This Week's N.Y Deal Sheet
As the coronavirus vaccine became more widely available in the city this past week, a variety of big leases were signed, affordable housing investment sales closed and major financing flowed to new projects and acquisitions.
Two new elementary-level charter schools are coming to Foxhurst in the Bronx. Democracy Prep Public Schools inked a 96K SF leasehold for the schools at Atlantic Development Group’s 1000 Westchester Ave., Transwestern Real Estate Services announced. Bolivar Development is developing the property. The space is set to open to students in fall 2023. It is the 23rd location for the charter school network. Transwestern’s Lindsay Ornstein, Stephen Powers, Arthur Skelskie, Jake Cinti, Alexander Smith and Ginny Durfee arranged the deal for the tenant.
Another school is set to open in Brooklyn. Workshop Project Inc. signed a 10K SF lease at the Bond Bakery Clock Tower at 495 Flatbush Ave., Newmark announced. The new space will be home to Workshop Middle School. Newmark’s Aric Trakhtenberg brokered the deal for the tenant and Tri-State Commercial arranged the deal for the landlord, Albert Srour.
The Corcoran Group signed a sublet agreement for over 11 years to take up 48,200 SF at 590 Madison, The Real Deal reports. The building is owned by the State Teachers Retirement System of Ohio, and Aspen Insurance is the sublessor in the deal. Savills’ Greg Taubin arranged the agreement for the insurance company, while Corcoran's Paul Wexler brokered the deal for The Corcoran Group. The space will become the brokerage's new headquarters, which was previously located up the block at 660 Madison Ave., according to TRD.
A COVID testing facility penned a lease on Long Island. Laboratory company ProPhase Diagnostic will take up nearly 26K SF at 711 Stewart Ave. in Garden City, JLL announced. The building’s owner, Benedict Realty Group, frequently leases to health care tenants. The testing company hopes to process 50,000 COVID tests per day at the new location. JLL’s Max Omstrom represented the tenant in the deal, while JLL’s Kyle Crennan and Joseph Lopresti represented the landlord.
Urbanspace, a food hall company with locations in New York, Chicago and Washington, D.C., will take up 14,700 SF at 100 Pearl St. in the Financial District, it announced. Jeffrey Gural’s GFP Real Estate owns the building. The tenant was represented in-house by James Race, while Newmark’s Benjamin Birnbaum and Andrew Taub represented the landlord. This is the second food hall the company announced it would open in New York since the coronavirus pandemic took hold.
The affordable housing investment sale market was hot this week. In the largest New York multifamily deal since the coronavirus took hold in the city last March, Related Cos. closed on the acquisition of a 490-unit affordable housing building for $424M, according to real estate property transfer tax record filings. The property, 265 Cherry St., was sold by CIM Group and L+M Development Partners. Cushman & Wakefield’s Adam Spies, Doug Harmon, Josh King, Adam Doneger, Marcella Fasulo and Kevin Donner marketed the property.
Slate Property Group obtained the leasehold for the 148-unit apartment complex at 535 Fourth Ave. in Brooklyn by paying its development partner, AEW Capital Management, $76M for its portion of the property, PincusCo. Media reports. The city paid $261M for the building to be used as a homeless shelter, Bkyner reported in 2019. The deal stoked controversy within the community when it was first proposed, Curbed reported at the time.
In another big affordable housing sale, Rockland County-based Hudson Valley Property Group paid Treetop Development $115M for 1600 Sedgwick Ave. in the Bronx, a 363-unit building, PincusCo. Media reports. The property, located in Morris Heights, was built in 1972, according to PropertyShark.
TOP FINANCING DEALS
XIN Development Group International scored a $130M inventory loan in its Marvel Architects-designed condo project at 615 10th Ave., Commercial Observer reports. Criterion Real Estate Capital financed the loan. The 92-unit Hell’s Kitchen building — dubbed Bloom on Forty Fifth — was near completion last September, New York YIMBY reported at the time. Target is set to take up over 28K SF in the building. Dustin Stolly, Jordan Roeschlaub and Daniel Fromm of Newmark brokered the debt for the borrower.
L3 Capital picked up a $126M acquisition loan to purchase Brooklyn retail properties at 124 North Sixth St., 134 North Sixth St., 92 North Sixth St., 102 North Sixth St. and 108 North Sixth St., all in Williamsburg, PincusCo. Media reports. JPMorgan Chase financed the loan. The borrower secured the real estate for $145M earlier this month, The Real Deal reported.
Heritage Equity Partners received a $53M construction loan from Madison Realty Capital for its Brooklyn multifamily project at 875 Fourth Ave., Commercial Observer reports. The debt on the 150-unit building is a floating-rate loan. The complex is set to be 86 feet tall, New York YIMBY reported. Elliot Kunstlinger of Meridian Capital Group brokered the deal.