This Week's N.Y. Deal Sheet
Coworking didn't just dominate New York City's leasing market last week, it also made its mark on the sales landscape.
New Mountain Capital, an alternative asset manager, is taking more than 108K SF at the Paramount Group's 1633 Broadway, The Real Deal reports. The deal will allow the company to move from its headquarters at AXA Equitable Center, across the street from the new location. Savills Studley’s Ken Ruderman and Nate Brzozowski brokered the deal on behalf of New Mountain Capital. Leasing at the building is handled by CBRE’s Paul Amrich, Howard Fiddle, Stephen Siegel, Patrice Hayden Meagher, Emily Jones and Robert Hill.
Estée Lauder Cos. inked a sublease for more than 100K SF for the Brewster Building at 27-01 Queens Plaza North, Commercial Observer reports. The deal at the building is with Publicis Groupe, a PR firm, which has its own sublease with MetLife. Estée Lauder had originally taken 100K SF in a sublease with MetLife in the Brause Realty-owned building last year, and has now added another 100K SF. Rents in the deal were $35 per SF. Bruce Mosler, Ethan Silverstein, Mitch Arkin and Kelli Berke of C&W represented Brause and MetLife, and CBRE’s John Maher and Alex Benisatto brokered the deal for Publicis.
Flexible workspace provider Knotel has locked down a 39K SF lease at United Group's 29 West 35th St. The space spans five floors in the 12-story building, according to a release. Colliers International’s Michael Cohen, John Pavone and Jessica Verdi represented Knotel, whereas the landlord, United Group, was represented in-house by Roni Mova.
Australian coworking firm Servcorp took 36K SF at Hartz Group-owned 667 Madison Ave., Commercial Observer reports. Servcorp will run a coworking, serviced office and virtual office space in the location, which spans two floors. The deal is a master-service agreement, according to CO, and the first of its kind Servcorp has signed as it normally opts for traditional leases. Mark Weiss of Cushman & Wakefield brokered the direct deal on the landlord side.
Zeta Global is taking 23K SF at Charles Cohen’s 3 Park Ave., The New York Post reports, moving from 185 Madison Ave. The new space is for a single floor, and the tech company is moving this summer from its 18K SF space on Madison Avenue. Savills Studley’s Michael Mathias brokered the deal for the tenant.
The Zar Group locked down nearly 108K SF worth of leases at 1450 Broadway, including six new deals and three renewals, according to JLL, which leases the building for Zar. WeWork took just shy of 57K SF on the 11th and 12th floors in a 15-year deal, publishing company DK leased almost 11K SF, Insight Direct USA inked a deal for 10K SF on the 21st floor, Creative Office Design Inc. leased nearly 8K SF, Yagi Tsushi America Inc. took 4K SF and DHI Group Inc. took nearly 4K SF on the 29th floor.
Integreon renewed its 6K SF in the building, as did Newport Apparel Corp. (5K SF) and BNB Bank (4K SF). Zar Group was represented by JLL’s Mitchell Konsker, Barbara Winter, Simon Landmann and Kip Orban, all of whom worked with the Zar Group’s Bobby Zar and Michael Gleicher.
The We Company closed on its $850M purchase of Lord & Taylor from Hudson's Bay Co., the coworking giant confirmed Monday. The plan to buy the iconic retail building was announced back in 2017, but a year later the company was said to be still looking for financing. It has reportedly locked down a $900M loan from JPMorgan Chase, Starwood Property Trust and a third lender, which will be used for both the acquisition and renovations.
Cara Investment GmbH, a German firm, paid $130.5M to Paramount Group for 670 Broadway. CBRE’s Darcy Stacom, Bill Shanahan and Ryan Spector brokered the deal for the 75K SF building, also known as Zero Bond Street, on behalf of the seller, which paid $112M for the property in 2015.
Nonprofit CenterLight Health System finalized the $38.5M sale of the Margaret Tiez Nursing and Rehabilitation Center in Jamaica, Queens, according to records filed with the city. The overall purchase price included $2.5M for operations and $38.5M for real estate, according to previous reports. The buyer was listed as an LLC in records, and Cassena Care principals Pasquale DeBenedictis and Alex Solovey and Workmen’s Circle MultiCare Center CEO Solomon Rutenberg are the owners of the LLCs buying the operation, according to a report from Crain’s last year.
TOP FINANCING DEALS
Lightstone locked down $187M in financing for its rental property in Dutch Kills, Long Island City, the company announced this week. Citibank is the lender on the building at 30-02 39th Ave. The building has 428 units and 50K SF of indoor and outdoor amenities.
Avery Hall scored a $165M construction loan from Jutland Finance, Crain’s New York Business reports, for its planned condominium building in Downtown Brooklyn. Avery is partnering with Allegra Holdings and Aria Development Group on the 21-story, $250M building, which will be called 1 Boerum Place. HFF’s Christopher Peck and Graham Stephens arranged the financing for Avery Hall.
Investment firm Paragon Outcomes Management and Axos Bank (formerly Bank of Internet) provided a $30M condo inventory loan to Victor Group for the unsold units at the Getty, The Real Deal reports. The building at 501 West 24th St. has four units left to sell, out of a total of seven.
HAP Investments locked down $52.5M for the construction of 4452 Broadway from Madison Realty Capital, The Real Deal reports. Gamma Real Estate had loaned $11.5M back in 2017. The developer is planning a 134K SF project, featuring retail and apartments.
CORRECTION, FEB. 13, 11:30 A.M. ET: There are four unsold units at The Getty. An earlier version of this story misstated the remaining inventory. This story has been updated.