This Week’s N.Y. Deal Sheet
While the eyes of the real estate world are on WeWork's bankruptcy and the leases the coworking giant plans to reject, a select few deals crossed the wire in New York City over the past week — including one in a building on WeWork's rejection list.
TOP LEASES
Mental health startup Headway has signed a 32K SF sublease agreement with ad firm Havas at Hudson Square Properties’ 205 Hudson St., Commercial Observer reports. Headway is moving to the ninth floor of the 12-story, 395K SF property, where Havas has been a tenant since 2012 when it signed a 260K SF deal for a campus across 200 and 205 Hudson St. Asking rents in the building are in the mid-$60 range. Jason Greenstein and David Falk of Newmark brokered the deal for Havas, while Headway had representation from Colliers’ Sam Einhorn. WeWork signed a 95K SF lease at 205 Hudson in 2017, a deal it asked a bankruptcy judge to reject as part of its restructuring, according to court records.
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Men’s telehealth startup Ro has signed for 35K SF at 625 Sixth Ave., a five-story building owned by a private company led by Charles and Channa Taub, Commercial Observer reported. The Chelsea property, which was once the home of luxury department store B. Altman and Co., will now serve as Ro’s headquarters after the company signed a 10-year lease. Ro signed a five-year lease in 2019 for 38K SF in the nearby 695 Sixth Ave., with the new lease representing a potential 3K SF downsizing. Asking rents were $89 per SF, with CBRE’s Ross Zimbalist and Arash Sadighi of Venture Commercial repping Ro and RDE Advisors’ Ross Eisenberg repping the landlord.
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Supermarket chain Food Bazaar has signed a 37K SF lease at Maddd Equities and Joy Construction’s 375 West 207th St., according to a release. The supermarket will occupy space at the base of Maddd and Joy’s multifamily development in Inwood, with an estimated opening date of spring 2025. The property is still seeking tenants for the other 24K SF of retail in the project, which will have 611 residential units. JLL’s Hilary Sievers repped Maddd in the deal, while Erin Grace, also of JLL, repped Food Bazaar.
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Truist Bank subsidiary Kensington Vanguard National Land Services has signed a full-floor lease for 13K SF at Rudin’s 41 Madison Ave., according to a release. Kensington Vanguard will move to the 42-story, 560K SF tower near Madison Square Park, where recent renovations resulted in upgrades to the building’s lobby, lounge and event space. The 1974-built property is also home to Deborah Berke Partners, The Gersh Agency, Water Island Capital and The Henry Luce Foundation. JLL’s Howard Hirsch and Brett Harvey represented Kensington Vanguard, while Robert Steinman represented Rudin in-house.
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The Kaufman Organization signed a nonprofit to a lease at its 462 Seventh Ave. building, according to a release. Lifespire, an organization providing specialized services for individuals with developmental disabilities, signed for 20K SF at the 23-story building in Times Square South. The space will serve as the organization’s corporate office. Michael Heaner and Sam Stein repped Kaufman in-house, while Handler Real Estate Organization’s Darell Handler represented Lifespire.
TOP SALES
A 1.2M SF industrial portfolio in New Jersey has sold for $217.5M, according to a release. An investment fund managed by Morgan Stanley Real Estate Investing snapped up seven buildings at 901, 903-906 and 601 Murray Road and 151 Ridgedale Ave. in Morris County from seller Urban Edge Properties. The properties are fully occupied by 13 tenants. A JLL Capital Markets investment sales and advisory team led by Jose Cruz, Marc Duval, Jordan Avanzato, Nick Stefans, Jason Lundy and Austin Pierce brokered the sale.
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Extell has sold 179 East 86th St., a single-story property that has been the longtime Upper East Side home to fast-food chain Papaya King, Crain’s New York Business reported. The property changed hands for $24.5M last month, selling to ZD Jasper Realty less than two years after Extell purchased the property from previous landlord Imperial Sterling. Papaya King has been located at the property since 1932, but its future on the site has been in question since it stopped paying rent in 2020. Extell inherited the legal fight started by Imperial Sterling, which terminated the hot dog seller's contract and tried to evict the tenant. Extell ran into even more difficulties when it filed demolition permits, resulting in a campaign by New Yorkers to save the fast-food outlet, CO reported.
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The Migdol Organization has sold two facilities being used as homeless shelters in Harlem for a total of $26M, PincusCo reported. The properties at 2332 and 2250 Adam Clayton Powell Jr. Blvd. were purchased by the shelters' operator, Urban Resource Institute.
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Sovereign Partners has acquired a prewar office tower near Union Square for $126.5M, Crain’s New York Business reported. Seller Clarion Partners agreed to part ways with the 270K SF building for roughly half of the $230M it paid for it in 2013. Apple is a major tenant in the building, with approximately 84K SF available for lease across five floors, according to availabilities listed on the building’s website. Sovereign paid Clarion cash to acquire the property.
TOP FINANCING
Lam Group scored a $25.5M loan for its Renaissance New York Chelsea Hotel, Crain’s New York Business reports. The loan serves as gap financing for the hotel at 112-118 West 25th St. and comes from MetLife. Lam Group first bought the property for $67.5M in 2013, with a $93.2M loan from Shanghai Commercial Bank, according to PincusCo.
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Developer Spaxel has landed a $26.5M construction loan for a multifamily project in the Bronx’s Mount Hope neighborhood, Crain’s reported. Metropolitan Commercial Bank was a lender for the development, which is at 1824 Anthony Ave. The nine-story property is expected to have 128 units, according to Spaxel’s website, and construction permits were filed in December 2021, New York YIMBY reported.
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Ponce Bank has loaned $39M to E&M Realty Corp.'s mixed-use Gowanus development, Crain’s New York Business reported. The property at 335 Bond St. is expected to reach 14 stories and bring 73 residential units to the neighborhood, with a yet-to-be-disclosed number of those apartments reserved as affordable housing, New York YIMBY reported in July. The development will also deliver 5K SF of manufacturing space and 5K SF of commercial space. Demolition on the previous buildings on the site was completed in July.
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Richard Born’s BD Hotels nabbed a $45.9M refinancing deal for its Pod Hotel 39 in Murray Hill at 141 East 39th St., PincusCo reported. The loan, which comes from German investment company Deka Immobilien, replaces a $47M loan from Citizens Bank. BD Hotels has owned the property since 2010, when the hotelier purchased it for $27.8M.
