This Week's N.Y. Deal Sheet
This week, Extell Development secured a big loan, there were some major trades in lower Manhattan and a meal kit delivery company signed a hefty lease.
Freshly, the meal kit delivery company, signed a new headquarters lease at 63 Madison Ave. to take up 92,300 SF for 12-and-a-half years, according to George Comfort & Sons, which owns the building in a partnership with Jamestown and Loeb Partners Realty. Asking rent for the space, on the 12th and 13th floors, was between $85 and $100 per SF. The company is moving from 115 East 23rd St., where it currently takes up 20K SF.
Two big suburban office leasing renewals closed this week. Matrix Development Group inked a 35K SF lease renewal with Amerihealth at the Matrix Corporate Campus at 259 Prospect Plains Road in Cranbury, New Jersey, the landlord announced. It also signed a lease with biotechnology company Nano Ditech Corp. for 15,400 SF on the campus. Both leases run for three years. The building is now at an 88% occupancy rate, according to the landlord.
Dollar Jackpot is adding another location in Brooklyn. The discount store will take up 10K SF at 81 Willoughby St. for the next 10 years, Commercial Observer reports. Tri State Commercial Realty’s Avi Akiva brokered the deal for the landlord, while Tri State Commercial Realty’s Eddie Keda and Chandler Slate brokered the deal for the tenant. Asking rent was $65, according to CO. The deal comes as discount store sales appear to be rising amid the coronavirus pandemic.
Brooklyn Navy Yard locked down two new tenants spanning a combined 56K SF, the Brooklyn Navy Yard Development Corp. announced Tuesday. Design consulting firm Smart Design is taking 21K SF on the top floor of Building 127, per the release, leaving the Starrett-Lehigh Building in the spring. Ken Fishel of Legacy Real Estate represented the tenant, while BNYDC handled the lease in-house.
Daedalus Design & Production took 35K SF in a 10-year deal on the building's ground floor. The firm makes custom scenery and furniture for productions, museums and stores. It worked on Broadway productions until recently and last week made the lanterns placed in the Reflecting Pool at the Presidential inauguration. BNYDC handled that deal on both the landlord and tenant sides.
Atlas Capital Group purchased a 332-unit apartment building at 15 Park Row in Downtown Manhattan for $140M, The Real Deal reports. Joe and Rachelle Friedman sold the property. Meridian Capital Group’s Helen Hwang brokered the sale. The former office building was completed in 1899, and it was the tallest building in the world for a time.
The Union of Orthodox Jewish Congregations of America paid $25M to Philips International for a 69K SF commercial condominium at 40 Rector St., per PincusCo Media and the New York Post. The deal includes two parcels and has a development potential of 48K SF. The sale price worked out to be $512 per SF. Cushman & Wakefield's Mark Weiss represented the buyer alongside Alan Wildes, while Newmark’s Scott Klau was on the seller's side.
Marriott Vacations Worldwide spent $98.6M on commercial condo units at the hotel at 33 West 37th St. in the Garment District, according to PincusCo Media. The seller is Harry Silverman’s 54 Madison Partners, and the deal features 12 parcels. 54 Madison bought the hotel in 2016 and started selling units to Marriott last year, with the company paying $86.4M for six of the units last February. Marriott now has all 23 units, having paid $185M over eight transactions in the past year, per PincusCo.
Gotham Organization secured a $162.3M construction loan for its mixed-use development on the Lower East Side at 43-65 Suffolk St., PincusCo. Media reports. The building, set to be completed in 2023, will contain 433 units of housing, 43% of which will be affordable, New York YIMBY reported last May. It will also include space for the Chinese-American Planning Council offices, as well as a synagogue.
Nonprofit developer Phipps Houses scored $157.7M in construction financing for its project at 17-27 Redfern Ave. in Far Rockaway, PincusCo Media reports. New York City Housing Development Corp. provided the debt. The development is part of a five-phased project set to bring 1,700 affordable apartments to the area. Construction will be finished in 2023.
Sail Harbor Capital and Baupost Group provided Extell Development with $380M in bridge financing for Central Park Tower at 217 West 57th St., The Real Deal reports. The loan has a 14% interest rate. Adam Spies, Doug Harmon and Adam Doneger of Cushman & Wakefield brokered the deal. Extell expects to make $4B when it sells the 179 units. Reaching 1,550 feet tall, it is the 13th-tallest building in the world.