This Week's N.Y. Deal Sheet
The biggest property sale to cross the wire this week was not one made by a single investor. It was bought by dozens of investors through a NYC-based crowdfunding network.
In a complex transaction, 331 Park Ave. South, once part of the F.M. Ring office portfolio, was placed under contract in 2015. Nathan Berman acquired the building from Extell Development for $39.5M, and his Metro Lofts company developed it into a co-working space to Prodigy Network's specifications.
Two years later, Prodigy has taken control of the property, acquiring it from Berman for $52.4M. The firm, which has placed the building under its The Assemblage brand, raised $33M through crowdfunding equity to fund the transaction. Now, according to project manager Matt Strombelline, Prodigy is seeking to raise an additional $10M from its swarm of investors chipping in $10K and up to fund the building's renovations.
When completed, The Assemblage in NoMad will have 35K SF of co-working space and 7K SF of retail. The company tells potential investors on its website it plans to sell the property in three to four years, and estimates investors will see an internal rate of return of 11% to 15%.
While plenty of investors got in on the action in the biggest sale of the week, by all accounts, this was one of the slowest leasing weeks of the year, if not in several years. There were some retail leases signed around the city, like for a new Marcus Samuelsson restaurant in Greenpoint and a new bodega in the Bowery, but no office leases larger than 10K SF crossed the wires.
The former Koppers' Chocolate factory in the West Village, which has been planned for two years as a potential luxury condo conversion, has sold for $29.2M. Koppers moved its factory to Brooklyn's Sunset Park manufacturing hub, and its old space at 39 Clarkson St. was sold to an affiliate of LTN Capital Group. Jeff Alexander of J.P.L. Realty, and the third-generation owner of Koppers' Chocolate, worked with Summit Equities to ready the building for sale.
The owner of 888 Grand Concourse in the Bronx, subject to a rent strike from tenants protesting rat-infested living conditions, has sold the embattled building for $28M. Jonathan Bombart's six-story, 91-unit property was under foreclosure earlier this year, but Bombart regained control after partnering with Castellan Real Estate Partners, and now he has sold it to Chaim Hirschfeld.
Himmel & Meringoff is growing its portfolio across the East River from its home island of Manhattan, acquiring the warehouse and office building at 21-07 41st Ave. for $25M. The firm bought the 127K SF building from costume merchant Daniel Geoly, who bought the building in 1980 for his dress-up business.
Opal Holdings has purchased the former home of Beastie Boys member Adam Horovitz on Spring Street in SoHo out of bankruptcy, along with three adjacent properties, for $31.6M. The parcels, at 182, 186, 188 and 190 Spring St., were once planned as the site of a new development by Nordica Soho before the developer defaulted on its loan and filed for bankruptcy last year.
The six-story apartment building at 351 West 125th St. has traded hands for $23M. Sentinel Real Estate sold the property, which contains 26 units, to a pair of Jackson Heights investors.
Sales data courtesy of Reonomy.
TOP FINANCING DEALS
Brookfield and Deutsche Bank have entered into a mortgage spreader agreement at Brookfield Place. While Brookfield refinanced a $325M loan from Deutsche Bank for 250 Vesey St. in 2015 for $600M, property records filed with the city indicate that a $325M loan from Deutsche Bank, filed in early 2016, has been spread to cover 225 Liberty St. and 200 Vesey St. as well.
Paramount Group has refinanced the loan on its 712 Fifth Ave. skyscraper, securing $300M in debt from Morgan Stanley. The new loan replaces a $245M loan on the 29-year-old building that was set to mature next spring.
Eastgate Realty has refinanced its 25-story office building at 99 Park Ave. with a $250M loan from German bank Landesbank Baden-Wurttemberg. The debt replaces and consolidates $155M in previous debt from HSBC on the Murray Hill building.
Financing data courtesy of Reonomy.
CORRECTION, JUNE 28, 11:00 A.M. ET: Prodigy Network crowdfunded $33M in equity. A previous version of this story incorrectly stated it raised debt. This story has been updated.