This Week's N.Y. Deal Sheet
Over the last week, the tallest residential building in Queens scored financing, a co-living firm scooped up another building in the city, and 3 World Trade Center locked down a lease with a growing startup.
Target is stepping in to fill a giant space left by Toys R Us and Babies R Us at the Ceasar’s Bay Shopping Center in Brooklyn. The space at the outdoor center in Gravesend spans 90K SF. Gazit Horizons owns and manages the center in partnership with Surrey Equities. Last year, Gazit Globe — the Tel Aviv-based parent of Gazit Horizons — paid $48.8M to buy a 41% ownership stake in the center from a Toys R Us entity.
Home-financing startup Better.com is taking 44K SF at 3 World Trade Center. The firm, backed by Citigroup, is taking space on the 59th floor of the building, and has the option to expand to two more floors. It is moving from space at 7 World Trade Center, also owned by Silverstein Properties, where it had just expanded to last year from SoHo. Silverstein's Jeremy Moss led the in-house leasing team, working with CBRE's Mary Ann Tighe-led agency team. JLL's James Wenk and Dan Turkewitz represented Better.com
Knotel locked down two new leases across the street from one another on Eighth Avenue spanning a total of 20K SF, the company announced last week. In one deal, Knotel took 11K SF at East End Capital’s 580 Eighth Ave. Knotel also inked a deal for 9K SF at Olmstead Properties’ 575 Eighth Ave.
Alex Kantor brokered the deal for East End Capital in-house for 580 Eighth Ave., and Daniel Breiman represented Olmstead Properties in-house for the lease at 575 Eighth Ave.
Co-living company The Collective picked up the Paper Factory Hotel, a 125-room building at 37-06 36th St. in Long Island City, the firm announced Monday. Collective CEO Reza Merchant told Bisnow the sale price was $58M. The firm has now made $150M worth of investments in the city. Gal Sela was the seller, and The Collective plans to convert the building into rooms for short stays between one and 29 days.
HUBB NYC Properties paid $75M to Mega Contracting Group and Treeline Cos. for an apartment building at 31-57 31st St. in Astoria, The Real Deal reports. JLL’s Bob Knakal, Hall Oster, Stephen Palmese and John Hageman arranged the sale. The building spans 100K SF and features 114 units.
Sherr Equities paid $19M for 489 Broadway, a 11K SF building with eight residential units, the Commercial Observer reports. The seller was Tak Jan Yu, and Sherr already had a net lease for the building for nearly five years. For the purchase, Sherr scored a $19M loan from Morgan Stanley. JLL’s Aaron Appel, Eliott Zeitoune, Michael Diaz, David Sitt and Brendan Collins arranged the financing.
TOP FINANCING DEALS
The Moinian Group has taken full control of the office tower at 3 Columbus Circle. The firm closed on a $595M commercial mortgage-backed security loan from J.P. Morgan and Deutsche Bank for the 683K SF building where Moinian is headquartered. The financing will retire Moinian's previous $350M CMBS debt on the building.
Moinian used a piece of the loan alongside cash equity to buy office anchor VMLY&R — previously Young & Rubicam — out of its office condo. CBRE brokers Mary Ann Tighe, Greg Tosko and Lauren Crowley brokered the sale-leaseback transaction for VMLY&R, which will now lease its 214K SF spread at the building.
TF Cornerstone locked down $484M from New York State Housing Finance Authority to refinance the Max, a luxury rental at 607 West 57th St., Commercial Observer reports. The building features 258 affordable units and 770 market-rate apartments. This new loan refinances $380M provided by the authority in 2014, according to CO.
Heatherwood Luxury Rentals locked down $215M from Morgan Stanley for Tower 28, the tallest residential tower in Queens, according to JLL, the brokerage on the deal. The 58-story tower at 42-12 28th St. features 450 market-rate units. JLL’s Aaron Appel, Jonathan Schwartz, Matt Collins, Brian Buglione and Michael Ianno arranged the financing.
The Wilf family scored $91M from Goldman Sachs for the two properties it bought in Midtown last week, The Real Deal reports. The family’s firm, Skyline Developers, paid $75M for 9 West 54th St. and 10 West 55th St. The loan provides a $45M new mortgage.
Noviprop and Plus Development scored a $40M construction loan from G4 Capital Partners for its planned project at 76 Eighth Ave., The Real Deal reports. HFF’s Peter Rotchford, Chris Peck, David Giancola and Kristen Knapp arranged the financing. The companies are planning a 10-story, 34K SF boutique office project.
Madison Realty Capital provided $31M to Icon Realty Management for the GEM Hotel at 300 West 22nd St. in Chelsea, MRC announced last week. The loan refinances previous debt and will help Icon to reposition the hotel. JLL’s Aaron Appel arranged the financing.
CORRECTION, MARCH 22, 3:30 P.M. ET: The Paper Factory Hotel has 125 rooms. An earlier version of this story misstated the number of the rooms it features. This story has been updated.