This Week's N.Y. Deal Sheet
A wave of new deals closed throughout this week, including the largest single-asset, single-borrower CMBS loan in history.
TOP FINANCING DEALS
SL Green refinanced One Vanderbilt with a $3B CMBS loan — the largest of its kind in history, Wells Fargo announced. Wells Fargo Bank and Goldman Sachs Bank USA were the lead lenders on the 10-year, fixed-rate, single-asset, single-borrower loan. Bank of America, Bank of China, Bank of Montreal, Deutsche Bank, JP Morgan Chase Bank, Barclays Capital Real Estate Inc. and Citi all participated in the debt round. The 67-floor skyscraper is 89% leased, according to Wells Fargo. The debt will replace a $1.75B construction loan.
Jonathan Rose Cos., L+M Development Partners and Acacia Network scored $223M in construction loans for the development trio’s East Harlem affordable housing project dubbed Sendero Verde at 1681 Madison Ave. The debt will finance the second phase of the project, which is set to deliver 347 units. New York City Housing Development Corp., the New York City Department of Housing Preservation and Development and the New York City Council provided financing in addition to grant funding from the New York State Energy Research and Development Authority. The development is expected to deliver a total of 709 affordable apartments, a school and retail space.
Phipps Houses secured a $217M loan for its first phase of construction on Atlantic Chestnut at 250 Euclid St. in East New York, a project that is set to total 1,165 affordable units when completed. Wells Fargo, the HPD and HDC provided the debt. The first phase is expected to deliver 403 units and over 21K SF of commercial space. Construction is set to be completed in fall 2023, per the announcement.
Sachs Cos. paid Palin Enterprises $38M for a 13-story, 105-unit apartment building at 210 East 58th St., property records show. The building sits between Second Avenue and Third Avenue in Sutton Place and includes studios, one-bedrooms and two-bedrooms apartments, which have been rented for between $1,900 per month and $2,600 per month over the past six months, according to StreetEasy.
Palin Enterprises acquired the property, as well as 65 West 55th St. and 155 East 55th St, from its former co-owner, ADCO Group, in a transaction totaling $65M earlier this month, The Real Deal reported. Property records show the real estate transfer between Palin and ADCO as well as the sale between Palin and Sachs both occurred on June 7, but were recorded 10 days apart, the latter on June 25.
Bi-Coastal Properties sold a five-story, 128-unit apartment building called Eagle Court at 2326 Broadway, aka 215 West 84th St., for $70M, property records show. Naftali Group purchased the property, Commercial Observer reports.
Studios, one- and two-bedroom apartments in the building have been rented for $2K per month to over $4,200 this year, according to StreetEasy. The building also has a retail space at the ground level, which is currently occupied by GameStop. Bob Knakal, Stephen Palmese, Hall Oster and John Hageman of JLL brokered the sale for Westchester-based Bi-Coastal, per CO.
Living Real Estate Group bought six Brooklyn buildings from Coastline Apartment Advisors for $24M, property records show: a mixed-use building at 196 Seventh Ave., and apartment buildings at 191 Sterling Place, 429 Sterling Place, 442 Sterling Place, 743 Washington Ave. and 805 Ocean Ave. The Seventh Avenue property includes four residential units as well as office and retail space, while the three Sterling Place buildings contain 30 units, the Washington Avenue property contains two units and the Ocean Avenue property contains 16 units. In 2019, Coastline had to pay 82 tenants $6,500 each in a settlement with the state after it was accused of improperly raising the price on rent-stabilized units.
EDRE Development paid Loeffler Properties $13M for an 11K SF development site with potential for a nearly 33K SF development at 102-106 North First St. in Williamsburg, Ariel Property Advisors announced. Ariel’s Sean Kelly and Matthew Davis brokered the deal. EDRE is planning to build a condominium building, per the announcement.
California-based Fashionphile is coming to New York; the e-commerce luxury fashion reseller signed a 60K SF lease at RXR Realty’s Starrett-Lehigh Building at 601 West 26th St. in Chelsea. The office space will have a retail component to it, where buyers and sellers can shop inside the space. Asking rents were $70 per SF on the 10-year lease. The retailer joins other fashion tenants like Ralph Lauren in the building. CBRE's Mary Ann Tighe, Sacha Zarba, Evan Haskell and Jeffrey Fischer brokered the deal for the landlord alongside RXR's in-house representatives Dan Birney and Denise Rodriguez. CBRE’s Jason Frazier and Jesse de la Rama represented Fashionphile.
Target inked a 31K SF lease at Savanna’s One Court Square in Long Island City, the landlord announced. The retailer will take up part of the ground floor and all of the second floor. Winick Realty Group’s Steve Baker and Daniyel Cohen negotiated the lease for the owner, while Ripco Real Estate’s Jeff Howard and Ben Weiner brokered the deal for the tenant. In 2019, Amazon was expected to take up 1.5M SF in the 53-story skyscraper for its HQ2. The e-commerce behemoth eventually abandoned the plan after political outrage over its planned second headquarters in the neighborhood.
Aeroterm signed a ground lease with the Port Authority of New York and New Jersey to build a 350K cargo facility across 26 acres at the John F. Kennedy Airport, the Port Authority announced. The cargo facility builder will begin the project by tearing down two existing structures this fall. In their place, the company will build a 50-dock building that can hold freight planes. Construction is set to be completed in 2023.
Vornado has a new tenant at 40 Fulton St. Hospitality law practice Helbraun Levey penned a deal to take up 15K SF on the top two levels of the 29-floor building, Commercial Observer reports. This is a move and an expansion for the firm — it leased 4,500 SF at Swig Equities' 110 William St. in 2013. Bruce Surry and Sam Spillane of CBRE brokered the deal for Vornado while Easy Street Properties’ Andrew Epstein represented the tenant, per CO.