Developers Strike Deal For Major Harlem Medical Center: The N.Y. Deal Sheet
East Harlem is getting a brand new, ground-up medical office building.
Slate Property Group and Evenhar Development Corp. scored $159M in financing to develop a ground-up medical office and community facility at 1578 Lexington Ave., the developers announced.
The $119M construction loan came from J.P. Morgan, with GoldenTree Asset Management providing a $40M preferred equity investment. Construction is expected to start this month, with tenant occupancy slated for spring 2028.
Mount Sinai Health Systems programs has agreed to lease 150K SF of the 13-story building for outpatient services, office space and employee daycare.
The rest of the building will be occupied by a 19K SF community hub owned and operated by Children’s Aid called the East Harlem Center, as well as a new facility for Life Changers Church.
“We're creating a true community hub that addresses multiple neighborhood needs,” Martin Nussbaum, co-founder and principal of Slate Property Group, said in a statement. “Together with Evenhar, we’ve structured a partnership that preserves and enhances local services while delivering a world-class medical facility.”
TOP FINANCING
Affinius Capital and 3650 Capital provided a $156M refinancing to Prime Holdings Group for three self-storage properties, The Real Deal reported. The floating-rate loan replaces a $147M loan from 2022 provided by SREC REIT holdings. Prime has owned the portfolio since 2017, when it shelled out $187M for the properties, which are in Brooklyn, Queens and the Bronx. Affinius provided $120M of the new financing, while the remaining $36M came from 3650 Capital as a mezzanine loan.
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Gaia Real Estate Holdings scored a one-year extension for a $48M loan on 55 Hope St., a 117-unit Williamsburg apartment building, Commercial Observer reported. The extension gives Gaia a new maturity date of Aug. 23 next year to repay its lender, Raymond James Bank. Gaia has owned the building since 2022, when it acquired it from Hope Street Capital.
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HUBB NYC nabbed a $56M refinancing for 13 properties from M&T Bank, PincusCo reported. The properties include 12 residential units and retail condos at 20 E. 35th St., 101 W. 87th St. and 55 E. 38th St. The debt replaces a $48.8M loan from the same lender.
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AYA Acquisitions borrowed $23M from Bank of Montreal to refinance three residential properties in Hell’s Kitchen, PincusCo reported. The properties, which have 12 units each, are at 321, 323 and 325 W. 42nd St. The new financing replaces a $13.5M loan from Patriot Bank.
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JPMorgan Chase lent $141M to Lalezarian Properties and Kahen Properties to refinance the 229-unit residential building at 511 Third Ave., PincusCo reported. The mortgage replaces a $120M loan from the same lender.
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OTO Development scored a $96M refinancing deal for the hotel at 252 W. 40th St., PincusCo reported. The financing came from Fifth Third Bank and retired a $90M loan from the same lender.
TOP LEASES
Creative marketing and communications agency Civic Entertainment Group has signed a seven-year lease extension and expansion totaling 27K SF across two of GFP Real Estate’s NoHo properties. Civic will occupy 15K SF at 440 Lafayette St. and around the corner in a 12K SF space at 740 Broadway, almost doubling the tenant’s existing footprint. Civic will vacate its space on the fifth floor of 440 Broadway. Instead, it will consolidate its team into one continuous space, connected via a new bridge through the shared interior courtyard between the two buildings. Civic is expected to move into its new offices at the start of next year. GFP’s Allen Gurevich represented the tenant, while GFP’s Neith Stone repped the landlord.
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RXR signed Banco de la Nación Argentina and Comerica Bank to lease renewals at 230 Park Ave. The Argentinian bank committed to the entire 23K SF third floor for another three years, and it was represented in the renewal by Savills’ Daniel Horowitz, Jeffrey Peck and Jacob Stern. Comerica Bank was represented by CBRE’s Brandon Fries. Asking rents in the building range from $85 to $120 per SF. RXR's Andrew Ackerman and Walter Rooney negotiated the deals, with support from a Newmark team of Scott Klau, Brian Waterman, Lance Korman, Erik Harris, Zach Weil, and Cole Gendels.
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Nonprofit JCCA will relocate from 425 Westchester Ave. to two full floors at 521 Bergen Ave., a mixed-use office building in the South Bronx. The nonprofit, which has programs including foster care, mental health services, education programs and special services to children, signed an 18K SF lease across the ground and sixth floors of the building as well as part of the basement. A JLL team including William Korchak, Al Gutierrez, Ellen Herman, Edward DiTolla and Henry Warner repped building ownership, 521 Bergen REIT. CBRE’s Brad Gerla, Jonathan Cope and William Jordan repped the tenant.
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Grammarly, a tech company that makes programs to help writers — including some Bisnow reporters — avoid grammar, spelling and punctuation mistakes, is moving its New York office to 23K SF at 360 Park Ave. S., Commercial Observer reported. The San Francisco-based company will move from 29 W. 30th St. to BXP’s 450K SF building, where it joins tenants like trading firm Optiver and wealth manager Iconiq. CBRE’s Peter Turchin, Gregg Rothkin, Ross Zimbalist, Arkady Smolyansky, Hayden Pascal and Trevor Larkin repped BXP, while Grammarly was repped by JLL's Justin Haber and Kyle Riker.
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Two Trees Management Co. has landed two tenants for 41K SF combined at 50 W. 23rd St., bringing the Flatiron building to 100% leased. MSQ Partners signed a 38K SF lease for the entire eighth floor and part of the seventh floor, repped by Colliers’ Michael Joseph and Aidan Campbell. Curex signed a 3K SF lease, also on the seventh floor, and was repped by Darell Handler of Handler Real Estate Organization. The landlord was repped in-house by Alyssa Zahler and Jarad Winter.
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Home health agency Personal Touch Homecare signed a 21K SF lease at Guardian Realty Management’s 15 Parkville Ave. in Kensington, Commercial Observer reported. Asking rents in the 10-year lease were $55 per SF. The landlord acquired the 90K SF central Brooklyn building in 2019. Nick Zweig of Locations Commercial Real Estate represented both the tenant and the landlord.
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Tutor Perini Corp. has signed a 28K SF lease at GFP's 520 Eighth Ave., where it plans to occupy part of the eighth floor and the entire ninth floor for six years. The construction company took possession of the space in the 26-story, 860K SF office building this month and will move in after the landlord completes improvements. Matthew Mandell represented GFP in-house in the transaction.
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Banking platform for startups Rho has signed a six-year lease for more space at GFP’s 100 Crosby St., taking an extra 4K SF to bring its total footprint to 13K SF in the six-story, 175K SF SoHo building. Current Real Estate Advisors’ Thomas Mahl repped the tenant, while Neith Stone repped the landlord in-house.
TOP SALES
Aya New York has acquired three commercial condo units out of foreclosure at 66 W. 45th St. for $54.7M, Crain’s New York Business reported. Aya now owns the hotel and commercial portion of the 48-story, 123K SF property known as the Cassa Hotel and Residences. The property was previously owned by HNA Group, but a pair of Chinese banks began foreclosure proceedings in 2021, alleging that HNA Group had defaulted on a $63M loan. The residential condo units on the upper 21 floors were not part of the sale. Aya funded its purchase of the 166-key hotel with acquisition and renovation loans totaling $45M from OakNorth Bank. An Ariel Property Advisors’ Capital Services Group team led by Matthew Dzbanek and Matt Swerdlow arranged the debt.
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RXR Realty netted $339.5M in the sale of its preferred equity investment in a trio of Upper East Side luxury buildings, PincusCo reported. The sale price represents a 30% increase on the $261M it invested in the buildings three years ago in a limited partnership that included Qatar Investment Authority and Macquarie Capital Principal Finance. The LP placed the $261M as part of the $850M purchase led by GO Partners, which bought out the equity stake. The properties are 1 E. River Drive, 1 Sutton Place and 2 Sutton Place.
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Lay Assets sold a luxury apartment building at 2442 Ocean Ave. in Sheepshead Bay for $52.5M to Aurec Capital and Golden Arc, Commercial Observer reported. Lay Assets bought the Brooklyn property from St. Edmund’s Roman Catholic Church for $10.1M in 2017, then developed the apartment building in 2020.
CORRECTION, 12:30 PM E.T., SEPT. 10: A previous version of this article misstated 3650 Capital’s position in the capital stack. This article has been updated.
