This Week's N.Y. Deal Sheet
This week, a Hudson Square office building locked down some major leases and a major development by John F. Kennedy International Airport scored financing.
TOP LEASES
Stellar Management and Imperium Capital locked down two major leases at One SoHo Square this week. Flatiron Health has renewed its lease in the building for 10 years and has added 122K SF to its space there, bringing its total footprint to 252K SF. A Savills team led by Zev Holzman, along with Bad Wolk and Herman Dodson, worked with Roswell Hobbs, Flatiron's head of office and real estate, to broker the deal.
In the same building, e-cigarette maker Juul Labs is taking 54K SF, The Real Deal reports. Asking rents were $125 per SF, and Eric Feriello at Colliers International represented Juul, per TRD.
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Grocery store Food Bazaar is taking nearly 46K SF at One East Harlem in a 20-year pre-development lease, ABS Partners Real Estate announced. The development is a 1-acre, mixed-use project at 201 East 125th St., and will ultimately feature 65K SF of retail space and 404 residential units. Richman Group Development Corp., Bridges Development Group, Monadnock Development, Hope Community Development and El Barrio Operation Fightback are bringing the project to fruition. Food Bazaar is expected to open in 2021. ABS Partners’ Mark Tergesen and Joe Italiaander represented Food Bazaar in the deal. Ripco Real Estate and Michael Berfield of Bridges Development Group brokered the deal for the landlord.
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Kaplan International is taking 25K SF at 5 Columbus Circle. The building is owned by a partnership that includes the families of Spiros Milonas, a shipping giant, and Red Apple’s John Catsmatidis. The building sits between 57th and 58th streets. JLL was the broker on the deal.
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Savanna has renewed Altice USA for its 103K SF spread at One Court Square. The company was already in the building, but was set to leave because of Amazon’s plans to lease space there as part of bringing its HQ2 to Queens. Amazon backed out in February, and the cable provider has now decided to stay in the building, Savanna announced Friday. Altice has been there since 2017, and has the option to expand to other floors.
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Law firm Norris McLaughlin is leasing 27K SF at 7 Times Square Tower, owned by Boston Properties, Commercial Observer reports. Rents in the 10-year lease were in the high $70s per SF, according to CO. The firm will move into the 21st floor in the building in 2020. Avison Young’s Mitti Liebersohn, Jennifer Ogden and J.C. Giordano represented the tenant. In-house brokers Andy Levin and Heather Kahn represented the landlord alongside Peter Turchin and Caroline Merck of CBRE.
TOP FINANCING DEALS
Related and Allianz bought the office condominium at 30 Hudson Yards with a $1.43B CMBS loan from Deutsche Bank, Wells Fargo and Goldman Sachs, Commercial Observer reports, citing Fitch Ratings. The companies joined together to pay WarnerMedia $2.2B for 26 floors in the building as sale-leaseback, which closed last week. The debt features $1.1B in senior notes and $310M in a junior tranche, per CO. Cushman & Wakefield represented Related in the debt deal and advised WarnerMedia on the sale-leaseback.
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Bank of America provided MCR $270M for the TWA Flight Center redevelopment at JFK Airport, The Real Deal reports. The loan provides a new gap mortgage for $40M and refinances a $230M leasehold mortgage provided by M&T Bank last year.
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Asia Capital Real Estate provided $55M to Eran Polack’s HAP Investments for the refinancing of a 108-unit rental building at 2211 Third Ave., The Real Deal reports. The building is actually five residential condominiums, alongside a condo made up of 22 rent-controlled apartments that were included in order for the project to get the 421-a tax abatement. This financing covers four of the condos and replaces a $50.3M loan from W Financial, provided in 2017, per TRD.
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Churchill Real Estate Holdings locked down a $52M loan from Marathon Asset Management for the refinancing of 263 West 34th St., Newmark Knight Frank, the broker on the deal, announced Tuesday. The floating-rate loan was arranged by NKF's Dustin Stolly, Jordan Roeschlaub, Daniel Fromm and Nick Scribani. Construction on the building at 263 West 34th St. is due to be complete this month, and it feature 27K SF of office space and 16K SF of retail.
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Wharton Properties refinanced 747 Madison Ave. with $90M from JPMorgan Chase, The Real Deal reports, citing Tel Aviv Stock Exchange filings and city property records. The financing replaces a loan for the same amount that Goldman Sachs provided in 2014. The loan is a balloon mortgage, and the principal is due at maturity in 2022, per TRD.
TOP SALES
Meadow Partners sold a 73-unit rental building in Williamsburg for $61M, The Real Deal reports. The buyer of the 100% free-market residential property at 100 South Fourth St. was an undisclosed “high net worth private family,” per the publication. Hodges Ward Elliott’s Daniel Parker, Paul Gillen, Allie Boyan, Ariel Tambor and Kyle Van Buitenen brokered the deal for the sellers.
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The land beneath the Dream Downtown Hotel sold for $175M, The Real Deal reports. The buyer was an LLC linked to Charles R. Holzer, the son of “Baby Jane” Holzer, a real estate heiress and former Andy Warhol protégé. Bank of America loaned $160M for the deal, and the financing includes a $40M gap mortgage. Dream Hotel Group does not own the property but has a long-term contract to run it, a representative for the company told TRD.
