This Week’s N.Y. Deal Sheet: Horizon Media Inks 360K SF Renewal
Horizon Media is keeping its massive space at Hudson Square Properties’ 75 Varick St.
The global media agency has called the property, where it occupies six of the building’s 17 stories, its corporate home since 2010. A joint venture of Trinity Church, Norges Bank Investment Management and Hines owns 75 Varick St., which has around 1M SF of office space.
Horizon is now set to stay put in 360K SF at the building for another 17 years, Crain’s New York Business reported.
“Hudson Square Properties has been a valued partner that has allowed us to be flexible in our many growth phases and use cases — from film shoots to community events,” Bill Koenigsberg, CEO and founder of Horizon Media, said in a statement provided to Bisnow.
Newmark's David Falk and Peter Shimkin represented the landlord, and their colleagues Moshe Sukenik and Chris Mongeluzo negotiated for the tenant.
TOP LEASES
Santander Bank is keeping its 192K SF at Sage’s 437 Madison Ave., according to a release. The lease term gives Santander another seven years in the blocklong, 40-story office building, with the option to renew. Asking rents for base units range between $79 and $84 per SF, although exact asking rents for the deal weren't disclosed. Sage, formerly Sage Realty Corp., was represented in-house by Michael Lenchner and Jack Brennan. Santander Group was represented by a Savills team of Mitti Liebersohn, Arthur Mirante and Anna Erickson. Santander has been in the building since 2020 when it subleased space from WeWork, Commercial Observer reported.
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Immersive arts and entertainment company Meow Wolf has signed a 75K SF lease at Pier 17, Commercial Observer reported. The lease with Howard Hughes spinoff Seaport Entertainment Group is for 20 years at 89 South St., according to a release, and covers multiple floors of the complex. Construction on the space — Meow Wolf’s first on the East Coast after it canceled a planned D.C. location — is expected to start in the third quarter, per CO. CBRE brokers handled both sides of the deal: Cassie Durand, Sacha Zarba and Aylin Gucalp worked on behalf of the tenant, while Mary Ann Tighe, Gerry Miovski, Evan Haskell, Brett Shannon, Zachary Price and Jacob Rosenthal repped the landlord.
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SL Green and RXR have renewed specialist media company M. Shanken Communications' 39K SF lease at Worldwide Plaza, Commercial Observer reported. The company, whose publications include Wine Spectator and Whiskey Advocate, signed for an extra five years in the 49-story building at 825 Eighth Ave. and will occupy the entire 33rd floor as well as part of the second. The renewal may provide some short-term relief for ownership of the tower, which is almost 40% empty and short on cash, Crain’s reported last week. David Falk and Jason Greenstein of Newmark repped M. Shanken, which has been a tenant since 2014. SL Green repped ownership in-house.
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Uber has expanded in Silverstein Properties’ 3 World Trade Center in the second-biggest leasing deal from last month, according to a CBRE report of February leasing activity. Uber grew by 44K SF, bringing its total footprint in the building to 351K SF. Uber first moved into the 80-story office tower in 2019, signing for 307K SF as it consolidated space from elsewhere in the city.
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Art investment company Masterworks signed for 37K SF at One World Trade Center, according to the CBRE report. The deal is a sublease from mortgage lender Network Capital, the New York Business Journal reported.
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Muss Development signed two deals with nonprofits totaling 37K SF at 60 Bay St. in Staten Island, according to a release. The Legal Aid Society signed a long-term renewal and expansion, occupying 29K SF across the second, third and eighth floors. It was repped by CBRE’s Christopher Mansfield, Craig Reicher, Greg Maurer-Hollaender and Julia Passantem. Muss Development’s Bill Bergman repped ownership in the transaction. The Center for Family Representation signed for 6K SF on the first floor with representation from Cushman & Wakefield’s Jonathan Fein and Mitzi Flexer.
TOP SALES
Steiner NYC is now the sole owner of The Hub, a 750-unit mixed-use building at 333 Schermerhorn St. in Downtown Brooklyn. Steiner NYC bought out its equity partner, J.P. Morgan Asset Management, in a $418.6M recapitalization of the 55-story property. A Walker & Dunlop team of Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Michael Ianno and Christopher de Raet advised Steiner NYC on the transaction. JLL's Rob Hinckley, Jeffrey Julien, Andrew Scandalios and Steven Rutman represented the seller, Commercial Observer reported. Meadow Partners also invested $62.5M of preferred equity as part of the deal, according to a press release.
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A&E Real Estate shelled out $116.5M to acquire 501 E. 87th St. from the Soloviev Group, according to a release. The 179-unit, 22-story luxury rental apartment building is known as Rivers Bend and sits in Yorkville on the Upper East Side. The sale price works out to a value of roughly $547K per unit. S. Charatan Realty’s Jack Bick repped the seller.
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Flushing-based developer Hiwin Group USA spent $38.5M acquiring a 9K SF development site in Midtown Manhattan, Commercial Observer reported. Belvedere Property Management sold the property at 8 W. 45th St. in an all-cash deal. It acquired the site in 2020 for an undisclosed amount. Development Site Advisors’ Lev Kimyagarov brokered the deal for both the buyer and seller.
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Extell Development spent $103.3M on three properties next to its planned Madison Avenue luxury condo development, The Real Deal reported. The sale of 35, 37 and 39 E. 60th St. was first reported by PincusCo, which identified Solil Management as the seller. The assemblage is next to a 200K SF office tower that Extell plans to knock down as it builds a commercial and residential tower, although the sale could portend a bigger building than the 37-story tower the developer originally filed for.
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Brookfield Properties has sold a 10-story office building in the Garment District for $105M less than it paid for it in 2018, PincusCo reported. The sale price for 333 W. 34th St. was $150M, down from its previous sale price of $255M and translating to about $523 per SF for the 287K SF building. B&H Photo bought the building from Brookfield, The Real Deal reported. Tenants include the Metropolitan Transportation Authority and chocolatier Godiva, Crain’s reported.
TOP FINANCING DEALS
Haussmann Development scored a $49.5M refi from QuadReal Property Group for 445 Grand Ave., a mixed-use development in Clinton Hill, according to a release. The nine-story building, known as Arris Grand, has 113 apartments, including 34 affordable units. Haussmann bought a controlling minority stake in the 102K SF property last year. Alan Blank, Zach Kraft and Gideon Gil of Cushman & Wakefield brokered the deal.
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S3 Capital is lending $210M to Watermark Capital for the construction of a 28-story mixed-use residential development at 6208 Eighth Ave. in Brooklyn, according to a release. The property will eventually yield 497 residential units and more than 100K SF of retail space in the Sunset Park neighborhood. The loan marks a major turnaround effort after Watermark fought off a foreclosure lawsuit for the site. Prestige Construction will serve as the general contractor for the development, which will also feature amenities including a fitness center, rooftop terrace and bike storage. Arrow Real Estate Advisors' Morris Betesh, Matt O’Hanlon and Israel Mermelstein brokered the deal on behalf of the sponsor.
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Watermark also landed a $125M construction loan for Brooklyn’s first office-to-resi conversion under the 467-m tax abatement, Commercial Observer reported. The financing came from a partnership between Bravo Property Trust, a construction and bridge lending affiliate of Bravo Capital, and Integritas Capital. The 107-year-old, eight-story office building at 175 Pearl St. in Dumbo will see its existing stories converted into rental housing, while the developer plans to add a new 11-story condo building on top. The result will be a 19-story tower more than double its current height and is expected to be completed in 2027.
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Moshe Braver netted a $155M refi from Arbor Realty Group for a development site in Jamaica, Queens, PincusCo reported. Braver, through the entity Sutphin Boulevard Equities, is building a 521-unit, 488K SF residential building at 147-35 95th Ave. The development received permits in June 2023, with the new loan replacing a $142M mortgage from prior lender Slate Property Group.
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Glenwood Management refinanced its mortgage at the 339-unit rental at 160 W. 62nd St. with $231M from the New York State Housing Finance Agency, PincusCo reported. The loan replaces a $260M sum from the same lender.
