This Week's N.Y. Deal Sheet
After an active start to the year, the pace of leasing, sales and financing deals slowed last week. But two hotels in the city still sold for north of $100M each, and the owners of a Manhattan office building locked down a hefty loan.
TOP FINANCING DEALS
Société Générale provided $410M to The Georgetown Co. for its office building at 787 11th Ave. The financing replaces a $350M construction loan from Blackstone Group, Goldman Sachs and ICBC, according to a release from the company. Georgetown and Bill Ackman paid $255.5M for the property back in July 2015, and other investors include Arnold Schwarzenegger, LeBron James and Jimmy Iovine. The building is now 90% leased, and tenants include Dwight Capital, Pershing Square Capital and Spaces. Wayne Potters and Tim Hallock represented the lender in-house, while Ackman-Ziff's Russ Schildkraut acted for Georgetown.
Deutsche Bank provided Adam America Real Estate $105M to refinance its Crown Heights residential project. The financing for the mixed-use development at 409 Eastern Parkway includes a $41M gap mortgage and replaces debt from Santander Bank, The Real Deal reports. JLL's Aaron Appel and Keith Kurland arranged the financing.
Hong Kong lender Shanghai Commercial loaned $75M to Hung & Chong Real Estate for a mixed-use development at 144-51 Northern Blvd. in Flushing, Commercial Observer reports. The money includes a $55M building loan and a $20M project loan.
GFI Capital Resources Group and Elliott Management Corp., a hedge fund and activist investor, bought the Parker New York hotel for $420M, the Wall Street Journal reports. The family of the late Jack Parker, a hotel and property developer, was the seller of the 729-room hotel on West 56th Street. The buyers plan to spend $100M renovating the hotel, and received $350M for the purchase and revamp of the building from Bank OZK, The Real Deal reports.
Madison Equities, Thor Equities, and Building and Land Technology sold three retail condominiums at the base of 212 Fifth Ave., The Real Deal reports. The sale price was $26.5M and the buyer is reportedly an investor from overseas, although its identity was not made clear. The building is in line to be converted into a luxury condominium project. Cushman & Wakefield’s Craig Waggner and John Ciraulo marketed the property, and Douglas Elliman broker Christine Traina brought in the buyer.
Ashford Hospitality Trust paid $195M for the 310-room Embassy Suites by Hilton New York Midtown, the company announced last week. Ashford secured a $145M nonrecourse mortgage when the sale closed. The price for the 41-story building at 37th Street between Fifth and Sixth avenues works out to be $629K per key.
Fosun International inked several lease deals at 28 Liberty, the New York Post reports. Legends Hospitality has been tapped to run a 35K SF food and live music space on the ground floor, meaning 60% of the retail space on that level is now leased. Meanwhile, three office leases totaling 172K SF have been signed at the building.
Insurance firm Allianz renewed for 70K SF, Nonprofit Local Initiatives Support Corp. took 60K SF in the building for its new national headquarters, and HelloFresh leased 42K SF. JLL’s John Wheeler, Peter Riguardi, Mitchell Konsker, Michael Berman, Dan Turkewitz and Eliza Akers represented the landlord. Newmark Knight Frank’s Lance Korman represented the nonprofit. Lee & Associates NYC’s Dennis Someck and Justin Myers brokered the deal for HelloFresh, according to Commercial Observer.
Online razor subscription service Harry’s is taking another 27K SF at Trinity Real Estate’s 75 Varick St., or One Hudson Square, Commercial Observer reports. The startup leased 60K SF there in 2017. CBRE’s Frederick Fackelmayer, Adele Huang, Christopher Mansfield and Sacha Zarba represented the tenant, and the landlord was represented by Newmark Knight Frank’s Kyle Ciminelli, David Falk, Jonathan Franzel, Peter Shimkin and Brittany Silver.
Catering company Great Performances is taking 40K SF at the Bruckner Building in Mott Haven in the South Bronx, where it will use space for cooking and its catering and events operations. The building, at 2417 Third Ave., is owned by Savanna and Hornig Capital Partners and has just undergone a $12M capital improvement program. Cushman & Wakefield’s David Lebenstein and Debra Wollens represented Great Performances. Savanna and Hornig were represented by Cushman & Wakefield’s Mitch Arkin and Omar Sozkesen and JRT Realty’s Ellen Israel and Lauren Calandriello.
Financial information company PitchBook Data is expanding to 51K SF at Columbia Property Trust’s 315 Park Ave. South, adding another 17K SF to its lease there. The company has space on the 13th, 14th and 15th floors. L&L Holding Co.’s David Berkey and Andrew Wiener represented the landlord. PitchBook was represented by CBRE’s Sam Spillane and Michael Liss. The 20-story building is now 99% leased.
Professional services firm AlphaSights is expanding at RFR Realty’s building at 350 Madison Ave. AlphaSights added 18K SF to its lease, and will now have 64K SF in the building. Finance firm Burford Capital also signed a new, 10-year, 20K SF lease, bringing 350 Madison to 98% leased. RFR’s AJ Camhi and Ryan Silverman represented the landlord in the deals, with JLL’s Alexander Chudnoff, Mitchell Konsker, Daniel Turkewitz and Diana Biasotti. AlphaSights was represented by Cushman & Wakefield’s Rob Lowe. Chudnoff and Turkewitz represented Burford Capital.