This Week’s N.Y. Deal Sheet: Lender Takes Over Historic Brooklyn Hotel At Auction
A historic Brooklyn hotel has a new owner after only its lender bid on the property at a foreclosure auction.
Investment firm Beach Point Capital, which bought the debt tied to the Hotel Bossert in Brooklyn Heights, won the rights to the property with a credit bid at a foreclosure auction last week, The Real Deal reported.
The Chetrit Group had defaulted on its $177M mortgage on the building at 98 Montague St., and Beach Point Capital's $120M credit bid was the only offering at the courtroom auction.
The Chetrit Group had been hoping to reach a deal with its lender, allowing it to stay in control of the asset and proceed with plans to restore and reopen the property. Joseph Chetrit and David Bistricer bought the property from the Jehovah's Witnesses in 2013 and planned to add 78 guestrooms to the 14-story building.
But after buying out Bistricer’s interest in 2019, Chetrit refinanced the property in 2020. Disputes over the building's debt and future started months later. Beach Point’s plans for the property are unclear.
TOP SALES
Savanna has acquired the 95K SF office building at 430 W. 15th St. in Manhattan for $85M, a significant haircut from the price last time it sold. Savanna acquired the leasehold on the eight-story, Class-A property from Invesco, which paid $150M to the Teachers Insurance and Annuity Association of America for it in 2018. The ownership change is official as of this week, according to a release. The building is fully leased and underwent renovations in 2015. The transaction is Savanna’s second deeply discounted Manhattan acquisition within six months after it bought 799 Broadway from a joint venture of Columbia Property Trust and Cannon Hill Capital Partners for $255M, less than the debt tied to the building.
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Rabsky Group acquired a development site in Tribeca from HAP Investments for $58M, Crain’s New York Business reported. HAP had planned a 19-story, 41-unit apartment building on the property, which has addresses of 360 Broadway and 65 Franklin St.
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Extell sold a retail condo on Billionaires' Row to Cindy Chan through the entity CCW Family Realty LLC, PincusCo reported. The $25M deal for the base of 171 W. 57th St. hit property records on Valentine’s Day. Extell has owned the condo unit in the Ziel Feldman-developed Briarcliff Condominium building since 2001, just two years after it was built. Extell bought the unit for $6.7M, sold it to Forrell & Thomas five years later, then leased it back through a 49-year ground lease, according to Pincus. Extell then bought the condo that controlled the ground lease in 2023 for $11.3M.
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Ares Management has acquired a 75% stake in a Hell’s Kitchen rental at 525 W. 52nd St., PincusCo reported. Mitsui Fudosan sold its stake in the 318K SF building for $202.5M, valuing the property at $270M. Newmark's Adam Spies and Adam Doneger brokered the deal, The Real Deal reported. The buyer is assuming the $200M Wells Fargo loan on the 392-unit property as part of the deal, according to TRD. Taconic Partners, which developed the building with Mitsui Fusdosan in 2017, is keeping its 25% stake.
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Legion Investment Group and Gindi Capital have acquired a six-unit residential building at 37 Gramercy Park E. from Zohar Ben-Dov and Chana Ben-Dov in two transactions totaling $32.5M, PincusCo reported. In the first transaction, Legion and Gindi bought an entity-level interest for $10M, while in the second they acquired a fee interest valued at $22.5M. Legion is developing a 20-story condo building on a site that includes the lot, The Real Deal previously reported.
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Affinius Capital has acquired a minority stake in The Durst Organization’s 20 and 30 Halletts Point developments for $135M, according to a release. The 27- and 32-story multifamily buildings span 647 units and 8K SF of ground-floor retail, Commercial Observer reported. The newly built 3-24 27th Ave., a stabilized affordable building in Astoria, is also part of the deal between Affinius and Durst, according to the release. Newmark’s Doug Harmon, Adam Spies, Jordan Roeschlaub, Chris Kramer, Adam Doneger, Marcella Fasulo, Josh King and Avery Silverstein arranged the deal.
TOP LEASES
Trading firm Jane Street Capital has signed a deal to nearly double its office space at 250 Vesey St. in Brookfield Place, Bloomberg reported. The landlord’s parent company, Brookfield Asset Management, relocated its own offices within the complex to accommodate Jane Street's expansion. The trading firm has been in the building since 2014, when it moved its headquarters to 140K SF, Commercial Observer reported. It later expanded to 600K SF and will now occupy close to 1M SF. Duncan McCuaig, Mikael Nahmias, Hayley Shoener and Dan Roberts brokered the deal in-house for the landlord, while Cushman & Wakefield’s Rob Lowe, Augustus Field and Jon Herman repped the tenant.
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The Feil Organization has signed two leases totaling 15K SF at 853 Broadway, according to a release. Nourish, a food as medicine platform, signed a lease across the entire 15th floor for five years and was represented by JLL’s Douglas Regal. Privately held investment firm Lepercq de Neuflize & Co. signed a full-floor deal on the 16th floor and was represented by CBRE’s David Stockel. Lepercq is almost doubling its space in the building and extending its lease term to 10 years. Andrew Wiener, Rob Fisher and Henry Korzec represented the landlord of the 21-story, 157K SF office building in-house.
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Eternal, a gym and longevity lab, has signed a 12K SF lease at Joseph Schik’s 525 W. 26th St., Commercial Observer reported. The 10-year lease, which had asking rents of $55 per SF, is Eternal’s first Chelsea location. The concept received $15M in seed funding from Lightspeed, Courtside Ventures, Treble Capital and Next Ventures. It was represented by Cushman & Wakefield’s Michael Azarian, James Ariola and Kassie Wallace. Meridian Capital Group’s John Roesch and Sara Lamstein represented Schik.
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Control Solutions Group is moving to a 20K SF office at Circle Realty Group’s 14 Penn Plaza, Commercial Observer reported. Other tenants in the 22-story building include infrastructure construction firm E.E. Cruz, coworking firm Regus and law firm Capell Barnett Matalon & Schoenfeld. Parent company Emcor Group signed a 10-year lease to move CSG from 122 W. 27th St. to its new digs, where asking rents were $60 per SF. The deal was brokered for the tenant by Colliers’ Richard Warshauer.
TOP FINANCING DEALS
CBSK Developers scored a $158M construction loan from Tyko Capital for 401 E. 51st St., an 83-unit condo product in Midtown East, according to a release. The building, spanning 116K SF and 26 stories, will have a range of unit sizes from studios to four-bedroom units and a five-bedroom penthouse. A Walker & Dunlop New York Capital Markets team led by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Sean Reimer and Sean Bastian arranged the financing.
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Rockpoint refinanced two apartment buildings in the Financial District with Apollo Global Management for $257M, PincusCo reported. The debt replaced a previous $280M loan from Fannie Mae. The buildings are at 63 and 67 Wall St., with a total of 816 units between them.
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Storage Deluxe has refinanced two industrial buildings in Long Island City, PincusCo reported. The $143M sum from Bank of Montreal replaces the prior debt, an $87M CMBS loan. The two properties at 41-45 21st St. and 41-54 22nd St. span 278K SF.
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Global Holdings and Williams Equities are now equity partners at 888 Broadway with Cannon Hill Capital Partners. The trio recapitalized the building to the tune of $200M, with Williams Equities contributing its fee title in the annex at 38 E. 19th St. into the partnership, consolidating ownership of the 222K SF property. Colliers has been appointed the leasing agent at 888 Broadway, which counts Netflix among its tenants. A Fried Frank team led by Michael Werner and Matthew Aldana and including Jonathan Mechanic, Janice Mac Avoy, Julianne Befeler and Richard Wolfe represented the partners in the structuring and negotiation of the deal.
CORRECTION, FEB. 20, 4:30 P.M. ET: A previous version of this story misstated the total number of units refinanced at 63 and 67 Wall St. This story has been updated.
