This Week’s N.Y. Deal Sheet
The first week of 2023 saw a handful of New York City development sites change hands and a major office expansion in Hudson Yards.
The Real Estate Board of New York has renewed its 23K SF lease at The Feil Organization’s 570 Lexington Ave., where it has been based since 1998, according to a release. REBNY signed a 10-year renewal at the 50-story office tower in a deal that included renovations to upgrade its space: gut renovations for the second floor and partial concourse level to upgrade it to Class-A standards. REBNY will temporarily relocate to 733 Third Ave. during renovations until 570 Lex’s reopening in Q3 2023. Feil’s David Turino brokered the deal in-house for the landlord, while REBNY Chief Operating Officer Sandhya Espitia was advised by Rocco Romeo of The Durst Organization.
KKR has agreed to move into 220K SF at 30 Hudson Yards, space set to be vacated by Facebook's parent company, Meta Platforms. The private equity firm already owns a 343K SF office condo at the top of the building and a majority stake in its observation deck. Meta declined an option to occupy the space beyond 2024. JLL Vice Chairmen Joe Messina and Steven Rotter repped KKR in the deal.
Healthcare giant Northwell Health has expanded into Long Island City, with a 42K SF lease at Savanna’s 1 Court Square office tower, Commercial Observer reported. Northwell plans for offices to occupy the entire third and fourth floors of the 53-story tower for a 10-year period, in addition to a 3K SF ground-floor space that will house an urgent care facility. Asking rents were $50 per SF, with Darren Leiderman of Colliers repping Northwell and Mitchell Konsker, Clark Finney, Daniel Turkewitz, Andrew Coe and Lance Yasinsky of JLL working on behalf of Savanna. The offices add to Northwell’s Queens footprint, which already includes obstetrics and gynecology at 2-24 50th Ave. and a pediatric care facility at 2-20 50th Ave.
The Consulate General of Jamaica and the country’s permanent mission to the United Nations is relocating to 42K SF at a Somerset Partners and Meadow Partners-owned building near the UN headquarters, The Real Deal reported. The consulate has signed a lease at 300 East 42nd St., where it will occupy the entire third and fourth floors in addition to part of the fifth floor. Asking rents in the 18-story building were $67 per SF. Gordon Ogden and Ben Mohr of Byrnam Wood brokered the deal on behalf of the Jamaican Consulate, while Newmark’s Peter Shimkin and David Falk led a team working on behalf of the landlords.
Lower Manhattan's transformation is continuing, with nonprofit family activity center CompletePlayground signing a 40K SF lease at Tribeca Associates’ 30 Broad St., the New York Post reported. The space was previously occupied by a New York Sports Club, but will now house an indoor playground spanning several levels — the basement, mezzanine and second floor — of the 47-story office tower. Asking rents were $250 per SF, with Colliers’ David Tricarico and Jake Horowitz brokering the deal on behalf of the landlord.
MAG Partners, along with joint venture partner real estate equity firm Safanad, has closed on a ground lease in Chelsea with the Penn South/Mutual Redevelopment Houses for $63.8M, The Real Deal reported. MAG Partners plans to redevelop the retail building at 335 Eighth Ave. into a mixed-use property with 188 affordable units and ground-floor commercial space, Commercial Observer reported. The ground lease gives the joint venture the site for 99 years, with MAG and Safanad planning a 200K SF building in the midst of Penn South’s 10-building Mitchell Lama co-op.
Bayrock Corp. and 3710 Partners LLC nabbed a Queens site close to LaGuardia Airport for $50M, according to a release. The seller, a subsidiary of The Moinian Group, required the buyers to acquire both 37-10 and 37-20 114th St., currently home to a shuttered hotel and parking lot, Commercial Observer reported. The buyers plan to turn the 217-key hotel and adjacent site into residential properties, according to the release. Ripco Real Estate’s Stephen R. Preuss Sr. and Kevin Louie brokered the deal on behalf of the buyers.
Stockbridge Capital Group has acquired two Williamsburg apartment buildings, Crain’s New York Business reported. The investment firm purchased 208 North 10th St. and 225 North Ninth St. for $71.9M from The Rabsky Group. Both properties were built in 2011.
A 10-story building in Manhattan’s Garment District has changed hands for $33M. Quartz Realty sold 260 West 36th St., which was first built in 1907 according to The Real Deal, to Ouni Mamrout in a deal reported by Crain’s New York Business. The Class-C property was renovated in 2002 and has manufacturing zoning and an average floor plate size of 8K SF, according to LoopNet.
TOP FINANCING DEALS
Fine Properties of New York scored a $35M loan from Maxim Capital Group to finish up construction and finance its unsold inventory at The Elisa in Chelsea, according to a release. Maxim Capital Group provided the loan to FPNY for its 11-story, 25-unit condo building at 251 West 14th St. The two-year loan, which comes with two six-month extension options, was brokered on behalf of FPNY by a Cushman & Wakefield equity, debt and structured finance team of Lauren Kaufman, Gideon Gil, Dale Braverman and Cecelia Galligan. When completed, the condo building will span approximately 34K SF and will feature a gym, a bike room, a garden with an open terrace, private and shared rooftop decks and a storage room with dedicated space for each unit in the building.