This Week's N.Y. Deal Sheet
The coronavirus infection rate ticked up in New York City this week, but so did the number of deals as some big leases, sales and financing transactions closed.
The Arker Cos. purchased four Brooklyn apartment properties for a total of $33.5M from Phoenix Realty Group, property records show. Arker paid $15M for the first two properties at six-story 15 Albany Ave. and four-story 20 Albany Ave. In a separate transaction, the company paid $18.5M for two properties that span 51 units, at 305 Decatur Ave. and 24 Macdonough Ave. Arker just opened an affordable housing apartment complex in East New York with over 1,000 units.
Joseph Brunner purchased a building at 26-25 Fourth St. in Astoria, Queens, from Goodwill Industries of Greater New York and New Jersey for $14.4M, property records show. The LLC listed on the deed as the seller, Fourth Development Holdings, filed a permit in September to transform the development space, which underwent demolition in 2019, into an 18-story residential building with 165 units, New York YIMBY reported. J Frankl Architects will be designing the new building.
Michael Wittow and The Horizon Group purchased a four-building multifamily portfolio, dubbed the Weirfield Development Package, in Bushwick for $14M, B6 Real Estate Advisors announced. The Poma family sold the properties, which include 376, 378, 380, 389 and 391 Weirfield St., 1438 Hancock St. and 1504 Jefferson Ave. The buyer is planning to redevelop the properties, which contain 82K buildable SF, to include 120 residential units. B6 Real Estate Advisors’ DJ Johnston, William Cheng, Michael Murphy and Ben Rechler brokered the deal for the seller.
Amazon is keeping its deal-signing pen hot. The e-commerce behemoth signed a 200K SF lease at the Brooklyn Logistics Center, located at 12555 Flatlands Ave. in East New York, Crain’s New York Business reports. The company plans to use the space as a delivery center. Wildflower LTD owns the property. The new center will add hundreds of additional Amazon jobs. This deal is the latest for Amazon in a series of new leases across the outer boroughs as the giant continues to grow amid the coronavirus pandemic.
Industrious inked a management agreement to take the entirety of the Sioni Group’s 15-story Herald Square Building at 44 West 37th St., the coworking company announced. The building will be called Industrious Herald Square. It contains 53K SF and will include 14 office suites, one per floor. The property owner and coworking company will share revenue as a part of the agreement, a spokesperson for Industrious told Bisnow.
Upside Pizza signed a 1K SF lease at Dom Ben Realty’s 20 East 40th St. for an asking rent of $13K per month, Commercial Observer reports. Kassin Sabbagh Realty’s Albert Manopla and Jack Khaski negotiated the lease for the tenant. Gregorys Coffee also takes up space in the building, according to the coffee company’s website.
TOP FINANCING DEALS
Nonprofit developer Breaking Ground scored $76.4M in construction financing for its repositioning of 90 Sands St. in Dumbo. The building was formerly a Jehovah’s Witnesses hotel. When finished, the project will include 491 units of affordable housing. The funding was provided by New York City Housing Development Corp., while JPMorgan Chase provided a construction letter of credit. Breaking Ground previously received $2M from City Council, $10M from Enterprise Community Partners and a $155M loan from the NYC Department of Housing Preservation and Development to purchase the property. Law firm Nixon Peabody represented the nonprofit in the financing.
America Realty secured a $63M construction loan on its Upper West Side residential project at 2505 Broadway, PincusCo. Media reports. The debt was provided by a $1.1B fund controlled by Michael Dell's investment firm, MSD Partners, which launched this summer. The project, which is set to be 19 stories and contain 44 units, was reportedly halfway finished this August, according to New York YIMBY, and is being designed by ODA Architecture LPC.
Joel Wetzberger scored $24M for its property at 635 Rockaway Ave. in Brooklyn, PincusCo. Media reports. Dime Community Bank provided the debt. The building began construction in 2017, according to a research page from The Real Deal.