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NY Deal Sheet: Deloitte Opening New Office At 1221 Sixth Ave.

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A member of the Big Four is getting even bigger.

1221 Sixth Avenue
Base of 1221 Sixth Ave.

Deloitte, the accounting/audit giant often mentioned in the same breath as EY, PwC and KPMG, is leasing two floors of 1221 Sixth Ave. spanning 98K SF as part of an expansion. 

The newly renovated building is now 98% leased. Deloitte employees in the new location will enjoy new building entrances, side-street plazas with outdoor seating, a new façade, interior stonework and lobby artwork.

Deloitte maintains its headquarters at 30 Rockefeller Plaza where it will be connected to the expansion through the Rockefeller Center concourse, an underground network of tunnels flanked by retail and dining.

Rockefeller Group's senior vice president and head of leasing in New York Ed Guiltinan was in charge of negotiations for the building ownership. Terms of the deal, for the 39th and 40th floors in the 51-story tower, were not disclosed. Asking rents in the building have recently been in the high $70s/SF, and the New York Post reports the higher floors ask for triple-digit rents. Cushman & Wakefield broker John Cefaly repped Deloitte.

Here is what else happened in New York commercial real estate over the last week.

TOP LEASES

One SoHo Square
One SoHo Square

HSBC renewed its lease at 452 Fifth Ave. in Bryant Park for five years. The banking giant signed a 548K SF deal with landlord PBC USA in a building where rents fetch over $100/SF. A JLL team led by Paul Glickman represented PBC while a separate JLL team led by Peter Riguardi represented HSBC.

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MAC Cosmetics signed an 86K SF lease for the 10th through 13th floors at One SoHo Square, at the corner of Sixth Avenue and Spring Street. Asking rent in the Stellar Management, two-building development is $125/SF. CBRE's Stephen Siegel, Greg Tosko, Lewis Miller and Sacha Zarba represented MAC while NGKF's Brian Waterman, Andrew Peretz, David Malawer and Brent Ozarowski represented Stellar Management.

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LKQ Hunts Point Auto Parts signed a 73K SF lease at 1390 Spofford Ave. in the Hunts Point section of the Bronx with Simone Development Co. Rent in the 15-year deal is $17.75/SF. Simone Development vice president of leasing and property management Joanna Simone represented both parties in the deal, which moved the parts dealer from a location Simone plans to redevelop.

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Glencore is moving to 330 Madison Ave. from Stamford, Conn. The Swiss commodities trading and mining company signed a lease for 60K SF in the 52-year-old building owned by Vornado. Terms of the lease were not disclosed. but asking rents in building are in the low $70s/SF. Andrew Ackerman and Kevin West represented Vornado in-house with JLL brokers Frank Doyle, Clark Finney and David Kleiner. Glencore's brokers were Martin Horner and Reid Longley of JLL.

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Marathon Asset Management signed an early renewal of its 37K SF lease of the 38th floor at One Bryant Park, although the firm will not be renewing for the 39th floor of the Durst Organization-owned property. The firm's lease was set to expire on Aug. 31, 2018, but it had never actually occupied the upper floor. Thomas Bow and Rocco Romeo represented the landlord in-house — and while be bringing the 39th floor to market at around $150/SF, the Commercial Observer reports — while JLL's Alexander Chudnoff and Dan Turkewitz represented the tenant in the 10-year deal.

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Co-working company The yard signed a 33K SF, 12-year lease at 195 Broadway in Williamsburg, Brooklyn. The firm will take the third and fourth floor as well as part of the seconnd floor of the building. Asking rent in the Forman family-owned building is $50/SF. Michael Rouzenrouch of Miyad Realty represented both parties in the deal.

TOP SALES

Wildenstein Mansion
19 East 64th St.

Normandy Real Estate Partners closed on a $103M purchase of a majority stake in the office building at 175 Pearl St. in Dumbo Heights, Brooklyn. Invesco was bought out in the deal, and a joint venture of Kushner Cos., RFR Realty and LIVWRK retains a piece of the ownership. The 204K SF property has been vacant for a year, but now Normandy will take over development and leasing of the building. Normandy also secured a $91M acquisition and development loan from Blackstone for the deal. 

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Gamma Real Estate closed on its $86M purchase out of bankruptcy auction of the development site at 3 Sutton Place in Midtown Manhattan. The firm plans to build a 700-foot-tall condominium tower designed by Thomas Juul-Hansen at three contiguous lots now known as 428-432 East 58th St.

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In a record-setting deal for a New York City townhouse, art heir David Wildenstein sold his Upper East Side pad at 19 East 64th St. for $79.5M to an entity affiliated with HNA Holdings Group CEO Roy Liao. HNA Holdings is the Chinese conglomerate behind the $2.2B deal to buy the office building at 245 Park Ave. The company reportedly plans to convert the townhouse into a boutique corporate office. Carrie Chiang of the Corcoran Group represented Wildenstein.

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Ralph Sitt's property investment firm Status Capital purchased a 9K SF retail building at 715 Madison Ave. from philanthropist Joshua Mailman and his daughter Julie Wolfe for $62M.

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Sam Chang closed on two development sites at 292 and 296 Fifth Ave. for $42.5M. He bought the sites with 70K SF of development potential from fellow hotelier Richard Born. Bob Knakal, John Ciraulo and Jonathan Hageman of Cushman & Wakefield represented Born. 

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Karan Singh purchased two contiguous apartment buildings at 71-05 and 71-11 37th Ave. in Jackson Heights, Queens, for $31.5M from the Benson Co. The six-story buildings have a combined 106 units and 86K SF. Rosewood Realty Group's Aaron Jungreis represented Singh.

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The Laurie M. Tisch Illumination Fund bought a $19M, 7K SF building from the Vilcek Foundation at 167 East 73rd St. The new owner plans to renovate the building, converting the entire space into offices. 

TOP FINANCING DEALS

NY Deal Sheet: Deloitte Opening New Office At 1221 Sixth Ave.
41 Flatbush Ave. in Downtown Brooklyn

Ceruzzi Holdings and its partners refinanced the land underneath the 34-story Midtown tower at 855 Third Ave., known as the Lipstick Building, for $272M. The company purchased the land in 2016 for $453M and assumed $267.5M in debt at an interest rate of 6.21%. 

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A joint venture between Quinlan Development Group and Building & Land Technology secured $132M in financing from KKR for an office conversion project at 41 Flatbush Ave. in Downtown Brooklyn. The package includes $53M in bridge and construction financing and $79M in existing debt consolidation. The developers bought the 230K SF storage facility in 2015 for $90M.

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Chetrit Group nailed down a $101M refinancing of the buildings at 90 and 100 Trinity Place in Manhattan's Financial District. Korean fund manager KTB Asset Management and Midtown-based Rexmark provided the loan. 

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Yitzhak Tshuva's Elad Group scored a $90M construction financing loan for a condominium project in the Hell's Kitchen neighborhood of Manhattan. Israel-based Bank Hapoalim is financing a loan for the project at 505 West 43rd St. Elad is planning to build a 180K SF building with 123 units.

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Cohen Brothers Realty Corp. secured an $85M refinancing of its 32-story office tower at 135 East 57th St. from Goldman Sachs. The loan replaces $85M that German American Capital Corp. provided in 2007.