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The Deal Sheet: Tallest Hotel Tops Off

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The Deal Sheet: Tallest Hotel Tops Off
What do you get when you add 68 stories, 371k SF, 1.1 million man hours, 230 construction workers, and 20 cubic yards of concrete? (OK, stop counting on your fingers.) Answer: The tallest stand-alone hotel in NYC, the US, and the Western Hemisphere, which topped off at 1717 Broadway yesterday.
The Deal Sheet: Tallest Hotel Tops Off
Click the video above to hear Ken Colao, president of construction manager CNY Builders, commence the topping-off. Construction workers and guests watched as the final bucket of concrete and an American flag were hoisted to the 66th floor. The flag was then folded by US military vets, now construction workers on the project (including senior project superintendent Harry Jantz), and presented to owner-developers Harry Gross and Ron Gross of Granite Broadway Development.
Nobutaka Ashihara, CNY Builders' Ken Colao, and Granite Broadway's Harry Gross and Ron Gross
We snapped architect Nobutaka Ashihara, Ken, Harry, and Ron with a rendering of the building, scheduled for completion next year. It will include a 378-room Courtyard by Marriott for business and leisure travelers and a 261-room Residence Inn by Marriott for those looking to stay a little longer. (Being hooked on pillow mints is a real problem.) The hotel will be managed by Interstate Hotels & Resorts.
BIG DEALS!
Health Care REIT entered into a definitive agreement to acquire all the outstanding common stock of Sunrise Senior Living for $14.50 per share, all cash, acquiring Sunrise’s 20 wholly owned seniors housing communities and its JV interests in 105 properties. The purchase price reflects a real estate value of $1.9B and includes properties in NYC, Long Island, Westchester, Fairfield, and NJ.***CubeSmart purchased a 22-property, 1.6M SF self-storage portfolio in New York, Pennsylvania, and Connecticut from Storage Deluxe for $560M. HFF’s Aaron Swerdlin repped the seller, while Cohen & Perfetto’s Louis Perfetto repped the buyer.

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Gramercy Capital Corp and an affiliate of Garrison Investment Group formed a 50/50 JV to acquire 100% of the membership interests in entities owning 115 office buildings from an affiliate of KBS Real Estate Investment Trust for $470M. The 5.6M SF portfolio is 81% leased to Bank of America for a term ending in June 2023, with an occupancy of 88%.

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Strategic Hotels & Resorts signed an agreement to buy the 509-room, nine-condo Essex House Hotel from Dubai Investment Group for $362M. It also arranged $190M in first mortgage financing from Bank of America for the purchase, and executed a 50-year management agreement with Marriott International to rebrand the hotel as the JW Marriott Essex House. It’s expected to close by Sept. 7.

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Riu Hotels & Resorts purchased land at 733 to 764 Eighth Ave from Glenwood Management for $111M, where it plans to develop a hotel. Greenberg Traurig’s Steven Shapiro and Robert Ivanhoe advised the seller.

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Perry Ellis International inked a 96k SF direct lease at The Hippodrome Building (1120 Avenue of the Americas), partly a sublease. JLL’s Robert Martin, Matthew Astrachan, Alex Chudnoff, and Brad Lane repped the subtenant; JLL’s Lisa Kiell and Douglas Neye repped sublandlord Huron Consulting; and Cushman & Wakefield’s Michael Burgio, John Cefaly, and Gus Field repped owner Edison Properties.
SALES

Simon Development Group
and Cube Capital purchased the 113-unit, 134k SF residential building at 393 West End Ave from 393 West End Avenue Holdings for $68.3M. CBRE’s Paul Leibowitz,Darcy Stacom, Bill Shanahan, and Robert Garrish brokered the deal.

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The Naftali Group and Praedium Group purchased four contiguous five-story apartment buildings at 176, 178, 180, and 182 W 82nd St for $17.1M, where they plan to rehab the buildings and convert them into luxury condos. Besen & Associates’ Abraham Aderet, Iris Rossano, and Amit Doshi brokered the deal.

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Massey Knakal brokered three deals: a 3,400, four-story mixed-use building at 1429 Third Ave for $3.5M and a 4,300 SF mixed-use building at 1557 Second Ave for $3M (both brokered by Thomas Gammino Jr); and a 20k SF development site with a 5,700 SF building at 214-11-13 35th Ave, Bayside for $1.8M (broker: Stephen Preuss).

LEASES

1370 Broadway saw 50k SF in deals, including: Collection 18’s 34k SF lease; Brainerd Communicator’s 7,100 SF lease, and Esprit’s 6,000 SF lease. The owner, Normandy Real Estate Partners, has also announced an extensive capital improvement program at the building, including enhancements to the interior and a revamped lobby atrium.

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JLL’s Mitti Liebersohn and Brittany Wunsch repped the tenant and Paramount Group’s Heather Kahn repped the owner in Carr Workplace’s previously announced 10-year, 27k SF lease at 745 Fifth Ave.

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Toppan Vite inked a 10-year, 21k SF lease at 747 Third Ave. JLL’s Alex Chudnoff and Dan Turkewitz repped the tenant, while JLL’s Frank Doyle, Cynthia Wasserberger, and Alexis Tener, along with Sage Realty Corp’s Michael Lenchner, repped owners William Kaufman Org and The Travelers Co.

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1140 Avenue of the Americas saw two deals: Knighthead Capital Management’s 13k SF lease (tenant reps: JLL’s Scott Panzer and Jeff Fischer); and Grace Beauty’s 7,500 SF lease (tenant reps: Coldwell Banker Commercial Hunter Realty’s Richard Selig and Michael Okun). JLL’s Douglas Neye and Ryan Masiello repped owner Equity Office along with EOP’s Josh Glick.

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Charles W. Cammack Associates inked a 20k SF renewal at 2 Rector St. Studley’s Gabe Marans and Greg Taubin repped the tenant, while JLL’s Mitch Konsker, Scott Cahaly, and Brian Reiver repped owner Savanna.

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The Kaufman Org’s Steven Kaufman and Barbara Raskob brokered two deals: Konner Teitelbaum & Gallagher’s 10-year, 8,500 SF lease at 462 Seventh Ave (tenant rep: Kaufman’s Grant Greenspan); and The New York Real Estate Institute’s eight-year, 8,000 SF lease at 132 W 36th St.

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1350 Broadway saw two deals in its pre-builts: Garrigan Lyman Group’s 4,100 SF lease (tenant rep: Cresa’s Jamie Addeo and Jane Roundell); and WDC Group’s 3,700 SF lease (tenant rep: Norman Bobrow & Co’s Joshua Berger and Jack Senior). Newmark Grubb Knight Frank’s Robert Silver, Anthony Sciacca, and Neil Rubin repped owner W&H Properties in both deals.

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AMOREPACIFIC signed a 10-year , 6,200 SF lease at 1385 Broadway. Cresa’s Ed Wartels repped the tenant, while Cushman & Wakefield’s Diana Gaines, David Malawer, Jon Serko, and Gary Greenspan repped the landlord.

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De Yi Enterprise signed a 4,200 SF lease at 227 49th St, Sunset Park. Kalmon Dolgin Affiliates’ Grant Dolgin brokered the deal.

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North Shore-LIJ leased 3,900 SF at 200 Boundary Ave, Massapequa, Long Island, for a physical therapy office. CBRE’s Daniel Brandel and Rob Seidenberg repped the tenant, while Craig Weiss and Ted Weiss repped owner T. Weiss Realty in-house.

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35 W 36th St saw two deals: Staple Design’s 3,400 SF lease and Born Fly’s 3,200 SF lease. Benchmark Properties’ Michael Beyda and Francisco Rodriguez repped both tenants, while Robert Kaplan repped owner Hidrock Realty in-house.

FINANCING

Greystone Funding Corp’s Mordecai Rosenberg, Donny Rosenberg, and Traverse Fournier originated $72.7M in HUD financing for two NYC multifamily housing projects, a 224-unit building and a 152-unit building.

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Meridian Capital Group arranged more than $50M in financing, including: $17M for a 164k SF office building on West 35th Street(arranged by Carol Shelby and Dani Sabesan); $11M for one seven-story and four six-story multifamily buildings on East 15th Street(arranged by Joe Taub); $7.8M to refi and renovate an eight-building, mixed-use portfolio on Degraw Street, Union Street, Prospect Avenue, Bergen Street, and State Street in Brooklyn Heights(arranged by Sean Mooney); and $6M for a 12-unit, two-story multifamily building on Driggs Avenue, Brooklyn (arranged by Morris Diamant).

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Time Equities’ Stuart Bruck arranged: $7M for a luxury apartment building on Nassau St; $5.2M secured by several small multifamily properties in Brooklyn (some in Prospect Heights); $4.8M secured by a commercial condo at the base of a residential condo on Atlantic Avenue, Boerum Hill; and $4.5M for a 21-unit, four-story multifamily apartment building in Windsor Park, Brooklyn.

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Meridian Capital Group’s Tal Bar-Or also negotiated $20.2M in acquisition financing on behalf of an affiliate of American Realty Capital for its purchase of three retail and office buildings at the intersection of Kings Highway and Coney Island Avenue in Midwood, Brooklyn.

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GCP Capital Group arranged over $10M in financing, including:$3.7M for three two-story retail buildings totaling 14k SF on Lefferts Boulevard, Queens (arranged by Deborah Classi-Lewis); $3M for a 77k SF shopping center in the Bronx (arranged by Louis Perlmutter); and $2.3M for 46-unit, four-story elevator apartment building in East Orange, NJ and $1.5M for a 16-unit, four-story walkup apartment building on Cooper Street, Brooklyn (both arranged by Paul Greenbaum).

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Beech Street Capital provided a $9.5M Freddie Mac Capital Markets Execution loan to refi the 32-unit 184 Noll St, Brooklyn. Meridian Capital Group’s Aaron Appel arranged the seven-year, fixed-rate loan with a 30-year amortization period.

CONSTRUCTION & DEVELOPMENT

Skanska inked a $88M contract to convert the existing New York Public Library book storage facility in Hell’s Kitchen into the new Beacon High School. It includes demolition and installation of a sub-slab depressurization system, classrooms, science labs, and music rooms; and the addition of two stories for a gym and auditorium.

Related Topics: Marriott International, JW Marriott, Normandy Real Estate Partners , Boerum Hill, Meridian Capital Group, Cynthia Wasserberger, State Street, Prospect Heights, Health Care REIT, Hidrock Realty, The Naftali Group, Freddie Mac, Coldwell Banker, Harry Gross, Praedium Group, Paramount Group, Edison Properties, Time Equities, Kalmon Dolgin Affiliates, Beech Street Capital, Big Deals, Barbara Raskob, Bill Shanahan, Grant Greenspan, Mitch Konsker, Morris Diamant, American Realty Capital, Frank Doyle, Brooklyn Heights, Steven Kaufman, Strategic Hotels, Interstate Hotels, Western Hemisphere, Stephen Preuss, Norman Bobrow, Craig Weiss, Scott Cahaly, Matthew Astrachan, Greg Taubin, Weiss Realty, Brian Reiver, CNY Builders, East Orange, Scott Panzer, David Malawer, Lisa Kiell, Michael Beyda, Grant Dolgin, Ryan Masiello, Benchmark Properties, Robert Kaplan, Aaron Swerdlin, Aaron Appel, Michael Burgio, Robert Martin, Gramercy Capital Corp, Tal Bar, Alexis Tener, Douglas Neye, John Cefaly, Gary Greenspan, 1385 Broadway, Alex Chudnoff, Sunrise Senior Living, Robert Silver, Louis Perlmutter, Ed Wartels, Sean Mooney, Ken Colao, Thomas Gammino Jr, New York Public Library, Neil Rubin, Michael Okun, Diana Gaines, Robert Ivanhoe, Gabe Marans, Ted Weiss, Joe Taub, Storage Deluxe, Paul Leibowitz, Jamie Addeo, Stuart Bruck, Jeff Fischer, Dubai Investment Group, Granite Broadway Development, Glenwood Management, Brittany Wunsch, Michael Lenchner, Garrison Investment Group, Robert Garrish, Anthony Sciacca, Essex House Hotel, Cube Capital, Dan Turkewitz, Iris Rossano, Kings Highway, Steven Shapiro, Brad Lane, Gus Field, Richard Selig, Josh Glick, Ron Gross, Harry Jantz, The Hippodrome Building, Abraham Aderet, Heather Kahn, Sage Realty Corp, Jane Roundell, Jack Senior, Rob Seidenberg, Francisco Rodriguez, Deborah Classi