This Week's N.Y. Deal Sheet
Leasing and sales activity remained relatively muted in New York City this week, while the majority of loan activity focused on multifamily properties.
Global recruitment agency Phaidon International is taking 71K SF at SL Green’s 711 Third Ave., according to a release. Phaidon will lease part of the second floor and the full third floor of the newly renovated office building. David Mainthow of Cushman & Wakefield represented Phaidon in the deal.
Silverstein Properties’ 7 World Trade Center is now 97% leased after it signed four new tenants, according to a release. Alternative investment manager Capstone Investment Advisors took 40K SF on the 32nd floor for 13 years, while publisher Mansueto Ventures renewed its 40K SF lease for 11 years. Tax law firm Kostelanetz & Fink renewed an 18K SF lease for another decade, while IT provider UPSTACK signed a seven-year lease for 5K SF. Asking rents were $90 per SF, Commercial Observer reported. Rob Lowe and Jonathan Fein of Cushman & Wakefield represented Capstone. David Glassman of CBRE represented Mansueto. Newmark’s Eric Zemachson and Brian Cohen represented Kostelanetz & Fink, and Silverstein had in-house representation from its director of leasing, Jeremy Moss.
The Museum of Women will occupy its first physical space, a 25K SF location at 480 Broadway, according to a release. The museum, which is expected to open this summer, plans to have more than 14 immersive and action-focused activities. Asking rents for the SoHo location, which was formerly occupied by clothing retailer Topshop, were $200 per SF, the New York Post reported. Norman Bobrow & Co.’s Josh Berger represented the museum, while Ripco Real Estate’s Richard Skulnik, Lindsay Zegans and Ben Sabin represented landlord KPG Funds.
Medical practice Summit Health will take 12K SF in Queens, according to a release. The 7000 Austin St. location in the Forest Hills neighborhood is one block from Queens Boulevard and has transit connections to multiple subway and bus lines as well as the LIRR. Summit, which was formed in a 2019 CityMD and Summit Medical Group merger, had representation from Newmark’s Ben Birnbaum. Bill Bergman represented landlord Muss Development in-house.
Gucci signed up for 10K SF in the Meatpacking district covering the ground level and second floor of 400 West 14th St., Commercial Observer reported. The fashion house, which recently renewed a 20-year lease of its flagship store at Trump Tower, previously hosted a pop-up store in the Meatpacking District in October 2021. Cushman & Wakefield’s Mike O’Neill represented Gucci in the deal, while landlord Saab Associates had representation from Retail by Mona.
Jeweler Studs signed a 10K SF lease at 594 Broadway, Commercial Observer reported. The SoHo building, which was constructed in 1898, will be the earring specialist’s ninth location in the U.S. Donna Vogel of GFP Real Estate handled the transaction in-house for the landlord.
REIT Equity Residential has sold a 354-unit luxury residential building on Manhattan’s Upper West Side, according to a release. The property at 140 Riverside Blvd. sold for $266M to New York-based real estate investor A&E Real Estate. The building includes a commercial space with tenants such as private K-12 school the Dwight School and a veterinarian, in addition to amenities including tenant lounges and an interior courtyard. A CBRE team led by Darcy Stacom handled the sale on Equity Residential’s behalf.
Simone Development Cos. has purchased a 100% leased space at 225 East 34th St., according to a release. The 12K SF space, which sold for $11.5M, is located on the first floor of a 191-unit luxury residential property in Manhattan’s Murray Hill neighborhood. Current tenant NYU Langone Health uses the space for its epilepsy center, which is one of the largest in the world.
TOP FINANCING DEALS
Silverstein Properties secured a $457.5M refinancing deal for 7 World Trade Center, according to a release. The 52-story property, which also signed four new tenants within the past week, was first built in the early 2000s using tax-free Liberty Bonds issued by the federal government after the 9/11 attacks. Goldman Sachs provided the financing for the most recent deal, with $449M of tax-exempt bonds making up 98% of the loan.
The New York City Housing Authority secured a $104M loan from Merchants Capital on behalf of a joint venture between the Settlement Housing Fund and West Harlem Group Assistance, according to a release. The sum will fund improvements to the Harlem River Houses and the adjacent Harlem River II Campus, on West 151st St. and West 153rd St. Merchants Capital, a joint venture between the Settlement Housing Fund and West Harlem Group Assistance, worked with the New York City Housing Development Corp. and Freddie Mac to create the straight-to-permanent risk share loan. The Harlem River Houses and River II Campus were first built in 1937 and were among the first NYC properties funded, developed and owned by the federal government. The properties are currently undergoing renovations for 690 apartments, which are offered at 100% affordability to low-income residents, Commercial Observer reported. The renovation will increase the unit count to 693. To date, Merchants Capital has provided $480M in financing for NYCHA projects.
Santander Bank has agreed to a floating-rate, $91M loan to finance the construction of new luxury multifamily construction on Long Island, Commercial Observer reported. The borrowers, a joint venture between BRP Cos. and BlackRock Alternative Investors, will build 262 market-rate residential units and 30 workforce units on a former farm site spanning 62 acres. It will include townhomes and single-family homes.