This Week's N.Y. Deal Sheet
Billion-dollar deals returned to New York City in time for the holidays, with office property Hudson Commons selling for more than $1B and L&L Holding locking down a massive refinancing deal for its 425 Park Ave. redevelopment.
Cove Property Group and the Baupost Group have sold 441 Ninth Ave., their major redevelopment project near Hudson Yards, for more than $1B, the companies announced in a release. CommonWealth Partners bought the 25-story, 698K SF office tower known as Hudson Commons, which is 75% occupied and has anchor leases with Peloton and Lyft. CBRE’s Darcy Stacom, Bill Shanahan, Doug Middleton and Alana Bassen arranged the sale, which was the largest building sale by dollar volume since 2019, Commercial Observer reported, citing data from PropertyShark.
GFP Real Estate and Northwind Group have closed on their sale of 100 Pearl St. to Germany’s Commerz Real. The price wasn't listed in a release, but a source told Bisnow in September the 990K SF building sold for $850M. GFP and Northwind paid $308.5M for the property, formerly known as 7 Hanover Square, in 2018 and executed a $250M renovation, including redoing the lobby.
Boston Properties closed on its purchase of 360 Park Ave. S, the office REIT announced in a release. BXP paid $300M for the 20-story office building through a joint venture with the Steinberg family’s Enterprise Asset Management, per Crain’s New York Business. The family has owned the building since the 1960s. BXP now owns about a 42% interest in the property and will handle leasing at the building.
Meadow Partners has joined with Davean Holdings to pay $58M for 12 mixed-use properties across Manhattan and Brooklyn, The Real Deal reports. There were multiple sellers, per the publication, and the individual properties — all free-market properties — were paid for in cash. Walker & Dunlop’s Adam Schwartz and Mo Beler arranged $50.5M in financing from Fortress Investment Group for the buyers after the sales.
AMA Consulting Engineers locked down 30K SF at 825 Eighth Ave., also known as Worldwide Plaza, according to SL Green, which owns the building with RXR Realty and New York REIT. The deal is for five years and for part of the 18th floor. CBRE’s Scott Gottlieb arranged the deal for the tenant.
BankUnited leased 17K SF at 450 Park Ave. for a corporate flagship retail space, The Real Deal reports. The space is for the whole of the mezzanine and the second floor of the 32-story building, which is owned by Crown Acquisitions and Canadian investment firm Oxford Properties Group. Stanley Chera of Crown and Oxford Properties’ Adam Frazier arranged the deal for the landlord in-house. Kim Mogull of Mogull Realty represented the tenant.
TOP FINANCING DEALS
L&L Holding Co. scored $911.4M to refinance 425 Park Ave., the company announced. The funding comes from a group of lenders led by Blackstone Real Estate Debt Strategies, replaces the original construction loan and will cover the last stages of the development, including leasing. JLL’s Michael Tepedino and Michael Gigliotti arranged the financing for L&L and the company’s project partners, BentallGreenOak and Tokyu Land Corp. Once complete, the 670K SF building will be anchored by Citadel Asset Management, which has leased the top floors for a king's ransom.
JPMorgan Chase originated a $258.9M CMBS loan to Meadow Partners to refinance 80-90 Maiden Lane, Commercial Observer reports. Newmark’s Dustin Stolly, Jordan Roeschlaub, Chris Kramer, Nick Scribani, Eden Abraham and Jake Neeb arranged the financing, which retires the $250M in existing debt from Invesco Real Estate in 2018.
Wells Fargo, Deutsche Bank, Morgan Stanley and Citigroup loaned $1B to Boston Properties for the refinancing of 601 Lexington Ave., Commercial Observer reports. Some $426.7M of it will be securitized as a CMBS transaction, CO reported, citing Moody’s Investor Services.