Mack Real Estate Takes Over Chetrit's Hudson Yards Site: The N.Y. Deal Sheet
After more than two years on the market, a Chetrit Group-owned development site in Hudson Yards is now in the hands of its former lender.
Mack Real Estate Group has acquired 545 W. 37th St. from Chetrit Group for $94M, PincusCo reported.
Chetrit paid $25.6M in 2012 to acquire the site, which is zoned for a 375K SF project. The landlord took out a predevelopment loan with JPMorgan Chase and Mack Real Estate Credit Strategies in 2018.
Mack assumed the entirety of the $53.7M senior loan and $31.3M mezzanine debt in 2023 when the debt was already in default and initially tried to sell the loan to buyers interested in foreclosing on the land.
Chetrit and Mack didn't respond to requests for comment.
Mack is also pursuing a separate foreclosure at another Chetrit Group property, the Hotel Carter at 250 W. 43rd St., Crain’s New York Business reported.
Chetrit had borrowed roughly $129M from JPMorgan Chase in 2018 for a major makeover at the infamously rundown property after spending $192M on it in 2015.
But Chetrit ran into stop work orders and penalties from the city for a range of violations, with Mack later acquiring the debt in 2022 and filing for foreclosure against $223M in unpaid mezzanine loans.
Two of the family firm’s executives, Joseph and Meyer Chetrit, were also arrested in October for tenant harassment, a few months after the city sued the co-principals for failure to maintain the Hotel Carter.
TOP SALES
A joint venture between Joyland, Meral Property Group and The Loketch Group sold 130 Second St. in Brooklyn to the Carlyle Group and its operating partner, Z+G Property Group, for $105M. JLL represented the seller of the newly constructed Gowanus multifamily property.
***
SL Green sold a 49% stake in 100 Park Ave., a 905K SF Midtown office tower, to Rockpoint. The sale places the 36-story asset’s value at $425M and injects the building with fresh capital to complete build-outs and cover concessions for recent tenant signings, including Alvarez & Marsal Holdings.
***
Silverstein Properties sold a stake valued at $191.7M in its Hell’s Kitchen life sciences building, the Hudson Research Center at 619 W. 54th St., to Affinius Capital, PincusCo reported. Previous reports indicate that Silverstein owned 90% of the property with Taconic Partners owning the remainder. Affinius was previously a lender on the property but was replaced by MetLife in 2021. Taconic’s life sciences affiliate, Elevate Research Properties, remains an owner in the property, a spokesperson for the firm confirmed to Bisnow. Silverstein wrote the value of its stake in the property down to zero last year, according to Tel Aviv Stock Exchange filings reported by Bisnow.
***
The Related Cos. acquired 467 10th Ave. from Soheil Khayyam for $52M, according to property records. Khayyam has owned the six-story, prewar property since 1986, Commercial Observer reported. The building is on the same block as Related and Oxford Properties’ planned 70 Hudson Yards development.
TOP FINANCING DEALS
The Related Cos. and Oxford Properties Group put together a $2.45B financing package, including a $1.6B construction loan, for the planned 1.4M SF 70 Hudson Yards office tower. The construction loan for Deloitte's planned HQ was originated by Wells Fargo, Bank of America and Standard Chartered, plus equity from an unnamed institutional investor, according to a Monday release. The Kuwait Investment Authority acquired an interest valued at $412.6M in the development, PincusCo reported on Tuesday.
***
Far Rockaway housing megadevelopment Arverne East scored a $278M financing deal for Building D, which will provide 320 new homes including 230 affordable units in Edgemere. A joint venture between L+M Development Partners, Urbane Development, The Bluestone Organization, Mega Group Development and Triangle Equities Development Co. are building the property. The financing includes principal debt from the Urban Investment Group at Goldman Sachs Alternatives, with the New York City Housing Development Corp., the New York City Department of Housing Preservation and Development and New York State Homes and Community Renewal providing subsidy loans and credits, Commercial Observer reported.
***
Sovereign Partners refinanced 100 Fifth Ave. with a $150M loan from Rialto Capital, Commercial Observer reported. The 20-story office building close to Union Square previously was tied to $126.5M in debt from the same lender and is anchored by Adobe.
***
Flag Luxury Group refinanced the Ritz-Carlton New York at 35 W. 28th St. in NoMad with $325M from Deutsche Bank, PincusCo reported. Bank OZK previously supplied a $200M loan.
TOP LEASES
The New York State Office of the Attorney General signed a 378K SF lease at Fosun International’s 28 Liberty St. The deal expands on the AG’s existing 342K SF spread in the Financial District tower, where it has been a tenant since 2018, by 36K SF. Other tenants in the 60-story, 2.1M SF building include Allianz, Stripe, the London Stock Exchange Group and Alamo Drafthouse. A JLL team including Peter Riguardi, John Wheeler, Mitchell Konsker and Michael Berman represented the landlord. Fosun scored a $900M refinancing of the tower last year, which provided it with fresh capital to sign leases.
***
Natixis signed for 203K SF at Rithm Capital’s 1633 Broadway, Commercial Observer reported. Natixis is relocating from 1251 Sixth Ave. for space in the building, which was previously part of Paramount Group’s portfolio before Rithm acquired the landlord last year. Cushman & Wakefield’s Robert Lowe arranged the deal. The lease appears to be an expansion — Natixis signed a 180K SF lease for its current office in Rockefeller Center in 2010.
***
ElevenLabs signed for 12K SF at KPG Funds’ 40 Crosby St., CO reported. The artificial intelligence audio platform is paying $120 per SF at the now-100% leased SoHo office building. Newmark’s David Malawer represented KPG, and Venture Commercial’s Jason Majlessi represented ElevenLabs.
