NEW YORK CITY — Private equity firm KPG Funds has entered into a 99-year ground lease with The Salvation Army to develop Le Gallerie, a 57,000-square-foot office building at 132 W. 14th St. in Manhattan’s Greenwich Village. Construction is underway and scheduled for a January 2022 completion. James Nelson, Charles Kingsley, Erik Edeen and Alexandra Marolda of Avison Young, along with Andreas Metzger from The Corcoran Group, represented The Salvation Army in the lease negotiations.
NEW YORK CITY AND LAS VEGAS — VICI Properties Inc. (NYSE: VICI), MGM Growth Properties LLC (NYSE: MGP) and MGM Resorts International (NYSE: MGM) have entered into a definitive agreement under which VICI will acquire MGP for a total consideration of $17.2 billion, including the assumption of approximately $5.7 billion of debt. MGM Resorts is the controlling shareholder of MGP. Upon completion of the merger, VICI will have an estimated enterprise value of $45 billion representing 43 properties in 15 states. The deal will add 15 Class A entertainment resort properties across the country to VICI’s portfolio, comprising 33,000 hotel rooms; 3.6 million square feet of meeting and convention space; and hundreds of food, beverage and entertainment venues. The deal represents an estimated 30 to 40 percent discount to replacement cost. The move will solidify VICI as the largest experiential net-lease REIT, while also advancing its goals of portfolio enhancement and diversification, according to the company. Following the transaction, approximately 55 percent of VICI’s rent base will be generated by market-leading regional properties, while the remaining 45 percent will come from properties on the Las Vegas Strip. Simultaneous with the closing of the transaction, VICI will enter into an amended …
WESTBURY, N.Y. — X-Golf, an entertainment concept that features golf simulations and food and beverage offerings, has signed a 6,200-square-foot lease at Samanea Mall in the Long Island village of Westbury. Matthew Kucker, Jordan Baruch and Herb Agin of Colliers International, along with internal agent Dominic Coluccio, represented the landlord, Lesso Mall Development, in the lease negotiations. Bradley Diamond of Parallel Realty represented the tenant, which will backfill a space previously occupied by David’s Bridal. Other entertainment concepts at Samanea Mall include Dave & Buster’s and Empire Adventure Park.
NEW YORK CITY — CycleBar and Pure Barre, two concepts owned by Xponential Fitness, have signed 10-year leases to open exercise studios at 1151 Third Avenue, a 14,820-square-foot building on Manhattan’s Upper East Side. The fitness users will share a 5,300-square-foot space that spans the entire second and third floors. The Feil Organization owns 1151 Third Avenue, which was originally built in 1910. With these leases, the property is now fully leased. The fitness studios opened on July 28.
NEW YORK CITY — New York City-based Paramount Group Inc. (NYSE: PGRE) has received an $860 million loan for the refinancing of 1301 Avenue of the Americas, a 1.7 million-square-foot office building in Midtown Manhattan. An undisclosed lender provided the five-year, interest-only loan. Designed by Skidmore, Owings & Merrill, the 45-story tower is located between West 52nd and 53rd streets and provides lower-level access to Rockefeller Center. In addition, the property, which was 71.5 percent leased at the time of the loan closing, features 30,000 square feet of retail space. According to Wikipedia, Uris Buildings Corp. originally developed 1301 Avenue of the Americas in 1964. J.C. Penney purchased the building in 1977 to serve as its new headquarters, only to relocate to the Dallas area 11 years later.
NEW YORK CITY — Regional grocer Wegmans will open an 82,000-square-foot store at 770 Broadway in the Greenwich Village neighborhood of Manhattan. RIPCO Real Estate LLC represented Wegmans in the negotiations for the 30-year lease. Vornado Realty Trust (NYSE: VNO) owns the 1.2 million-square-foot building, which occupies a full city block. The opening, which will be the first for Wegmans in New York City since the debut of the Brooklyn Navy Yard store in October 2019, is scheduled for the second half of 2023.
NEW YORK CITY — The Carlyle Group, a global private equity and asset management firm, has signed a 33,924-square-foot office lease expansion at One Vanderbilt, SL Green’s 1.7 million-square-foot tower in Midtown Manhattan. The tenant is expanding from 160,778 square feet to 194,702 square feet and will now occupy six of the building’s 77 floors. Joe Messina, Steven Rotter, Jessica Berkey, Andrew Lutzer, Gregory Lubar and Steve Spartin Jr. of JLL represented the tenant in the lease negotiations.
NEW YORK CITY — Boston Properties Inc. (NYSE: BXP) has entered into an agreement to acquire 360 Park Avenue South, a 450,000-square-foot office building in Midtown Manhattan, for $300 million. The 20-story building is currently fully leased to a single tenant that will vacate the property at the end of the year. Boston Properties will subsequently implement a capital improvement program. The company expects to close on the asset in December. The seller was not disclosed.
NEW YORK CITY — Locally based developer Lightstone Group has received $130 million in construction financing for Lightstone Moxy, a 303-room hotel that will be located on Manhattan’s Lower East Side. MSD Partners LP, an affiliate of the private investment firm of tech magnate Michael Dell, provided a $90 million senior loan for the 16-story project. Lionheart Strategic Management LLC, an affiliate of Fisher Brothers, provided a $40 million mezzanine loan. Tao Hospitality Group will manage the hotel, which will feature multiple food and beverage concepts. Drew Anderman and Benjamin Nevid of Meridian Capital Group arranged the financing.
NEW YORK CITY — Criterion Real Estate Capital has provided a $125 million loan for the refinancing of 817 Broadway, a 140,000-square-foot office building in Manhattan’s Union Square neighborhood. The property was originally built in 1895 and features a 4,000-square-foot rooftop terrace. The borrower, Taconic Partners, which acquired the asset in 2016 in partnership with Nuveen Real Estate, will use a portion of the proceeds to fund tenant improvements and leasing costs.