This Week's N.Y. Deal Sheet
Deal-making picked up in New York City this week, with longtime owners of buildings exiting their investments — some at a loss.
Thor Equities has handed the keys of 470 Broadway to special servicer LNR Partners rather than undergoing foreclosure proceedings, Crain’s New York Business reported. Thor purchased the two-story property for $15.5M in 2007 and added $20M in debt to the building. Thor has reportedly been facing foreclosure on the building since April after its only tenant — shoe store Aldo, occupying the nearly 7K SF retail space — filed for bankruptcy protection in May 2020. Thor had reportedly not made a payment on the loan, which has a balance of $17.4M and $4M in other fees, since November 2021. LNR acquired the building for $25.4M.
The Dermot Co. has acquired 316 Bergen St. in Boerum Hill, known as The Bergen, for $45.5M, Commercial Observer reports. The 86-unit apartment building was developed in 2014 by Naftali Group, which sold it for $52.5M to Miami-based Exan Capital and Spanish firm Azora the next year. The partners' sale this month was for $7M less than they paid. JLL's Jeffrey Julien, Rob Hinckley, Steven Rutman, Ethan Stanton, Jonathan Taylor and Aaron Katz represented Azora and Exan in the sale.
Queens developer Hang Dong Zhang has purchased a single-story corner property in Downtown Flushing, 138-28 Northern Blvd., from Kit Realty for $48M, CO reports. Kit has owned the almost 14K SF building for more than three decades. Plans for the site are unclear at present, but the new owners can build up to roughly 143K SF as of right.
Avanath Capital Management has sold a 25-year-old multifamily community in Poughkeepsie to real estate investment trust Lexington Property Group for $31M, according to a release. Grand Pointe Park, a two-story garden-style residential community in Dutchess County, contains 156 units that were last updated between 2013 and 2016. A CBRE team led by Jeff Dunne, Richard Gatto, Fahri Ozturk, Eric Apfel, Stuart MacKenzie and Zach McHale repped the seller.
Tishman Speyer has signed Ruane, Cunniff & Goldfarb to 43K SF at 45 Rockefeller Plaza, according to a release. The investment adviser, best known for managing Sequoia Fund, will take up the entire 34th floor and a section of the 35th floor when it moves from its current digs at 9 West 57th St. in 2023.
Life sciences software company Medidata Solutions has renewed its 177K SF lease at 350 Hudson St. until 2030. The building is owned by Hudson Square Properties, a joint venture of Trinity Church Wall Street, Norges Bank Investment Management and Hines. Medidata will continue to occupy the top five floors of the property in addition to a private terrace. It was represented by JLL’s Lisa Kiell and Gabrielle Harvey. CBRE’s Paul Amrich represented Hudson Square Properties in the transaction.
GFP Real Estate has signed marketing agency CSM Sport and Entertainment to 12K SF on the fifth floor of 80 Eighth Ave., according to a release. CSM, which operates in 25 locations worldwide and was represented by Savills’ Sean Hoffman in the deal, signed a three-year lease. GFP had in-house representation from Matthew Mandell. The 185K SF, 20-story building was designed by architect William Whitehall and opened in 1929.
Fisher Brothers signed multispecialty medical practice Summit Health to 21K SF at 1345 Sixth Ave. for seven years, according to a release. Asking rents were in the mid-$80s. Summit will directly lease the eighth floor in the new deal after having already been a subtenant in the building. It was represented by Colliers’ Brian Given and Sheena Gohil, while Fisher Brothers was repped in-house by Marc Packman, Clark Briffel, Charles Laginestra and Josh Fisher.
Retail platform Leap has signed a 12K SF lease for five years at Olshan Properties’ office building at 99 Hudson St., according to a release. Olshan was represented by Newmark’s Jonathan Franzel, Michael Shenfeld and Eric Cagner in the deal at the 16-story Tribeca building, while Raise Commercial Real Estate’s Jamie Katcher and Sebastian Infante repped Leap.
TOP FINANCING DEALS
The owner of ModernHaus SoHo Hotel has nabbed a $50.5M loan to refinance its mortgage, according to a release. Ramsfield Hospitality Finance and funds managed by AB CarVal provided the loan to the 114-key hotel at 27 Grand St. The hotel, which originally opened in 2010, was renovated and reopened in 2021 as a luxury boutique hotel. The deal is one of several amid Ramsfield and AB CarVal’s hotel debt investment spree, which has completed more than $2B worth of loan transactions to date and is actively looking for additional hospitality assets to invest in all over the U.S. The hotel, a redevelopment of The James Hotel, is owned by Thor Equities, Surface reported.
Lantern Organization and Mega Contracting Group scored an $11.5M construction loan for an affordable housing development in Brooklyn’s East New York, Commercial Observer reported. Barings provided the 30-year loan for the eight-story property slated to take shape at 437 Euclid Ave., which will provide 135 units to tenants earning 60% or less of the area median income. A further 81 units will be reserved for previously homeless individuals or families.