This Week's N.Y. Deal Sheet
The summer drag is in full swing, but some deals are still happening, including the most expensive retail condo sale since 2017, which closed last week.
RFR Realty inked a deal for Axioma to expand at 17 State St. The global risk management and portfolio construction services provider took 30K SF across the 26th and 27th floors, adding over 7K SF to its existing footprint in the building, RFR announced. RFR was represented in-house by AJ Camhi and Ryan Silverman, with Mitchell Konsker, John Wheeler and Clayton Kline of JLL. CBRE’s Clyde Reetz represented Axioma. Along with the Axioma deal, FGC Capital leased a 2K SF unit and Friendly Capital renewed its space for 4K SF at 17 State St.
Joshua Kushner’s Oscar Health is expanding at One Hudson Square, signing up for 160K SF in the building, effectively doubling its footprint. The deal is for 10 years and sees the health insurance startup leasing an extra 80K SF across an entire floor at Trinity Real Estate’s building, also known as 75 Varick St., according to Commercial Observer. Oscar will take the space, currently occupied by New York Magazine, at some point next year. Newmark Knight Frank’s David Falk brokered the deal for Oscar. The asking rents were in the $80s per SF.
Empire State Realty Trust reached a deal for the Interpublic Group of Cos. to expand at 111 West 33rd St., the REIT announced. The media and marketing agencies conglomerate added 26K SF to its almost 91K SF spread there, bringing its total space to 117K SF. JLL’s Scott Panzer, Robert Romano and Shannon Rzeznikiewicz brokered the deal for IPG. ESRT’s Keith Cody represented the landlord in-house, along with Scott Klau, Erik Harris and Neil Rubin of Newmark Knight Frank.
Ben Shaoul’s Magnum Management and Michael Miller’s Real Estate Equities Corp. sold the retail condo at 196 Orchard St. for $88.75M, The Real Deal reports. The buyer is AR Global affiliate New York City REIT. Hodges Ward Elliott’s Paul Gillen, Daniel Parker and Kyle van Buitenen brokered the deal for the sellers. The sale of the 60K SF, multilevel condo is the priciest retail condo deal in the last two years, per TRD.
Renaissance Properties paid $37.3M for 62 West 45th St., records filed with the city show. The seller was Andover Realty’s Leonard Gero. First Republic Bank provided $15M in financing to Renaissance for the sale. The 12-story building features both office and retail space, according to the Reonomy platform.
TOP FINANCING DEALS
HSBC loaned Mack Real Estate, Palin Enterprises and Urban Development Partners $175M to refinance the group's residential project in Greenpoint, Commercial Observer reports. The project features a 40-story tower, with both condominiums and rentals, and a five-story, rental-only building. The New York State Housing Finance Agency loaned the group $290M in 2016, which JP Morgan took over in April. Palin and Mack paid $90M of the balance last week, per CO.
Investors Bank provided $67.5M to Lam Group for its Four Points by Sheraton New York Downtown. The most recent loan had come from Shanghai Commercial Bank, which loaned $70M for the building, at 6 Platt St., in late 2016, Commercial Observer reports. This recent financing comes with $1.3M in new debt.
Midtown Equities and Cipriani S.A. locked down $80M from ACORE Capital, according to Commercial Observer, for the Battery Maritime Building in the Financial District. The loan features $60M in a first mortgage and $20M in mezzanine debt, and includes a $38M building loan, a $9M project loan and a $2.7M senior leasehold mortgage, per CO. Midtown bought into the project last year, Crain’s New York Business reported at the time. This new money will put plans to turn the historic building at 10 South St. into a luxury hotel back on track. JLL’s Aaron Appel, Keith Kurland, David Sitt and Jonathan Schwartz arranged the financing.