This Week’s N.Y. Deal Sheet: Amazon’s Purchase Price For 522 Fifth Revealed
A sale price has hit public records for Amazon’s purchase of 522 Fifth Ave.
The e-commerce behemoth bought the property from RFR earlier this month, shelling out $340M for the office floors of the 600K SF building, records filed with the city show.
Amazon also purchased the building’s retail condo from Deka Immobilien for $85M earlier this month, bringing total investment in the property to $425M.
Deka and Ashkenazy Acquisition bought the retail portion of the building in 2014 for $165M, with the sale representing a significant discount, PincusCo reported. RFR purchased the condo from Morgan Stanley in 2020 for $350M.
However, both Commercial Observer and The Real Deal reported, citing unnamed sources, that the property records don’t represent the entire purchase price, which was actually $456M.
The deal ended a foreclosure attempt at the building from SL Green, which had bought the mortgage at a discount.
TOP SALES
Tredway has acquired a 602-unit affordable housing complex in Far Rockaway for $88M, Commercial Observer reported. The seller of 125 Beach 17th St. was The Related Cos., while Merchants Capital provided an acquisition loan worth an undisclosed amount. The 1972-built property was developed under NYC’s Mitchell-Lama program but has suffered considerable damage in the decades since due to salt spray from its beachfront location. Tredway’s rehabilitation plans for the property include window weatherization, a new roof and replacing the parking deck. The firm also closed a new regulatory agreement with NYC’s Department of Housing Preservation and Development to designate all of the property’s units as rent-stabilized. Ariel Property Advisors’ Victor Sozio, Shimon Shkury, Remi Mandell and Jake Brody arranged the sale.
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Westside Market owner John Zoitas acquired the retail condominium at 2250 Broadway on the Upper West Side for $32.5M from investment firm Angelo Gordon, according to a deed filed Tuesday in property records. Angelo Gordon acquired the property, which is leased to Staples and Starbucks, from the Zucker Organization in 2022 for $27M.
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GO-RE Partners acquired a 66-unit, seven-story apartment building at 88 Linden Blvd. for $28M, PincusCo reported. The seller of the Flatbush building was Prophet Capital Asset Management. Prophet Capital had previously held the debt on the building but foreclosed on it in June 2021 for $23.1M. The building’s units start at $2,800 per month for a studio, Commercial Observer reported. JLL’s Steven Rutman, Jeffrey Julien, Rob Hinckley and Ethan Stanton arranged the deal.
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Delshah Capital is in contract to let go of a Meatpacking District retail building at 58-60 Ninth Ave. as part of a structured bankruptcy process, PincusCo reported. BNF Capital, a UK-based family office and investment firm, is set to take the property for $21M. The property went into contract in January but isn’t set to close until October. The sale will help Delshah pay down some of the $35.2M it owes on the debt covering 58-60 Ninth Ave. and 69 Gansevoort St.
TOP LEASES
Fintech firm Chime inked an 84K SF lease to move its NYC office to the Bromley Cos.’ 122 Fifth Ave. Chime will relocate from 101 Greenwich St., bringing 122 Fifth to more than 90% leased in the process. Bromley Cos. recently spent $100M to redevelop the building’s retail and office space, luring Microsoft, which signed for 150K SF and opened its “AdTech Hub” in the building last year. Cresa’s Jamie Saunders, Janna Luce, Jacob Berston, Gregg Cohen and Sam Steinberg repped Chime, while Newmark’s Eric Cagner, Peter Shimkin, Dylan Weisman and David Falk repped the landlord.
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PNC Bank signed an 83K SF lease at Sage’s 437 Madison Ave., Commercial Observer reported. The deal is a relocation and expansion for the Pittsburgh-based bank, which is moving from 65K SF space at Barings’ 340 Madison Ave. PNC will occupy the entire 11th and 12th floors as well as part of the 14th floor. The deal is PNC’s first relocation since 2008. David Simson, David Falk, Peter Shimkin and Jonathan Franzel of Newmark repped PNC, while Frank Doyle, David Kleiner, Margaux Kelleher, Michael Pallas and Andrew Coe of JLL repped the landlord, with in-house representation by Sage’s Michael Lenchner.
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Film production company Atlantic Pictures is relocating to 66K SF at SL Green’s 100 Church St. for two years, the New York Business Journal reported. The firm and its subsidiaries, management company Backlot and coworking space The Hub, are expected to complete the move from 950 Sixth Ave. next week.
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Old Navy signed the biggest retail lease so far this year in NYC with a 55K SF deal in Herald Square. The apparel retailer will open a flagship store at JEMB Realty’s 50 W. 34th St. next year, spanning two floors in a relocation from 150 W. 34th St., where it is being replaced by Primark. LMJ Realty, a subsidiary of JEMB, represented building ownership in-house. Newmark Vice Chairman Ariel Schuster and Gap’s in-house team repped OId Navy.
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Vornado Realty Trust inked a 51K SF lease with luxury fashion house Brunello Cucinelli at 689 Fifth Ave., Commercial Observer reported. Brunello Cucinelli already has 43K SF on the fifth through ninth floors and the penthouse of the property, and it's tacking on a further 8K SF across the entire fourth floor. Asking rents were $105 per SF. CBRE’s Joseph Fabrizi and Arkady Smolyansky repped the tenant, while Vornado was repped in-house by Alexandra Bedell.
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Online luxury fashion retailer Moda Operandi signed a 30K SF lease for a new distribution center in Maspeth, CO reported. The deal places Moda Operandi on the third floor of the industrial space at 58-30 Grand Ave., known as the Pearl Building, for a five-year term. The space is in addition to its corporate offices at 34 34th St. in Sunset Park and 195 Broadway in the Financial District. JLL’s Owen Hane, Jeremy Liebler and Frank Coco repped the tenant, while Cushman & Wakefield’s Rico Murtha, Helen Paul, Joe Hentze Jr. and Sonny Singh repped landlord The Davis Cos.
TOP FINANCING DEALS
RXR scored a 3-year extension on its $1B CMBS loan for 1211 Sixth Ave., Commercial Observer reported. The mortgage on the 45-story, 1.8M SF office tower was originated by JPMorgan Chase, Citigroup and Morgan Stanley in 2015 and was scheduled to mature in August 2024. Fitch Ratings flagged the loan last year for its debt service coverage ratio, which was 0.97x at the time. RXR bought its 49% stake in the building in January, and Ivanhoé Cambridge has a 51% stake. RXR and Ivanhoé agreed to invest $300M in a modernization program for the building in order to secure the new CMBS financing, CO reported.
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Clipper Equity refinanced its recently completed Crown Heights multifamily building for $160M, CO reported. The sum for the nine-story, 240-unit building at 953 Dean St. came from MF1 Capital and was arranged by a Landstone Capital Group team led by Leah Paskus and Pinchas Vogel. The sum replaces a 2023 construction loan from Valley National Bank and Be Aviv. The building benefits from the now-expired 421-a tax abatement program.
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Goldman Sachs, Barclays and Morgan Stanley have issued a $167M loan to a joint venture of Safehold and Melohn Capital, Commercial Observer reported. The sum refinances the ground lease underneath the 36-story building at 32 Old Slip in Lower Manhattan.
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ZD Jasper Realty notched a $95.3M construction loan from iCross Capital, PincusCo reported. The loan will fund the development of a 186-unit, 192K SF residential development at 45-40 Vernon Blvd. in Long Island City. The mortgage closed on April 24, five days before ZD Jasper’s permits were approved. The loan replaces a $25M sum from the same lender.
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Charney Cos. netted an $85M construction loan from Madison Realty Capital for an 182-unit residential condo project in Fort Greene, PincusCo reported. The financing will go toward the condo project at 95 Rockwell Place and is the secured portion of a $135M total sum that BH3 Fund Advisors and Madison Realty Capital provided to the developer.
