This Week's N.Y. Deal Sheet
Once again, office leasing was the most active part of the market in New York City as closed investment sales have fallen off a cliff since an active first quarter.
Target leased 50K SF for another one of its small-format stores at the intersection of Kings Highway and Foster Avenue in East Flatbush, the retailer announced last week. Bridges Development Group is the landlord. The store is slated to open in 2020, but rents and the lease term were not made public. The store will be Target’s 27th to open in the city.
WeWork inked a deal for 45K SF across four floors at 71 Fifth Ave., The Real Deal reports. Madison Realty Capital owns the ground lease on the building, and the fee interest on the building is in part owned by the family of the coworking giant’s head of real estate, Mark Lapidus.
Rose Associates is taking 25K SF at 777 Third Ave. as a sublease from Avon Products. The asking rent in the eight-year deal was $65 per SF, and Rose will be taking an entire floor when it moves from its current home at 200 Madison Ave. Dale Schlather of Cushman & Wakefield represented Avon, and Advisors Commercial Real Estate’s Jeffrey Rosenblatt represented Rose Associates.
Knotel, the flexible office provider, leased another 37K SF in Manhattan. In Midtown, it leased 24K at 6 West 48th St. across the the second, third, fourth, 12th and penthouse floors. Elie Reiss of Skylight represented Knotel, while JLL’s Amanda Bokman and Lloyd Desatnick represented the landlord. At 38 East 29th St. in NoMad, it took 13K SF on the seventh and eighth floors. Jared Horowitz and Ben Shapiro of Newmark represented Knotel in that deal.
Luxury goods retailer Jomashop expanded by 55K SF at the Brooklyn Army Terminal in Sunset Park, Commercial Observer reports. It now has 107K SF at 140 58th St., which is the terminal’s main building. The New York City Economic Development Corp. owns the complex. Electronics manufacturer Altronix is also expanding at the property, adding 30K SF to bring its presence at 140 58th St. to 130K SF. Rents in the deal were $20 per SF.
JLT Re, a subsidiary of the JLT Group, is adding almost 20K to its lease at RFR Realty’s 350 Madison Ave., Commercial Observer reports. It already had 20K SF at the building, and this new lease is for nine years.
Meanwhile, Investment firm Certares Management has upped its space in the building from nearly 9K SF to nearly 20K SF in a 10-year deal. The current asking rents in the building are $74 per SF. Alexander Chudnoff, Mitchell Konsker, Dan Turkewitz and Diana Biasotti of JLL and RFR’s AJ Camhi brokered the deal for the landlord. Jared Freede and Ken Rapp of CBRE represented JLT. Certares did not have a broker.
TOP FINANCING DEALS
Lender Popular Community Bank provided $55.4M to Allure Group for its King David Center for Nursing and Rehabilitation at 2266 Cropsey Ave., The Real Deal reports. The loan assumed the $29M balance from a previous loan and provides a $26.3M gap mortgage.
Tishman Realty secured $190M from Blackstone Mortgage Trust to refinance the InterContinental Times Square hotel at 300 West 44th St. Blackstone provided a $7M gap mortgage as well as assuming a previous loan, The Real Deal reports.
Prudential Multifamily Mortgage lent $98M to Glenwood Management for three of its Upper East Side rental properties. The financing features nearly $5M in new money as well as two notes for $49.8M and $43.3M, The Real Deal reports.
Two units in Harry Macklowe and CIM Group's ultra-luxury 432 Park Ave. sold for around $60M. The buyer, the Wall Street Journal reports, is Hillel “Helly” Nahmad, who is the son of billionaire art collector David Nahmad. The Rafael Viñoly-designed building hit an all-time record with $2B worth of sales earlier this year.
Barone Management paid the Sisters of St. Dominic $20M for two development sites in Jamaica, Queens. The parcels are at 89-25 161st St. and 89-25 162nd St. and feature 295K of buildable SF collectively, The Real Deal reports. Barone plans to build residential buildings and a charter school on the sites.