This Week's N.Y. Deal Sheet
The typically busy first half of December for commercial real estate deal-makers has been decidedly less than stellar in New York City, but a handful of major deals crossed the wire in recent days, including a big relocation and several large financing deals in Manhattan.
Brookfield Properties has landed another tenant for its Two Manhattan West office tower, it announced Monday. Law firm Crowell & Moring has signed a 71K SF lease for two floors of the 58-story, 1.9M SF office tower, with a move-in due to take place once it opens in 2023. The law firm has doubled its presence in New York City over the past five years, and plans to move employees from its slightly smaller office at 590 Madison, where it is the second-largest tenant after IBM, The Real Deal reported.
Crowell & Moring joins other tenants moving to the final piece of Brookfield's Manhattan West megaproject, like law firm Clifford Chance, which signed for 144K SF in June; KPMG, which signed for 450K SF in August; and investment firm D.E. Shaw Group, which signed for 283K SF in September. Brookfield's Duncan McCuaig, Hayley Shoener and P.J. Massey, alongside Cushman & Wakefield’s Bruce Mosler, Robert Lowe, Josh Kuriloff, Ethan Silverstein, Matthias Li and Nicholas Dysenchuk, represented the landlord. JLL’s Michael Berg, Barbara Winter and Thomas Doughty repped Crowell & Moring in the deal that brings the property to 76% leased.
The Moinian Group signed two leases totaling 26K SF at its 545 Fifth Ave. office tower, according to a release. Sandeep Diamond Corp. and IDD USA, affiliate jewelry companies, each took a full floor and are scheduled to move in during the second quarter of 2023. Both companies are moving from next door at The Moinian Group’s 535 Fifth Ave. property for larger offices in their new digs. The Moinian Group had in-house representation, while Avison Young’s Joshua Goldman repped the tenants.
Law firm Fried Frank has signed a deal for 14K SF at Park Tower Group’s 535 Madison Ave., where it will relocate its conference center, according to a release. The deal gives Fried Frank the entire 10th floor of the 37-story building in Midtown Manhattan for 15 years, with the firm expected to move its conference center from its current 12K SF at the Seagram building. The deal brings 535 Madison to near-total occupancy, leaving just one floor available, with other tenants including Bain Capital, FTV Management Co., Garda Capital Partners and Saratoga. CBRE’s Steve Siegel, Craig Reicher, Tim Dempsey, Ramneek Rikhy and Marlee Teplitzky repped Fried Frank, along with in-house representation from Jonathan Mechanic, Jennifer Yashar and Jackson Cole. CBRE’s Brian Gell and Laurence Briody also repped Park Tower Group, along with Loeb & Loeb’s Kenneth Sold.
GFP Real Estate has signed three lease renewals for a total of 14K SF at 515 Madison Ave., according to a release. Chiropractor and applied kinesiologist Sheldon A. Sinnett, D.C. P.C. signed a seven-year lease extension for 9K SF on the sixth floor, with representation from David Levy of Adams & Co. Widowski Law Group LLP signed a five-year lease renewal for its 3K SF on the fifth floor, with representation from GFP’s Martin McGrath. McGrath also represented the landlord in-house in each transaction, as well as the third tenant: RSHR Management, led by Dr. Roy B. Stoller, a facial plastic surgeon, signed for a three-year lease extension for 2K SF on the 12th floor. The 90-year-old, 42-story building spans 370K SF and underwent renovations for its entrance and lobby in 2009.
TOP FINANCING DEALS
Black Spruce Management and Orbach Affordable Housing Solutions’ joint venture, GO Partners, has brought on more equity partners in its acquisition of a three-building, 858-unit multifamily portfolio built by the late Sheldon Solow. RXR, Macquarie Capital Principal Finance and QH RE Asset Co., the Qatar Investment Authority’s subsidiary, provided $261M worth of equity in the deal to acquire One and Two Sutton Place and One East River Place, which GO Partners acquired for $825M earlier this year. Hudson Realty Capital advised on the deal and Cushman & Wakefield was the broker for the financing on the Upper East Side properties, which are more than 96% occupied.
The Sapir Organization has scored a $326M debt package from JPMorgan Chase & Co. and Mack Real Estate Group to refinance two Midtown South office towers, Bloomberg reports. Sapir bought 260 and 261 Madison Ave., which together span a combined 1M SF, in 1997. The company’s headquarters are in the office buildings, which are also home to law firm McLaughlin & Stern and film studio Metro-Goldwyn-Mayer. CBRE served as the broker for the deal.
Sage Realty and Travelers Cos. have landed a $155M refinancing deal from Signature Bank for their 777 Third Ave. office tower, Sage announced Tuesday. The debt, which carries a five-year term with a five-year extension option, will go toward retiring existing debt on the building and funding improvements to the 38-story, 485K SF building, developed in 1963 by Sage's parent company, William Kaufman Organization. Sage Chief Financial Officer Boris Katsman represented the company in-house on the debt, and is also negotiating a 15-year refinancing deal at 777 Third with Aegon, according to a release.
Manhattan real estate private equity firm Northwind Group has lent the developers of the NOVA condominium building in Long Island City $62M to help it complete and sell the 86 units in the building, according to a release. A joint venture of SB Development and Hazelton Capital Group secured the first mortgage completion to condo inventory loan for the 24-story building at 41-05 29th St., which is expected to deliver in the spring, New York YIMBY previously reported.
Popular Bank has provided $48.6M for a development site in Astoria, Queens, to an LLC owned by developer Yitzchok Katz, Commercial Observer reports. Katz is reportedly planning a 136K SF multifamily property with 137 units at the 2-24 26th Ave. site, Crain’s New York Business reported in February. The loan will fund construction after Katz secured a $12M mortgage from Bank Leumi at the time of the acquisition, per CO. The planned building would stand six stories high, with 69 parking spaces and 69 bike spots. Henry Bodek of Galaxy Capital arranged the loan from Popular Bank.
ATCO Properties has purchased Ruben Cos.’ $97.8M stake in 630 Third Ave., bringing an end to the firms’ six-decade-long partnership, The Real Deal reported. ATCO said the investment in the 23-story Midtown East tower represents its "bullishness" on New York City's office market. The firm co-developed the building with the Ruben Cos. in 1958 and the pair has co-owned it ever since, leasing it to tenants including law firms Schwartz Levine Stark and Leader Berkon Colao & Silverstein and tech consulting company Kraft Kennedy.
PH Realty Capital and Rockledge have acquired six rent-stabilized South Bronx properties spanning 267 units for $33.6M, Commercial Observer reported. The properties span 315K SF in total and are in the Grand Concourse section of the Bronx, giving residents easy access to commercial corridors Jerome Avenue and East 170th Street. The seller, Arthur Leeds Real Estate, acquired the properties — located at 11-119 Tudor Place, 1170-1176 Walton Ave. and 309 East 164th St. — in 1990. The majority of the units in the portfolio are two-bedroom apartments. Victor Sozio, Shimon Shkury, Daniel Mahfar and Jason Gold of Ariel Property Advisors handled the deal for the buyers.
Miami-based development and investment firm Lionheart Capital has purchased a 10-floor, 50-unit rental building in Greenwich Village for $41.5M, The Real Deal reported. The property, spanning 48K SF and located at 24-28 West Ninth St., was last sold for an undisclosed amount in 1986. The seller was the estate of Asher Hiesiger, with Barrington George Adams signing as executor. The acquisition is another of Lionheart’s recent deals in Manhattan, this time as a buyer. The firm has also recently sold a condo building at 142 Henry St. and roughly 363K SF of residential and hospitality sites at 16 West 21st St., 152-156 West 26th St. and 133-135 Greenwich St.