This Week’s N.Y. Deal Sheet: Verizon Renews 173K SF In Downtown Manhattan
Verizon renewed its 173K SF lease for its data center at 60 Hudson St. in Tribeca, the New York Business Journal reported.
Cordiant Digital Infrastructure owns the 24-story, 929K SF building, known as the Hudson Interxchange, which serves more than 300 companies. It is building two new data center halls at the 96-year-old building that once served as Western Union's headquarters, according to the NYBJ.
The details came from brokerage Newmark’s Q3 office report. It is unclear who brokered the deal, and the asking rates weren't disclosed.
TOP LEASES
The Museum of Mathematics is set to nearly double in size in a move from 11 E. 26th St. to 635 Sixth Ave. The lease includes a six-year sublease from Lowe’s, which vacated the premises in 2019, as well as a direct lease extension with owner Spear Street Capital. The MoMath has been in existence for 12 years and is planning to add a space for early learners, twice as many classrooms, new exhibits and a presentation area in its new location. The museum has received more than 1.2 million visitors since it opened. Open Impact Real Estate's Stephen Powers, Lindsay Ornstein and Jake Cinti repped MoMath, while Spear Street Capital represented itself.
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The Legal Aid Society has signed a deal for 44K SF at 55 Water St., owned by the Retirement Systems of Alabama, the NYBJ reported. The nonprofit is subleasing space from S&P Global, taking space on the 36th floor of the 53-story tower in Manhattan’s Financial District. Legal Aid has 30 offices across the five boroughs, including its 72K SF headquarters in nearby 199 Water St., but the 55 Water St. space will be an addition to the existing spaces rather than a replacement. The nonprofit plans to train 150 new staff attorneys and litigation assistants at the site, as well as holding large-scale trainings and creating a mock courtroom. Paul Myers, Michael Liss and Joe D’Apice of CBRE repped S&P in the deal, while their colleagues Howard Fiddle, Evan Haskell and Brad Gerla repped ownership of the 3.8M SF building. Craig Reicher, Chris Mansfield, Greg Maurer-Hollaender and Julia Passante, also of CBRE, worked on behalf of the tenant.
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Balyasny Asset Management is more than doubling its space at 767 Fifth Ave., Commercial Observer reported. Balyasny has been in the BXP-owned building, also known as the General Motors Building, since 2017 when it first leased 64K SF. The new lease brings its footprint to 164K SF, with offices on the 12th, 21st, 23rd, 34th and 35th floors of the 50-story tower.
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The firm that helped track down assets in the FTX and Alex Jones bankruptcy rulings is relocating and expanding its global headquarters in Midtown. Nardello & Co. signed a 22K SF lease for the 18th and 19th floors at 1212 Sixth Ave., doubling its existing office at 565 Fifth Ave. Both buildings are owned by Stawski Partners, which was represented in the deal by JLL's Diana Biasotti. Nardello moved this week into its new space, for which it signed a 12-year deal. JLL's Greg Wang represented the investigations firm, which also signed a deal for its first San Francisco office at 388 Market St.
TOP SALES
A joint venture led by Canvas Property Group has acquired 436 Albee Square in Downtown Brooklyn, according to a release. The seller of the 150-unit tower, known as the Azure, was Joel Gluck’s Spencer Equity. Robert Morgenstern's Canvas, in a partnership with Tokyu Land US, paid $112.8M for the 28-story building that Gluck delivered in 2016, The Real Deal reported. Blank Rome's Samantha Wallack and Ashley Fleishman represented Canvas in the sale.
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Sage Realty is selling 767 Third Ave., an office building that the Kaufman family-run firm built in 1981, for $88M to Quantum Pacific, Commercial Observer reported. The deal is under contract, with Eastdil Secured’s Gary Phillips and Will Silverman negotiating the deal. The 40-story building, which Sage renovated in 2019 to include an updated lobby and an amenity center, will be the first Manhattan property for Quantum. The London-based holding company is owned by Idan Ofer, an Israeli shipping magnate worth $17.3B who is the younger brother of seasoned NYC CRE investor Eyal Ofer, according to Forbes.
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KSL Capital Partners and Hersha Hospitality Trust sold the Holiday Inn Express to private equity firm Prospect Ridge for $59.8M, PincusCo reported. The property at 232 W. 29th St. in Chelsea has 228 rooms and reaches 15 stories. Sam Chang was also one of the sellers, according to Commercial Observer.
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Ian Bruce Eichner’s Continuum Co. snapped up five properties from The Community Church of New York for $66.2M, Commercial Observer reported. Continuum reportedly has plans for a 137-unit building to replace the religious and multifamily structures that sit at 26, 28, 30, 32 and 34 E. 35th St. in Murray Hill, Crain’s New York Business reported. Besides the church, the buildings on the site include a rent-stabilized apartment building and a homeless shelter.
TOP FINANCING DEALS
Rockrose Development Corp. netted a $249.4M loan from Wells Fargo to refinance a Long Island City apartment building, PincusCo reported. The loan for the 709-unit building at 43-10 Crescent St. replaces a $240M CMBS loan on the 42-story Linc LIC building, which Rockrose completed in 2013. The CMBS debt, originated in 2014, had refinanced the building's construction loan, which was also provided by Wells Fargo, Commercial Observer reported at the time.
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Otera Capital provided RXR with a $158M construction loan for a residential project in Brooklyn’s Fort Greene neighborhood, PincusCo reported. There is one new construction filing for the site at 91 DeKalb Ave., where RXR received a permit in February for a 275-unit, 289K SF building. The site is next to RXR's under-construction apartment tower at 89 DeKalb Ave., a 324-unit building that topped out in August, the Brooklyn Daily Eagle reported.
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Ian Schrager and Steve Witkoff landed a $173.2M loan from Madison Realty Capital to refinance the Public Hotel on the Lower East Side, PincusCo reported. The 367-room hotel at 215 Chrystie St. had fallen into distress during the pandemic, and Värde Partners acquired the $173.2M loan from Deutsche Bank in 2022 and initiated a foreclosure action last year, The Real Deal reported.
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Acore Capital has agreed to lend $72M to Property Resources Corp. for The Hartby, the firm’s new luxury rental building in Brooklyn’s Bedford-Stuyvesant neighborhood, Commercial Observer reported. The building at 788 Willoughby Ave. was previously occupied by St. John’s College but went through substantial renovations and conversion to become a 205-unit apartment building. The building has tenant lounges, a fitness center and a roof deck and has reserved 62 units as affordable housing for applicants making up to 130% of the area median income. Acore’s Eric Ramirez led the negotiations for the lender, and Ackman Ziff negotiated the debt.
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Gilbane Development Co. and Settlement Housing Fund scored a $74M loan from Systima Capital Management, Crain’s reported. The loan will go toward 280 E. 161st St. in the Bronx, where Gilbane filed permits last year to use a 19-story building as a shelter, New York YIMBY previously reported.
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Two Trees nabbed a $75M loan from Wells Fargo for three development parcels in Williamsburg, PincusCo reported. The loan covers 105 River St., 87 River St. and 4 N. First St. The 105 River St. lot has an active new construction project for a 399-unit residential property, which received permits in May 2022. The loan replaced a $78.8M sum that came from M&T Bank.
