Related Cos. has scored a giant refinancing deal in Hell's Kitchen, simultaneously renewing its agreement with the federal government to preserve its affordable units.
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Wells Fargo provided a $750M mortgage to Related for Manhattan Plaza, a 2M SF, 1,689-unit Section 8 building at 576 10th Ave., according to records filed in the city register. The new financing retires a $450M Fannie Mae loan, PincusCo reported.
Related agreed to extend the building’s status as a Section 8 building for another 20 years, keeping rents affordable for those making no more than 80% of the area median income, according to an agreement with the U.S. Department of Housing and Urban Development filed concurrently with the mortgage.
Related also agreed to reserve funds for maintenance and to undertake repairs as part of the agreement, which also bars the landlord, which developed Hudson Yards and Deutsche Bank Center, from interfering with tenants' ability to organize if they choose.
The property, nicknamed Broadway's Bedroom for its affordability, size and proximity to the theater district, reserves 70% of units for performing artists under the Section 8 program, according to Related's website.
Related and Wells Fargo didn't immediately respond to requests for comment.
TOP FINANCING
Acore Capital provided a $216M bridge loan to Aurora Capital, Allied Partners and A&H Acquisitions to refinance 568 Broadway, according to a release. The 12-story SoHo mixed-use trophy asset spans 391K SF of office and retail space. Its 71K SF retail component is 100% leased to Hugo Boss, Athletic Propulsion Labs, GU and Equinox. Office tenants include Zocdoc and The Farmer’s Dog. Walker & Dunlop's Aaron Appel, Dustin Stolly, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer, Jordan Casella and Stanley Cayre arranged the debt.
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Sitex Group and a diversified global investment firm scored a $50.2M loan from Lake Forest Bank & Trust Co. for two low-coverage industrial facilities in Maspeth spanning 183K SF, according to a release. The financing was split into two loans: a $39.4M sum for 58-80 Borden Ave. and a $10.8M loan for 54-12 48th St. The JLL Capital Markets Debt Advisory team that arranged the financing was led by Jillian Mariutti and Alex Staikos.
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Rose Associates and its joint venture partner, Morgan Stanley Real Estate Investing, recapitalized the 29-story multifamily building at 260 W. 52nd St. with $103M from AXA Equitable, Commercial Observer reported. The building, known as the Ellington, opened in 1987.
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Affinius Capital provided a $143.4M construction loan to Goose Property Management for the four-building development at the former Arrow Linen site in Park Slope, PincusCo reported. Goose acquired the property for $55M in late September and is planning 396 apartments across the 10-story towers. The loan replaces a $5.4M sum from Citibank issued to the previous owner in 2013, The Real Deal reported.
TOP LEASES
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Artificial intelligence data software company Databricks inked a 120K SF lease at Savanna’s 5 Bryant Park, doubling its space across five floors inside the 34-story, 680K SF building, the New York Post reported. Other tenants include architectural firm HOK and food delivery platform Grubhub, Commercial Observer reported. Savanna refinanced the tower for $510M in December.
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New York-based private equity investment firm and alternative asset manager Garnett Station Partners signed a 35K SF lease at SL Green’s 450 Park Ave., Commercial Observer reported. The 11.5-year lease expands the firm’s footprint by 10K SF across the entire seventh floor, building on its existing space across the entire 24th and 25th floors and part of the 27th floor. Other tenants in the 33-story building include private equity firm OceanSound, investment advisory services firm Steadfast Financial and BankUnited. Newmark’s David Falk and Jason Greenstein represented Garnett Station, while in-house agents from SL Green worked with CBRE for the landlord.
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GFP Real Estate signed two leases totaling 21K SF at its 13-story Garment District office building at 318 W. 39th St., according to a release. E-commerce and digital media agency Sellery Inc. leased 14K SF on the 10th floor and was represented by Adams & Co.’s Ben Levy. Commercial printing and graphics company Fine Art Velox Inc. signed a seven-year, 7K SF deal on the fourth floor with representation from LSL Real Estate’s Joe Friedman. Built in 1915 on the former site of the Finck Brewery, 318 W. 39th was originally named the Finck Building. GFP’s Matthew Mandell represented the landlord in-house in the Sellery deal.
TOP SALES
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The final price of Tishman Speyer's ground lease deal to take over the Chrysler Building has been revealed. The Rockefeller Center-based real estate giant agreed to pay Cooper Union $351M on a 150-year lease that expires in September 2176, PincusCo reported. The private college and Tishman Speyer announced the deal at the start of this month, disclosing only that Tishman and its partners had agreed to pay $235M plus future ground lease payments. Tishman Speyer had owned the building once before, paying $220M for the ground lease in 1997, but sold off stakes in subsequent years. The property later ended up in the hands of RFR, which lost it following the collapse of its equity partner and a nasty legal battle that concluded in early 2025.
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Ciampa Organization acquired a 121-unit apartment building from Rhona Bork and Mindel Holdings for $28.5M, PincusCo reported. The 147K SF property is located at 23-50 Waters Edge Drive in Bay Terrace.
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