman & Wakefield team led by Alex Hernandez brokered the deal.
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Thor Equities locked down a $50M loan from Amherst Capital Management, The Real Deal reports, to refinance the James New York Hotel in Soho. Around $20M will be spent on renovations, and the debt refinances the $44M acquisition loan Thor secured from Natixis in 2017. JLL’s Kevin Davis and Jeff Davis arranged the financing for Thor, per TRD.
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Two Trees Management scored $85M to refinance 45 Main St. in Dumbo, The Real Deal reports. JPMorgan Chase provided the financing, which includes a $70M new mortgage, per the publication. The building, which counts architecture firm Bjarke Ingels Group as a tenant, spans 475K SF.
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Aareal Capital Corp. provided a $105M loan to Artemis Real Estate Partners for its purchase of a stake in the Chelsea Ironworks, Commercial Observer reports. The company is buying a majority stake in the building at 511-541 West 25th St. from PGIM and L&L Holding Co.
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Los Angeles-based Colony Credit Real Estate provided $74M to Related and GreenOak Real Estate for the Paragon Building in Long Island City, Commercial Observer reports. The firm last received a $57.1M debt package for the building at 2100 49th Ave. from TPG in 2016, per CO.
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Wells Fargo provided $75M to the Moinian Group for the refinancing of 450-460 Park Ave. South, Commercial Observer reports. The financing is in the form of a 10-year CMBS loan. The 183K SF building has WeWork as a tenant, after the coworking firm signed a 55K SF lease at the building last year. JLL’s Aaron Appel, Kellogg Gaines, Jackson Sastri and Matt Fagella arranged the financing.
TOP SALES
Artemis Real Estate Partners paid $148.3M for the Chelsea Iron Works at 511-541 West 25th St., according to documents filed with the city Monday. The sellers were PGIM and L&L Holding Co. L&L is keeping a 5% stake in the building, according to The Real Deal, which first reported news of the sale.
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DAX Real Estate paid $37.4M to Brian Breyre for a rental building at 186 Franklin St. in Tribeca, The Real Deal reports. The six-story building features one retail unit and six residential units. Marcus & Millichap’s Joe Koicim, Noah Kossoff and Peter Von Der Ahe brokered the deal for both sides in an off-market transaction.
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Witkoff Group sold two office condos at 420 Fifth Ave. for $52M, The Real Deal reports. One of the properties, on the fifth floor, sold to Ziff Brothers Investments, which paid $27.3M. Mediterranean Shipping Co. bought the fourth floor, paying $25.1M. Rudder Property Group’s Michael Rudder and Mike Heller represented the seller. Diego Rodinó di Miglione of Cushman & Wakefield represented Mediterranean. CBRE’s Brian Gell brokered the deal for Ziff.
