This Week's N.Y. Deal Sheet
The city finally has gone into its late-summer slumber after the spring's slowness prompted a flurry of deals in July and early August. But while most of the tenants are away, WeWork will play.
WeWork signed an 85K SF lease at 115 Broadway, the recently renovated historic building in the heart of the Financial District. The deal brings yet another location to the co-working behemoth's ever-growing New York portfolio. Savitt Partners’ Michael Schoen repped WeWork in the deal for the fourth through seventh floors at a reported $55/SF. CBRE's Adam Foster, Brad Gerla, Adam Leshowitz and Mike Rizzo repped the owner of the two-building Trinity Centre complex, Capital Properties.
WeWork did deals on both sides of the East River in the last week. In addition to its big 115 Broadway space, WeWork signed a sublease to take 43K SF of MetLife's space at the Brewster Building on Queens Plaza North in Long Island City, not far from its 250K SF location at Tishman Speyer's under-construction office tower at 28-10 Queens Plaza South. Fidelis, also known as the New York State Catholic Health Plan, signed another sublease at the Brewster Buildling, owned by Brause Realty, for 21K SF.
WeWork was not the only co-working provider to sign a deal for a new location this month: Knotel, one of WeWork's smaller competitors, has agreed to rent nearly 18K SF in NoMad for a new location in a lease that begins immediately. The footprint will take up two floors of ATCO Properties' 373 Park Ave. South, with asking rents at $62/SF. ATCO's Kate Goodman and Knotel's Eugene Lee repped their respective interests in-house.
Two internet giants teamed up for a recent Manhattan real estate transaction. Netflix has subleased an entire floor of Twitter's Chelsea offices at 245 West 17th St., good for almost 12K SF. CBRE's Timothy Hay, Robert Hill, Jared Isaacson and Sacha Zarba repped Netflix, while Cresa's Barry Spagna and Eric Thomas repped Twitter. Netflix joins Major League Baseball as Twitter's subtenants in the building as the social media site recalibrates its office needs in the Big Apple.
Nader Ohebshalom has transferred ownership of 105 Saint Marks Place, an apartment building in the East Village, from a joint venture of five companies he controlled to just one, Jaguar Holdings LLC, for a listed price of $30.4M. Ohebshalom's Gatsby Enterprises will continue to control the property.
Over in the West Village, Slate Property Group picked up 236 West 10th St., a 32-unit residential building, for $21M, or what works out to north of $1K/SF. The building had been with one owner, the Ragone family, for more than 60 years before Slate bought it. Slate took out a $15.2M acquisition loan for the purchase, which was brokered by Marcus & Millichap.
The Rockefeller Group closed on one of the NoMad acquisitions it agreed to this spring as it assembles sites for a new condo tower. The site, at 34 East 29th St., was previously owned by W Brothers and traded for $20M. Rockefeller also bought 30-32 East 29th St. from Extell Development and 36 East 29th St. from Michael Aryeh. The firm plans to build a 170K SF residential building.
Sales data courtesy of Reonomy.
TOP FINANCING DEALS
Vornado nailed down the biggest financing deal of the week, securing $500M for its office and retail property, 330 Madison Ave. in Midtown, retiring the previous $350M in debt. The $500M comes as a commercial mortgage-backed security, placed by Wells Fargo, and values the property at $950M.
Some blocks to the north of Vornado's deal, Thor Equities refinanced its retail condo at 680 Madison Ave. for $215M, according to city property records. JP Morgan Chase provided the loan, which replaced $185M in debt from a Morgan Stanley CMBS loan. According to The Real Deal, Thor secured a separate, $95M loan from an unnamed lender.
The condominium association for 540 West 28th St., acting as 28th Highline Associates LLC, has secured a $162M refinancing for its building from KREF Lending IV JV.
Financing data courtesy of Reonomy.