This Week's N.Y. Deal Sheet
The snow missed New York City this week, and its retail leasing and sales market started to thaw out after a frigid start to the year.
SL Green sold its 25% stake in 55 West 46th St., known as Tower 46, to Brookfield Asset Management for $275M, the real estate investment trust announced. The deal includes 13 floors of office space, a retail space, a parking garage and a fitness center. Hodges Ward Elliott’s Paul Gillen, Anthony Ledesma and Kyle van Buitenen brokered the deal for SL Green. The 36-story Midtown building, built in 2009, is home to tenants such as Nixon Peabody and Comcast.
Real estate investment trust iStar Inc. paid $45M for the land at 61 Bond St. in Brooklyn, home to the Ace Hotel, property records show. The seller, GFI Capital Resources Group, began construction on the 13-story, lifestyle hotel in 2016, according to New York YIMBY. The publicly traded iStar specializes in buying land under buildings and ground-leasing the properties back to the seller. The hotel is set to open in the spring, Business Traveller reported last month. It contains 287 rooms and Stonehill Taylor was the architect on the project.
Amazon is back in the Long Island City real estate business, but not how city leaders would have hoped. The e-commerce giant signed a lease for about 20K SF at 38-50 21st St., owned by George Xu, Crain's New York Business reports. Amazon has continued its leasing tear in the boroughs, but this lease, which is for a "delivery station," is one of its smallest, a far cry from the 8M SF it planned to lease in the neighborhood when it briefly was named an HQ2 sweepstakes winner.
A global fashion brand is betting on New York. Luxury clothing retailer Valentino inked an 8,700 SF lease on two floors at 135 Spring St. in SoHo. Newmark’s Ariel Schuster, Brandon Miller and Ross Berkowitz brokered the deal for the landlord, Invesco Real Estate. The six-story building, which was built in 1915, is also home to a doctor’s office. The new store will sit among other kingpins of the fashion world, including Burberry and Chanel on either side. Diesel currently takes up the space that Valentino is set to occupy.
In the second lease penned in SoHo this week, real estate firm Serhant will take up 15K SF at 372 West Broadway, The Real Deal reports. The company’s leader, Ryan Serhant, is known for his role in the Bravo reality TV show Million Dollar Listing New York. Newmark brokered the deal for the real estate firm, while Douglas Elliman arranged the deal for the landlord, according to TRD.
Grocery store Brooklyn Fare has signed a 25-year lease to take up 21K SF at 75 West End Ave., The Real Deal reports. The Brodsky Organization owns the building, where asking rent was $85 per SF. Brad Schwarz, JP Sutro and Morris Dweck of Lee & Associates brokered the lease, TRD reported. Grocery stores have been a bright spot for retail since the coronavirus pandemic began and have been taking up space around the city.
TOP FINANCING DEALS
Brookfield Property Partners scored a $190M loan on its major apartment development in the Bronx, Commercial Real Estate Direct reports. Goldman Sachs provided the debt for the 1,379-unit project planned across 4.3 acres near the Harlem River in Mott Haven. The project will include 30% affordable units and the first portion of the project is set to be finished this year.
New York Community Bank provided Stellar Management with a $113M loan for its 240 apartments at 308 Eckford St. and 211 McGuinness Blvd. in Greenpoint, Brooklyn, PincusCo. Media reports. The 46-unit building at 308 Eckford St. was built in 2010 and stands six stories tall, according to StreetEasy. The eight-story, 197-unit building at 211 McGuinness, known as OTTO Greenpoint, was built in 2018.
Rabsky Group took out a $98M loan from Arbor Realty Trust for its 195-unit apartment building at 42-22 27th St. in Queens, PincusCo. Media reports. The 18-story building, called Bevel LIC, was built in 2018. Its current listings include one-, two- and three-bedroom units ranging from $2,500 to nearly $5K per month, according to StreetEasy.
Carthage Real Estate Advisors secured $79M from Bank Leumi on its multifamily properties at 234 West 124th St. and 224 West 124th St., PincusCo. Media reports. When plans for 224 West 124th St. were filed in 2018, Carthage planned to build 108 units across 12 stories, The Real Deal reported at the time.