This Week's N.Y. Deal Sheet
A major Diamond District investment deal closed this week along with several big financing deals as the leasing market slowed.
An international investor purchased 576 Fifth Ave., known as the Jewelry Building, from Severn Realty Partners for $101M, Crain's New York Business reports. The seller began marketing the 12-story retail and office building last fall for $113M, according to Real Estate Weekly. Built in 1907, it is one of the key buildings in the Diamond District, located along 47th Street between Fifth Avenue and Sixth Avenue.
Compass’ Adelaide Polsinelli and Daniel Chun negotiated the deal for the buyer, who was not disclosed. Paul Massey, Zach Redding, Dylan Kane, Daniel O’Mahony and Christian Kane of B6 negotiated the deal for the seller, per Crain’s.
The City of New York Department of Housing Preservation and Development sold 16 Dupont St. in Brooklyn for $23M to developer Park Tower Group, who will develop affordable housing at the address, according to a deed recorded this week. The property is a part of the Urban Development Action Area Project, per the deed, which waives real estate taxes for developers building or renovating affordable housing for up to 20 years.
Park Tower Group is building two huge residential buildings with 745 units, 30% of which are affordable, as part of the Greenpoint Landing project in tandem with Brookfield. Park Tower Group bought the Dupont Street property through an entity called Greenpoint Landing Lot 6 LLC. The developers say Greenpoint Landing will add 5,500 units to the area in 10 years.
California-based self-storage company InSite Property Group paid Safeguard Self Storage $15M for 131-21 14th Ave. in Queens, property records show. The address contains two buildings that are classified as warehouses, developed in 1908, according to PropertyShark. Storage companies have been collecting buildings in the outer boroughs since the coronavirus pandemic began as the demand for self-storage has risen with more people moving around.
TOP FINANCING DEALS
Goldman Sachs, Related Cos. and a fund run by Ares Management provided Alloy Development with $240M in construction financing for its residential and public school project at 80 Flatbush Ave., 100 Flatbush Ave. and 505 State St., Alloy announced. JLL’s Christopher Peck, David Giancola, Peter Rotchford and Jeffrey Julien arranged the deal.
The loan will help fund the project's first phase, set to be complete by 2024, which will include construction of a 44-story, 441-unit residential building along with 30K SF of retail. Forty-five of the units will be affordable, according to Alloy. The first portion also includes construction of a school, which will meet Passive House criteria, one of the highest energy-efficiency standards.
TF Cornerstone secured a $385M construction loan from Wells Fargo to build its 798-unit residential project at 595 Dean St., The Real Deal reports. The project, which was initially part of Atlantic Yards, then Pacific Park, in the landmark real estate deal to construct Barclays Center, includes two buildings set to be complete in 2023, according to New York YIMBY. Thirty percent of the units will be affordable.
Credit Suisse lent RFR $197M to refinance the developer’s office building at 980 Madison Ave. on the Upper East Side, PincusCo. Media reports. Larry Gagosian’s art gallery is located in the 100K SF building, as is a Douglas Elliman office, according to RFR’s website. Three art tenants inked deals at the building earlier this year, Real Estate Weekly reported.
Berenberg Capital Markets nearly doubled its footprint at Mitsui Fudosan’s 1251 Sixth Ave. in a renewal and expansion deal, JLL announced. The bank will now take up over 62K SF across the 52nd and 53rd floors of the 54-story skyscraper, up from its previous 32K SF. JLL’s Mitchell Konsker, Alexander Chudnoff and Benjamin Bass brokered the deal for the tenant, while Newmark’s David Falk and Peter Shimki represented the landlord.
Consulting company Vidaris Inc. penned a 19K SF lease at The Durst Organization’s 151 West 42nd St., the landlord announced. The tenant will be moving into the neighborhood from Midtown South, where it currently leases space at 360 Park Ave. South. Vidaris will join tenants like Nasdaq and BMO Capital Markets in the 48-story building, formerly known as 4 Times Square and the Condé Nast Building.
Two car dealers will take up space at Industry City in deals that could augur more to come. Porsche inked a 10-year, 40K SF lease for a garage and showroom, while Volvo will take up 20K SF at the center for the next 10 years. Asking rent ranged from $45 to $50 per SF. Industry City partner and Director of Development Jim Somoza brokered the lease for the landlords, while Ripco Real Estate’s Esther Bukai represented both tenants.
The City University of New York renewed its 23K SF lease at Sierra Realty’s 875 Sixth Ave., Crain's New York Business reports. The 25-story building also boasts tenants like Zero Point Zero Productions and Cambridge Insurance Advisors. Asking rent was between $50 and $60 per SF, and Lee & Associates’ Peter Braus, Dennis Someck and Justin Myers represented the tenant in negotiations, per Crain’s.