This Week's N.Y. Deal Sheet
Last week capped off a slow summer in New York City commercial real estate — while there were some major financing transactions, leasing and sales remained slow.
Private equity company Clayton, Dubilier & Rice inked a 12,800 SF lease expansion at the Seagram Building, landlord RFR announced. The company’s footprint in the building now totals 60K SF and spans across three floors. Newmark Knight Frank’s Andrew Sachs and Ben Shapiro brokered the lease for the tenant, while AJ Camhi and Paul Milunec represented RFR in-house.
Strategic Value Partners also expanded its lease in the building to 7,800 SF and Springs Capital signed a new lease for 4,500 SF. NKF’s Brian Goldman and Matthew Lorberbaum represented Strategic Value Partners and Savills’ Evan Margolin and Jack Orlan represented Springs Capital, according to RFR.
Developer RAL Cos. inked a new 11K SF lease at Harbor Group International’s 55 Broadway, Commercial Observer reports. Asking rent on the 10-year lease was $64 per SF. The developer will move from its current office at 434 Broadway in October. Brad Gerla, Jonathan Cope and Craig Motola of CBRE brokered the deal for RAL, while NKF's David Berke and Brain Waterman brokered it for the landlord. RAL follows other real estate companies in signing office leases and expansions in the past few months amid an uncertain office market. Notably, CBRE expanded its footprint in the MetLife Building at 200 Park Ave. by 45K SF in August, consolidating other offices into its city headquarters.
MiddleGround Capital is moving to SoHo. The private equity company signed a lease agreement with Madison Capital to take up 8,400 SF at the landlord’s 10 Crosby Place, Commercial Observer reports. The tenant will move from its location at 200 Varick St. later this year. Kyle Young of JLL represented Madison Capital in the deal. Asking rent was $84 per SF, according to CO.
TOP FINANCING DEALS
SL Green scored a $600M construction loan for its office redevelopment at 410 10th Ave., the landlord announced. Goldman Sachs and Wells Fargo led a group of banks that provided the debt. Amazon is set to take up 335K SF in the office building, formerly known as the Master Printers Building. The redevelopment, which also counts First Republic Bank as a major tenant, will wrap up in Q3 of 2021, according to SL Green.
RFR secured a $224M loan from Column Financial for its recent Midtown purchase at 522 Fifth Ave., The Real Deal reports. Dustin Stolly and Jordan Roeschlaub of Newmark Knight Frank brokered the debt for RFR. The landlord paid $350M for the building last week and is looking for a single tenant to lease a 575K SF office space beginning in 2024.
Affordable housing developer RiseBoro Community Partners scored $80.7M of construction debt in bonds from the New York City Housing Development Corp. for its property at 37 Hillside Ave. in Washington Heights, PincusCo. Media reports. Riseboro plans to build 164 affordable units after it bought the property last month, property records show.
Nursing facility Eastchester Rehabilitation and Health Care Center secured $23.8M in financing on its property at 1501 Allerton Ave. in the Bronx, PincusCo. Media reports. The property was last sold in 2016, property records show.
Maheschand Ratanji bought the Brooklyn Vybe Hotel at 1024 Flatbush Ave. for $11.2M. Jack Braha’s SY Group sold the hotel, property records show. The hotel is seven stories and was last sold in 2010. The sale comes as the hotel market is in shambles amid the coronavirus pandemic. Experts don’t expect a full recovery in the sector until at least 2023.
Queens-based affordable housing developer Workforce Housing Group, along with Urban Homesteading Assistance Board, a nonprofit that has built and maintained affordable homes since the 1970s, purchased two Bronx apartment buildings at 1166 Simpson St. and 1146 Bryant Ave. for $14.5M, property records show. Jaidyn Realty Housing Fund Corp. was the seller.