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This Week’s N.Y. Deal Sheet: IBM Expands At SL Green’s One Madison

IBM is taking an additional 93K SF at One Madison Ave., SL Green's upcoming office tower overlooking Madison Square Park.

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A rendering of One Madison Ave., where IBM has expanded to a total of 362K SF.

The expansion builds on the firm’s existing 270K SF in the 1.4M SF office tower, bringing the company’s footprint in the recently completed building to 362K SF, Commercial Observer reported.

IBM had originally been due to take 328K SF in the tower in March 2022, but it downsized to the smaller footprint at an undisclosed time. The expansion, however, means IBM occupies more space in the building than it originally agreed to. Asking rents in the deal were $110 per SF. 

JLL’s Paul Glickman, Alexander Chudnoff, Benjamin Bass and Diana Biasotti represented SL Green in the deal, while their colleagues Patrick Murphy and Winston Schromm represented IBM. 

TOP LEASES

Spectrum Reach, the advertising sales business of Charter Communications, is relocating its NYC offices to 56K SF at Rudin’s 3 Times Square, according to a release. The 11-year deal puts the firm on the 26th and 27th floors of Rudin’s 925K SF, 30-story tower. Spectrum Reach is moving from 1633 Broadway this fall. CBRE’s Robert Stillman, Cara Chayet and Liz Lash represented the tenant, while Cushman & Wakefield’s Ron Lo Russo, John Cefaly, Paige Engeldrum, Lou D’Avanzo, Mike Burgio and Dan Organ represented Rudin.

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Independent construction and property consultancy Gardiner & Theobald renewed its 27K SF space at The Moinian Group’s 535-545 Fifth Ave., according to a release. The consultancy will stay in the 36-story, 330K SF building for another five years. The building is now 100% leased, having recently signed professional football club Paris Saint-Germain to office space. CBRE’s Evan Fiddle represented Gardiner & Theobald. Omar Sozkesen represented the landlord in-house.

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S. Rothschild, a jacket and coat manufacturer, has renewed 47K SF at Shorenstein Properties’ Midtown South office tower 1407 Broadway, Commercial Observer reported. S. Rothschild has been a tenant since 2015, with asking rents for the renewal coming in at $58 per SF. The 1950s-built property is also home to software company Optimove, which subleased 10K SF in October. The landlord was represented in-house by Bob Forman.

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The Independent Budget Office is seeking 19K SF at 1 Battery Park Plaza, having significantly outgrown its existing space, according to public filings first reported by Crain’s New York Business. The IBO is seeking to move out of the 8K SF it has occupied at 110 William St. in the Financial District since 1996, where it said it can no longer provide enough desks for its employees. Rudin, which co-owns the 35-story 1 Battery Park Plaza tower at the southern tip of Manhattan, declined to comment to Bisnow on the deal.

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Women’s intimate apparel manufacturer Ariela & Associates International is moving into 27K SF at Savitt Partners’ 218 W. 40th St., Commercial Observer reported. The seven-year lease, signed in December, will see Ariela occupy the sixth and seventh floors in a relocation from 1359 Broadway. MBF Commercial Real Estate Services’ Michael Frantz repped Ariela, while Savitt’s Brian Neugeboren, Nicole Goetz and Matthew Savitt repped the landlord.

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Marx Realty has signed two leases totaling 17K SF at 10 Grand Central, according to a release. Telemedicine provider Teladoc Health has expanded by 7K SF for 10 years, bringing its total footprint in the building to 15K SF. Cybersecurity and supply chain technology firm Exiger signed for 9K SF for seven years. Asking rents in the building range from $78 to $130 per SF. JLL’s Mitchell Konsker, Carlee Palmer, Simon Landmann and Thomas Schwartz repped the landlord, while JLL’s Sean Lynch repped Teladoc and JLL’s Mitchell Konsker and Simon Landsmann repped Exiger.

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APF Properties has signed two tenants to a total of 19K SF at 1156 Sixth Ave., according to a release. Data analytics firm Institutional Shareholder Services has signed for 10K SF, while global employment agency Michael Page International signed for 9K SF. Avison Young’s John Ryan and Josh Goldman repped ownership, while representatives from Cushman & Wakefield and JLL represented ISS and Michael Page, respectively.

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Staffing, recruiting and temp agency Noor Staffing signed for 15K SF at APF Properties’ 28 W. 44th St., according to a release. The deal gives Noor the full 16th floor of the building. Newmark brokers repped the tenant, while Avison Young’s John Ryan and Josh Goldman repped the landlord.

TOP FINANCING DEALS

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95 Madison Ave., under scaffolding in September 2024

Sunlight Development and investment firm NuVerse scored a $99M loan to fund the residential conversion of the office building at 95 Madison Ave., The Real Deal reported. BHI, the U.S. arm of Bank Hapoalim, provided the $40M senior loan, with the rest of the funding coming from two financial firms. The current NoMad building is a 16-story limestone office, and Sunlight and NuVerse plan on turning it into a 65-unit condo building with 17K SF of retail space and just 3K SF of offices. Sunlight acquired the building from the Sklar family for $65M in June, funded by a $50M acquisition loan from NuVerse, PincusCo reported at the time.

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Tyko Capital agreed to lend Related Cos. $100M to refinance an Upper East Side multifamily tower, Commercial Observer reported. The loan covers the 48-story rental building at 400-410 E. 84th St. known as The Strathmore, which spans 239K SF and has 178 units. The property opened in 1996 as a mixed-income rental, receiving $60M of bond financing from the New York State Housing Finance Agency.

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In Good Company Hospitality Group and Ben Igoe nabbed a $28.8M refinancing from Morgan Stanley for the Rockaway Hotel, PincusCo reported. The Queens property has two commercial condo units, 53 guest rooms and eight extended-stay suites, according to the hotel’s website. The debt for the property at 108-10 Rockaway Beach Drive retired the previous $30M loan from Silver Point Capital.

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The Library Hotel Collection notched a $30M loan from Metropolitan Commercial Bank to refi its Hotel Giraffe property at 365 Park Ave. S., PincusCo reported. The sum replaces a CMBS loan of $39M originated by Cantor Commercial Real Estate in December 2014. 

TOP SALES

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217-219 W. 21st St., which was converted into a three-story multifamily townhouse, changed hands for $24M this week.

Steven Tannenbaum has sold the converted multifamily townhouse at 217-219 W. 21st St. for $24M, Commercial Observer reported. The buyer was an LLC called Star Cinema Building. Holland & Knight attorney Joshua Berengarten signed on behalf of the LLC, but the buyer’s identity and the sales brokers are unknown.

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Pacific Urban Investors acquired the 188-unit Williamsburg apartment building Leonard Pointe for $127.5M. The price means the seller, UDR, took a slight loss after buying the property for $130M in 2019, The Real Deal reported. The building at 88 Richardson St. is one block south of McCarren Park and has an alternative address of 395 Leonard St. Rob Hinckley, Jeffrey Julien, Steven Rutman and Ethan Stanton of JLL brokered the deal.

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BCN Development is under contract to buy a six-story, Class-C office building in Midtown Manhattan, The Real Deal reported. The deal with seller Lai Enterprises works out to around $300 per SF. BCN Development plans to add six extra floors and approximately 20K SF to the 1920-constructed building, converting the premises to a total of 55 apartments plus commercial space. The developer is eligible for the 485-x tax break because the expansion will be more than 50% of the building’s current size.