This Week's N.Y. Deal Sheet
The summer drag has begun to hit, but deals are still coming together in the city. This week, Google finalized its lease for its upcoming campus in Hudson Square, Eliot Spitzer sold off a building and Naftali locked down financing for an Upper East Side condominium development.
Oxford Property Group finalized its lease with Google at St. John’s Terminal, where the tech giant is creating a new complex. The company is taking all of the 1.3M SF redeveloped property at 550 Washington St., Oxford announced last week. Oxford paid $700M for the property in 2017, and brought on Canada Pension Plan Investment Board as a joint venture partner in 2018. In the deal with Google, Oxford was represented by Adam Frazier in-house, along with Paul Amrich and Howard Fiddle from CBRE.
Insurance firm EmblemHealth renewed and expanded its lease at Flushing Plaza at 41-61 Kissena Blvd., taking a total of nearly 43K SF, Commercial Observer reports. The deal is for 20 years, and sees EmblemHealth renew 28K SF and add 15K SF to its footprint. The property is owned by Muss Development. Ross Spitalnick was the in-house broker for Muss Development, and Colliers International’s Brian Given and Sheena Gohil represented EmblemHealth.
KFF, a Korean food hall, is taking nearly 23K SF at 218 West 40th St., Commercial Observer reports. Savitt Partners owns the building, and in-house brokers Brian Neugeboren, Nicole Goetz and Bob Savitt arranged the 15-year lease. Winick Realty broker Young Byunn represented KFF.
The Consulate General of Japan extended its 58K SF lease at 299 Park Ave., landlord Fisher Brothers announced last week. Asking rents were mid-$90s per SF, according to Commercial Observer. The tenant was represented by CBRE’s Stuart Eisenkraft, Robert Stillman, John Maher and Ariel Ball. In-house brokers Marc Packman and Charles Laginestra arranged the deal for the landlord.
The Rudin family locked down two leases at 55 Broad St. for a total of 16K SF, the company announced. Curtis + Ginsberg Architects LLP took 10K SF for 10 years, and will move from 299 Broadway in Tribeca this year. Unibet Interactive, an online gambling operator, leased almost 6K SF. Curtis + Ginsberg was represented by Ruth Colp-Haber from Wharton Property Advisors, and Unibet Interactive was represented by Cushman & Wakefield’s Michael Baraldi and Lexie Perticone. Rudin was represented by Kevin Daly at Rudin Management Co.
Eliot Spitzer’s Spitzer Enterprises sold a rental building at 220 East 72nd St. for $160M, The Real Deal reports. The buyer was a partnership led by the Dermot Co. Meridian Capital Group’s Helen Hwang marketed the property, a 28-story doorman building that sold in an off-market deal, per TRD. HSBC provided a loan to Dermot and partners for the purchase.
Alexandria Real Estate Equities paid $25M to Prestone Realty for a 53K SF warehouse in Queens, Cushman & Wakefield announced in a release. The building at 47-50 30th St. was being used by Prestone Press as a printing facility, and it will now be turned into research office and lab space. The price works out to be $476 per SF. C&W brokers Stephen Preuss, Joshua King and Andreas Efthymiou brokered the deal on the buyer’s side.
The Naftali Group, which locked down significant financing deals this week, also closed on six sites it is assembling for a planned condominium development at East 83rd Street and Third Avenue, according to records filed with the city last week. Muss Development and the Aryeh family are the sellers, per The Real Deal, which reported the deal was under contract earlier this year. Naftali paid $12.7M for 1465 Third Ave., $16.7M for 204 East 83rd St., $9.7M for 1461 Third Ave., $14.3M for 1463 Third Ave., $10.7M for 1467 Third Ave. and $11.5M for 1469 Third Ave.
TOP FINANCING DEALS
HSBC loaned the Naftali Group $176M for its condominium at 200 East 83rd St., The Real Deal reports. The financing features $117M in a building loan, a $59M project loan and refinances an existing $90M loan. Naftali is joining with Rockefeller Group to build a Robert A.M. Stern-designed building on the site, per TRD. The total debt on the project before shovels hit the dirt is $266M.
In its second major financing deal last week, Naftali scored $120.4M from Bank Hapoalim, The Real Deal reports. The loan is construction financing for 1039-1045 Madison Ave., per TRD. The financing includes at $16M project loan, a $58.5M building loan and a $45.9M acquisition loan.