This Week's N.Y. Deal Sheet
The investment sales and office leasing market are still feeling the summer drag, but some major projects scored financing last week. Extell Development was among them, closing on a half-billion dollars for its Downtown Brooklyn condominium.
TOP LEASES
Knotel has inked a 45K SF lease at 261 Madison Ave., which is owned by the Sapir Organization. The space is on the fourth, sixth and 18th floors. No brokers were involved in the transaction, according to Knotel. The flexible office company has also taken close to 49K at 530-536 Broadway, The Real Deal reports.
***
Undertone, a digital branding company, is taking 26K SF on the 77th floor of One World Trade Center. It will move in January from its current space at 340 Madison Ave. The firm plans to expand its workforce by 65% in the building. JLL’s Paul Ferraro and Deborah van der Heyden represented Undertone. The landlord was represented by Eric Engelhardt of The Durst Organization and a Cushman & Wakefield team led by Tara Stacom. Stacom was recently replaced as the building's leasing rep, but this deal appears to have been a holdover from her team's tenure.
***
National Debt Relief is taking an additional 30K SF at MHP Real Estate Services and Clarion Partners’ 180 Maiden Lane, Commercial Observer reports. The space is on the 28th floor, and adds to the 95K SF it had already taken in the area. The lease is for 13 years, and asking rents are in the high $60s. MHP’s in-house team led by Jesse Rubens, along with a C&W team led by Tara Stacom brokered the deal for the landlord.
***
Women-only coworking firm The Wing is expanding, taking another 5K SF at Abner Properties’ 45 East 20th St. — its original location — and expanding to 20K SF at 52 Mercer St., which is owned by Nathan Baden. The expansions add a total of 15K SF to The Wing's square footage. It has four locations in Manhattan, Brooklyn and Washington, D.C., The Real Deal reports. The Wing is undergoing this expansion despite questions about the legality of its business model.
***
Production company Buck is taking 30K SF at Industry City, Crain’s New York Business reports. The 10-year lease is for the fifth and sixth floors of Building 5, and asking rents range from the high $30s to the low $40s per SF. Buck has 11K SF in Soho and will make the move this fall. Legacy Real Estate’s Ken Fishel and Jessica Jaber represented Buck in the deal.
***
The Cliff Climbing + Fitness is taking 40K SF at 233 Nevins St. in Gowanus, Commercial Observer reports. The space will feature 36K SF for climbing, plus two floors of boulders, 40-foot walls and a 4K SF outdoor terrace. Brad Cohen, Jacob Tzfanya and Jon Kamali — now of CBRE — brokered the deal while at Eastern Consolidated. David Silberberg of Spaceworks Real Estate Advisors represented the Cliffs.
TOP FINANCING DEALS
Extell Development landed $530M for its Brooklyn residential development at 138 Willoughby St. A group led by M&T Bank provided a $425M senior construction loan, and fellow New York developer RXR Realty provided a $105M mezzanine loan. Both loans are due in 2022.
***
The Moinian Group is providing $125M to Marx Development Group for its Hudson Yards hotel at the corner of West 34th Street and 10th Avenue, The Real Deal reports. The financing replaces a $90M loan from Moinian.
***
Aareal Capital Corp. provided Abe Talassazan’s Eretz Group $185M, The Real Deal reports, for its office tower at 295 Madison Ave. The financing includes a $18M gap mortgage and takes over from a $169M loan that Bank of China issued in 2015.
***
All Year Management scored $46M for its development site at 313-331 Bond St. The financing came from Centennial Bank in the form of a $30M senior loan, and Sherwood Equities is providing a $16M mezzanine loan, The Real Deal reports.
***
Chess Builders scored $42M from Valley National Bank for a rental at 1326 Ocean Ave. in Flatbush, Commercial Observer reports. The loan provides $17.7M in new financing and replaces $24.2M from KeyBank.
TOP SALES
All Year Management is paying $61M for a portfolio in Gowanus, The Real Deal reports. The sites are all next to each other and have a mix of commercial and industrial buildings. The addresses include 450 Union St., 426 President St., 319 Bond St. and 838 Carroll St. The seller was he late Daniel Tinneny.
***
GDS Development paid $36M for two buildings at 322-326 Seventh Ave., The Real Deal reports. The seller was the Raymond family from Staten Island, which has owned the properties for three decades. One of the buildings spans 14K SF and has three apartments and eight commercial units, while the other spans nearly 11K SF and features three apartments and four commercial units.
***
Engel Burman Group paid $46.5M for six walkup buildings at 1622-1632 York Ave., The Real Deal reports. The estate of Jacques Chretien is the seller. Wells Fargo provided a $76.4M construction loan for undisclosed improvements. The amount of the loan would imply additional density and development.
***
Toby Moskovits' Heritage Equity Partners is paying $19.8M for a 100K SF development site at 861-881 Fourth Ave. in Brooklyn, according to brokerage firm CPEX, which brokered the deal. The two lots of land are close to Industry City. Moskovits plans to build a 150-unit building on the site.
