This Week's N.Y. Deal Sheet
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The office market in New York City last year was dominated by coworking, and it seems like 2019 may be no different as several of the major flexible workplace companies inked significant deals last week. Traditional lease deals were signed, too, with Tishman Speyer’s new office building in Long Island City now fully leased thanks to a large expansion from Macy’s.
Macy’s added 300K SF to its lease at The JACX building in Long Island City, Tishman Speyer President Rob Speyer announced. The retailer had already taken 567K SF at the project, which is under construction. Macy’s staff will take all 22 floors at the east tower, and the Bloomingdale’s division will take 11 floors in the west building, according to a release.
The company — which has committed to occupy 867K SF in the building in a 20-year lease — will also take all of The JACX’s third and fourth base floors. Meanwhile, NewYork-Presbyterian is taking 28K SF in the building, where it is creating a primary care practice with Weill Cornell Medicine. The two leases mean the 1.2M SF building will deliver fully leased.
CBRE's Scott Gottlieb, Ken Meyerson, Michael Wellen and Peter Gamber represented Macy's. Tishman Speyer and NewYork-Presbyterian were represented in-house.
Flexible workspace provider Knotel has inked six new leases in Manhattan totaling 171K SF in the last week and change. The largest was a 60K SF lease at RXR Realty’s 61 Broadway, where it is taking space across the ninth, 10th, 17th and 18th floors. The firm also announced a 36K SF deal at 36 West 14th St., which is owned by the New School. The space is for the entire second floor of the 180K SF building.
Knotel also took 35K SF at Vanbarton Group's 45 West 45th St., 25K SF at Aion Partners’ 11 East 44th St., 11K SF at Skyway Development Group’s 30 West 21st St. and 5K SF at Condo Structure’s 22 West 21st St. in the Flatiron District.
Wedding-planning startup Zola is taking 30K SF at 7 World Trade Center, landlord Silverstein Properties announced last week. The space is for the 39th floor of the building, and the company will move in this year.
Publisher Essence Communications is taking 29K SF at 34 35th St. in Industry City. The company is moving at some point in the second quarter, Crain’s New York Business reports, and the lease is for 10 years. Essence was represented by Colliers International’s Sheena Gohil and Richard Mirliss, while the landlord was represented in-house by David Young and Kathe Chase.
Coworking company Industrious announced three new lease deals last week in Manhattan. At 325 Hudson St. it will open Industrious Hudson Square. Industrious Bryant Park will open at 1411 Broadway and it will expand at Industrious Union Square at 215 Park Ave. South. The size of each was not made clear, but these new deals will triple the company’s footprint in the city, according to the release.
HQ by WeWork, the recently rebranded We Company’s offering for small to midsize companies, announced four New York City locations last week totaling 110K SF. The coworking giant is taking 41K SF at 49 West 27th St., owned by Chestnut Holdings. At Hilson Management Corp.’s 185 Madison Ave. it is taking 29K SF, and at Safra National Bank-owned 546 Fifth Ave. it signed a lease for 20K SF. HQ by WeWork is also leasing almost 20K SF at 29 West 30th St., which is owned by the Kash Group.
IWG-owned Spaces inked a deal for 84K SF at Vanbarton Group’s 31 Penn Plaza, Commercial Observer reports. The deal is for 15 years and Spaces is taking the entire ninth through 11th floors in the building, where asking rents are $68 per SF. Mitchell Konsker, Matthew Astrachan and Adam Haber of JLL represented the landlord. Jim Wenk, Brannan Moss and Kirill Azovstev, also of JLL, represented Spaces. Additionally, Vanbarton Group inked a lease with pharmacy Capsule for 21K SF, according to CO. The Credit Junction is taking 7K SF and RevTrax is taking 7K SF in the building.
Urbanspace is opening a food hall, its third in the city, at CommonWealth Partners’ 787 Seventh Ave., CBRE announced in a release. The space in the building, previously occupied by Bobby Flay’s Bar Americain, is almost 12K SF, the New York Post reports. CBRE’s Amira Yunis and Anthony Stanford represented the tenant, while David LaPierre and Kristen Crossman, also of CBRE, brokered the deal for the landlord.
Steel Equities closed on its $52.5M purchase of a Bushwick warehouse, according to records filed with the city Thursday. Normandy Real Estate Partners, Princeton Holdings and Royalton Capital sold the 161K SF building at 333 Johnson Ave.
Shibber Khan’s Criterion Group bought a Long Island City development site for $80M, The Real Deal reports. The seller of the two-lot site at 22-09 Queens Plaza North and 22-09 41st Ave. is listed as PEC Realty Corp., which is linked to Allan Briteway Electrical Contractors Inc.
Pan Am Equities, owned by the Manocherian family, bought 103 East 86th St. from Ofer Yardeni’s Stonehenge Partners for $90M, The Real Deal reports. The rental building has 50 units and is 13 stories tall.
TOP FINANCING DEALS
Government agencies and Citigroup’s community capital division provided $123M for Hudson Cos. and Related's Riverwalk development on Roosevelt Island, The Real Deal reports. The developers are using the money to build an all-affordable housing rental project, which will feature 340 units.
A total of $20M came from the the New York City Department of Housing Preservation and Development in the form of a permanent subsidy loan. The New York City Housing Development Corp. provided almost $13M in tax-exempt bonds, and another $13M came from New York State Homes and Community Renewal. Citi loaned $75M for construction, as well as a $3M subsidy loan and a letter of credit for the tax-exempt bonds.
Deutsche Bank provided a $68M inventory loan to Wonder Works Construction for its building at 302 East 96th St., known as the Vitre NY, Commercial Observer reports. Morris Betesh, Tamir Kazaz and Alex Bailkin of Meridian Capital arranged the financing.