This Week’s N.Y. Deal Sheet: More Major Office Refis Close
Fisher Brothers and and Alaska Permanent Fund Corp. have nabbed a $500M refinancing mortgage from two lenders for their 1.2M SF office tower at 299 Park Ave., the latest prime office property to land new CMBS debt.
CitiGroup and J.P. Morgan provided the debt, according to a release. They plan to package the mortgage into a single-asset security, Crain's New York Business previously reported.
A Newmark team including Jordan Roeschlaub, Jonathan Firestone and Nick Scribiani brokered the financing deal.
The 42-story skyscraper is 95% leased, having signed more than 60K SF of leases last year after investing $20M in capital improvements in the building.
Law firms Becker, Glynn, Muffly, Chassin & Hosinski LLP renewed its 25K SF lease and MacKay Shields LLC signed for a 30K SF space. Subtenant Park Madison Partners also stayed put in the space by signing a direct lease.
TOP FINANCING DEALS
The Irvine Co. landed a CMBS loan for $1.5B to refinance the MetLife Building at 200 Park Ave., Commercial Observer reported. Bank of America and Wells Fargo were the lead originators of the 10-year mortgage. The deal has an interest rate of 6.25%, far higher than the 3.6% interest rate of the previous loan. The 3M SF office building atop Grand Central is 98% leased, with tenants including MetLife and law firm Gibson, Dunn & Crutcher. Irvine Co. acquired the property in 2005 for $1.7B as a joint venture with Tishman Speyer, but bought out Tishman Speyer’s stake last summer.
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Ivanhoé Cambridge and Hines refinanced 3 Bryant Park for more than $1.1B in the form of a new CMBS loan. The funding for the 1.2M SF, 97.2%-leased office property in Midtown Manhattan came from a group of lenders led by Wells Fargo, Bank of America and Bank of Montreal. The five-year loan comes with a floating interest rate of 2.25% above the secured overnight financing rate, making the initial interest paid roughly 6.6%. JLL's Christopher Peck, Drew Isaacson, Lauren Kaufman, Jennifer Zelko and Christopher Pratt represented Ivanhoé Cambridge in the deal.
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Black Spruce Management and Orbach Affordable Housing Solutions notched a $290.6M refinancing deal for the 408-unit rental building at 685 First Ave., PincusCo reported. The new debt for the Murray Hill apartments came from Apollo Global Management and RXR Realty, replacing a loan of the same value from JPMorgan Chase. The new loan is split into a $240M senior loan held by Apollo and a subordinate debt of $50.6M financed by an affiliate of RXR.
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Dwight Mortgage Trust has agreed to lend $148M to Moshe Braver to finance the construction of a 24-story multifamily building in Jamaica, Queens, Commercial Observer reported. The loan will fund the second phase of the 524-unit apartment complex at 94-15 Sutphin Blvd., which will set aside 158 units as affordable housing to qualify for the 421-a tax abatement.
TOP LEASES
Special education school Gersh Academy has signed a 58K SF lease at 25 Chapel St. in Downtown Brooklyn, The Real Deal reported. Asking rents in the building, owned by ISJ Management Corp., are $38 per SF, according to Commercial Observer. The school, which serves children with autism, signed a 10-year lease spanning three floors, including a 25K SF direct lease and a sublease deal for a little over 32K SF with Brooklyn Labs. The location is Gersh’s first in Brooklyn, following schools in Queens Village and Long Island City. ABS Partners Real Estate’s Cooper Katz and Alan Cohen represented Gersh in the deal.
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WeWork has signed a 112K SF lease at Brookfield Properties’ Five Manhattan West for space that will be occupied by Amazon. The coworking firm is taking the space in the 1.8M SF building in a sublease deal to grow Amazon’s footprint in the building from 360K SF, which it leases directly, to 472K SF, according to the New York Business Journal, which first reported the deal. Amazon has been in the building since 2017, when it signed a 15-year lease.
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A partnership between Masaharu Morimoto and Montclair Hospitality Group signed for 18K SF at Rosen Equities’ 1255 Broadway, the New York Post reported. This will be the first eatery opened by the chef since his Chelsea restaurant at 88 10th Ave. closed during the pandemic. The space is at the base of the 11-story office building at 1261 Broadway, three blocks south of Herald Square. Cushman & Wakefield’s Steven Soutendijk and Amy Zhen represented the tenant in the deal, while Max Koeppel of Koeppel Rosen represented building ownership.
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Xing Fu Tang, a Taiwanese boba tea chain, has signed a 15K SF lease at Madison Capital and Salmar Properties’ Liberty Bklyn at 850 Third Ave. in Sunset Park, Commercial Observer reported. Asking rents in the space were $24 per SF. The company plans to use the space for the production, warehousing, storage and distribution operations that support its U.S. retail business. The Buckley Organization’s Casal San Andres represented the tenant and Pinnacle Realty Group’s David Junik, Mark Caso and Daniel Tack represented the landlord.
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Community Healthcare Network signed a 12K SF deal for office space at Stellar Management’s 44 W. 28th St., Commercial Observer reported. The healthcare company, which provides primary care, mental health and social services, will relocate its administrative headquarters from 60 Madison Ave. to its new NoMad digs for the 10-year lease. Lauren Davis and Cameron Tuttle of Denham Wolf brokered the deal for Community Healthcare Network, while Caroline Merck, Jacob Rosenthal, Stephen Siegel, Arkady Smolyansky, Brett Shannon and Conor Krup of CBRE represented the landlord.
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Silverstein Properties signed the German American Chamber of Commerce in New York to an 11K SF lease at 120 Wall St., according to a release. The landlord offers nonprofits like GACC NY a reduced or eliminated real estate tax bill throughout the term of their lease via a joint program administered by the landlord and New York State’s Empire State Development. The offering has attracted other nonprofits like Girls, Inc. to the property, which is now 94% leased. GACC NY will relocate from 80 Pine St., which is poised to undergo residential conversion. Harlan Strader represented Silverstein in-house, while the tenant was repped by JLL’s Evan Margolin and Scott Ansel.
TOP SALES
Avdoo & Partners Development paid $52M to Isaac Ohebshalom’s Gatsby Enterprises for 242 E. 71st St. and 1341-1347 Second Ave., according to a release. Avdoo & Partners plans to demolish the properties on the 10K SF lot, which is occupied by five largely vacant buildings. Valley National Bank provided the loan for the deal, which will be Avdoo’s first residential project on the Upper East Side. Construction is expected to start later this year.
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Quantum Pacific Group is under contract to buy 101 Greenwich St. in Manhattan’s Financial District from its current owners, BGO and Multi-Employer Property Trust, PincusCo reported. The building was formerly known as 2 Rector St. The sale amount is not yet public, although it last changed hands in 2016 for $221M. The memorandum of contract for 101 Greenwich St. closed in late January.
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A 29-unit residential building in Manhattan’s Yorkville neighborhood has changed hands for $14.1M, PincusCo reported. Meadway Estates sold the property at 529 East 85th St. to 529 East 85th Associates, an entity in the care of David Eisenstein Real Estate.
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Slate Asset Management has acquired 2283 Third Ave., an 18-unit rental in East Harlem, from Rockfeld Group for $28.3M, PincusCo reported. OakNorth Bank provided a $14M loan to finance the acquisition, which closed on Jan. 27 and appeared in city records on Feb. 5.
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Chicago Pacific Founders has acquired a Bronx office building at 951 Brooke Ave. occupied by the Montefiore Einstein Comprehensive Cancer Center Community for $24M, PincusCo reported. Joshua Schwartz, through the entity MBX Acquisition Holdings, was the seller of the Morrissania building.
