This Week's N.Y. Deal Sheet
WeWork dominated the office leasing market last week, inking a massive deal at 21 Penn Plaza. While investment sales remain slow and a few major financing deals were sewn up, the coworking giant is the most active player in NYC commercial real estate at the moment.
WeWork inked a massive deal for 258K SF at TH Real Estate’s 21 Penn Plaza. The lease will see WeWork taking space on 10 floors in the building, the coworking giant announced Wednesday.
The lease is a traditional WeWork lease, and not part of the company’s newest line, HQ by WeWork.
It wasn’t the only lease WeWork announced last week. It also inked a deal to take 70K SF at Jack Resnick & Sons' 880 Third Ave. office tower. It also closed on its deal to take 75K SF at the Brill Building at 1619 Broadway, The Real Deal reports. The lease is for 15 years and means the coworking company will take space on the fifth, sixth, seventh, 10th and 11th floors.
Interior design and furniture e-commerce site 1stdibs.com took 41K SF at Terminal Stores, The Real Deal reports. The space in the building, which L&L Holding and Normandy Real Estate Partners are buying for $900M, is for a new showroom.
1stdibs.com is taking the space as a sublease from electronics manufacturer Flextronics in a four-year deal. David Falk, Gregory Wang and Eric Cagner of Newmark represented 1stdibs in the sublease.
CIFC Asset Management is taking 30K SF at 875 Third Ave., owned by Global Holdings. The 10-year lease is for the entire 24th floor, The Real Deal reports, and rents are in the mid $70s per SF. CIFC was represented by Silvio Petriello, Andrew Sussman, Brad Auerbach and David Hollander of CBRE. JLL’s Paul Glickman, Diana Biasotti and Harley Dalton handle leasing for the building.
TOP FINANCING DEALS
Northwell Health and The University Financing Foundation locked down a $246M acquisition loan from CGA Mortgage Capital, Commercial Observer reports. The loan is for the purchase of six apartment buildings on the Upper East Side, where the joint venture is planning to build a medical complex.
RedSky Capital and U.K. investment fund JZ Capital Partners scored a $221.8M bridge loan from JPMorgan Chase. The financing is being used to acquire four properties on North Sixth Street, and to refinance the other 11 properties in the portfolio, according to JLL Capital Markets, which arranged the financing. The seller of the properties is Thor Equities, The Real Deal reports.
RedSky and JZ Capital now have 15 retail properties on North Sixth Street and Bedford Avenue, according to JLL. Jonathan Schwartz, Aaron Appel, Michael Diaz and Sean Baillie brokered the deal. It is a three-year, interest-only loan.
Wells Fargo loaned Vornado $120M for its building at 4 Union Square South, a 200K SF retail property, The Real Deal reports. The loan will replace previous financing the same bank provided in 2012.
German bank Landesbank Hessen-Thüringen provided a $200M to Stawski Partners for its 251K SF office building at 505 Fifth Ave., The Real Deal reports. The financing provides $50M in new money and replaces a $150M loan from the same bank.
North American Company for Life and Health Insurance loaned $55.3M to Moinian Group’s 450-460 Park Ave. South, The Real Deal reports. The financing provides $8.4M in new debt.
Meritz Real Estate Asset Management, a Korean investment firm, provided $65.6M to SL Green for its commercial condominium at 115 Spring St., The Real Deal reports. The REIT had paid $52M for the 5,200 SF property in 2014, and the asset did not have any debt before the loan. The building is currently home to an Adidas store.
Fortress Investment Group provided $46M against 12 East 52nd St., a site where Harry Macklowe is reportedly planning a condo tower, Commercial Observer reports. There was $18M in previous loans provided by Banco Inbursa on the site. The ownership of the building is shielded by a law firm, but The Real Deal reported earlier this year that Macklowe is targeting the area for his next residential tower.
Joy Construction and Maddd Equities scored $30M from Natixis, the French bank announced this week. The loan is for the purchase of five-story, self-storage properties at 202-208 Tillary St. in Fort Greene. The site has been rezoned from industrial to multifamily use, and the firms will continue to operate the self-storage companies while they evaluate redevelopment opportunities.
Barone Management paid $37.5M to the Sisters of Mercy for the former Angel Guardian Home in Brooklyn's Dyker Heights neighborhood, the company announced last week. Barone plans to turn the site at 6301 12th Ave. into 150 market-rate condos, affordable rentals and a school. Construction is expected to start next year.
Renaissance Realty Associates, a Nassau County-based firm, sold three buildings in Brooklyn for $34M, The Real Deal reports. Investor Lav Bauta bought two of the properties — a 50-unit building at 428 East 46th St. and a 39-unit building at 202 East 92nd St. — for a total of $18.7M. The Parlanti Group paid $15.2M for 957 Greene Ave., a 55-unit building.
Galo Shoes sold its five-story townhouse retail site at 770 Madison to Adeam, a Japanese fashion brand, for $31M. The building had been vacant for more than a year, The Real Deal reports.