The developers of a planned 184-unit multifamily development in the East Village have scored a major loan to finance construction.
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A joint venture between developers SK Development and Kinsmen Property Group landed the floating-rate, interest-only $203.5M construction loan from Ironsand for the 50 Third Ave. development.
The developers are planning to build two properties on separate tax lots but combine them as a single structure with a shared lobby, Commercial Observer reported.
The two towers will have 13K SF of retail space and amenities, including a fitness center, yoga studio, sauna, cold plunge, golf simulator and coworking space. Around 37 units of the 17-story apartment building will be reserved as affordable housing for households earning 80% or less of the area median income, according to the release.
“50 Third Avenue presented an opportunity to finance a well-conceived development backed by an experienced ownership team in a market with significant barriers to new construction,” Brian Renzi, managing principal at Ironsand, said in a statement.
The developers also filed an application for an air rights transfer from St. Mark’s Church in-the-Bowery last week, according to Commercial Observer.
If it goes through — which the developers need it to do to use the 485-x tax incentive, according to Commercial Observer — then the deal would give them an extra 27K SF of air rights to play with.
Proceeds from the air rights transfer would generate cash for the church to carry out preservation, maintenance and restoration on the property, according to PincusCo.
If the Landmarks Preservation Commission doesn't sign off on the air rights transfer, the JV plans to build a single, market-rate building with 14 apartments.
Kinsmen has been slowly building the assemblage on the site, closing its deal for the sixth building on the block in 2024 for $10M, PincusCo reported at the time.
The submarket has a vacancy rate of 2%, according to a Citi Real Estate Funding July term sheet detailing some of the loans that Citi has made in the area, a little above the citywide average of 1.4%.
Walker & Dunlop’s Aaron Appel arranged the financing for the JV, along with colleagues Keith Kurland, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Sean Bastian.
TOP FINANCING
The Wilf family’s Skyline Developers borrowed $70.4M from PGIM Real Estate to refinance 1040 Sixth Ave., PincusCo reported. The 24-story, art deco-style Bryant Park office building was built in 1925 and renovated in 2016, according to Skyline’s website. The loan replaces a $100M loan provided by PGIM in 2016. Skyline bought the 217K SF property in 2007 for $170M.
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Hartz Mountain Industries scored a $254M refinancing loan from M&T Bank for the 247K SF office building at 667 Madison Ave., PincusCo reported. The debt replaces a CMBS loan from 2016 that had been serviced by KeyBank and was for the same value.
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ZG Capital Partners refinanced a Greenwich Village retail property at 836-838 Broadway with a $66.5M loan from JPMorgan Chase, PincusCo reported. JPMorgan was also the prior lender, previously providing a $28.9M loan for the 57K SF building.
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Bank of Montreal loaned $58.8M to Magnum Real Estate Group to refinance six Manhattan apartment buildings spanning 120 units, PincusCo reported. The properties include 514 E. Sixth St., 120 St Mark’s Place and 219 Mott St.
TOP LEASES
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Law firm Seward & Kissel renewed its 170K SF lease at Rudin’s One Battery Park Plaza, according to a release. The 35-story, 800K SF building is 99% leased following the law firm’s 11-year extension, which will keep it on floors 19 through 24. CBRE’s Lewis Miller, Andrew Sussman, Cara Chayet and Scott Sloves represented the tenant, while the landlord had in-house representation from Kevin Daly and Craig Panzirer.
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Artificial intelligence-powered financial platform Brex inked a 94K SF lease at GFP Real Estate’s 200 Varick St., according to a third-quarter Manhattan office report from CBRE. Brex, which helps companies track their spending, was acquired by Capital One this year and is one of a host of AI companies rapidly expanding their NYC office footprint.
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Jack Resnick & Sons signed personal injury law firm Morgan & Morgan to 72K SF at 199 Water St., also known as One Seaport Plaza, according to a Q3 Manhattan office report from Colliers. Morgan & Morgan, which spends hundreds of millions annually advertising its ability to sue corporations, moved in as a subtenant three years ago, taking 35K SF at the time, and is transitioning to a long-term direct lease, Commercial Observer reported. Cushman & Wakefield represented the landlord in the deal.
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AI video platform for business Synthesia leased 50K SF at GFP Real Estate’s 675 Sixth Ave., according to a release. The company is more than tripling its space as part of a relocation from a 13K SF office at the Moinian Group’s 245 Fifth Ave. Lee & Associates NYC’s Dennis Someck and Justin Myers represented Synthesia. GFP’s Jeff Gural and Alphie Toro represented the landlord in-house, along with Newmark’s Anthony Sciacca and Scott Gutnick.
TOP SALES
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An undisclosed buyer acquired 70 Broad St., a landmarked five-story office building known as the American Bank Note Company Building, for just $9.35M, Commercial Observer reported. The seller was Wilmington Trust, the trustee for CMBS bondholders, which acquired the property at a foreclosure auction last year. The trust acquired the Financial District building via a $20M credit bid, following foreclosure proceedings that kicked off in 2020. The sale is a massive discount on the $88M that the former owners were looking for in 2016 when they marketed the property for sale.
The buyer plans to reposition the 19K SF building, which has been largely vacant for years, and was represented by Isa Realty Group’s Louis Franco and Joseph Isa, as well as Tannenbaum Helpern’s Eric Schoenfeld. Cushman & Wakefield’s Dylan Walsh, Bryan Hurley, Jeremy Stern and Kieran Baker represented Wilmington Trust. Rialto Capital was the special servicer for the loan, according to Morningstar Credit.
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Toll Brothers City Living spent $45M on two Chelsea properties, expanding the homebuilder’s assemblage where it plans to build a 114-unit condo building, The Real Deal reported. The seller of the properties at 126 10th Ave. and 456 W. 18th St. was the Nanis family. The buildings are next to an industrial asset at 118 10th Ave., previously tied to Brandon Miller, that Toll Brothers paid $53M for in February. Adirondack Capital Partners' Michael Hunter Coghill, Chad Sinsheimer and Brittany Feinberg brokered the deal, according to a release.
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The NYC Economic Development Corp. has bought back an undeveloped site at 524 E. 74th St. from the City University of New York for $43.1M, PincusCo reported. The city split the site into two lots in 2012, selling one to Memorial Sloan Kettering and the other to CUNY. MSK developed the 757K SF David H. Koch Center for Cancer Care on its lot, but CUNY’s planned 16-story, 336K SF nursing school stalled when it instead opted to anchor the city’s Science Park and Research Campus in Kips Bay, Crain’s New York Business reported. SPARC has not yet broken ground.
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