This Week's N.Y. Deal Sheet
As the temperature dropped this week, big deals slowed, although REITs are finding success in the financing market.
Protiviti signed a seven-year lease renewal with landlord Vornado for its 38K SF office space at 888 Seventh Ave., Crain’s New York Business reports. Protiviti, a California-based management consulting firm, is paying in the low $70s per SF and received free rent upon its renewal. JLL’s Mike Higgins and Bill Korchak represented Protiviti in the deal, according to Crain’s. Protiviti’s revenue increased 7.4% year-over-year in the third quarter.
Mango inked a deal with Ralph Lauren to sublease 28,300 SF of retail space at 711 Fifth Ave. for $5M per year, one-fifth of the price of the sublandlord's rent, Business Insider reports. Ralph Lauren signed a 16-year lease at the location in 2013 and pays around $25M a year, The Real Deal reported in April 2017. The retailer closed the doors of its store in 2017 after seeing a decline in sales, according to CNN Business. The building is also home to the Polo Bar, operated by Ralph Lauren.
At the time of Ralph Lauren's initial deal, the building was owned by CocaCola Co., which sold it to Nightingale Properties and Wafra Capital Partners for $909M in 2019. Michael Shvo’s investment group, the current owner, bought the property shortly after. In September, Ralph Lauren cut 15% of its staff after a $127M loss in the second quarter amid the coronavirus pandemic, the Wall Street Journal reported at the time. Now it will start collecting millions a year in rent from Mango, a Spanish clothing company.
Stellar Works inked a 4,243 SF lease for its showroom at Vornado’s 304 Canal St. in Soho, Commercial Observer reports. Kassin Sabbagh Realty’s David Green and Ike Bibi brokered the lease for the furniture designer. This will be a move from the company’s current home at 38 Walker St. in Tribeca.
SL Green and its partners, Hines and the National Pension Service of Korea, scored a $1.25B construction loan for its One Madison Ave. redevelopment project, which will break ground this week. Wells Fargo, TD Bank, Goldman Sachs, Bank of America, Deutsche Bank and Axos Bank each provided a portion of the debt. The office project, situated between East 23rd and East 24th streets, is set to deliver in 2024.
Empire State Realty Trust secured a $180M mortgage for its 542K SF building at 250 West 57th St., the real estate investment trust announced Thursday. The building contains office and retail space. The 10-year loan has a 2.83% interest rate. ESRT did not disclose the lender, and the mortgage has not yet been recorded in the city’s property records database. Estreich & Co. arranged the debt.
Vault Development, Borough Equities and TLM together secured a $17M construction loan on the team’s eight-story, 12-unit condominium project at 66 Clinton St. on Manhattan’s Lower East Side, JLL announced. Investor and lender Kriss Capital provided the debt, while JLL’s Max Herzog, Marko Kazanjian and Matt Fagella negotiated the loan for the borrower. The project started construction in 2019, according to YIMBY, and is set to be completed next year. C3D Architecture’s Damir Sehic is designing the building.
Long Island-based property owner and management company Milbrook Properties scored a $47.5M loan on its multifamily portfolio that spans three boroughs, Commercial Observer reports. Symetra Life Insurance Co. provided the debt on the 19-building, 1,188-unit apartment building portfolio with 51 retail units. The loans are either 10 or 13 years in length, and interest rates range from 3.18% to 3.2%. Robert Altman and Brian Warwick of Altman Warwick brokered the deal for Milbrook Properties.
L + M Partners sold three Bronx multifamily properties to Camber Property for $23.75M, PincusCo. Media reports. The sale totaled 191 units. Camber purchased a 79-unit property at 454 East 148th St. for $11M, a 56-unit property at 740 Cranford Ave. for $6M and a 56-unit property at 2340 Beaumont Ave. for $6.3M. The six-story East 148th Street property was recently converted from a factory. The Cranford Avenue property and the Beaumont Avenue property are senior housing communities.
Maheshchand Ratanji bought an East Flatbush building at 5264 Kings Highway from Tejpal Sandhu for $19.8M, PincusCo. Media reports. The property, which contains 85 units that can be used as hotel rooms or residential, has been renovated over the past five years. Sandhu is CEO of Inwood-based The Sandhu Group, which focuses on real estate development, hotels, mining and trucking, according to his LinkedIn. Ratanji also has an ongoing hotel project in the Bronx.