This Week's N.Y. Deal Sheet
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This week, an iconic New York City hotel scored financing, a tech company inked a deal to move its headquarters out of Chelsea and a renovated office warehouse in Brooklyn changed hands.
Human resources tech company Justworks is leaving Chelsea and moving downtown, inking a deal to take 270K SF at 55 Water St. The company will leave the Starrett-Lehigh Building in the second quarter of next year, and move to the Downtown Manhattan location, according to CBRE.
Exact prices in the deal were not made public, but the average asking rent in the building is $58 per SF, per a release. Howard Fiddle, Evan Haskell, Brad Gerla, Dave Caperna and Mary Ann Tighe of CBRE represented the landlord, New Water Street Corp., which is a subsidiary of the Retirement Systems of Alabama. The tenant was represented by Cushman & Wakefield’s Chris Helgesen, Peter Trivelas, Dirk Hrobsky and Gary Ceder.
Vevo, a music video hosting service, leased 38K SF at the Durst Organization’s 151 West 42nd St., also known as 4 Times Square, The Real Deal reports. The company had previously been subleasing space from Skadden, Arps, Slate, Meagher & Flom, and this new deal is a direct lease.
Newmark Knight Frank brokers David Berke and Jonathan Ortiz represented the tenant. In a separate deal, the National Cable Communications added another 16,700 SF to its lease in the building, per TRD. Savills’ Erik Schmall and Scott Weiss represented NCC in its deal. The asking rent in NCC’s deal was $85 per SF, and Vevo’s was $95 per SF. In-house brokers Tom Bow, Rocco Romeo and Tanya Grimaldo represented the landlord.
Investment banking firm Greenhill & Co. is taking 78K SF at 1271 Sixth Ave., landlord Rockefeller Group announced last week. The property, formerly known as the Time & Life building, is now almost 100% leased, per a release.
The investment bank will take the full 20th and 21st floors there, and is moving from 300 Park Ave. next year. The tenant was represented by CBRE’s Michael Geoghegan, Andrew Sussman and Peter Gamber. Rockefeller Group was represented in-house by Ed Guiltinan and Jennifer Stein, along with CBRE's Mary Ann Tighe, Howard Fiddle, John Maher, Evan Haskell and Dave Caperna.
Development firm LIVWRK paid $55.9M for 1000 Dean St., Commercial Observer reports. The seller is Brooklyn Flea co-founder Jonathan Butler and partners. The building is a warehouse renovated into commercial office space that spans 150K SF. TerraCRG’s Ofer Cohen, Dan Marks and Daniel Lebor brokered the deal.
Kushner Cos. paid $39.8M for a retail condo at 285 Lafayette St., according to the brokerage on the deal, Kassin Sabbagh Realty. The building spans 31K SF, and the price per SF works out to be $1,282. The sellers were Ralph Tawil’s Centurion Realty and Ashkenazy Acquisition Corp. The brokers on the deal were Isaac Setton, Bunny Escava and Ally Dayon of Kassin Sabbagh Realty.
ICER Properties, led by Joseph Jemal, paid $30.5M for nine multifamily properties in Hamilton Heights. The nine rent-stabilized properties span 91K SF and feature 107 units. The seller was an LLC registered to Marlena Demenus of Sky Lake Partners. The properties include 606, 610 and 614 and 622 St. Nicholas Ave. and 129, 133, 135, 137 and 139 Edgecombe Ave. RM Friedland broker Marco Lala led a team that arranged the deal.
The Modell family of Modell’s Sporting Goods and the Brodsky family’s BEB Capital joined together to pay $60.5M for 22 West 38th St. from Dalan Management, The Real Deal reports. The building is a 60K SF office building, and the deal is a 1031 exchange. No brokers were on the deal, according to the publication.
TOP FINANCING DEALS
The Witkoff Group and Emirati sovereign wealth fund Mubadala Investment Co. locked down $615M from J.P. Morgan Chase and Deutsche Bank to refinance the Park Lane Hotel, Commercial Observer reports. The loan refinanced about $266M in acquisition financing from Wells Fargo, which the companies used to pay $654M for the property, at 36 Central Park South, back in 2013. They also scored $425M in mezzanine financing from undisclosed lenders, per CO, and a $158.3M gap mortgage.
Korean firm Hangang Asset Management provided $133M to the Chetrit Group for its development at 500 Metropolitan Ave. in Williamsburg, The Real Deal reports. The building is 14 stories tall and has a 187-key hotel and 42 residential units, per TRD. Galaxy Capital Group’s Henry Bodek arranged the financing.
Deutsche Bank provided KKR and the New York City Industrial Development Agency a $490M fee and leasehold mortgage for the private equity firm's commercial condo at 30 Hudson Yards, Commercial Observer reports. KKR is the fee owner of the 343K SF condo, and the IDA controls the leasehold interest.
JPMorgan and Mack Real Estate Group provided a $235M senior loan to All Year Management for the second phase of the Rheingold Brewery project, The Real Deal reports. The financing is for the 468-unit rental at 123 Melrose St., per the publication, and pays back a $165M loan Madison Realty Capital provided on the project.
Principal Life Insurance provided $123M to Glenwood Management for the refinancing of 500 East 77th St., a rental building known as the Pavilion, Commercial Observer reports. The new loan refinances a $113M Fannie Mae mortgage from Independence Community Bank that was provided in 2007.
Crédit Agricole Group provided $340M to Global Holdings Group for 875 Third Ave., replacing the previous $320M loan from Bank of America, Commercial Observer reports. The office building is 750K SF and 29 stories tall.
DW Partners loaned $175M to China Oceanwide Holdings for 80 South Street Seaport, The Real Deal reports. The company is planning to build a tower there that could reach 1,436 feet. China Oceanwide paid The Howard Hughes Corp. $390M for the site in 2016, per TRD.