This Week's N.Y. Deal Sheet
The summer months have once again taken their toll on the real estate market. A few big deals have carried a largely inactive week after the July Fourth holiday.
Spotify's growth continues to have a major impact on the Manhattan office market. Less than a month after Bisnow reported the music streaming giant would likely keep its offices with RXR in Chelsea, Spotify exercised its option to lease an additional 100K SF in 4 World Trade Center. It signed a 378K SF lease in February at Silverstein Properties' new skyscraper, but after opting into more space, its footprint will cover nearly 500K SF. The tower will be 100% occupied when Spotify moves in next year. CBRE's Mary Ann Tighe, Steven Siegel and Ken Meyerson repped Silverstein, along with in-house leasing agent Jeremy Moss. JLL's Peter Riguardi, Ken Siegel, Alexander Chudnoff and James Wenk repped Spotify.
Brookfield's leasing streak in Manhattan keeps on trucking: The Canadian giant signed trial law firm McKool Smith to occupy two floors at its under-construction One Manhattan West office tower. The firm's office, where it will move when the 2.1M SF tower opens in 2019, will cover 64K SF in the same building with the National Hockey League and Skadden Arps. Cushman & Wakefield's Bruce Mosler, Rob Lowe and Ethan Silverstein repped Brookfield, along with in-house team Jeremiah Larkin, Duncan McCuaig and Alex Liscio. John and J.W. Amend of the Amend Group repped McKool Smith, along with C&W's Josh Kuriloff and Drew Braver. Asking rent in the deal was reportedly $108/SF.
Co-working concept Serendipity Labs, which has locations in Westchester and Connecticut, has agreed to launch its first outpost in New York City at 28 Liberty in the Financial District. Fosun Property Group's massive renovation of Chase Manhattan Plaza, where it has already signed the New York Attorney General's office and Alamo Drafthouse, will house the 34K SF on the sixth floor. JLL's Riguardi-led leasing team repped Fosun, and JLL's John Wheeler and Michael Berman repped Serendipity.
VTS, one of the biggest names in commercial real estate technology, is doubling its New York City office space less than a year after its $300M merger with Hightower. The company once known as View The Space has agreed to a 31K SF lease at Equity Office's 114 West 41st St. The company had been on the entire 11th floor, but it will expand to take over all of the 10th floor as well. JLL's Jim Wenk and Transwestern's Patrick Heeg repped VTS, and Newmark Knight Frank's Erik Harris, Scott Klau, Ben Shapiro and Zach Weil repped Equity.
One of New York City's most prominent real estate families acquired the Dumont NYC Hotel in Murray Hill, with plans to convert it to residential. The LeFrak Organization paid $118M to acquire the property at 150 West 34th St. from Pebblebrook Hotel Trust. LeFrak plans to rebrand the property as the Murray Hill Marquis, and add it to its 12,000-plus-unit portfolio in the city. Pebblebrook put the hotel on the market after it gained 100% ownership of the property following the dissolution of its joint venture with Denihan Hospitality Group.
459 West 19th St. in Chelsea was sold by Joseph Francolino, according to city property records, for $20M. The 3,800 SF, single-story building sold to an anonymous LLC registered as 459 West 19th Realty LLC. The property is less than a block from the High Line.
Sales data courtesy of Reonomy.
TOP FINANCING DEALS
The owner of the Resorts World Casino in Rockaway Queens, next to the Aqueduct Racetrack, has closed on $290M financing to add 420K SF of commercial space. Wells Fargo provided the debt to an affiliate of Home Depot, which owns the casino.
The team of Vornado, Related and Skanska, as part of their official award of the rights to develop Moynihan Station in the old Farley Post Office, secured $202.3M in a construction loan from Deutsche Bank.
The Sabey Corp., which is redeveloping the monolithic Verizon building at 375 Pearl St. and adding windows to the concrete tower, secured a $200M construction loan from Wells Fargo for the project.
Financing data courtesy of Reonomy.