This Week's N.Y. Deal Sheet
As fall rolled in this week, so did the deals with big leases, sales and financing including the purchase of three large development sites, all of which are set to become either workforce or affordable housing.
Grubb Properties dropped a total of $200M to purchase its first two New York City properties over the past week, both of which are set to become workforce housing. In the first deal, Grubb paid Astoria-based Estia Realty $63M for 25-01 Queens Plaza North, a 54K SF development site. It plans to build a 17-story, 317-unit apartment building at the site. Dan Kaplan and Elli Klapper of CBRE brokered the deal for the seller. The property is located in an opportunity zone.
In the second deal, Grubb purchased 111 Washington St., also known as 8 Carlisle St., from Pink Stone Capital for $89M. Grubb is set to build a 50-story, 400-unit building on the 11K SF Financial District site. Pink Stone Capital acquired the site back in 2011 for $58M and while it has no ownership stake, it will remain a partner in Grubb’s development of the lot, a spokesperson for Grubb said Monday, declining to give further details about the partnership.
Vorea Group, Domain Cos. and L+M Development Partners paid a self-storage company $88M on a Queens development site at 2-33 50th St., with plans to turn it into an affordable apartment building, Commercial Observer reports. The new owners plan on tearing down the two-story warehouse currently at the address to build 500 units of affordable housing. JLL's Bob Knakal, Stephen Palmese, Brandan Maddigan and Jonathan Hageman brokered the deal for the seller, Fortress Corp., while their colleagues Christopher Peck, Andrew Scandalios, Rob Hinckley, Jeff Julien and Nicco Lupo represented the buyers.
Vanquish Properties paid Penn South Capital $46M for a seven-story mixed-use office and retail building at 39 Clarkson St., property records show. The Class-B property — a former chocolate factory — was built in 1920 and gut renovated last year, according to LoopNet. Talkaitry, a mental health provider, leased 5,782 SF there this year, Commercial Observer reported in February.
YAI International Academy of Hope inked a 30-year, 77K SF office lease at Vornado Realty Group’s 825 Seventh Ave., JLL announced. IHOPE is a school for those with brain injuries or brain disorders. JLL’s Matthew Astrachan, Simon Landmann and Zachary Azus brokered the deal for the tenant, while Vornado’s Edward Riguardi, Edward J. Minskoff Equities’ Jeffrey Sussman and Avison Young’s John Ryan brokered the deal for the owner.
Norddeutsche Landesbank-Girozentrale agreed to take up 17K SF on the seventh and eighth floors of Stawski Partners’ 505 Fifth Ave., JLL announced. The German commercial bank will move its New York office east from 1114 Sixth Ave. The new space includes a 4K SF terrace. JLL’s Paul Glickman, Diana Biasotti, Kyle Young and Kristen Morgan brokered the deal for the landlord, while Savills’ John Johnson brokered the deal for the tenant.
Grocery delivery startup Gorillas signed a 10-year, 7K SF retail lease at Meadow Partners’ 426-430 East 14th St. near Peter Cooper Village. Ripco Real Estate's Alex Beard and Estelle Holm Pedersen brokered the deal for the tenant, while the brokerage firm’s Richard Skulnik and Lindsay Zegans represented the landlord. The building — built in 1930 — underwent renovations in 2018 and contains rental units above the ground-floor retail, according to StreetEasy.
TOP FINANCING DEALS
SCALE Lending, the lending arm of Slate Property Group, loaned Bruman Realty $66M for a residential project at 26-25 Fourth St. in Astoria. The borrower is building a 17-story, 165-unit apartment complex with about 50 affordable units. The SHB Group brokered the deal.
Related Cos. scored a $222M rehabilitation loan from Deutsche Bank for its multifamily property at 34 Desbrosses St., PincusCo. Media reports. The Handel Architects-designed property, which contains two buildings connected by a bridge, boasts 283 luxury rental units.
A joint venture of the Rabsky Group and Spencer Equities secured a $275M construction loan from Madison Realty Capital for its project at 625 Fulton St. and 635 Fulton St., PincusCo. Media reports. Construction for the Downtown Brooklyn mixed-use project began in 2018 for the building set to reach 941 feet, according to New York YIMBY. Henry Bodek of Galaxy Capital brokered the debt, per Pincus.
CORRECTION, OCT. 4, 10:25 A.M. ET: A previous version of this article misspelled Estelle Holm Pedersen's name. This story has been updated.