This Week's N.Y. Deal Sheet
The last week of the second quarter brought with it several significant investment sales in Brooklyn and Manhattan coming to fruition.
CBRE Investment Management has acquired a multistory logistics center in Red Hook for $330M from DH Property Holdings and Goldman Sachs. DH developed the three-story, 336K SF 640 Columbia St. property in 2019, as a last-mile fulfillment center and the East Coast’s first multistory logistics facility. The building is fully leased to Amazon. Cushman & Wakefield’s Adam Spies, Doug Harmon, Joshua King, Adam Doneger, Gary Gabriel and Kyle Schmidt handled the transaction.
SL Green closed on its $445M acquisition of 450 Park Ave. from Oxford Properties and Crown Acquisitions for 450 Park Ave., it announced last week. It brought on institutional investors from Israel and South Korea as equity partners in the property, while holding a 25.1% ownership interest and coming on as property manager. The deal, first announced in April, is backed by a $267M mortgage from Wells Fargo. The 33-story office building last sold for $545M in 2014, and for more than $500M in 2007.
Chicago-based investment firm Watermark Capital has sold the Holiday Inn in Chelsea to Two Kings Real Estate for $80.3M, The Real Deal reports. The price is approximately 30% lower than the $113M that Watermark paid for the 226-key hotel in 2013, but the 125 West 26th St. property had run into financial difficulties during the pandemic: It fell behind on mortgage payments in 2020, and it was transferred to a special servicer by January 2021. An appraisal process at the time valued the property at $74.8M against the value of its $72M loan.
A controversial, for-profit nursing home operator has bought a former hospital site in Bay Ridge, Crain’s New York Business reported. The Allure Group has purchased Brooklyn’s 699 92nd St. for $160M from investor Pearl Schwartz, shortly after Schwartz acquired the property from developer Abraham Leser for $153M and then filed for bankruptcy protection. Allure bought the property as part of bankruptcy proceedings and took on a $54.5M mortgage to finance the deal for the property, but won’t have to pay millions in transfer or mortgage recording taxes due to an exemption, per Crain's. The deal includes a former hospital building at 92nd Street and Seventh Avenue, occupied by SUNY Downstate, as well as a parking garage and a standalone emergency medical department run by Maimonides Medical Center. Allure also already owns the property’s neighboring nursing home, Hamilton Park Nursing and Rehabilitation Center.
ATCO Properties & Management signed five leases combining for 16K SF across two Midtown South office towers this week, according to a release. Startup studio Aegis Venture Partners will relocate from its 115 East 23rd St. space to almost 9K SF on the second floor of 373 Park Ave. South. Savills’ Brandon Cooperstock handled the deal for Aegis, while Cushman & Wakefield’s Natalie Tobar-Romero represented the landlord. At sister building 17-story 381 Park Ave. South, architecture and design firm FGS Design, conservation studio Two Sticks, food and beverage purveyor EVOS and Valerio Architects each signed small deals. Asking rents were approximately $64 per SF in the buildings.
Sage Realty signed several new leases and renewals at 777 Third Ave. totaling 48K SF, according to a release. Commercial litigation firm Dewey Pegno & Kramarsky, global consultancy firm Sheffield Haworth and capital manager Innovatus Capital Partners renewed leases for 13K SF, 8K SF and 7K SF, respectively. The new deals were signed with investment manager Big Sun Holdings Group and sports data firm Tempus Ex Machina, each for 5K SF, while Lisanti Capital Growth and Bradford Allen Realty Services signed new leases for 4K SF each. Asking rents ranged from $65 to $85 per SF. Michael Lenchner and Jack Brennan represented Sage Realty in-house in all the transactions.
Xomox Jewelry has signed a 10-year, 14K SF lease with Sioni Group to move from Midtown South to Midtown. It has taken an office at 240 West 40th St., doubling the size of its current workspace at 151 West 16th St., Commercial Observer reported. LSL Advisors’ Daniel Lolai, Joel Kubie and Eric Siegel represented the landlord in the deal, with asking rents at $52 per SF.
TOP FINANCING DEALS
BRP Cos. secured $378M in construction financing for a multifamily building at 166-20 90th Ave. in Jamaica, Queens, according to a release. Construction is already underway for the project, 90Ninety, and is slated for completion in 2025.
90Ninety will deliver a total of 614 units to the area, including 185 affordable units. Basis Investment Group was one of the lenders in the deal, but neither the amount loaned by Basis nor the other lenders were disclosed.
CORRECTION, JULY 5, 5.30 P.M. ET: A previous version of this article misstated the number of tenants signed by ATCO Properties and Management. This story has been updated.