This Week's N.Y. Deal Sheet
This week, a Fifth Avenue office building changed hands, a law firm found a new home and a Downtown luxury hotel and condominium development scored financing.
TOP SALES
Savanna has agreed to pay $381M to SL Green and its partner for 521 Fifth Ave., SL Green announced last week. The office building spans 460K SF and reaches 39 stories. SL Green owns 50.5% of the property and Plaza Global Real Estate Partners, which is a joint venture between LaSalle Investment Management and Quantum Global Real Estate, owns the rest.
The sale, brokered by CBRE’s Darcy Stacom and Bill Shanahan, is expected to close this quarter. SL Green has owned the leasehold on the property since 2006, and took over the fee interest in 2011. The JV bought into the asset in 2012.
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Magna Hospitality paid $274.3M to Sam Chang for a hotel development at 338 West 36th St., Commercial Observer reports. The hotel has 576 rooms and will operate as a dual-flag Marriott Fairfield Inn & Suites and Marriott SpringHill Suites.
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The Zucker Organization sold a parking garage for $32M, The Real Deal reports. The buyer of the property at 41 East 21st St. was Georgia-based Mequity Cos. Lee & Associates’ Steve Lorenzo, Mitchell Salmon and Christopher Ventura brokered the deal for the buyer. Zucker was represented by Lee & Associates’ Sidney Rosenthal.
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PGIM Real Estate and Extra Space Storage have paid about $114.2M for two self-storage properties. The companies paid $43.4M for a facility at 976 Cypress Ave., in Ridgewood, The Real Deal reports. In February, PGIM, the investment arm of Prudential Financial, and Extra Space paid $70.9M for a building at 1230 37th St. in Borough Park. The seller for both the properties was LSC Development, an Illinois-based builder.
TOP LEASES
Law firm Gunderson Dettmer Stough Villeneuve Franklin & Hachigian inked a deal for 45K SF at Global Holdings Group’s 1250 Broadway, known as NoMad Tower. The deal is for 15 years, according to JLL, the brokerage on the deal. The firm is moving from 220 West 42nd St., and its new space is on the 20th through 22nd floors. Paul Glickman, Mitchell Konsker, Benjamin Bass, Diana Biasotti and Harley Dalton of JLL arranged the deal for the landlord, along with in-house broker Craig Panzirer. Savills' John Mambrino, Nick Farmakis and Pete Cento represented the tenant.
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Fortune Media Group is taking 43K SF at Vornado’s 40 Fulton St. for its new headquarters, Commercial Observer reports. Meredith, which bought Fortune parent company Time Inc. last year, sold Fortune for $150M to a Thai businessman. Bruce Surry and Sam Spillane of CBRE represented the landlord, with Ryan Levy from Vornado. The deal is for 10 years and rents weren’t made public.
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OTC Markets Group took 33K SF at Brookfield Place at 400 Vesey St. in a 10-year sublease with Virtu Financial, Commercial Observer reports. OTC Markets is a marketplace for shares in companies that aren’t on stock exchanges. OTC is moving from 304 Hudson St., and is expanding its space by 10%.
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City Winery is taking space at Pier 57, according to Crain’s New York Business. The music venue and restaurant is moving from its current Hudson Square location to RXR Realty and Youngwoo & Associates’ project at the end of this year or early next. The length of the lease and rents were not made public, but the CEO of City Winery had previously told Crain's the new space would be 32K SF.
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Barry Sternlicht’s Starwood Capital Group is opening an office in 14K SF at 40 10th Ave., Bloomberg reports. Aurora Capital Associates and William Gottlieb Real Estate are co-developing the building.
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Financial investment platform iCapital Network is taking an additional 18K SF in Empire State Realty Trust's One Grand Central Place, doubling its space in the building, according to Commercial Observer. The deal is for nine years and the rents are $68 per SF. ESRT was represented by in-house brokers Julie Christiano and Leslie Nadel, alongside Newmark Knight Frank’s William Cohen, Brittany Silver and Jamie Jacobs. CBRE’s Lauren Crowley Corrinet, Alex Golod and Chris Hogan brokered the deal for iCapital Network.
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Cohen Brothers Realty inked a deal for Shinhan Bank America to take 32K SF at 465 Park Ave. South, Commercial Observer reports. Asking rents in the 15-year deal were $70 per SF. Marc Horowitz represented the landlord with Colliers International’s David Glassman.
TOP FINANCING DEALS
The Durst Organization has locked down $120M for the office portion of 855 Sixth Ave., a financing round led by Capital One, Commercial Observer reports. The bank will hold $50M of the debt and has place $45M with TD Bank and $25M with Bank United. Durst is paying a fixed rate just above 4%.
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Deutsche Bank loaned $173M to The Witkoff Group and hotelier Ian Schrager the refinance the Public, a luxury hotel/condominium project at 215 Chrystie St., The Real Deal reports. The financing replaces a loan from Starwood Capital Group provided in 2017. Newmark Knight Frank’s Jordan Roeschlaub and Dustin Stolly arranged the financing.
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Wells Fargo provided a $76M Freddie Mac mortgage to Adam Mermelstein and Azi Mandel’s Treetop Development for the Riverview Apartments at 1600 Sedgwick Ave. in the Bronx, The Real Deal reports. Treetop is the affordable housing complex’s beneficial owner and NYC Housing Partnership is the sponsor.
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Prudential Multifamily Mortgage provided a $127M Fannie Mae loan to Glenwood Management to refinance a 33-story apartment complex on the Upper East Side. The loan is for 300 East 75th St., which has 467 units, The Real Deal reports. Glenwood has owned the property, known as the Fairmont, for decades.
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LoanCore Capital and KSL Capital Partners loaned $155M to Lightstone Group to refinance its Moxy Chelsea Hotel at 104 West 28th St., The Real Deal reports. The loan replaces Bank OZK's $58M construction loan from 2016, when it was still going by Bank of the Ozarks.
