Industrious Expands To 292K SF At Former WeWork HQ: The N.Y. Deal Sheet
Industrious signed an expansion bringing its footprint at Kato International’s Tower 49 to 292K SF, creating what it says is the world's largest flexible office space.
Industrious is expanding to 18 floors inside the more than 600K SF tower at 12 E. 49th St. The CBRE-owned office operator will also take over managing the entire property, owned by Kato since 1986, including tenants with direct leases.
Industrious first moved into the building when it signed a 240K SF deal across 16 floors in June 2024.
The entire 45-story property is slated for a renovation, with architecture firms Bonetti Kozerski Architecture and MdeAS Architects, branding firm Mucca and hospitality advisory Friend of Chef getting involved to create a 120-seat conference center, a new lobby and flexible event spaces.
The deal with Industrious replaced an agreement with competitor WeWork, which had previously leased 300K SF in the tower and briefly used it as its headquarters but terminated the lease during its Chapter 11 bankruptcy process.
TOP LEASES
Financial institution Optiver expanded to 115K SF at BXP’s 360 Park Ave., adding 92K SF to its existing footprint in the building to occupy the second through fifth floors, according to a release. The trading firm initially signed for 23K SF in the building in May, Commercial Observer previously reported. The landlord announced Optiver’s expansion at the same time as several other leases totaling more than 230K SF that bring the building to more than 90% leased.
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The hedge fund run by New York Mets owner Steve Cohen leased 60K SF at Tishman Speyer’s 2.8M SF, 66-story tower The Spiral, Commercial Observer reported. The skyscraper is now 98% leased and is across the street from 55 Hudson Yards, where Cohen's Point72 Asset Management is headquartered. Newmark’s Neil Goldmacher, Brian Goldman and Michael Horn repped the tenant, while Samantha Augarten and Sam Brodsky represented the landlord in-house.
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Airline catering company Gate Gourmet signed for 63K SF at 95D Inip Drive, part of Onyx Equities' Inwood Logistics Center campus just south of John F. Kennedy International Airport, Commercial Observer reported. Cushman & Wakefield’s Helen Paul, Rico Murtha, Thomas DeLuca, Sonny Singh and David Frattaroli represented Onyx, while JLL’s Tom DiMicelli represented the tenant.
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Airplane servicing company ASAK Solutions leased 17K SF at Longpoint Partners’ 152-15 Rockaway Blvd. warehouse, CO reported. Asking rents were $28 per SF. Avison Young’s Joseph Lagano and Reid Berch represented the landlord. Cushman & Wakefield's Joseph Hentze Jr. represented the tenant.
TOP SALES
An entity tracing to Calvin Kamuluddin sold the NoMad Senton Hotel at 39 W. 27th St. to Stayway Holding Group LLC, managed by Lee Fung Fong and Henry Zheng, for $27.2M, PincusCo reported. Avison Young’s Noah Kossoff brokered the deal for the 71-key hotel on behalf of the seller, Commercial Observer reported.
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Generation Essentials Group, a subsidiary of French media and entertainment company AMTD Digital, acquired the Tribeca Hilton Garden Inn at 39 Sixth Ave. from KSL Capital-backed Hersha Hospitality for $69M, The Real Deal reported. McSam Hotel Group developed the 151-key hotel in 2009, and Hersha acquired it the same year. The new owner plans to turn it into the “world's first Art Newspaper House,” although it has not defined the concept.
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Slate Property Group and Avenue Realty Capital acquired a 16-unit, 33K SF Tribeca multifamily rental property at 45 White St. from Benchmark Real Estate Group for $32M, Commercial Observer reported. White Oak Real Estate Capital provided acquisition financing. JLL’s Guthrie Garvin represented the seller.
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Centurion Realty sold 68-74 Thompson St., a 75-unit SoHo multifamily building, to Long Island landlord Soheil Khayyam for $58M, The Real Deal reported. Marcus and Millichap's Joe Koicim procured the buyer and the seller in the off-market deal for the building, which has 11 rent-stabilized units and four commercial units.
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NexGen Hotels acquired the 12-story, 112-key Long Island City hotel La Quinta at 9-02 38th Ave. from Midtown-based RiverBrook Hospitality for $26.6M, Crain’s New York Business reported. The buyer also signed a $15.6M mortgage for the property with the State Bank of Texas in December. The building recently operated as a homeless shelter with the NYC Department of Homeless Services, but that contract ended in June 2023.
TOP FINANCING DEALS
Alexico Group scored a $345M balance sheet refinancing for The Mark Hotel, a five-star, 153-key hotel at 25 E. 77th St., Commercial Observer reported. Deutsche Bank led the financing, joined by JPMorgan Chase and BDT & MSD Partners. Walker & Dunlop’s Sean Reimer, Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, Dustin Stolly and Jay Morrow brokered the deal.
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Vornado Realty Trust refinanced its mortgage at 350 Park Ave. with the company that plans to anchor a new office tower on the site. Citadel LLC lent the REIT $400M in a deal that closed this week, refinancing a CMBS loan originated in 2016 for the same amount, PincusCo reported. Vornado, Rudin and Citadel CEO Ken Griffin are co-developing a 1.7M SF supertall office tower on the site after Griffin's December decision to exercise his option to buy 60% of the development. Citadel signed a 10-year, $262.6M master lease for the existing office building in 2023 and plans to occupy about 850K SF of the upcoming tower.
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Zara Realty Holding refinanced 18 residential properties in Queens via a $225M loan from Arbor Realty Trust, PincusCo reported. The properties include three buildings in Jamaica totaling 392 units: 88-15 168th St., 90-36 149th St. and 90-10 149th St.
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An entity owned by Kayne Anderson and Invesco refinanced a Brooklyn Heights assisted living building at 21 Clark St. for $221.4M, PincusCo reported. Atlas Capital Group provided the financing for the property known as The Watermark, replacing a $200M loan from BMO Bank. Kayne Anderson acquired The Watermark for $202.5M in 2017, then Invesco bought a 54% stake in the property for $81.5M last month, PincusCo previously reported.
