This Week’s N.Y. Deal Sheet
The flight-to-quality trend was alive and well last week in New York City, with several companies striking deals to relocate their offices to new and renovated spaces.
Online ticket marketplace Stubhub is consolidating its New York offices into the city's fifth-tallest tower. It has signed a 44K SF lease for the 59th floor of Silverstein Properties’ 3 World Trade Center, joining the likes of Uber, Casper, Diageo, Blue Wolf Capital and Hudson River Trading and bringing the building close to 90% leased. Stubhub is moving from a number of Midtown locations where it occupies roughly 10K SF total, and the move is expected to be completed in the next few weeks. Asking rents in the property were $125 per SF. Silverstein had in-house representation from Jeremy Moss, while Stubhub was repped by CBRE’s Brendan Herlihy.
The NYU Tisch School of the Arts has signed a 46K SF lease at Building 8 in Industry City. The top-floor space will be used for the Martin Scorsese Virtual Production Center and will feature two stages, broadcast and control rooms, dressing rooms and makeup areas among its offerings. Asking rents were not provided, but were between $15 and $40 per SF in November, Commercial Observer reported.
Touro University is expanding at Rudin Management Co.’s 3 Times Square, according to a release. The private university signed a 66K SF expansion in the building, adding the 10th and 11th floors to its Midtown home and bringing its total 30-year lease to 310K SF. The expansion follows Touro’s first students arriving at the property in January, and the university expects its full Times Square campus to open in spring 2024. The building originally opened in 2001 as Reuters' headquarters, and it underwent a capital improvement project in 2020 to attract new tenants. Touro had in-house representation from Jeffrey Rosengarten, as well as from a Cushman & Wakefield team led by Richard Bernstein, while Rudin’s Tom Keating also provided in-house tenant representation alongside a Cushman & Wakefield team led by Ron Lo Russo and Heather Thomas.
Brown Harris Stevens has signed a 20K SF lease for office space at Clarion Partners’ 100-104 Fifth Ave. The firm will occupy the whole of the recently renovated second floor of the property, which was built between 1906 and 1911 and is made up of two 17- and 20-story buildings on the corner of Fifth Avenue and 15th Street. The Kaufman Organization’s Michael Kaufman and Grant Greenspan represented Clarion Partners in the deal, while CBRE’s Paul Amrich and Alexander Golod represented Brown Harris Stevens.
Ralph Lauren is growing within Long Island City’s The Factory, located at 30-30 47th Ave., Crain’s New York Business reports. The luxury clothing brand will take 36K SF at the Atlas Capital Group and Invesco Real Estate-owned property, which is now 94% leased, expanding and relocating from its 19K SF fifth-floor space to occupy 55K SF on the eighth floor for an 11-year term. Asking rents were not disclosed, but were around $42 per SF in November, Commercial Observer reported. CBRE’s Eric Deutsch and Jared Freede repped Ralph Lauren, while Brian Waterman, Howard Kesseler, Jordan Gosin and Alex Rosenblum of Newmark represented the landlords.
TOP FINANCING DEALS
GDS Development Management and Corem Property Group AB scored a $90M loan for 1245 Broadway from German lender Deutsche Pfandbriefbank, Commercial Observer reported. The loan, arranged by Dustin Stolly, Jordan Roeschlaub and Nick Scribani of Newmark, will fund fit-outs in the 23-story property for current and future tenants. Construction finished last year at the Skidmore, Owings & Merrill-designed building, which has already signed tenants including film production company A24, video game developer Avalanche Studios Group and online advertiser GumGum.
Rockrose Development nabbed a $97.7M refinancing package for its luxury multifamily tower at 399 Chambers St., Commercial Observer reported. Wells Fargo supplied the loan for the 42-story Battery Park City tower, which is known as both 41 River Terrace and Tribeca Pointe. The building has 340 apartment units, 70 of which are income-restricted and will remain so until 2069 under a new agreement reached between Rockrose and the Battery Park City Authority last year.
Terreno Realty, which operates industrial properties in major coastal U.S. markets including New Jersey, Los Angeles and Miami, has picked up its latest New York property, according to a release. Terreno has acquired 42-11 Ninth St., a 55K SF warehouse in Long Island City with development potential of more than 320K SF of zoning floor area, for $23M from NYC-based Titan Contracting Corp. A JLL Capital Markets team of Michael Mazzara, Ethan Stanton, Winfield Clifford, Stephen Palmese and Brendan Maddigan arranged the sale on behalf of Titan.
A taxi garage in Sunnyside, Queens, has sold for $35M, Crain’s New York Business reports. The parcel, located at 38-08 and 38-15 43rd Ave., was sold by yellow cab fleet owner Savas Tsitiridis. The buyer, DCO QOZB 38-15 QB, is an LLC that formed last month, according to public records filed with the state.