EBay Takes 122 Fifth's Last Office Space: The N.Y. Deal Sheet
A 300K SF building owned by The Bromley Cos. is the latest Manhattan office tower to fill up as technology companies expand their New York footprint.
Online retailer eBay signed a 28K SF lease at 122 Fifth Ave., the last available space in Bromley's property less than two blocks from Union Square.
Bromley, headquartered next door at 120 Fifth, recently completed a $100M redevelopment of 122 Fifth, which included redesigning its second floor as a plug-and-play prebuilt space with the help of architecture firm Vocon.
A representative for the landlord declined to disclose the building's asking rents. Average asking rents in Midtown South at the end of March were $84.37 per SF, according to CBRE.
Other tech tenants with office space in the building include Microsoft and fintech firm Chime, while the property’s retail space is also fully leased to tenants including apparel retailer Reformation.
CBRE’s Sacha Zarba, Frederick Fackelmayer and Alice Fair represented eBay. Newmark’s David Falk, Peter Shimkin, Eric Cagner and Dylan Weisman represented the landlord.
Tech tenants, particularly artificial intelligence companies, have been in a race to nail down NYC office space. AI firms leased more office space in the first quarter than they did all of last year, The Wall Street Journal reported.
TOP LEASES
Ameriprise Financial renewed its 38K SF lease at One World Trade Center for another decade. The company will stay put on the 78th floor in the Durst Organization and the Port Authority of New York and New Jersey’s 97% leased tower. Eric Engelhardt, Karen Rose and Sayo Kamara represented Durst in-house alongside Newmark’s David Falk, Peter Shimkin, Hal Stein, Nathan Kropp and Paige Raisides. Cushman & Wakefield’s Josh Kurlioff, Drew Braver, Heather Thomas and Nicole Estevez represented Ameriprise.
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Vornado Realty Trust’s Penn 2 is now 90% leased after signing two full-floor deals with tech firms Altana AI and Veeva Systems. Altana will move its headquarters into the 31-story tower’s 21st floor for a 10-year term. Veeva, meanwhile, signed a 12-year lease for space on the 11th floor. Veeva is relocating from 1375 Broadway, Commercial Observer reported. Vornado's Josh Glick and Jared Silverman represented the landlord in-house in the second deal, while Savills' Jim Wenk and Kirill Azovtsev represented Veeva.
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Whole Foods signed a 10K SF lease at 1224 Flushing Ave., setting up its next outer borough outpost in Bushwick, Crain’s New York Business reported. The 15-year lease will likely be one of the grocer’s grab-and-go outfits. The landlord is a Dumbo-based shell company, Flushing 1224, which purchased the building for $12M in 2015.
TOP SALES
A partnership between Olmstead Properties and investment platform Vertex has acquired 19 W. 44th St. from Savanna, according to a release. The duo paid $108M for the 16-story, 303K SF building, The Real Deal reported. The price is 45% less than Savanna's $195M price for the tower nine years ago. Derby Lane Partners provided a $91.4M senior mortgage for Olmstead and Vertex’s acquisition. The building is 79% leased to tenants including Yipit and Bitwise, Commercial Observer reported.
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Tredway paid $41.5M to Phoenix Realty Group for a Bedford-Stuyvestant ground lease underneath two residential buildings, the 139-unit 234 Herkimer St. and the 138-unit 260 Herkimer St., PincusCo reported. Merchants Bank of Indiana provided a $49M loan to Tredway for the acquisition. The building landlord is the city of New York’s NYC Educational Construction Fund.
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CSC Real Estate paid $70M to Perlbinder Realty for a 127K SF Upper East Side medical office at 210 E. 86th St., Commercial Observer reported. CSC also acquired two adjacent retail spaces at 206 E. 86th St. and 205 E. 85th St. The deal includes space leased to New York Cancer & Blood Specialists and a portion leased to Weill Cornell Medicine’s pediatrics center. Avison Young‘s Brandon Polakoff, Alexandra Marolda, James Nelson and Lea Voytovich represented the seller.
TOP FINANCING DEALS
Broad Street Development and KSR Capital notched a $138M loan to recapitalize 370 Lexington Ave., paying off a prior loan from Invesco. Acore Capital provided a $110M senior loan to support the transaction, according to a release. The partnership put in $28M of equity to complete the recap, Commercial Observer reported. BSD owned the 317K SF property, which is 98% leased, between 2006 and 2008 and reacquired it in 2018. CBRE’s Peter Greisinger arranged the financing, while the brokerage’s Pat Arangio, Jack Stillwagon and Doug Middleton advised Invesco. A Wachtel Missry team led by Eli Dweck represented the borrowers. Law firm King & Spalding represented Acore.
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Rockrose Development netted a 10-year, $69.5M Freddie Mac loan via JLL Real Estate Capital to refinance a 148-unit West Village multifamily building at 100 Jane St. The 1996-built, nine-story property is 100% leased and contains 30 affordable homes as well as 117 market apartment units. A JLL team led by Geoff Goldstein, Steven Klein and Michael Shmuely represented the borrower.
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Bridge Investment Group provided Targo Capital Partners with a $69.7M acquisition bridge loan for a seven-property mixed-use portfolio spread throughout the Lower East Side, East Village and West Village, according to a release. The properties contain 127 apartments and 13 retail spaces. Arrow Real Estate Advisors' Morris Betesh, Brandon Serota, Morris Dabbah and Zach Strauss arranged the financing. The buildings are at 185 E. Houston St., 90 Rivington St, 96 Orchard St., 156 Orchard St., 126 First Ave., 153 Ave. C and 38 Carmine St., Commercial Observer reported. JLL’s Vickram Jambu, Hall Oster, Guthrie Garvin, Rob Hinckley and Teddy Galligan represented seller S&H Equities.
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JPMorgan Chase loaned $63.2M to Justin Management to refinance two Penn Plaza properties, PincusCo reported. The buildings, an office at 856 Sixth Ave. and a retail building at 864 Sixth Ave., span a combined 193K SF. The debt replaces a previous $65M loan from First Republic Bank.
