CIM Sells 88 University Place For $46M To First-Time Buyer: The N.Y. Deal Sheet
CIM Group sold a Union Square-area office building that was once owned by Adam Neumann and leased to WeWork while he was CEO.
The Los Angeles-based real estate firm netted $46M for the 11-story, 100K SF beaux-arts property at 88 University Place from a joint venture between Acram Group and the newly formed Bulldog Real Estate Partners, according to a release.
The acquisition is Bulldog’s first since its founding last year. Newmark’s Adam Spies, Adam Doneger and Michael Collins represented the buyer and seller.
The buyers are planning significant upgrades to the 71K SF office building, which is 65% occupied, The Real Deal reported.
CIM Group acquired the building for $48.6M via a 2024 foreclosure sale after Arch Cos. defaulted on a $70.5M refinancing deal struck two years earlier amid a bitter dispute between the firm's executives, TRD previously reported.
The building’s previous ownership included fashion designer Elie Tahari, who bought the property with Neumann in 2015 for $70M. It was one of several buildings in which Neumann held a stake that WeWork signed leases to open up coworking facilities in, The Wall Street Journal previously reported.
IBM subleased the entire building from WeWork in 2017 but left during the pandemic. Neumann's real estate company, Flow, now leases two floors in the property, TRD reported.
TOP SALES
The Kaufman Organization and AXA Financial sold a 137K SF office building at 40 W. 25th St. to Kaufman Investments and Two Sigma Investments for $52M, Commercial Observer reported. Wasserman Media Group and Hello Fresh are the largest tenants in the 80% leased building. AXA and the Kaufman Organization acquired the property in 2019 for $120M with a $76M acquisition loan from MetLife, but Kaufman Investments is stepping in with a new partner following a lender-directed sale. Newmark’s Adam Spies, Avery Silverstein, Brett Siegel, Adam Doneger, Marcella Fasulo and Josh King brokered the deal.
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Vornado Realty Trust paid $12M to McDonald’s for a Garment District site at 490 Eighth Ave., adjacent to an assemblage the REIT has spent the past decade putting together, Crain’s New York Business reported. Vornado also snapped up the air rights from two of the development site’s neighboring properties: It paid $4.4M for 31K SF over the Haddad family’s 260 W. 35th St. and $4.8M for 34K SF above the Cayre family’s 254 W. 35th St. It is unclear who brokered the deal for McDonald’s, but KSR’s Albert Sultan represented the Haddad and Cayre families.
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Michigan-based Eenhoorn acquired the 23-story, 62-unit condo development at 1 Park Row in the Financial District from an entity tied to Circle F Capital for $93M, The Real Deal reported. Brown Harris Stevens’ Lisa Simonsen represented Eenhoorn, while Corcoran Sunshine Marketing Group’s Beth Fisher represented Circle F.
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Thor Equities acquired Michael Haddad’s 58K SF office and retail tower at 1165 Broadway for $56M, Commercial Observer reported. The NoMad office, a landmarked former hotel, is fully occupied and has tenants including footwear brand Christian Louboutin.
TOP LEASES
Babylist is opening its first NYC showroom in 20K SF on the ground and lower floors at 477 Broadway in SoHo. Tungsten Property’s Lydia Bell and Cole Stapleton represented Babylist, a digital registry platform that opened its first physical space in Beverly Hills. Lee & Associates NYC’s Paul Popkin, Morris Dweck and Annie Squier represented the landlord, 477 Realty LLC. The lease term is 10 years.
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Financial services firm VCT Holdings subleased 35K SF at One Seaport Plaza from Frank Recruitment Group on the 10th floor of the 1984-built, 1.1M SF tower at 199 Water St. Asking rents were $40 per SF. JLL’s Seth Hecht represented the sublandlord, while Platinum Commercial’s Steven Evans represented VCT.
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The Hudson Cos. and affiliate Broadway Builders LLC signed an 18K SF, 11-year lease for the 12th floor of the Rosen family’s 902 Broadway. ABS Partners Real Estate’s Benjamin Waller and Daria Ghasemi represented the tenant, and Koeppel Rosen’s Max Koeppel represented the landlord.
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Hydrogen Fitness leased 17K SF at Meyer Equities’ 145 E. 32nd St. for 15 years on the ground, lower and mezzanine levels. The gym expects to open the Murray Hill location in January 2027. Lee & Associates NYC’s Cory Gahr and Josh Lebowitz represented Hydrogen, while Okada & Co.’s Thomas Capuano represented the landlord.
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Apparel design and distribution company NYC Alliance signed an 11-year, 50K SF lease at LH Charney’s 1441 Broadway, the New York Post reported. NYCA will double its footprint when it relocates from its headquarters at 1411 Broadway next year. Colliers represented the landlord, while Lee & Associates’ Peter Braus represented the tenant.
TOP FINANCING DEALS
Broad Street Development, PCCP and One Investment Management scored a $175M construction loan from alternative asset manager Derby Lane Partners to convert the 430K SF, 37-story office at 80 Broad St. into a 326-unit rental tower, Commercial Observer reported. The deal is part of a reported $250M recapitalization led by Newmark’s Adam Spies and Adam Doneger, who also brought One IM and PCCP on Broad Street's planned conversion, which will use the 467-m tax incentive. Newmark’s Jordan Roeschlaub, Nick Scribani, Holden Witkoff and Niv Shahmoon arranged the financing.
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Issac Hera's Yellowtone Real Estate Investments landed a $203M construction loan to finance its residential conversion of the Candler Building at 2210 W. 41st St. Naftali Credit Partners put together the deal and syndicated the $167M senior loan while holding a $36M mezzanine loan, according to a press release. Bank Hapoalim's BHI came in as the senior lender on the 25-story project, which will use the 467-m tax abatement. The project will have 132 free-market units and 44 income-restricted units, CO reported.
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Extell Development refinanced 15 properties that make up a Midtown West development site at 576 Fifth Ave. with a $417M loan from JPMorgan Chase, PincusCo reported. The financing replaces a $340M loan from IGIS Asset Management.
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Two Trees Management scored a $460M construction loan for its Williamsburg development at 280 Kent Ave. from M&T Bank, PincusCo reported. The loan replaces an $89M sum from the same lender. The firm is building two 50-story residential towers totaling 1,262 units, the Brooklyn Eagle reported.
