MetLife and Beacon Capital Partners have closed the sale of 575 Fifth Ave., four years after first putting the property on the market.
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Sovereign Partners and HudsonPoint Capital bought the 40-story, 544K SF building for $378M, per city records filed Friday.
Sovereign and HudsonPoint structured the deal as two transactions, paying $316M to a Beacon Capital Partners-MetLife joint venture for the office portion and $62M to MetLife for the retail.
The deal was first reported by Commercial Observer on April 13 while under contract, with a widely cited price of $380M.
MetLife has owned the property since 2005, when it paid $385M before later splitting it into an office component and three retail units, PincusCo reported. Beacon acquired a 50% stake in the office in 2015.
The partners were seeking about $400M when they first marketed the asset in early 2022 and returned it to market last fall at the same price, according to The Real Deal. The roughly 500K SF office component was about 87% leased as of September.
TOP SALES
Columbia University sold the 126-unit Arbor at 3260 Henry Hudson Parkway to Fetner Properties and PGIM for $65M in a sale-leaseback, Commercial Observer reported, after determining the asset was no longer strategic. The buyers secured a $47.6M acquisition and bridge loan to upgrade and stabilize the nine-story property. Newmark brokered the sale and arranged the financing.
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G4 Capital Partners acquired a full-block Williamsburg site anchored by a Trader Joe’s for $65M, Crain’s New York Business reported. The 206 Kent Ave. property, which is about 60% leased as office, has been floated for a residential conversion after sellers Cornell Realty Management and Tessler Developments proposed a rezoning for 143 units across 14 stories. The plan has not been approved. Trader Joe’s will remain, and seller Isaac Hager will retain a small stake. G4 financed the purchase with a $52.5M acquisition loan from Acore Capital Management.
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Daryl Hagler and Centers Health Care sold a Staten Island nursing home at 91 Tompkins Ave. to Emerald Group and Infinite Care for $82M, PincusCo reported. The deal is part of a larger $1.7B portfolio sale. Hagler also sold three Brooklyn properties to Emerald last month for $296M.
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Extell Development acquired the shuttered Friars Club at 57 E. 55th St. from Kairos Investment Management for $19M, Commercial Observer reported. The five-story, 15K SF building has been owned by Kairos since 2024, when it took control as the lender. Kairos foreclosed after the prior owner, Friars National Association Inc., defaulted on a $13M loan and stopped making payments.
TOP LEASES
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Energy Capital Partners expanded at One World Trade Center to 70K SF, taking the entire 59th floor at the Durst Organization and Port Authority-owned tower. The deal marks the energy transition infrastructure firm’s third expansion in the building since 2017.
The Durst Organization was represented in-house alongside Newmark, which also represented the tenant.
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H.J. Kalikow signed three tenants totaling 77K SF, bringing the Midtown tower to 98% leased, the New York Post reported. Data center developer Cipher Digital relocated from One Vanderbilt to just over 26K SF, while existing tenant Corient expanded by 25K SF to nearly 100K SF. Law firm Sills Cummis & Gross relocated internally to a 26K SF space. Cushman & Wakefield represented the landlord in all three deals.
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Artificial intelligence advertising firm Moloco is subleasing 25K SF from Fortress Biotech at Sage Realty’s 2 Gansevoort St., The Real Deal reported. The San Francisco-based company is relocating from its offices about a mile away at 56 W. 22nd St. to the landmarked Meatpacking District building. CBRE’s Ryan Adlesh and Josh Pernice represented the tenant.
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Fitness club Life Time leased 71K SF at Double U Development’s 83 Wythe Ave., the New York Business Journal reported. The property is still under development. The deal adds to Life Time’s recent leasing push, including locations at 10 Bryant Park, 175 Third St. in Gowanus and the Brooklyn Tower at 85 Fleet St., Commercial Observer reported.
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Sports marketing firm Sportfive inked an 18K SF lease at RFR’s 477 Madison Ave., where asking rents range from $92 to $115 per SF. The firm will occupy a full-floor prebuilt space. Cushman & Wakefield’s Peter Van Duyne and Alex Lachmund represented the tenant, while RFR was represented in-house alongside CBRE’s Arkady Smolyansky and Alex D’Amario.
TOP FINANCING
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The Jay Group refinanced five development parcels on a single Downtown Brooklyn tax block with a $264M loan from Affinius Capital, PincusCo reported. The properties include 277 Flatbush Ave. Extension, 163 Willoughby St. and 106 Fleet Place. The financing replaces a prior $264M loan from Popular Bank.
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A partnership between Shorewood Real Estate Group and Bogopa Enterprises secured a $130M construction loan from PCCP for a mixed-use development at 350 Grand Concourse in Mott Haven. The financing will fund a 13-story, grocery-anchored building with 304 apartments, slated for completion in 2028. JLL’s Lauren Kaufman and Nicco Lupo arranged the financing.
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Blackstone Group loaned $95.9M to CBRE Investment Management to refinance three industrial buildings in East New York, PincusCo reported. The properties total 211K SF and are 12555 Flatlands Ave., 12595 Flatlands Ave. and 771 Montauk Ave. The financing replaces a prior $106.1M loan from Bank of America.
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BD Hotels refinanced its Hell’s Kitchen Pod Hotel at 400 W. 42nd St. with a $179.1M loan from Wells Fargo, PincusCo reported. The 202K SF property consists of three condo units and an adjacent parcel. The financing replaces a $200M loan from Wells Fargo issued in 2019.
