This Week's N.Y. Deal Sheet
As July winds down, New York City commercial real estate is chugging along, with mid-market deals keeping sales and leasing brokers active as they plan their vacations for next month.
A pharmaceutical marketing company is doubling its space at Meyer Equities' 469 Seventh Ave. office tower. Intouch Solutions had a 17K SF lease for the entire 10th floor and will expand to occupy the full eighth floor. Intouch has been in the building at the corner of West 36th Street for two years, but its pace of growth is helping Meyer Equities, which was repped in-house by Eric Meyer, grow its rent roll. Savitt Partners' Marc Schoen and Brian Neugeboren repped Intouch with a $62/SF asking price.
A dermatologist company is moving from Manhattan, and in exchange for the change of address, is growing its office footprint exponentially. Schweiger Dermatology is taking more than 21K SF of subleased space from MetLife at 27-01 Queens Plaza North in Long Island City. Newmark Knight Frank's Ross Perlman and Ryan Gessin repped Schweiger, while Cushman & Wakefield's Ethan Silverstein, Kelli Burke and Mitchell Arkin repped MetLife. The insurance giant occupies 200K SF in the 13-story, 709K SF office building, owned by Brause Realty. Schweiger has grown from a 3K SF occupier, to 8K SF two years ago, and has now nearly tripled its space.
A new law firm has planted its flag in the Financial District. Haley Giuliano, a spinoff of Ropes & Gray's intellectual property division, has signed an 18K SF lease at 75 Broad St., owned by JEMB Realty. The firm is moving into pre-built space, yet another example of why pre-built is growing in popularity among developers. NKF's Todd Stracci, Hal Stein and Eric Cagner repped the landlord, and Avison Young's Michael Leff and Jedd Nero repped the new firm.
Another piece of available sublease space went off the market last week when Kahn Lucas Lancaster, a children's clothing company, signed a 17K SF deal to move within the Garment District. It will move to 1414 Broadway, and take over part of women's fashion company Escada's lease, from its current spread at 112 West 34th St. C&W's James McCaffrey and Ethan Silverstein repped Escada, and CBRE's Ken Meyerson, Brad Needleman and Adele Huang repped Kahn Lucas.
Savanna took the crown for the biggest acquisition to close last week, paying $126M for 31 West 27th St. from Westbrook Partners. Savanna, led by Chris Schlank, acquired the 12-story building in NoMad for $10M over asking price, The Real Deal reported when the building went under contract in May. The 144K SF office property was marketed by Hodges Ward Elliott, is fully occupied and counts film studio A24, Stella Adler Acting Studio and Federated Media Publishing among its occupants.
Farther south in Manhattan, Michael Aryeh sold the six-story property he has owned for about 10 years at 163 Varick St. for $65M. Aryeh sold the 50K SF building to APF Properties, which plans to redevelop the building and add another 50K SF. CBRE investment sales brokers Darcy Stacom and Bill Shanahan repped Aryeh.
Investor Gili Haberberg has acquired a 96-unit rental building on the Lower East Side for $61.5M. Haberberg's firm, Arkar, bought the property at 331 East Houston St. from a joint venture of Halpern Real Estate Ventures and SMA Equities. The partnership developed the property, which has 16 affordable apartments, for $40M after acquiring the land for $12.4M. Branded as Jones 1.e.s, it opened in March 2016.
Embattled developers Chaim Miller and Sam Sprie have sold one of the projects they acquired that was tied up in claims of unpaid debts. The two rental buildings, at 97 Grand Ave., sold for $35.25M to Madison Realty Capital, which had won court rulings against Miller and Sprie for unpaid mortgages. The LLC Miller and Sprie controlled that owned the property, 97 Grand Avenue LLC, declared for Chapter 11 bankruptcy this spring, and the buildings were placed on the market seeking $44M.
Sales data courtesy of Reonomy.
TOP FINANCING DEALS
Midtown South, the submarket home to the biggest sale of the week, is also home to the biggest financing deal. RFR Realty has secured a $104.5M refinancing from Goldman Sachs for the office building RFR Realty owns at 90 Fifth Ave., a few blocks from Union Square. The mortgage replaces a $69M loan from M&T Bank for the Compass-occupied building.
B&H Realty Corp., a JV of Glacier Global Partners and Triangle Assets, in the process of converting the warehouse at 10 Jay St. in Dumbo to offices, has secured $150M in loans to complete the construction process. Acore Capital provided the construction loan to turn the warehouse into a 221K SF office property that Glacier and Triangle expect to open later this year.
Financing data courtesy of Reonomy.