This Week’s N.Y. Deal Sheet: Brookfield Scores $750M Extension At FiDi Tower
Brookfield Properties has secured a long-term extension on its massive loan at its One Liberty Plaza tower in the Financial District, paying down more than $30M of the debt in the process.
Brookfield secured the $750M refinancing for the 2.3M SF property from a consortium of lenders including Morgan Stanley. The investment bank held the previous debt on the property, which was originated in 2017 and totaled $783.9M.
Brookfield has owned the 53-story building since 1986 when it operated as its predecessor, Olympia & York. Its tenants include the New York City Economic Development Corp., Cigna Healthcare and Newmark. It plans to unveil a series of capital improvements to the building soon, according to a release.
Brookfield sold a 49% stake in the property to Blackstone in 2018. Brookfield bought back the stake last year, but the property’s value took a $500M hit in the interim. It most recently had an estimated value of $1B, The Real Deal reported.
TOP FINANCING DEALS
Tavros Holdings and Charney Cos. nabbed two construction loans totaling $300M for a luxury multifamily project in Gowanus, according to a release. The first loan was worth $160M and came from Affinius Capital and Kennedy Wilson. The second loan was for $140M and came from TYKO Capital. Together, the loans will finance a 320-unit, 22-story property at 340 Nevins St. and a 348-unit development at 310 Nevins St. Roughly a quarter of the units will be set aside as affordable housing. The 340 Nevins St. development will also feature amenities including coworking spaces, a swimming pool and a rooftop terrace, as well as 29K SF of ground-floor retail. Developers expect to complete 340 Nevins St. by mid-2027.
***
Global alternative investment firm Värde Partners has issued a $185M loan to a joint venture of Metro Storage LLC and Fremont Realty Capital to refinance a portfolio of 20 self-storage facilities across multiple states, including New York, according to a release. The portfolio spans nearly 1.6M SF and more than 14,000 units across Illinois, New Jersey, Pennsylvania, Minnesota, New York and Wisconsin. The debt is a floating-rate bridge loan with a three-year initial term and two one-year extension options. Talonvest Capital structured the loan.
***
Hope Street Capital notched a $69M bridge loan from Invictus Real Estate Partners for a 158-unit residential development in Crown Heights, according to a release. The seven-story project at 959 Sterling Place, called Mason Gray, has been approved for the 421-a tax abatement, with 48 of the units set aside as affordable housing. The loan, negotiated by Mike Diaz and Aaron Appel of Walker & Dunlop, will help the developer finish up minor construction work needed to complete the project.
TOP LEASES
Tishman Speyer’s 66 Hudson Blvd., more commonly known as The Spiral, has signed 129K SF of leases, according to a release. HSBC signed a 35K SF lease expansion, bringing the bank’s footprint in the building to more than 300K SF. HSBC will now also occupy the 29th and 30th floors of the 66-story building and was represented by JLL’s Peter Riguardi, Matt Astrachan, Mitchell Konsker and Will McGarry. Also signing for space in the tower was XR Extreme Reach, a tech company that took 13K SF on the 21st floor and was repped by Joe Messina and Seth Hecht of JLL. Asset manager Fifth Wall signed for almost 7K SF on the 53rd floor, with representation from CBRE’s Ryan Alexander, Ross Zimbalist, Jared Isaacson and Jeff Frenkel. Two unnamed investment management companies signed for space in the building, taking 38K SF and 35K SF, respectively. Other tenants in the 2.8M SF property include Pfizer, which anchors the tower, AllianceBernstein, Turner Construction and Baker Tilly. Tishman's Greg Conen and Sam Brodsky repped building ownership in-house in all the deals.
***
Imagine Me Leadership Charter School has signed a 63K SF lease in Brooklyn’s Brownsville neighborhood, according to a release. The charter school, which serves pre-K through eighth grade, will move from 818 Schenck Ave. in East New York to 39 Truxton St. for the 2024-2025 school year. The new location can accommodate 650 students. Imagine Me Leadership Charter School was represented by Stephen Powers, Lindsay Ornstein and Jake Cinti of Open Impact Real Estate, while landlord Fulton Gate Realty LLC was repped by Pinnacle Realty of New York’s Steve Nadel and Nechama Lebrow.
***
Hines is opening the first NYC location of its flexible workplace platform The Square at 205 Hudson St., according to a release. The property is part of the Hudson Square Properties portfolio, which Hines owns in a joint venture with Trinity Church Wall Street and Norges Bank Investment Management. The 63K SF location replaces a vacated WeWork and will be the sixth globally for The Square, which also has outlets in Washington, D.C., Houston, Salt Lake City and Mexico City. Members of The Square will also be able to use its locations in other cities. The NYC offering will be able to fit 700 people and will have 12 conference rooms, private offices and meeting rooms.
***
Hope Street Capital has signed several leases totaling 36K SF at its 29-story 809 Atlantic Ave. mixed-use tower in Brooklyn, according to a release. The largest is Maimonides Health, Brooklyn’s largest hospital system, which signed for 25K SF for a new healthcare center featuring primary care, surgical facilities and OB-GYN services. Location Commercial Real Estate’s Nick Zweig repped Maimonides. Canine daycare chain Hounds Town USA signed for 6K SF and will feature an interactive dog daycare, overnight boarding and a pet spa. Chick-fil-A signed a 5K SF lease on the ground floor with representation from Inline Realty’s David Alani and Michael Friedman. Ryan Condren of JLL repped Hope Street in the deals, along with George Danut. The building also features 284 residential units in its multifamily portion, known as The Axel.
***
L.H. Charney Associates has signed software company Grata to 15K SF at its 1410 Broadway office tower, according to a release. The company will take up the entire second floor of the building, where L.H. Charney recently spent $20M on capital improvements that included a new lobby and a new elevator system. The landlord was repped by Richard Doolittle, Michael Joseph, John Howard and Taylor Bell of Colliers.
***
Rudin has signed two leases totaling 18K SF at 41 Madison Ave., the landlord announced. Law firm Clarick Gueron Reisbaum signed for 13K SF across the entire 23rd floor and plans to relocate from 9K SF at 220 Fifth Ave. in the first quarter of next year. Polar Asset Management Partners, already a tenant at 41 Madison, is doubling its footprint with a 5K SF expansion. Clarick Gueron was represented by Signature Partners’ Andrew Weiss, while Polar Asset Management was represented by Brad Needleman of Newmark. Robert Steinman represented Rudin in-house in both deals.
***
The Feil Organization has signed a 14K SF lease with Movable Ink at 841 Broadway, according to a release. The lease brings the property, sometimes known as The Roosevelt Building, to full occupancy. Building ownership was represented in-house by Andrew Wiener, Rob Fisher and Henry Korzec. Cushman & Wakefield’s Peter Trivelas, Chris Helgesen, Dirk Hrobsky and Gary Ceder repped Movable Ink.
***
Public relations company LaForce has signed for 17K SF at Adams & Cos.' 53 W. 23rd St. office property, Commercial Observer reported. The firm is relocating from 275 Seventh Ave. to its new digs, which had asking rents of $49 per SF. J.D. Cohen, Ariel Harwood and William Cohen of Newmark repped the PR firm, while Jeff Buslik, Alan Bonett and Bradley Cohn repped the landlord in-house.
TOP SALES
Sovereign Partners has agreed to shell out $178M to Nuveen for the office building at 780 Third Ave., The Real Deal reports. The 1984-built property spans 517K SF across 50 stories and is 83.6% occupied, with asking rents between $64 and $78 per SF. Tenants include Pomona Capital and Industrious. Nuveen spent $40M to upgrade and rebrand the building as The Gardens at 780, which its parent company, the Teachers Insurance and Annuity Association of America, acquired in 1999 for $162M.
***
Fetner Properties and Fallaron Capital Management bought 85 East End Ave. from BlackRock for $75M, Crain’s New York Business reported. BlackRock bought the 157-unit building in 2005, paying roughly $75.2M at the time. The 15-story building was built in 1951.
***
A yeshiva in Brooklyn’s Gravesend neighborhood has sold two buildings to Success Academy Charter Schools for $37.2M, PincusCo reported. The seller was Magen David Yeshivah, which PincusCo reports includes investors such as Jeff Sutton among its trustees. The sale covered two buildings with addresses of 7801 Bay Parkway and 7815 Bay Parkway.
***
The Urban Resource Institute has paid $25.9M for two Harlem properties, PincusCo reported. The properties, both empty lots, are at 478 W. 130th St. and 487 W. 129th St. The sellers were Jonathan Faust, Michael Faust and Jonathan Feigenbaum.
CORRECTION, JUNE 25, 5:45 PM E.T.: A previous version of this story listed an incorrect loan amount for 340 Nevins St. This story has been updated.
