This Week's N.Y. Deal Sheet
Despite a major national holiday, significant deals closed in New York over the last week. A SoHo office building locked down a mammoth lease, a Brooklyn office property scored financing and multiple rent-stabilized properties sold.
TOP LEASES
Advertising giant Publicis Groupe locked down a 960K SF lease at 375 Hudson St., the property’s operating partner Hines announced Tuesday. The deal means the company is signing on for a 20-year renewal for 680K SF two years before the current lease is due to expire, and is adding 280K SF to its space there, starting in August. The property is owned by a joint venture of Trinity Church, which has owned the land since 1705, per the New York Post, Norges Bank and Hines. The 1.1M SF building is now 100% leased, according to the release. CBRE’s Howard Fiddle, Paul Amrich and Ben Joseph of CBRE represented the landlords. John Maher, Paul Myers, Mike Wellen, Greg Maurer-Hollaender and Cara Chayet, also of CBRE, represented the tenant.
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Moët Hennessy USA is taking 82K SF at Silverstein Properties' 7 World Trade Center, with the company moving its corporate headquarters to the building in 2021. Moët Hennessy will be taking space on the 35th and 36th floors, according to a release from the tenant and the landlord. Silverstein was represented in-house by Jeremy Moss, along with CBRE’s Mary Ann Tighe, Ken Meyerson, Evan Haskell and Stephen Eynon. CBRE’s Michael Geoghegan, Matthew McBride, Lauren Crowley Corrinet and Munish Viralam brokered the deal for the tenant. The lease is for 15 years.
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Advertising agency Madwell leased 22K SF at 65-67 Porter Ave. in East Williamsburg, the broker on the deal, ABS Partners Real Estate, announced in a release. The 33K SF property is owned by Bushburg Properties. ABS Partners' Ben Waller brokered the deal on both sides.
TOP FINANCING DEALS
Glacier Global Partners and Triangle Assets locked down $205M to refinance 10 Jay St. in Brooklyn, according to Newmark Knight Frank. Natixis is lender of the floating-rate loan, per the release. The building recently locked down leases with Rent the Runway and Soho Works, a coworking concept from Soho House. Newmark’s Dustin Stolly, Jordan Roeschlaub, Dylan Kane, Chris Kramer and Nick Scribani arranged the financing.
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A Bronx housing project from NYCHA reeled in $79M in financing from multiple sources, The Real Deal reports. Nonprofit Breaking Ground is building a 152-unit building at 448 East 143rd St. that will feature low-income and and extremely low-income seniors.
The funding includes around $1.5M from the Breaking Ground Housing Development Fund Corp., $2.7M from the New York State Homeless Housing and Assistance Corp. and $75M from the New York City Housing Development Corp., according to TRD.
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Wells Fargo loaned Maddd Equities and Joy Construction around $64M for the construction of their affordable housing project on River Avenue in the Bronx, a representative for Joy told The Real Deal. The companies are planning to build affordable housing at 1159 and 1184 River Ave., with one property featuring 250 units across 200K SF and the other slated to have 500 units across 548K SF.
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The Howard Hughes Corp. locked down a $250M, five-year loan to fund a portion of the Seaport District redevelopment, the company announced late last month. The loan comes from a “consortium of leading financial institutions” administered by Civitas Alternative Investments, according to a release from the company, and the term loan has an initial rate of 6.1%. The news came as the company announced it is exploring a sale or other capitalization event.
TOP SALES
Toby Moskovits’ Heritage Equity Partners sold a 193-unit building at 564 St. John’s Place for $117M, property records show. The buyer was Harbor Group International. Last year, Moskovits and partner Michael Lichtenstein fought off foreclosure at the property with a $97M loan from Arbor Realty Trust.
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Related sold a 252-unit affordable multifamily building in the Bronx to Prana Investments for $36M, according to Hodges Ward Elliott. The building at 1065-1075 Gerard Ave. has studios, one-bedrooms and two-bedrooms and is subject to the 421a tax exemption, which means the property is rent-stabilized. Hodges Ward Elliott’s Daniel Parker, Paul Gillen and Ariel Tambor represented Related.
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Meridian Properties paid $35.25M for two rent-stabilized buildings at 441 Ocean Ave. and 1745 Caton Ave., The Real Deal reports. A partnership led by Andrew Glass was the seller of the buildings, which together feature 146 units. The sale deal was in contract before the rent regulation law was passed, per the publication. However, the buyer said the company was able to get a discount on the buildings, based on the new legislation, and no longer plans to convert them into co-ops as originally planned. Marcus & Millichap’s Matthew Fotis, Tyler Workman and Sebastian Altilio brokered the deal.
