This Week's N.Y. Deal Sheet
Hotels and senior housing properties have started to change hands across New York City as investment sales activity continues to slowly but surely pick up into the summer.
C-III Capital Partners paid DiamondRock Hospitality Co. $185M for The Lexington Hotel NYC at 511 Lexington Ave., property records show. The seller bought the hotel, which is still temporarily closed, for $335M a decade ago, Crain’s New York Business reported. The 725-key Midtown hotel was built in 1929 and was designed by Leonard Schultze and S. Fullerton Weaver, Forbes reported in 2015. It is a part of the Marriott Autograph Collection after previously carrying a Radisson flag, per Crain’s.
Brookfield Properties purchased 2211 Emmons Ave. in Sheepshead Bay, Brooklyn, from California-based Healthpeak Properties for $43M, property records show.
Brooklyn Gastroenterology and Endoscopy, Greater New York Endoscopy Surgical Center, Sunrise Senior Living and several other doctor’s offices all list their address at the property. The building is four stories and contains 104 senior housing units, according to StreetEasy.
New York Congregational Nursing Center sold 135 Linden Blvd. in Brooklyn for $40M, property records show. The six-story building, a nursing home and rehabilitation center, was developed in 2006. The buyer was an LLC with an address registered to Eliezer Scheiner's real estate company; the developer runs Florida-based real estate firm TL Management.
Woman-owned construction supply company City Lumber signed a 12-year, 73K SF warehouse lease at Morton Schwartz’s 84-00 73rd Ave., brokerage Norman Bobrow & Co. announced. In addition to the indoor warehouse space, where asking rent was $23 per SF, the company also signed for 33K SF of outdoor space. Norman Bobrow & Co.’s Josh Berger and Alex Lubin brokered the deal for the tenant.
Furniture rental company Feather will take up 33K SF of warehouse space at Industry City at 274 36th St. in Brooklyn, according to landlords Belvedere Capital, Jamestown, and Angelo Gordon & Co. Industry City recently signed a lease with another furniture company, ZZ Driggs. Matt Stewart brokered the deal in-house for the landlord.
Petzel Gallery inked an 18K SF lease at Fiel Organization’s 520-530 West 25th St., the New York Post reports. The building is currently occupied by the Agora Gallery, according to its website. The new tenant will be moving a few blocks uptown from its current location at 456 West 18th St. Alf Naman Real Estate’s Alf Naman brokered the lease — for which asking rent was in the low $100s per SF, per the Post — for the tenant and Susan B. Anthony Real Estate’s Susan Anthony brokered the lease for the landlord, Commercial Observer reports.
Three new tenants signed leases at Stawski Partners’ 505 Fifth Ave. Brean Capital and Mesoblast Inc. will take up 16K SF each and Brownstone Investment Group will take up 10K SF in the building, JLL announced. JLL’s Paul Glickman, Diana Biasotti, Kyle Young and Kristen Morgan brokered the deal for the landlord. JLL’s Matthew Astrachan brokered the lease for Brean Capital, while CBRE’s David Glassman and Silvio Petriello brokered the lease for the other two tenants.
Biotechnology company Immunai penned a 12K SF office and lab lease at the Alexandria Center for Life Sciences at 430 East 29th St. in Kips Bay, CBRE announced. Immunai was founded in 2008 and is based in San Francisco, New York and Tel Aviv. The company profiles the immune system and is moving from its current office at 180 Varick St. to the Alexandria Real Estate Equities property. John Isaacs and Christopher Menard of CBRE brokered the lease for the tenant.
Walgreens is expanding in Brooklyn. The chain drugstore will take up 8,600 SF at 604 Pacific St. starting sometime this quarter, Schuckman Realty Inc. announced. The building is owned by HPHW Realty Corp., property records show. JLL’s Michael Riley brokered the deal for the tenant while Schuckman Realty Inc.’s Kenneth Schuckman brokered the deal for the landlord.
TOP FINANCING DEALS
Stellar Management secured a $900M refinancing package at One SoHo Square, its office and retail building at 161 Sixth Ave., from Goldman Sachs, Deutsche Bank and Bank of Montreal, Cushman & Wakefield announced. The fixed-rate loan has a seven-year term, per the brokerage firm. Retail tenants at the property include grocer Trader Joe’s and skincare company Aveda. C&W’s Steve Kohn, Alex Hernandez, Adam Spies and Alex Lapidus brokered the debt.
The Rudin Family took out a $100M financing package on its 1.2M SF office building at 80 Pine St. from Bank of America, the landlord announced. Rudin has embarked on a capital project to try to lease up the 800K SF of available office space in the building. The landlord has put in white terrazzo floors in the lobby and white oak walls in the lobby, as well as added upgraded lighting systems and elevators.
Harrison Street and Winstanley Enterprises’ secured a $180M construction loan to build a life sciences development near Yale University in New Haven, Connecticut, at 101 College St., CBRE announced. The debt was financed by Webster Bank and another undisclosed bank. CBRE’s Heather Brown, Robert Borden and Grace Keating brokered the debt for the borrower.