This Week's N.Y. Deal Sheet
Two real estate investment trusts were involved in the sales of stakes in Midtown office buildings this week as the investment sales market showed even more signs of life.
Meritz Alternative Investment Management purchased a 49% stake in the Daily News Building at 220 East 42nd St. from SL Green for $387M, the REIT announced. SL Green bought the 37-story building for $265 in 2003. A deal to sell the building to the Chetrit Group for $814M fell through during the early weeks of the coronavirus pandemic. The total valuation for the building was $790M, according to SL Green.
Vornado became the sole owner of One Park Avenue after purchasing the Canadian Pension Plan Investment Board’s stake in the building for $158M. The office building — occupied by NYU Langone — was valued at $875M in the deal. When CPP Investments took on partial ownership of the building in 2014, the building was valued at $560M.
JE Holdings bought buildings at 1608-1644 Shore Parkway within Caesar's Bay Shopping Center in Gravesend, Brooklyn, for $14M from New Jersey-based DiIorio Realty, property records show. The 970K SF lot was developed in 1957, according to PropertyShark. TD Bank, the Vitamin Shop and Five Guys are currently tenants at the property.
Talent management company True inked an 18K SF lease at Cove Property Group and The Baupost Group’s Hudson Commons office development, CBRE announced. The new space spans across the 16th floor of the 17-story building at 441 Ninth Ave. True joins Peloton and Lyft as office tenants in the building. CBRE’s Stephen Siegel, Evan Haskell, James Ackerson, Paul Haskin and Benjamin Joseph brokered the deal for the landlord while JLL’s Deb van der Heyden, Paul Ferraro and Matt Livingston brokered the deal for the tenant.
Seafood restaurant Crab Du Jour inked a 7K SF lease at Thor Equities Group’s 3015 Stillwell Ave. in Coney Island, the landlord announced. The restaurant space, which spans the ground floor and the rooftop, was once leased to Wahlburgers. The landlord was represented in-house by Sam Sabin. The restaurant chain boasts locations around the country, including five in New York with several more opening soon, according to its website.
Mattress Firm signed a lease with Jack Resnick & Sons to take up over 3K SF at 200 Chambers St., the landlord announced. The flagship concept location is expected to open in the fall. Newmark’s Barry Fishbach brokered the deal for the tenant while Newark’s Ariel Schuster, Ross Berkowitz, Andrew Stern and Jake Siegel brokered the deal for the landlord, along with in-house team Brett Greenberg and Fran Delgorio.
Financial technology company Alloy penned a sublease agreement with Northwestern Mutual to take up 44K SF at Thomas F. Campenni Co.’s 41 East 11th St. for the next five years, JLL announced. Northwestern Mutual leased the space in 2019. JLL’s Scott Vinett brokered the deal for Northwestern Mutual while Colliers’ Michael Thomas brokered the deal for the subtenant.
Biotech company RenBio Inc. will take up 8K SF at Alexandria Real Estate Equities’ Alexandria Center for Life Sciences — LIC at 30-02 48th Ave. in Queens, CBRE announced. This is an expansion for the company from Alexandria's other Center for Life Sciences at 430 East 29th St. in Manhattan. CBRE’s Joseph DeRosa, Chris Menard and John Isaacs brokered the deal for the tenant.
TOP FINANCING DEALS
L&L Holding Co. and Columbia Property Trust scored a $1.25B construction loan package for their redevelopment of Terminal Warehouse between 11th and 12th avenues and 27th and 28th streets. The debt was financed across senior and mezzanine loans from Blackstone Real Estate Debt Strategies, Goldman Sachs, KKR, Oaktree Capital Management and Paramount Group. Originally developed in 1891, more than 500K SF of self-storage space in the building is set to be transformed over the next couple of years into office space.
Taconic Partners, Nuveen and Squire secured $125M in debt from Ares Commercial Real Estate and Criterion Real Estate Capital for the continued redevelopment of 817 Broadway in Midtown South, The Real Deal reports. Taconic bought the property for $109M in 2016. The Studio Architects-designed renovation has been marketed toward the TAMI, fashion and finance sector, according to the building’s website.
Bank Leumi provided developer Joseph Brunner with a $45M construction loan for his multifamily project at 35 Fourth Ave. in Brooklyn, PincusCo. Media reports. Last fall, permits were filed at the address to build 104 units and 9K SF of commercial space across 12 stories, New York YIMBY reports. A two-story office building originally developed in 1964 is currently on the site, according to StreetEasy.