This Week's N.Y. Deal Sheet
A major land sale in Brooklyn and multiple coworking leases dominated deal activity over the last week, even amid investor uncertainty and stagnant markets.
Textiles supplier Keeco inked a deal for just over 26K SF at 390 Fifth Ave., according to landlord representative Adams & Company Real Estate. The company will move to the building in the first quarter of next year, and its lease includes both office and showroom space across the whole second floor and part of the fifth floor. The firm is moving from 295 Fifth Ave., and asking rents in the deal were around $50 per SF. Jeff Buslik and Jay Dispaltro of Adams & Co. brokered the deal for the landlord, Hilson Management Corp., while Savills’ Evan Margolin and Scott Ansel were on the tenant side.
Coworking company Industrious is taking just over 21K SF at 1000 Dean St. in Brooklyn, stepping into space previously occupied by now-shuttered coworking firm Ignitia. The deal is a partnership with building owner LIVWRK, according to a release. The new coworking operation, which is billed as an alternative for people who are working from home, will open next month.
SL Green locked down another tenant for its brand-new building One Vanderbilt, signing up real estate capital markets adviser Hodges Ward Elliott for space on the 50th floor. The deal is for nearly 13K SF and the lease runs 10 years. The 1.7M SF building is now around 70% leased, and this is the third deal inked there since the pandemic began, according to a release from the landlord. CBRE’s Robert Alexander, Ryan Alexander, Emily Jones and Alex D’Amario represented SL Green.
Lawfirm Porzio, Bromberg & Newman is taking 7K SF at Rudin’s 1675 Broadway, the landlord announced. The deal is for a pre-built office suite on the 18th floor of the 35-story building, and Rudin has agreed to modify the space for the tenant, which is moving from 156 West 56th St. in the first quarter of next year. Asking rents were $72 per SF. Ramsey Feher and Chris Hogan of CBRE represented the tenant. The landlord was represented in-house by Robert Steinman.
Knotel has scored a tenant in Signal AI, a London-based artificial intelligence firm. The company, having previously moved in and out of various WeWork locations, per a release from Knotel, is now taking 7K SF at 443 Park Ave. South. The lease is for two years, according to a Knotel spokesperson.
TOP FINANCING DEALS
JPMorgan Chase loaned $171M to Silverstein Properties for the refinancing of a Fifth Avenue office tower. The loan on 529 Fifth Ave. is for five years, Commercial Observer reports. Citrin Cooperman, the building’s anchor tenant with 130K SF, said it is leaving next year, and Silverstein is spending $20M to renovate the property. Walker & Dunlop’s Aaron Appel, Keith Kurland, Adam Schwartz and Jonathan Schwartz arranged the financing.
BLDG Management Co. locked down a $289.3M Freddie Mac loan for its luxury rental building on East 44th Street. The 10-year, fixed-rate loan is for The Summit, a 429-unit building in Turtle Bay, and replaces the $251M construction loan from Bank of China provided five years ago, per Greystone. Drew Fletcher, Matthew Klauer and Cassandra Connolly of Greystone represented BLDG. Greystone’s Jeff Englund, Scott Wallace and Chris Phillips collaborated with Freddie Mac Production Manager Naureen Versi and managed the loan process for Greystone.
Double U Realty pulled in a $41M bridge loan from J.P. Morgan Asset Management for 56th North Ninth St., according to representatives for Lantern Real Estate, which arranged the financing. The property, also known as 87 Kent Ave., has 45 units and 35K SF of commercial space. The sudden loss of a retail tenant caused credit issues for the property’s cash flow, Lantern Real Estate co-founder Tal Bar-Or said in a release announcing the deal.
Lendlease, with Australian pension fund Aware Super, paid $110.8M for the site at 1 Java St. in Brooklyn, Lendlease announced in a release last week. The site spans 2.6 acres and is slated to become home to 800 new units, 30% of which will be affordable. The seller was JZ Capital Partners, according to The Australian Financial Review.
J&C International Group paid $38.1M for 10 parcels in Flushing, Queens, which combined have development potential of nearly 54K SF, PincusCo reports. The sale was completed in two separate deals, according to the publication. Three people — Bo Jin Zhu, Hok Kwai Chau and Chun Yin Chen — were the sellers through an LLC that filed for bankruptcy protection last year.