This Week's N.Y. Deal Sheet
The NYC real estate market continued to move this week, with multiple investment sales over $100M and several office leases signed.
Denver-based Northwood Investors bought an 11-story office building at 524 Broadway in SoHo from Heller Properties for $236M, property records recorded this week show. Last month, The Wall Street Journal reported that Northwood was under contract to purchase this property and the adjacent building, 520 Broadway, for a total of $325M. Cushman & Wakefield’s Douglas Harmon and Kevin Donner marketed the property for the seller, according to the WSJ.
Exan Capital and Mirabaud Group purchased two Class-A suburban office buildings at 253 King George Road in Warren, New Jersey, from Rubenstein Partners LP and Vision Real Estate Partners for $150M, JLL announced. The two buildings span 158K and AT&T Network Services is one of the tenants in the complex. JLL’s Jaime Fink, Kevin O’Hearn and Jose Cruz brokered the deal for the seller, while the buyers were represented by Exan’s Ignacio Gil Casares and Arturo Vinueza.
Columbus Properties paid 601W Cos. $191M for the land under 909 Third Ave., which Vornado has ground leased since 1999, property records show. The 1.3M SF building takes up an entire block between 54th and 55th streets, according to Vornado’s website. It was built in 1968 and Vornado will pay $1.6M in yearly rent for the building through 2063, according to The Real Deal, which reported the sale Monday. Tenants at the building include the U.S. Postal Service and Geller & Co.
Innovo Property Group spent $92.5M on a Bronx industrial property at 1110 Oak Point Ave. and a lot at 115 Tiffany St., property records show. Innovo also signed three mortgage agreements with Cerberus Real Estate Capital on the same day as the sale, totaling $110.2M.
Pearl Realty Management, the seller, bought the three-story, four-building property in 2016 for $24M, according to the most recent deed before this purchase. Last month, The Real Deal reported Innovo was looking to secure $144M in debt to purchase the property and develop a 340K SF warehouse. Earlier this month, Commercial Observer reported that the buyer paid $103M for the property. Pinnacle Realty’s David Junik brokered the deal.
An LLC in the care of real estate attorney Anthony Ventura paid Roker Realty Corp. $15M for a 43-unit apartment building at 151 East 90th St., property records show. The six-story building was developed in 1923 and the deed is the only document filed under the address in the city’s property record system, which contains records filed after 1966.
Software company Hyperscience signed a 10-year lease to take up 34K SF on the 88th floor of One World Trade Center. The new deal, announced by the Durst Organization and the Port Authority of New York and New Jersey, is an expansion from the 13K SF Hyperscience previously took up in the skyscraper. Other tenants in the building include Condé Nast, which reportedly was trying to get out of its lease at the building last summer and allegedly owed $2.4M in rent as of February, The Wall Street Journal reported.
Dattner Architects signed a 30K SF lease on the 20th floor of George Comfort & Son’s 498 Seventh Ave. near Herald Square, the landlord announced. This is a move from the design firm’s current office at Savitt Partners’ 1385 Broadway just a couple of blocks north. Signature Partners’ Robert Frost and Andy Weiss brokered the deal for the tenant, while Andrew Conrad and Matt Coudert represented the landlord in-house. The building is now 92% leased. Dattner will join JPMorgan Chase and Cosentini Associates as tenants in the building.
Rubin, Fiorella, Friedman & Mercante signed a lease for another three years at the law firm's current office at 630 Third Ave., owned by ATCO Properties & Management, Commercial Observer reports. The firm takes up 21K SF on the third floor of the 23-story, 252K SF building in Murray Hill. The building currently has 15 vacancies ranging from over 4K SF to nearly 15K SF, according to its website. Newmark’s Jonathan Franzel and Brittany Silver brokered the deal, per CO.
TOP FINANCING DEALS
YS Developers scored a $63M construction loan from SCALE Lending for its 151-unit apartment building at 322 Grand Concourse in the Bronx, the lender announced. Thirty percent of the units being constructed will be affordable, according to the lender. Construction is slated to be finished by 2023.
Natixis lent Trinity Place Holdings Inc. $60M to refinance an apartment and retail building at 237 11th St. in Park Slope, Brooklyn, the lender announced. The 105-unit building, developed in 2017, also has a doctor’s office and a Starbucks. Rents for apartments in the building, from studios to three-bedrooms, range from around $2,500 to nearly $6,900, per StreetEasy. Meridian Capital brokered the debt, according to Natixis.
Reign Capital secured a $59M loan to purchase an industrial building at 94-05 Queens Blvd. in Rego Park, PincusCo Media reports. UMB Bank financed the 25-year loan with an interest rate of just over 4%. Reign recently purchased the utility property from AT&T, property records show.