This Week's N.Y. Deal Sheet
Several big New York City deals closed this week as a tumultuous year comes to an end.
Jack Elo purchased The Exchange, an 18-story, Class-B office building at 15 West 47th Street, for $110M — $5M less than it was in contract to sell for in February before the coronavirus pandemic hit, Crain’s New York Business reports. The sellers, Sinoi Group and Eli and Isaac Chetrit, bought the property for $62.5M in 2012. The sellers have been trying to sell the property since 2016, The Real Deal reported when the building first went into contract in February.
A West Village property that has been owned by the same family since the 1930s was sold to a European buyer. Carmine Limited bought the 138-unit, 16-story apartment building at 1 Christopher St. for $95M in cash, The Real Deal reports. Marcus & Millichap’s Peter Von Der Ahe and Joe Koicim brokered the deal for the seller, Jimmy Silberman, whose grandfather built the building. Glick Property Group Management will manage the property for its new owner, TRD reports.
Ivy Realty bought the newly developed, 175-room Pestana Hotel at 338 W. 39th St for $31.5M, Crain’s New York Business reports. Hotel developer Sam Chang, known for his prolific development of hotels over his decades-long career, sold the property. This is the latest sale for the developer, who has sold some of his other properties since the pandemic began. He bought this property for $22.5M, according to YIMBY.
Goodwill Industries of Greater New York and Northern New Jersey Inc. sold its 31K SF warehouse at 26-25 Fourth St. in Astoria to an undisclosed buyer for $14.4M, Transwestern announced. Stephen Powers, Lindsay Ornstein and Jake Cinti of Transwestern brokered the sale for Goodwill. Permits were filed to build an 18-story apartment building at this location in September, YIMBY reported at the time.
TOP FINANCING DEALS
A Brookfield-led joint venture scored $835M in refinancing on One New York Plaza, The Real Deal reports. Wells Fargo, Goldman Sachs and BMO Harris Bank provided the debt. Brookfield holds a 35% stake in the property, while China Investment Corporation holds a 49% stake and AEW Capital Management owns a 16% stake in the building.
The 601W Cos. scored a $705M CMBS loan to help fund its $952M purchase of 410 10th Ave., the largest sale in the country to close since the pandemic began, Commercial Observer reports. The lender on the seven-year, fixed-rate loan was JPMorgan Chase. The building was sold by real estate investment trust SL Green, which bought it for $440M in 2018 and launched a large redevelopment. The new owner will also take control of the $600M construction loan SL Green took out on the property.
Silverstein Properties secured a $122M refinancing from JPMorgan Chase for 529 Fifth Ave., PincusCo. Media reports. The 20-floor office building, designed by Emery Roth & Sons, was built in 1958 and renovated in 2016, according to Silverstein Properties’ website.
Sun Equity Partners and The Heskel Group received $73M in construction financing for their Jackson Heights retail complex at 40-81 82nd St., the Commercial Observer reports. New York Community Bank contributed a $59M loan, and an undisclosed real estate investment trust contributed $14M in equity. The building is home to a range of tenants from EmblemHealth to Chipotle. Morris Betesh, Justin Boruchov and Alex Bailkin of Meridian Capital brokered the debt, CO reports.
Life sciences consulting company Clearview Healthcare Partners inked a 30K SF lease expansion at Empire State Realty Trust’s 111 West 33rd St., Commercial Observer reports. The company has been a tenant since 2018 and now takes up 39K SF in the 26-story office building. David Stockel and Brian McKenzie of CBRE brokered the deal for Clearview, while Scott Klau, Erik Harris and Neil Rubin of Newmark brokered the deal for the landlord.
Downtown Organic Market signed a lease to take up 6,150 SF at Adam America’s 561 Pacific St. in Brooklyn, the landlord announced. The grocery store is slated to open in May 2021. EXR NY’s Nate Mallon brokered the deal for the landlord. Adam American completed the 12-story, 62-unit luxury condominium building this year, according to StreetEasy.
Fertility clinic Shady Grove Fertility penned a new lease to take up 7K SF at 41 Flatbush Ave., an office building dubbed The Pioneer Building that is owned by Quinlan Development Group and Building & Land Technology, Commercial Observer reports. The building is also home to Regus, Change.org, Wells Fargo and Spotify. Apple also inked a new lease to take up 2,766 SF at the building, CO reports.