This Week's N.Y. Deal Sheet
Fall is in the air and the deals are closing — this week, the Reuben brothers purchased another commercial condo while a fintech company expanded its footprint in Midtown.
SL Green took over 690 Madison Ave. from Ashkenazy Acquisition for $74M in a foreclosure sale, PincusCo. Media reports. The real estate investment trust had been the mezzanine lender on the property. The five-story building is home to luxury fashion retailer Hermès. Madison Avenue has just started to emerge into the light at the end of the tunnel after a tumultuous year for luxury retail corridors like this one. Aaron Appel and Jackson Sastri of Walker & Dunlop led the auction, per Pincus.
The Reuben brothers purchased another commercial condo from Vornado Realty Trust, The Real Deal reports. Vornado sold a retail condo at 15 East 69th St. for $50M, property records show, to an LLC controlled by the British billionaires, and signed for by real estate attorney Elliot Levine. The condo, which Vornado bought for $113M in 2005, sits at the base of an 18-story, 48-unit condominium building dubbed Westbury, according to StreetEasy. Last week, the Reuben brothers paid Vornado $30M for another Upper East Side retail condo.
The Carlyle Group bought an apartment building at 79-83 Clifton Place in Clinton Hill, Brooklyn, for $34M, property records show. Meng Lee, a director at Freo Group, signed for the LLC that sold the property. The seller took out a $17.4M acquisition and renovation loan on the six-story, 40-unit building in January 2020 from Voya Investment Management.
Land Finance Corp. paid Heskel Elias $20M for a 5K SF commercial building at 991 Third Ave., JLL announced. The Queens-based seller runs the Heskel Group, which triple-net leased the property to Capital One. JLL’s Clint Olsen, Bob Knakal, Jonathan Hageman and Stephen Godnick brokered the sale for Elias, asking $19.5M at a 5.49% cap rate, according to a marketing brochure. The recently redeveloped property also has a nearly 1,700 SF usable basement.
Fintech company iCapital Network Inc. expanded its footprint at Empire State Realty Trust’s One Grand Central Place to 65K SF, a 29K SF increase from its previous lease, for the next 13 years. In 2019, the company expanded its space to 35K SF for nine years, Commercial Observer reported, and the new deal tacks on six more years. CBRE’s Lauren Crowley Corrinet, Al Golod and Christopher Hogan brokered the deal for the tenant, while Newmark’s Erik Harris, Neil Rubin, Scott Klau and William Cohen brokered the deal for ESRT in addition to Ryan Kass, who negotiated in-house.
Media company Future Plc inked a 16K SF lease at Tribeca Associates’ 130 West 42nd St., Cushman & Wakefield announced. The 30-story, Class-B building, located near Bryant Park in Midtown, was built in 1917 and redeveloped in 2020, according to LoopNet. WeWork signed a 64K SF lease at the location in 2017, but the address is no longer listed on the coworking company’s website. David Dusek of C&W brokered the deal for the tenant, while Newmark’s Brad Needleman and Matthew Augarten handled the transaction for the landlord.
Venture capital company Striped signed a deal to take 14K SF at 402 West 13th St., owned by Aurora Capital Associates and William Gottlieb Real Estate, which are asking for rents of $160 per SF, Commercial Observer reports. Built in 2019, the 146K SF office building dubbed the Solar Tower is known for being shaped like a kaleidoscope. Brian Goldman and Mattew Lorberbaum of Newmark negotiated the deal for the tenant while JLL’s Howard Hersch, Brett Harvey and Sam Seiler represented the landlord, per CO.
TOP FINANCING DEALS
Harbor Group International scored a $420M mortgage from Deutsche Bank and Goldman Sachs, as well as a $138 mezzanine loan from Brookfield Real Estate Finance, to finance its acquisition 51 West 52nd St., also known as the CBS Building, Trepp reports. HGI bought the 38-story office tower for a price tag of $760M in August.
Tahl Propp Equities and the Department of Housing Preservation and Development scored $182M from Wilmington Trust to refinance an under-construction apartment complex at 107-131 East 126th St., PincusCo. Media reports. The 11-story, 255-unit property was built in 1980, according to Phorio.
Apple Bank for Savings loaned The Rockefeller Group $84M to refinance 1271 Sixth Ave., PincusCo. Media reports. The company finished its extensive renovation of the building in 2019, according to GlobeSt. and it has filed 11 construction work permit applications with the Department of Buildings this year, mostly to do build-outs on individual floors, according to city records.
CORRECTION, OCT. 20, 11:30 A.M. ET: Future Plc signed a new lease at 30 West 42nd St. A previous version of this story misidentified Future Plc as Picture Plc. This story has been updated.