This Week’s N.Y. Deal Sheet
The kids are almost back in school in New York, but the waning days of summer break didn't stop the city's office brokers from having an active week of deal-making.
Hedge fund BlueCrest Capital Management has signed for 22K SF at SL Green’s 450 Park Ave., according to a release. The 15-year lease covers the whole 30th and 31st floors of the 33-story Midtown office tower where Aston Martin opened its first showroom in the borough. SL Green is upgrading the building, with plans to deliver a new lobby and a fitness center to the property. JLL’s Daniel Posy and Joe Messina repped the hedge fund, while CBRE’s Paul Amrich, Neil King, Alexander D’Amario and Maxwell Tarter repped the landlord. BlueCrest is relocating and downsizing from its 34K SF lease at the GM Building at 767 Fifth Ave., CoStar reported. It is paying $165 per SF in the deal, almost three times the city's average asking rent, per CoStar.
New Jersey grocery store chain The Fresh Grocer has made its first foray into New York City, signing a 21K SF lease in Brooklyn’s Fulton Street Mall, the New York Post reported. The mall, located at 523 Fulton St., is owned by RMC Assets and spans 114K SF. The Fresh Grocer will occupy space on the ground floor and in the basement in a deal brokered by Lee & Associates NYC’s Jeffrey Lopez and Steve Lorenzo on behalf of the tenant and Cushman & Wakefield’s Ian Lerner for RMC. Retail average asking rents in Downtown Brooklyn were $239 per SF in the second quarter, per a report from the Real Estate Board of New York, although the grocery store’s asking rents weren't disclosed. The Fresh Grocer’s planned opening date is reportedly toward the end of 2024.
The Rudin family scored a new tenant at One Battery Park Plaza, with Curtis + Ginsberg Architects taking 13K SF as its new headquarters, according to a release. The architecture firm is expanding with the 11-year lease as part of its move from 55 Broad to the 27th floor of the 35-story, 870K SF One Battery Park Plaza. The move comes as Rudin finalizes the sale of 55 Broad to Silverstein Properties and Metro Loft Management, which plan to convert the office property into a 571-unit residential tower. Other tenants in the 1971-built One Battery Park Plaza include CetraRuddy, Meridian Capital, The Partnership for New York City and the New York City Fire Pension Fund. Ruth Colp-Haber of Wharton Property Advisors represented Curtis + Ginsberg in the deal, while Rudin’s Kevin Daly represented the landlord in-house.
Cannon Hill Capital Partners and Invesco Real Estate have landed two companies' first New York City offices at their Midtown South property, 888 Broadway. San Francisco-based venture capital firm Craft Ventures and London-based financial advisory firm Connaught each signed for 5K SF. The building, which counts Netflix among its tenants, was first built in 1881 and repositioned in 2021. The firms will occupy offices vacated by ABC Carpet & Home. The landlords were representated by CBRE's Paul Amrich, Neil King III, Alex D’Amario and Shay Kenney. Lincoln Property Co.'s Jeffrey Rosenblatt and Christina De Jesus represented Craft Ventures, while CBRE’s Jared Isaacson repped Connaught.
Rubenstein Partners’ 25 Kent in Williamsburg has signed a 6K SF lease with Othership Bathhouse, a Toronto-based spa franchise that offers guided saunas and ice baths, according to a release. The space in the 500K SF recently developed building will be Othership’s second in NYC and first in Brooklyn. Othership was represented by Cassie Durand and Aylin Gucalp of CBRE, while Neal Ohm, Caleb Peterson and Michael Cohen of Newmark represented Rubenstein Partners.
Madison Realty has signed a new tenant at 885 Flatbush Ave., a century-old, four-story bank building, Commercial Observer reported. Flatbush Adult Daycare signed for 8K SF for 10 years at the building, which had asking rents of $35 per SF. The daycare replaced a nonprofit that vacated just before the pandemic. Madison renovated the upper floors over the past few years. A Citibank branch occupies the ground floor of the building. SVN CPEX Real Estate’s Timothy King brokered the deal on behalf of the landlord, while Rene Hamilton of Helmsley Spear represented the tenant.
Cammeby’s International and private investor Sol Kurtz sold their Hell’s Kitchen property at 159-161 West 54th St. for $36.5M, according to a release. The 15-story mixed-use property has five commercial spaces, 11 office spaces and 42 apartment units, 70% of which are market-rate. It was built in 1923. The property spans 85K SF. Aaron Jungreis, Ben Khakshoor and Alex Fuchs of Rosewood Realty represented both the sellers and the buyer, the private family office of Duc Huang.
Adams & Co. bought a 12% stake from Rockrose Development in a Flatiron building that previously housed rapper Jay-Z’s 40/40 Club, a nightclub that closed its doors this month after two decades in the property. The stake in the 1115 Broadway building, known as 16 Madison Square West, cost Adams & Co. $43.5M and gives the brokerage and investment firm full control of the property, principal David Levy told Bisnow in an email. Rockrose originally purchased the stake for $26.1M in 2020, with Apple Bank providing a $48M acquisition loan to Adams & Co. for the purchase, Commercial Observer reported. Adams & Co.’s stake purchase brings the 12-story, 252K SF property’s approximate value to $363M.
Sovereign wealth fund the Qatar Investment Authority has purchased the Park Lane Hotel at 36 Central Park S for $622.9M, PincusCo first reported. The sale comes a decade after a 2013 joint venture between the Witkoff Group and Emirati sovereign wealth fund Mubadala Investment Co. bought the 631-key hotel for $653M with plans to turn it into condominiums. The conversion idea was abandoned in 2016, and the joint venture refinanced the hotel for $615M in 2019. The sale is the Qatar Investment Authority’s first big purchase in NYC since 2019, when it spent $310M purchasing the St. Regis Hotel, Commercial Observer reported. It is also an investor in Brookfield's Manhattan West project. The Park Lane Hotel sale was facilitated by a $400M acquisition loan from Apollo Global Management.
TOP FINANCING DEALS
LCOR scored a $94M construction loan for a 28-story geothermal multifamily development at 247 North Ave. in downtown New Rochelle, according to a release. The project will be LCOR’s second geothermal multifamily project in the state following 1515 Surf Ave. in Coney Island. Pacific Life provided the construction loan for the New Rochelle project, which will have 307 rental apartments. LCOR will reserve 31 apartments as income-restricted, as well as providing almost 2K SF of commercial space on the ground floor and 257 parking spots. A JLL team led by Bob Tonnessen and Steven Klein represented LCOR in the deal.
The Westchester Medical Center will get $195M in bond financing for the construction of a new 163K SF patient care tower on its Valhalla campus, according to a release. The sum comes from the Westchester County Local Development Corp. in a direct deal approved by the WCLDC on Aug. 23. The project will build a five-story, 128-bed center for the WMC’s inpatient rooms, with space for trauma, neurosciences, cardiology and general surgery.