This Week's N.Y. Deal Sheet
It was another quiet week for deals as the summer slowdown sets in. There were some significant financing transactions, however, with CBSK Ironstate securing $251M in equity and debt financing for a Hell's Kitchen development and Red Apple Group also locked down construction financing in Coney Island.
TOP FINANCING DEALS
Natixis, Paramount Group and Harbor Group International is providing $342M to HNA Group and its partners to refinance 850 Third Ave. The financing for the office tower includes a $100M mezzanine loan, as well as $75M from Paramount and $25M from Harbor Group, The Real Deal reports. HNA owns the 21-story, 617K SF building with MHP Real Estate Services and ATCO Properties & Management.
The building is one of the assets that HNA is looking to sell off following the Chinese government crackdown on offshore investment. Jordan Roeschlaub and Dustin Stolly of Newmark Knight Frank and Cooper-Horowitz’s Richard and David Horowitz arranged the financing.
CBSK Ironstate scored $251M in equity and debt for its acquisition and planned development at 646 11th Ave. Deutsche Bank provided $181M in the form of a construction loan, according to JLL, which brokered the deal.
The $70M in preferred equity came from Baupost Group, according to The Real Deal. CBSK Ironstate is a joint venture formed by Charles Blaichman’s CB Developers, along with Scott and Abe Shnay’s SK Development and Michael and David Barry’s Ironstate Development. Right now, a Lexus dealership sits on the site. CBSK Ironstate is planning a project with 161K SF of residential, 40K SF of retail and 8K SF of amenity space. JLL’s Aaron Appel, Keith Kurland, Jonathan Schwartz, Mark Fisher and Douglas Baillie arranged the financing.
Bank of America lent John Catsimatidis’ Red Apple Group $130M for the developers project at 3514 Surf Ave. in Coney Island, The Real Deal reports. Catsimatidis told Bisnow last month that one of the buildings is now built to around the sixth or seventh floor, and he predicts it will come to market in the spring or summer of 2019. The development will consist of more than 400 market-rate apartments.
All Year Management and Spencer Equity locked down $118M for their Brooklyn rental tower at 436 Albee Square. Mishmeret Trust Co. provided the financing, The Real Deal reports. The 28-story property contains 150 apartments and was previously appraised at $167M. Known as the Azure, the 28-story building has 150 units.
WeWork inked a deal for 60K SF at 408 Broadway, taking up the entire office space of the United American Land-owned building. The firm’s chief development officer, Granit Gjonbalaj, told The Real Deal that the lease “reflects WeWork’s confidence in the continued demand for (its) fast-growing community in Lower Manhattan.” The company — which could soon have a valuation of $40B — also has downtown locations at 205 Hudson St., 110 Wall St. and 11 Park Place.
New York University signed on to remain in its 125K SF building at 105 East 17th St., The Real Deal reports. NYU has the entire building, which is owned by Related Cos., and the new lease starts in 2019 and runs through 2051.
Silverstein Properties bought the ground lease on an Astoria development site, The Real Deal reports. The seven parcels are on two blocks between Steinway and 42nd streets. The site spans a total of 390K SF, and has 1.5M SF of commercial development rights.
Akelius Real Estate Management paid $30M to Belmar Realty Corp. for a seven-story, 46-unit building at 336 West 95th St., records filed with the city show. Joe Koicim, Peter Von Der Ahe, Seth Glasser and Jake Kahn of Marcus & Millichap brokered the deal for both buyer and seller.
Victor Sigoura’s Legion Investment Group closed on two properties in an Upper East Side assemblage in the last week. Sigoura is paying just over $61M for three East 79th Street sites, where he reportedly plans to build a condominium development. Sigoura is paying $30M for 113 East 79th St., according to records filed with the city last week. Paul and Marlene Herring are the sellers. He is also paying $16.2M for 115 East 79th St., records filed last week show. A trust controlled by Ilona Swaring is the seller.