Gotham Organization, Monadnock Development and nonprofit Christian Cultural Center scored a $315M construction loan for a planned 425-unit rental residential project in East New York, according to a release.
The funding came from a few different sources. Syndicator Red Stone Equity Partners raised $151M in low-income housing tax credit and brownfield credit equity financing provided by JPMorgan Chase.
New York City’s Housing Development Corp. and Department of Housing Preservation and Development provided $260M, including $144M in tax-exempt construction bonds and $116M of long-term, below-market-rate debt.
The construction is part of the developers’ Urban Village project, which will eventually result in almost 2,000 affordable housing units.
The latest cash injection is to fund Phase 1B, which includes two residential towers, 12K SF of community space, 10K SF of retail and 102 below-grade parking spaces. This phase is expected to be completed in 2027.
The Urban Village, a master plan set to transform a 10.5-acre site in East New York after a controversial 2016 rezoning, has a total development cost of $1B, according to Gotham Organization's website.
TOP FINANCING
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Vornado Realty Trust has landed a $450M CMBS loan to refinance the retail at 1535 Broadway in Times Square. The REIT has a 52% ownership stake in the 109K SF property, which now carries an interest-only, nonrecourse loan at a fixed rate of 6.9% that matures in May 2030, according to a release. Vornado’s joint venture partner on the property is Crown Acquisitions, according to CoStar, which reported earlier this month that a deal may be in the works. After transaction costs and reserves, Vornado used $407M of the sum to partially redeem its retail joint venture's preferred equity. The lenders were Goldman Sachs, Bank of America and Bank of Montreal, PincusCo reported. The retail part of the building is separate from the 1,971-key Marriott Marquis hotel, which spans the property’s upper floors.
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Hawkins Way Capital nabbed a $197.4M refi for university dormitory space and retail at 569 Lexington Ave. from Standard Chartered Bank, PincusCo reported. The deal closed on March 18, replacing a $119M loan from Apollo Global Management. The 390K SF building is divided into commercial condo units.
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JJ Operating, a real estate investment and management company owned by the Jemal family, refinanced four commercial condo units at 278 Eighth Ave. for $185M, PincusCo reported. The family firm built the 190-unit, 166K SF resi building in Chelsea, wrapping construction early last year. The loan closed on April 11, replacing a $135M sum from Cain International.
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Deutsche Bank, Stateland International and Tasaba LLC have agreed to lend $125.1M to Princeton International Properties to refinance a Midtown East office building at 154 E. 52nd St., PincusCo reported. The loan replaces a $128M sum from Blackstone.
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ZD Jasper Realty notched a $125M construction loan from iCross Capital for 45-40 Vernon Blvd. in Long Island City, Commercial Observer reported. ZD Jasper is planning to build a 23-story, 190-unit luxury condo building with ground-floor retail on the site of the Paragon Paint Factory. ZD Jasper paid $47M last summer for the building from previous owners Quadrum Global, Baron Property Group and Simon Development. An Arrow Real Estate Advisors team of Morris Betesh, Omar Ferreira and Jacob Petrovic arranged the financing.
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Citigroup has signed a $100M CMBS refi with Chartwell Hospitality for its Marriott New York JFK Airport Hotel at 135-25 142nd St. in Jamaica, Queens, Commercial Observer reported. Chartwell will use the five-year, interest-only CMBS loan to pay off its existing debt at the 362-key hotel, cover closing costs and fund enhancements. Ripco Real Estate’s Adam Hakim and James Murad arranged the deal, while Citi’s Joseph Dyckman and Gabe Podair negotiated for the lender.
TOP LEASES
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Benesch Friedlander Coplan & Aronoff has signed a 90K SF lease at Paramount Group’s 1301 Sixth Ave., Commercial Observer reported. The 45-story Midtown office building is also home to tax advisory firm CohnReznick and law firm Dorsey & Whitney. The law firm is taking the 34th, 39th and 40th floors. Frank Doyle, David Kleiner and Andrew Coe of JLL repped the landlord, while Cushman & Wakefield’s Mark Weiss repped Benesch Friedlander.
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Financial and global information services consulting company Gerson Lehrman Group renewed its 77K SF lease at Empire State Realty Trust’s One Grand Central Place, according to a release. The 55-story tower at 60 E. 42nd St. was built in 1930 and spans 1.2M SF. JLL’s T.J. Hochanadel, Robert Martin, Dan Santagata, and Paul Kauffman repped the tenant, while ESRT’s Jordan Berger, Shanae Ursini and Kerry Lavelle and Newmark’s Scott Klau, William Cohen, Erik Harris and Neil Rubin represented ownership.
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High-end fashion house Carolina Herrera Ltd. signed a 34K SF lease at Empire State Realty Trust’s 501 Seventh Ave., according to a release. The deal represents a renewal and expansion for the tenant inside the 102-year-old, 18-story building. The brand had just shy of 30K SF in 2012, Commercial Observer reported. CBRE’s Matthew McBride and Cara Chayet repped the tenant. ESRT’s Jordan Berger, Shanae Ursini and Kerry Lavelle and Cushman & Wakefield’s Ron Lo Russo and Harley Dalton repped the landlord.
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Law firm Meirowitz & Wasserberg has expanded to 24K SF at Skyline Developers’ 1040 Sixth Ave., Commercial Observer reported. The personal injury law firm has been a tenant since it signed a 5K SF lease in 2021. In the interim, it moved to 12K SF on the 10th floor of the 24-story building. Meirowitz & Wasserberg renewed its lease for that space and is also taking the full seventh floor.
TOP SALES
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Acadia Realty Trust has continued its Williamsburg retail shopping spree, PincusCo reported. The REIT shelled out $21M for 95 N. Sixth St., a 4K SF building between Berry Street and Wythe Ave. In the same week, it closed a $27.5M deal for the building next door, 97 N. Sixth St., PincusCo reported. City Urban Realty and Namdar Realty Group were the sellers of 97 N. Sixth St., while City Urban was the sole owner of 95 N. Sixth St. It is unclear who brokered both deals, but the two properties add to Acadia’s growing Williamsburg portfolio after it bought three retail properties in the neighborhood in October.
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SL Green took a nearly $12M haircut on a 13K SF commercial co-op unit it acquired for $59M from Jeff Sutton in 2020, PincusCo reported. Acadia Realty Trust paid SL Green $46.8M for 85 Fifth Ave., which has a long-term lease with Nespresso. SL Green said in a press release last week that the sale generated net proceeds of $3.2M. A CBRE team led by Daniel Kaplan and Doug Middleton brokered the deal.
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Carlyle Group and Z+G Property Group spent $32.1M acquiring a 51-unit residential building in Gowanus, PincusCo reported. Werber Real Estate sold the 438 Fourth Ave. property to the joint venture, less than the $37.8M it paid in 2018.
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