This Week's N.Y. Deal Sheet: Developer Lands $32M For Tribeca Luxury Condo Conversion
A conversion is on the table for a historic textile warehouse in Manhattan’s Tribeca neighborhood.
Urban Capital Group and Prosper Property Group acquired the building at 34 Walker St. along with its smaller neighbor for roughly $17M. They financed the purchase with a $32M acquisition and construction loan from Kriss Capital, according to a release.
Public records put the sale prices for 32 and 34 Walker St. at $5.3M and $11.6M, respectively. The new owners have big plans for the small buildings: a seven-story, 30K SF boutique condo project with five luxury lofts and ground-floor retail.
The plans for the landmarked, cast-iron textile warehouse at 34 Walker St. were approved by the Landmarks Preservation Commission. Gary Romaniello’s GRA Equities and Peter Zuccarello’s PZ Realty Investments are partners on the project, which is expected to complete in the second quarter of next year.
“We studied the neighborhood and collaborated closely with our architectural team, our historic consultant Higgins Quasebarth, and the Landmarks staff to craft a design and asset that embodies modern Manhattan living while honoring Tribeca’s rich history,” Cedric Abboud, a principal at Urban Capital Group, said in a statement. “We are now on the ground and commencing work immediately.”
TOP FINANCING DEALS
Chartwell Hospitality secured a $48M refi from Citibank for a hotel next to John F. Kennedy International Airport, Commercial Observer reported. Chartwell and Soundview Real Estate Partners completed the 182-room Residence Inn New York JFK Airport at 142-30 135th Ave. in 2020 and will use the new cash injection to consolidate the property’s development debt. The Marriott-franchised extended stay hotel was originally financed by Bank OZK in 2018 for $54.8M. Joseph Dyckman and Gabe Podair worked on the mortgage for Citi, while Ripco Real Estate’s James Murad and Adam Hakim repped Chartwell.
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Apollo Global Management provided a $180M loan for New York University's largest dormitory, Bloomberg reported. Corigin Real Estate Group refinanced the 17-story Lafayette Hall at 80 Lafayette St., which was built in 1999 and can accommodate more than 1,000 students across 262 rooms. The university has a master-lease agreement at the building and recently agreed to a 10-year lease extension expiring in 2037. A Newmark team led by Jordan Roeschlaub and Nick Scribani arranged the deal. The loan replaces a $161.3M Freddie Mac mortgage originated by Prudential Mortgage Capital Co. in 2015, The Real Deal reported.
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Legion Investment Group and Gindi Capital netted a $124.8M construction loan for a development project at 252 Third Ave. in Manhattan’s Gramercy neighborhood, PincusCo reported. The financing came from BDT & MSD Partners. The loan replaces JPMorgan Chase debt of $33.5M. The site is part of a six-parcel assemblage that Legion and Gindi have been slowly acquiring, The Real Deal previously reported.
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Brisa Builders & PMG Affordable netted a $51.7M loan for 19-19 Cornaga Ave., an affordable housing development in Far Rockaway, Queens, according to a release. The funding came from four deals with a mix of public and private sources, including Bank of America, New York City Department of Housing Preservation and Development, New York State Homes and Community Renewal, and the Federal Housing Trust Fund. Around 60 of the project’s 92 units will be supportive housing while 31 will be Federal Housing Trust units.
TOP LEASES
Greystone & Co. has renewed its 50K SF lease at TF Cornerstone’s Carnegie Hall Tower, according to a release. The real estate finance and investment company has been in the 550K SF, 60-story building at 152 W. 57th St. since 1993, just two years after it opened, and is now in place to stay there under a new long-term lease. TF Cornerstone renovated the property in 2022, adding high-speed elevators, conference space and a golf simulator, among other upgrades.
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Design studio Snøhetta is moving its headquarters out of Manhattan. The Norwegian company is taking 25K SF at Two Trees Management Co.’s 55 Washington St. in Dumbo, according to a release. The tenant, whose work includes the National 9/11 Memorial and Museum, Bibliotheca Alexandrina, the Norwegian Opera and Ballet and the Shanghai Grand Opera House, was represented by Cushman & Wakefield’s Jason Kroeger and Aron Schreier. Snøhetta is moving from 80 Pine St., which is set to be converted to a 500-unit apartment building. The nine-story, 337K SF landmarked 55 Washington has a recently renovated lobby and has amenities including conference rooms, bike storage and on-site parking. Two Trees was represented in-house by Alyssa Zahler.
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The Bronx is getting a new movie theater almost a year after the Concourse Plaza Multiplex Cinemas shuttered and left the entire borough with just one cinema. Regal has signed a 58K SF lease at The Feil Organization’s 200-238 E. 161st St. in Concourse Village, where its 10-screen theater will open on March 19, according to a release. The lease was a direct deal between Regal and Feil, according to a spokesperson for the landlord.
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Pharmaceutical company Novartis has signed to renew its 16K SF at Property & Building Corp.’s 10 Bryant Park for another five years, according to a release. CBRE’s David Stockel represented Novartis in lease negotiations while JLL represented the landlord. Novartis has been a tenant in the property since January 2023.
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Balbec Capital has signed for 13K SF at Vornado’s 90 Park Ave., according to a release. The deal will see the global alternative investment firm relocate from 575 Fifth Ave. to get extra square footage and will occupy the entire 22nd floor in Vornado’s 990K SF, 41-story Murray Hill office tower. CBRE’s Neil King and David Stockel represented Balbec in the deal.
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Cloud-based design and product development Figma is planning to double its headcount and its footprint, expanding by two full floors at 27 W. 23rd St. in the Flatiron District, according to a release. The expansion comes as Figma invests $14.8M in its Manhattan operations, supported by up to $2.1M in performance-based tax credits from Empire State Development’s Excelsior Jobs Program. The company has more than 1,600 employees globally, including 280 in NYC, with plans to add a further 242 employees in NYC with its office expansion. Public records show that the property has been owned by a shell company, LJL LLC, since 2001.
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Brooklyn’s first dual language charter school is expanding in Sunset Park, according to a release. LEEP Dual Language Academy Charter School, which first opened a 24K SF facility in 2019 at 5323 Fifth Ave. in Brooklyn, is growing to a total of 38K SF across the ground, first, third, and fourth floors. The new space is expected to open in time for the 2025-26 academic year. Avison Young’s Martin Cottingham, Michael Gottlieb and Patrick Steffens represented LEEP in both deals. The landlord, Sunset 5th, LLC, is in the care of Comjem Associates and was represented in-house.
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Amazon inked another gigantic Manhattan sublease deal, this time taking over 193K SF at 237 Park Ave. The 21-story, 1.2M SF office tower is owned by a partnership of RXR and Walton Street Capital. Kansas City-based creative agency VML has been advertising the same amount of space for sublease since 2022, New York Business Journal reported, with Amazon’s new deal leaving the property at 97% occupied. The deal is Amazon’s third in NYC in just five months as it seeks to sign for enough space to enforce its planned full-time return-to-office policy.
TOP SALES
Chess Builders has acquired 355 E. 86th St., a residential building on the Upper East Side, from Extell Development for $50M, Commercial Observer reported. Chess Builders plans to tear down the building and replace it with two residential towers spanning 200K SF and 198 apartments. Valley Bank provided $119M in acquisition and construction financing in a transaction brokered by Landstone Capital Group’s Leah Paskus.
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Nelson Tuchman has sold a nursing home overlooking Flushing Meadows Corona Park in Queens for $56.4M after acquiring it for just $3.3M in 2008, Commercial Observer reported. The six-story, 200-bed nursing facility at 111-26, 111-20 and 111-16 Corona Ave. has been family owned and operated by Rego Park Health Care since 1972. The buyer was S&A Re Acquisitions LLC, which shares an address with Pinnacle Group of Hudson Valley.
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City Urban Realty has acquired an 88-unit residential building from Empire Management and Gatsby Enterprises for $40M, PincusCo reported. The deal for the 87K SF building at 244 W. 72nd St. closed on Feb. 20 and hit public records earlier this month. Israel Discount Bank provided a $31.7M acquisition loan to fund the purchase.
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Investor Son Dinh Tran has acquired 11 Chelsea apartment buildings with a total of 153 apartments for $18M, PincusCo reported. The sellers were the Felder and Schustack families. The sale was split into two transactions: one for the eight buildings at 218-224 W. 17th St. and 226 W. 17th St., and the second covering 336-338 W. 11th St. in the West Village.
