This Week's N.Y. Deal Sheet
This week, the delta variant passed a new threshold in New York, making up over 80% of the city's total cases. Meanwhile, the city's recent resurgence of leasing, sales and financing deals slowed.
Amazon signed a deal with the Port Authority of New York and New Jersey to take up 250K SF for the next 20 years near Newark Airport, the authority announced. The space will be used for an air cargo center after Amazon completes its $125M repositioning on two existing buildings — building 339 and building 340 — by April 2023. The transformation will be fully funded by Amazon. Under the deal, the e-commerce behemoth will pay the Port Authority $150M up front and $157M over the duration of the lease. Twenty percent of construction contracts to work on the project will be reserved for minority-owned businesses while 10% will be reserved for women-owned businesses. The deal is set to create 1,000 new jobs at the air cargo site.
As coworking stages a comeback around the country, especially in gateway cities in New York, the world’s largest flex office operators has just signed two new deals. International Workplace Group will take over a 63K SF former WeWork space at Meringoff Properties’ 401 Park Ave. South and a 28K SF space at Circa Realty Group’s 14 Penn Plaza after signing two new leases for the spaces, Crain’s New York Business reports.
ZMC Advisors extended and expanded its lease at Jack Resnick & Sons’ 110 East 59th St., the landlord announced. The private equity company will now take up a total of 27K SF for the next 10 years. JLL’s Alexander Chudnoff and Dan Turkewitz brokered the deal for the tenant, while Jack Resnick & Sons’ Brett Greenberg and Fran Delgorio represented the landlord in-house.
Safehold Inc. has acquired the ground under 500 West 23rd St. from Richard Brick for $46.5M, PincusCo. Media reports. The apartment building that sits on top of the land is owned by Sam Zell’s real estate investment trust Equity Residential. It contains 111 luxury apartments including studios, one-bedrooms, two-bedrooms and three-bedrooms that range from over $4,000 per month to over $7,000 per month, according to Equity’s website.
California-based Linzer Products Corp. paid $30M for an industrial manufacturing building at 1255 Seabury Ave. in the Bronx, property records show. Susan Efron signed for the seller, 1255 Seabury Corp. The 70K SF building was owner-occupied as of April 2020, according to Commercial Cafe. Allway Tools is the current occupant, according to its website.
The Torkian Group bought an apartment and office building at 249 East 82nd St. from Aryeh Realty for $13M, property records show. Developed in 1880, the building contains two residential units, per StreetEasy. Central Talent Booking is one of the office tenants in the building.
TOP FINANCING DEALS
Gazit Horizon refinanced 410 East 61st St. with a $134M loan from Mesirow Financial, Commercial Observer reports. Gazit signed a 120K SF lease with Home Depot at the location last year for the retail space below the building's apartment component. Ackman-Ziff Real Estate Group brokered the deal for the borrower, per CO.
CBSK Ironstate and Arel Capital scored $100M in debt from Madison Realty Capital to refinance their apartment project at 1228 Madison Ave., The Real Deal reports. The 18-story luxury condo building, which contains 13 units, was finished this year, according to StreetEasy. The building’s six-bedroom penthouse is in contract for $21.6M. Surya Capital Partners’ Adi Chugh brokered the debt, per TRD.
In yet another Manhattan refinancing deal, Meyer Equities secured a $37M loan from JPMorgan Chase to refinance its property at 145 East 32nd St., PincusCo. Media reports. The 13-story Kips Bay office building is leased to NYU Langone Internal Medicine Associates and Caremount Medical.