This Week's N.Y. Deal Sheet
Office landlords did their holiday shopping early with a bevy of big deals crossing the wires in the week before Thanksgiving.
Mizuho Americas has decided that it needs more offices at the Rockefeller Group's $600M renovation of 1271 Sixth Ave. After the U.S. division of the Japanese firm signed a 140K SF lease at the building over the summer, it announced Tuesday it is taking 270K SF more, bringing its total footprint to 411K SF. The announcement comes just days after The Real Deal reported Major League Baseball was giving back 75K SF of its 400K SF office lease, and Mizuho will supplant MLB as the former Time-Life Building's biggest tenant. Mitchell Steir, Matthew Barlow, Steve Berliner and David Goldstein of Savills Studley represented Mizhuo, and a CBRE team led by Mary Ann Tighe and Howard Fiddle represented Rockefeller Group, along with in-house leasing team Ed Guiltinan, Jennifer Stein, Yoshinori Nakamura, Yoko Yamada and Eden Jeon.
McKinsey & Co. is the latest major Midtown East tenant to depart for new construction. The consulting giant has agreed to lease about 200K SF at 3 World Trade Center, the nearly finished fourth office building at the World Trade Center complex. Silverstein Properties snagged the second tenant at the building, along with anchor GroupM, from 55 East 52nd St. The lease spans five floors and would leave about 1.6M SF still available in the downtown skyscraper. The McKinsey deal bookends a solid year for Silverstein at the WTC; it started with signing Spotify to fill the remaining 463K SF at 4 World Trade Center. The last piece of the puzzle, 2 World Trade Center, is still waiting for a tenant before it begins construction, but the complex is among New York's sites submitted for Amazon HQ2.
Brookfield has signed a tenant to fill all of the space HBO is leaving at 1100 Sixth Ave. just a few months after it and The Swig Co. took over the ground lease at the office tower. HBO is vacating its full-building lease to join its parent company, Time Warner, at Hudson Yards, and Bank of America will be filling all of it, expanding from its global headquarters at One Bryant Park across the street. The bank signed on before Brookfield announced the design of the full-building renovation it has planned, and BoA will likely have a large input in what that design will be. William H. Nickerson's Eugene A. Hoffman Management owns the land under the 386K SF office building.
MongoDB, an open-source database startup, is expanding and relocating. The company, fresh off an initial public offering, is moving to 1633 Broadway, owned by the Paramount Group, where it plans to take 106K SF. MongoDB is leaving the former New York Times building at 229 West 43rd St., where it occupies 60K SF. CBRE's Paul Amrich, Howard Fiddle, Stephen Siegel, Patrice Hayden Meagher and Robert Hill represented Paramount Group at the 2.6M SF tower, and Cushman & Wakefield's Dirk Hrobsky, Chris Helgesen, Peter Trivelas and Gary Ceder represented the tech firm.
Knotel has continued its rapid New York City expansion with two new deals for a combined 45K SF. The locations will be 21K SF on the ninth floor of 551 Fifth Ave. in Midtown and for 24K SF on the 14th floor of 123 William St. in the Financial District.
Atlanta-based Invesco made a big bet on Class-B office last week, buying 95% of 80 Broad St., the 435K SF tower in the Financial District owned by Broad Street Development. The deal, which allows Broad Street to retain 5% ownership of the building and to continue as property manager, values the tower at $235M, or $550/SF. Cushman & Wakefield brokered the sale of the 1930s-era Art Deco tower.
Stark Enterprises — a Cleveland-based investment firm, not the weapons manufacturer controlled by Iron Man's alter ego — has bought its first property in New York City. The company paid $92M to acquire the ground lease at Downtown Brooklyn's 30 Flatbush Ave. Angelo Gordon sold control of the 250K SF, seven-story office building, which sits over city-owned land the government can take back when the ground lease expires in 54 years. Con Edison net leases the building, but Stark told The Real Deal it plans to replace the office space with affordable housing.
Kamber Management has completed its purchase of parking condominiums in five Riverside Drive condo towers for a total of 913 parking spaces. The lots, at 80, 100, 120, 220 and 240 Riverside Blvd., are beneath the Trump Place — Riverside South development and sold for $50M. They were previously owned by an LLC controlled by a foreign trust, according to Commercial Observer. Meridian Capital Group represented the seller.
TOP FINANCING DEALS
Brookfield and Park Tower Group have secured the financing they need to finish construction on 37 Blue Slip, their market-rate apartment project that is part of the 11-building Greenpoint Landing megaproject. The building, which topped out last month, The Real Deal reports, will get a $137M construction loan from the Bank of Nova Scotia, which also assumed a nearly $33M previous loan on the property. The 30-story, 373-unit residential tower will join three affordable apartment towers built by L+M Development Partners on 22 acres on the Brooklyn side of Newtown Creek.
Cornell Realty nailed down a $64M construction loan for its Brooklyn mixed-use development at 200 Kent Ave. The Williamsburg site will be home to 117K SF of office and retail, including a Trader Joe's, plus a 45K SF parking garage. Madison Realty Capital provided the loan, and RKF is leasing the remaining space at the project.
Gould Investors has secured a $100M loan on its Union Square office building from one of New York's more active commercial lenders, AIG Investments. The 288K SF building, at 35 Irving Place, has been under Gould's ownership for about 50 years and rises 11 stories high.