The owner of a Times Square hotel that opened last month has refinanced the property in a hot New York City hotel market.
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Private Qatari company Al Faisal Holding netted a $235M loan from Fortress Investment Group for the 22-story hotel at 790 Seventh Ave., which is run by IHG Hotels & Resorts, PincusCo reported. Fortress' loan replaces a $270M sum from Mack Real Estate Group.
The 685-key Crowne Plaza Manhattan Times Square opened as IHG’s flagship for the Americas in September, CoStar News previously reported.
The refinancing comes as a wave of new hotel developments surges in Midtown Manhattan. Three are under construction in the submarket, with hotel industry figures predicting demand might outstrip supply even as developers plan to add thousands of new hotel rooms.
Those developments follow a yearlong streak of investors and buyers jumping on opportunities in the city’s hotel sector, attracted by strong tourism numbers coupled with a regulatory environment that has cut out competition from potential new hotel development and short-term rentals.
TOP FINANCING
AYA New York refinanced a 233-unit Manhattan multifamily portfolio split between the Upper East Side and the Upper West Side with a $104M loan from Citigroup, according to a release. The portfolio comprises 185K SF between Renoir House, a 151-unit property at 225 E. 63rd St., and an 82-unit property adjacent to Riverside Park at 120-125 Riverside Drive. The properties were 97% occupied at the time of the financing’s underwriting. JLL’s Scott Aiese, Lauren Kaufman, Hall Oster and Alex Staikos arranged the deal on behalf of the borrower.
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Genesis Cos. netted a $219M Fannie Mae first mortgage to rehabilitate Rangel Houses, a 984-unit public housing complex at 159-16 Harlem River Drive, according to a release. The 15-year permanent loan, which has five years of interest-only payments and a 40-year amortization schedule, is part of a $669M capital structure supporting the rehabilitation work. That includes $214M in New York City subsidy and $94.5M in federal and state historic tax credit equity. It also includes a tax credit investment from Goldman Sachs with an undisclosed value, Commercial Observer reported.
The loan was completed under the NYC Housing Authority’s Permanent Affordability Commitment Together program and will facilitate substantial rehabilitation of the properties in partnership with the NYCHA and the New York City Housing Development Corp. Berkadia’s Matthew Baptiste and Heather Olson arranged the financing on behalf of the borrower.
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Merchants Bank and AFL-CIO Housing Investment Trust lent $185M to the NYC Public Housing Preservation Trust to acquire and rehabilitate Nostrand Houses, a 1,148-unit multifamily complex in Sheepshead Bay. AFL-CIO provided $50M of the total, while Merchants Bank provided the rest, according to a release. NYCPHPT will renovate the New York City Housing Authority homes over six phases, with residents who vacated the housing for its revamp returning once the work is completed. The property comprises 16 buildings, all constructed between 1949 and 1951, across two contiguous sites.
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Avdoo scored a $145M construction loan from Valley National Bank for a planned 22-story condo tower on the Upper East Side, The Real Deal reported. Avdoo bought the 242 E. 71st St. site last year for $52M, with Valley National Bank providing $32.2M in financing at the time. The development will eventually feature 50 units and ground-floor retail.
TOP LEASES
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Modal Labs leased 157K SF at Rudin’s 32 Sixth Ave., according to a release. The deal is a fivefold expansion for Modal, which is relocating from the 25K SF it occupies at 233 Spring St. The seven-year deal places it in the company of tenants including Verizon Communications, Lumen Technologies, CoreSite and Digital Realty. Modal will be spread across the entire fourth, fifth and sixth floors of the 27-story, 1.2M SF building and plans to occupy its new space in mid-2027.
Robert Steinman and Craig Panzirer represented Rudin in-house, alongside Newmark’s Peter Shimkin, David Falk, Nathan Kropp, Andrew Sachs, Eric Cagner and John Cilmi. CBRE’s Scott Gottlieb, Michael Wellen, Lewis Gottlieb, Elliot Bok and Brad Auerbach represented Modal.
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Grow Therapy inked a 78K SF lease at 145 Delancey St., a development known as Essex Crossing. The mental health platform plans to invest $15M in building out the space and create 123 new jobs, according to a press release from Gov. Kathy Hochul’s office. The expansion is happening with tax credits worth $1.4M from Empire State Development’s Excelsior Jobs Program. The lease is Grow Therapy’s second NYC lease in a year, following 19K SF signed at 100 Broadway last November, Commercial Observer reported. The development is owned by a joint venture involving Taconic Partners, L+M Development Partners, BFC Partners, The Prusik Group and Goldman Sachs Urban Investment Group.
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Empire State Realty Trust signed deals with two tenants at the Empire State Building, according to the firm’s third-quarter earnings report. Supply chain finance firm Zenyth Advisors leased 13K SF, and architecture firm Corgan signed a 12-year, 15K SF expansion. The deal gives Corgan a total of 41K SF in the tower, Commercial Observer reported.
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MetLife expanded to 500K SF at Irvine Co.’s 200 Park Ave., the 59-story, 3.1M SF Midtown office tower known as the MetLife Building, Commercial Observer reported. The insurance company previously had around 450K SF in the tower. CBRE’s Mary Ann Tighe, Howard Fiddle, Peter Turchin, Evan Haskell, Brett Shannon and Julia Passante represented Irvine Co., while JLL’s Patrick Murphy represented MetLife. Other tenants in the building include law firms Gibson Dunn and Winston & Strawn.
TOP SALES
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Atlas Capital Group acquired 360 W. 43rd St., according to a release. The seller was The Brodsky Organization, which netted $142.5M for the building. The 250K SF building has 256 apartments across 23 stories.
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Host Hotels & Resorts bought 1 Hotel Brooklyn Bridge, a 195-key luxury hotel at 60 Furman St. in Dumbo, according to a release. Host Hotels paid $202M cash for an 83-year leasehold interest. The seller was Starwood Capital Partners, The Real Deal reported. The hotel is expected to be one of Host Hotels’ top assets, with an expected total revenue per available room of $1,130.
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SB Development Group sold 29-24 40th Ave., a 190-unit Long Island City rental building, to Brightshore Capital for $143.1M, PincusCo reported. The sale comes a little over four years after SB Development acquired the property for $19M.
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