This Week's N.Y. Deal Sheet
Several major leases and investment sales closed last week — with HNA Group selling off a Midtown office building and Silverstein Properties locking down another tenant for its 3 World Trade Center.
TOP LEASES
Diageo, which owns spirit brands Smirnoff, Johnnie Walker and Baileys, is taking 87K SF at 3 World Trade Center on the 41st and 42nd floors, The Real Deal reports. The company's office at the moment is in Midtown, at RXR Realty’s 530 Fifth Ave. It has offices in Connecticut, where it will keep space. Diageo is scoring up to $6.6M from New York state's performance-based Excelsior Tax Credits after it agreed to create 500 new jobs in the city.
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New Hope Fertility Clinic expanded at GLL Real Estate Partners’ 4 Columbus Circle, adding nearly 37K SF. It now has almost 75K SF in the building, Commercial Observer reports. The space will be across the second through fifth floors. CBRE’s Anthony Dattoma, Ken Meyerson and Zach Weil represented the tenant. David Hollander and Tim Freydberg, also of CBRE, represented GLL.
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Regal Cinemas is taking 34K SF at Tangram, F&T Group and SCG America’s 1.2M SF mixed-used development in Flushing for a new multiplex movie theater. The seven-screen theater will feature 4DX technology, which adds environment effects like seat motion, wind, rain and lights to movies. The deal replaces a previously signed lease with South Korea-based CJ CGV, according to a release from the developers. SCG Retail is handling leasing for Tangram. Robert Greenstone represented Regal in the 20-year lease deal.
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Architecture firm HLW is taking around 30K SF at Haymes Investment Co.’s 5 Penn Plaza, the company announced. The lease is for 10 years and sees the firm taking the entire fifth floor of the building. It plans to move from 115 Fifth Ave.
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Spin Master, a Canadian children’s entertainment company, is expanding by 26K SF at 30-30 47th Ave. in Long Island City, a building called The Factory. In total, it will now have 51K SF. Invesco Real Estate, Atlas Capital Group and Partners Group own the building. Newmark Knight Frank’s Brian Waterman, Howard Kesseler, Jordan Gosin and Alex Rosenblum arranged the lease.
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Sotheby’s International Realty is taking 38K SF at 650 Madison Ave., in deal that will see the luxury brokerage firm moving from 38 East 61st St. The new space is on the second floor of the building, Crain’s New York Business reports. The new digs will be 30% bigger, and architecture firm Gensler is designing the interior space.
TOP SALES
Chinese conglomerate HNA Group sold off another trophy asset last week. Jacob Chetrit, along with his sons Michael and Simon, acquired the 21-story, 617K SF 850 Third Ave. The sale price was not made public, but a source close to the deal said the building traded for $422M. HNA paid $463M for the building in 2016. MHP Real Estate Services and ATCO Properties & Management, both minority owners, also sold their stakes in the building, and MHP brokered the sale.
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Global Holdings Group paid $43.8M for 424 Bedford Ave., a luxury rental building in South Williamsburg. Hodges Ward Elliott arranged the deal on behalf of the sellers, East End Capital and KBS. HWE’s Will Silverman, Paul Gillen, Daniel Parker and Ariel Tambor represented the seller and brought in the buyer. The 66-unit building spans 64K SF and reaches 20 stories.
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Clothing company Brooks Brothers bought 11 East 44th St. from Aion Partners for $105.8M, The Real Deal reports. The property serves Aion’s headquarters, and Brooks Brothers leases 40K of the 135K SF in the building. Colliers International’s Richard Baxter and Jason Gold brokered the deal.
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E&M Associates sold a Harlem portfolio of 21 residential and retail buildings for $76.3M, The Real Deal reports. Black Spruce Management and NYC Housing Partnership are the buyers. The properties are mainly on Adam Clayton Powell Boulevard, and cover three city blocks with 224 residential units and 30 retail stores. Steven Vegh of Westwood Realty Associates arranged the sale.
TOP FINANCING DEALS
JPMorgan Chase loaned $73M to Icon Realty Management for the refinancing of nine buildings, The Real Deal reports. The money replaces a loan from Signature Bank. The properties, which feature 300 units, are 808 Lexington Ave., 316 West 14th St., 446 West 19th St., 448 West 19th St., 324 West 14th St., 322 West 14th St., 320 West 14th St., 610 East Ninth St. and 147 Clinton Hill.
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New York City Housing Development Corp., the city’s Department of Housing Preservation and Development and Citigroup provided $188.5M to Richman Group for its mixed-use development project in East Harlem. The financing will inject capital into the developers' project at 201 East 125th St., Commercial Observer reports. That development is slated to feature 404 units.
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Calmwater Capital, based in Los Angeles, provided about $60M to Sun Equity Partners and Heskel Group their planned retail development at 40-31 82nd St. in Jackson Heights, The Real Deal reports. The financing includes a $29M building loan and a $31M refinancing.
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Youngwoo & Associates locked down $130.6M from Shanghai Commercial Bank for its mixed-use development at 2420 Amsterdam Ave., The Real Deal reports. The project would feature a hotel, office and retail space. The lender, based in Hong Kong, also took on a $14.6M senior loan from HSBC Bank.
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Trinity Financial locked down around $83M of city financing for an affordable housing development in Brownsville, The Real Deal reports. Trinity is developing Van Dyke III at 405 Dumont Ave., which is part of the Van Dyke Houses affordable housing complex. The building is slated to feature 180 units and reach 12 stories.
CORRECTION, JAN. 16, 11:30 A.M. ET: The Van Dyke complex is in Brownsville. A previous version of this story misidentified its location. This story has been updated.
UPDATE, JAN. 16, 11:30 A.M. ET: This story has been updated to reflect a leased signed at Tangram in Flushing.
