This Week's N.Y. Deal Sheet
Investment sales in New York City perked up last week, led by Nuveen's acquisition of more than 10,000 affordable apartment units.
The real estate arm of investment giant TIAA, Nuveen, made one of the biggest multifamily deals in the country this year when it closed on the acquisition of a 12,000-unit apartment portfolio from Omni New York LLC, the developer and owner co-founded by former baseball star Mo Vaughn and Eugene Schneur. More than 10,000 of the units are in the five boroughs. There were no market-rate units in the transaction, which will see Nuveen take on Omni's staff and platform. Deal terms were not made public, but the equity will benefit the TIAA General Account, which will see its affordable housing assets under management grow from less than $4B to $6.4B.
Magnum Real Estate group, run by Ben Shaoul, sold three apartment complexes at 163, 164 and 167 Ludlow St., The Real Deal reports. The sale price for the properties, which have a total of 51 residential units and a commercial unit in each building, was $30M. The buyer was an entity tied to Germany’s Tatar Holding.
BLDG Management paid $28M to Wharton Properties’ Jeff Sutton for 65-02 18th Ave. in Bensonhurst, per The Rearl Deal. The two-story, 28K SF retail property is leased to tenants including Five Below, CityMD and Chipotle.
Prestige Properties & Development paid $69M for the Riverhead Center at 1430-1550 Old Country Road on Long Island, per publication Behind the Hedges. AFL-CIO Building Investment Trust was the buyer of the Suffolk County property, which spans nearly 400K SF. ShopRite is the anchor, which leased space there in 2018 in a long-term deal. JLL’s Jose Cruz arranged the sale for the buyer. PNC Realty Investors brokered the deal for the seller.
Argentic Investment Management picked up seven retail condominiums in the West Village from Barnet Liberman, PincusCo reports. Argentic loaned $19M to Liberman, who filed for bankruptcy in 2021, in 2017 for the property in the Printing House at 421 Hudson St. The transfer value was $20.5M, per the publication. The condos span a total of 33K SF on the first, ninth and 10th floors and feature an Equinox gym.
TOP FINANCING DEALS
The Hudson Hotel's conversion into housing is getting needed financing to get going. Northwind Group is providing a $100M A-note as part of a $207M senior mortgage at the 24-story building on 58th Street between Eighth and Ninth avenues. The debt will fund a conversion into 441 multifamily units and retail space. Investment firm Montgomery Street Partners bought the property and leased it on a 99-year deal to Manhattan-based CSC Coliving last year, which is taking on the conversion. The A-note was provided with flexible terms, according to Northwind Group’s announcement.
Bank OZK lent a $250M senior mortgage and PIMCO loaned $84M in mezzanine debt to Innovo Property Group and Affinius Capital for 2505 Bruckner Blvd., a 1M SF multistory industrial facility in the Bronx, the borrowers announced in a press release. The property has 106 loading doors, as well as 664 interior parking spaces and is located to serve as many as 9.4 million people within a 15-mile radius, per the announcement. It's 53% leased to Amazon.
Industry City in Brooklyn locked down three leases, its landlord announced in a press release. West Elm, Kohler and Hilti have signed on for a total of 37K SF of retail space in the Sunset Park development. Kohler, a kitchen and bath supplier, is signing a new lease, as is Hilti, a construction equipment company. West Elm is doubling its footprint at the campus. Jim Somoza of Industry City, along with Chase Welles and Taylor Onosko of SCG Retail, represented the landlord in the deals. Newmark's Ariel Schuster represented West Elm, while Mitzi Flexer and Steven Taylor of Cushman & Wakefield represented Hilti. The Shopping Center Group’s Jacqueline Klinger and Ian Rice represented Kohler.
A new PGA Tour Superstore is opening on Long Island. Mayfair Shopping Center in Commack locked down a 40K SF lease with the golf shop, according to the center’s leasing broker, Levin Management Corp. E.J. Moawad of LMC represented the landlord, while Hugh Scullin of Katz & Associates represented the tenant. The store is the third PGA store in the New York area, along with locations in Westbury and White Plains. This location will feature a 1,300 SF putting green, swing simulators and hitting bays.
Also out on Long Island, Kimco Realty Trust signed the first Barnes & Noble location in the Hamptons. The bookselling chain inked a 9K SF lease at the REIT's Bridgehampton Commons shopping center on the South Fork, Newsday reported.