This Week's N.Y. Deal Sheet
Summer is approaching and deal flow is starting to slow. Leasing saw the most activity in New York, but there were nowhere near as many deals signed as last week, when the sector went into overdrive.
TOP LEASES
Facebook is expanding to a total of 880K SF at 770 Broadway in a deal that means J.Crew will move its headquarters to 225 Liberty St. at Brookfield Place. Vornado bought out J.Crew’s space in the building for a total of $35M, and Facebook is expanding by an extra 370K SF. J.Crew will sublease space from Bank of New York Mellon at 225 Liberty St., paying rents in the mid-$50s per SF for a 16-year lease. BNY Mellon will consolidate its headquarters at 101 Barclay.
JLL’s Rob Martin, Joe Messina and TJ Hochanadel brokered the deal for J.Crew in the buyout. Peter Riguardi worked with Martin on J.Crew’s buyout, and represented BNY Mellon in the sublease with Frank Doyle and Mike Berg.
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Flexible workspace provider Convene is taking 93K SF at Brookfield and Blackstone’s One Liberty Plaza. It will be Convene’s largest location yet, and will feature a 4,798 public café and coffee shop on the ground floor. The mezzanine and second floors will have meeting and events space across 41K SF. It will also feature a flexible office space on the third floor spanning 45K SF.
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Online luggage startup Away inked a deal to take 57K SF at 82 Mercer St. The deal is for 12K SF on the lower level, 13K SF on the second floor and 31,607 SF on the third floor. The location will feature a showroom and office space, The Real Deal reports. Rents are in the mid-$70s per SF for the second and third floor and in the low $40s for the lower level. Sinvin Real Estate’s Christopher Owles and Matthew Girard represented Away. Newmark Knight Frank’s Alex Leopold, Jonathan Franzel, Eric Cagner and David Falk represented the building owner, William Fung’s Hang Seng Realty Corp.
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Puma leased 24K SF at SL Green’s 606 Fifth Ave., The Real Deal reports. The lease is for 15 years, and rents were not made public. Cushman & Wakefield team led by Steve Soutendijk represented SL Green, while JLL’s Robert Gibson and Greg Covey brokered the deal on behalf of Puma, which is opening a flagship location after closing its small handful of New York City stores earlier in the decade.
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The Association of International Certified Professional Accountants inked a deal to take 30K SF at Fisher Brothers’ 1345 Sixth Ave. The lease is for 15-and-a-half years, and means AICPA will move from 1211 Sixth Ave. JLL’s Ken Patton, Tucker Farman and Ellen Herman represented AICPA. Fisher Brothers was represented in-house by Marc Packman and Clark Briffel alongside JLL’s Cynthia Wasserberger and Betsy Buckley.
TOP SALES
Developer Dov Hertz signed a ground lease at 537-555 Columbia St. in Red Hook, Commercial Observer reports. The asking rent for the nine-year triple-net-lease deal is $990K a year, or $10 per buildable SF, which works out to be $280M over the term of the lease. Brian Leary, Jidan Kim and Sean Sears of CPEX represented the property owner. Hertz is planning to build a last-mile warehouse on the site.
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AB Capstone’s Meir Babaev and a partner paid $30.5M for two retail buildings at 1100 Kings Highway and 2067 Coney Island Ave. in Gravesend, The Real Deal reports. New York REIT, which is in liquidation mode, is the seller. Babaev owns 70% of the buildings and the other buyer, Richard Harris, holds the other 30%. Cushman & Wakefield marketed the properties.
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Caspi Development and Mactaggart Family & Partners L.P. paid $18.9M for a six-story office building at 134-136 Broadway in Williamsburg. Michael Sherman of The Manhattes Group brokered the deal.
TOP FINANCING DEALS
The State Teachers Retirement System of Ohio paid $431.9M for an approximately 20% stake in 10 Hudson Yards, owned by Related and Oxford Properties Group. The fund also joined with Related to buy the ground lease of the retail condominium at One Union Square South. 10 Hudson Yards was the first building to open at the megaproject, and much of the building was sold to its occupants as office condos to help finance its construction.
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The Hakimian Organization landed $240M to refinance 636 11th Ave. JPMorgan Chase and Citi Real Estate Funding provided the financing, The Real Deal reports. The loan includes a $47.54M gap mortgage, and sees the lenders taking over an existing mortgage from MUFG Union, of which $192.46M remains.
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KeyBank provided $127M to Cassena Care for the Upper East Side Rehabilitation and Nursing Center at 211 East 79th St., The Real Deal reports. KeyBank said the loan will pay for more than $7M in improvements.
