LOS ANGELES AND NEW YORK — Hudson Pacific Properties Inc. and Blackstone have formed a joint venture to expand the film and TV production platform for both publicly traded companies. Hudson Pacific is bringing on Blackstone as a partner to help capitalize a portfolio of studios and offices in Hollywood that have been used sparingly since the outbreak of COVID-19 and the subsequent stay-at-home directives in Los Angeles. As part of the deal, Blackstone (NYSE: BX) will buy a 49 percent stake in Hudson Pacific’s 2.2 million-square-foot Hollywood Media Portfolio, which spans three studios and five office buildings. Hudson Pacific (NYSE: HPP) will remain responsible for the day-to-day operations of the portfolio, which is valued at $1.65 billion. “Our latest joint venture with Blackstone unlocks a portion of the value we’ve created for our shareholders and provides us with significant capital to grow both our studio and office portfolios,” says Victor Coleman, chairman and CEO of Hudson Pacific. The portfolio includes Sunset Bronson, Sunset Gower and Sunset Las Palmas Studios (formerly Hollywood Center Studios), which comprises 35 stages and production and support spaces totaling 1.2 million square feet. The offices in the portfolio include 6040 Sunset, Icon, Cue, Epic and …
New York
Innovo Property Group Completes 210,000 SF Office Project at Mixed-Use Building in Queens
by Alex Patton
NEW YORK CITY — Innovo Property Group, a New York City-based developer, has launched 210,000-square-feet of office space in the Long Island City neighborhood of Queens. The space is located on two floors of The Bridge, an 830,000-square-foot mixed-use building located at 24-02 49th Ave. and can be adapted for coworking or shared office use. The building was originally completed in 1928 as an industrial facility and once served as a warehouse for Bloomingdale’s. The New York City Housing Authority holds a 30-year lease for 600,000 square feet of at the building.
NEW YORK CITY — Amazon has preleased a 1-million-square-foot, build-to-suit industrial warehouse located at 55-15 Grand Ave. in Queens, according to reports from Business Insider and City Biz List. A joint venture between New York City-based developer RXR Realty and Los Angeles-based developer LBA Realty plans to demolish a former factory structure to construct a new build-to-suit facility for the Seattle-based e-commerce giant. The four-story facility will feature a rooftop parking structure that will house a fleet of Amazon’s delivery vehicles. The construction schedule was undisclosed.
Barings Provides $250M Construction Loan for Academic, Residential Building in Manhattan
by Alex Patton
NEW YORK CITY — Barings LLC has provided a $250 million construction loan for a 345,000-square-foot academic and residential building in the Morningside Heights neighborhood of Manhattan. A partnership between Australian developer Lendlease and New York-based L+M Development Partners Inc. was the borrower. Located at 100 Claremont, the 41-story building will feature 165 residential condominiums, 54,000 square feet of academic space for the Union Theological Seminary and 49,000 square feet of faculty housing. The condominium residences will include a mix of one-, two-, three- and four-bedroom units. Robert A.M. Stern Architects designed the project. Christopher Peck and Scott Aiese of JLL arranged the loan. Construction is slated to be complete in spring 2023.
Entertainment Businesses, Professional Sports to Reopen in Upstate New York as Tri-State Region Imposes Quarantines for Visitors
by Alex Patton
ALBANY, N.Y. — Entertainment businesses and professional sports will reopen in Upstate New York this Friday, June 26, according to a statement from New York Gov. Andrew Cuomo issued on Wednesday, June 24. Businesses in New York have gradually reopened over the last few weeks as the COVID-19 pandemic has slowly eased across the state, with regions including Central New York, Finger Lakes, Mohawk Valley, North Country and Southern Tier now on track to enter Phase IV of the governor’s reopening plan. As part of this phase of the plan, social gatherings of up to 50 people will be allowed and professional sports will be played without fans. As the state nears a complete reopening of its economy, the combined state governments of the Tri-State region of New York, New Jersey and Connecticut have agreed to impose 14-day quarantines on visitors from states with a 10 percent infection rate, Cuomo said on Wednesday. Other businesses cleared to reopen include performing arts, film and TV production and higher education. As of June 24, the Centers for Disease Control and Prevention reported nearly 391,000 cases of COVID-19 across the state of New York, and more than 30,000 deaths.
NEW YORK CITY — Macy’s Inc. will lay off 3,900 employees in corporate and management positions, representing approximately 3 percent of its total workforce, according to a company statement issued today. Macy’s expects the reduction of staff to save approximately $365 million in operating costs for its 2020 fiscal year. Macy’s recently projected that it would show a $1.1 billion loss in operating income for its first quarter ending in early May, a result of temporary and permanent store closures, as well as significantly reduced sales amid the COVID-19 outbreak. The company will release its final first-quarter earnings results on July 1. At the close of 2019, Macy’s owned and operated a total of nearly 840 stores across its flagship and Bloomingdale’s brands. Prior to the health and economic crisis, Macy’s had announced plans to close 125 of its least productive stores over the next three years beginning in February. As part of the plan, the retailer also closed its offices in San Francisco, downtown Cincinnati and Lorain, Ohio, leaving the New York City office as its sole corporate headquarters. Macy’s stock price closed at $6.78 per share on June 24, down from $37.43 per share at the same time …
NEW YORK CITY — Kassin Sabbagh Realty LLC has arranged the $17.1 million sale of a 67-unit multifamily building in the Bay Ridge neighborhood of Brooklyn. Located at 515 Ovington Ave., the 72,000-square-foot building was constructed in 1956 and offers studio, one-, two-, three- and four-bedroom floor plans. Jeffrey Znaty of Kassin Sabbagh represented the seller, Lang Development Corp., in the transaction. Znaty also represented the buyer, a locally based developer.
East West Bank Funds $88M Construction Loan for Multifamily, Retail Project in Queens
by Alex Patton
NEW YORK CITY — East West Bank has funded an $88 million construction loan for 1 Archer Avenue Apartments, a 315-unit multifamily and retail project currently under construction in the Jamaica neighborhood of Queens. A partnership between Shorewood Real Estate Group and Bridge Investment Group was the borrower. Located at 160-05 Archer Ave., the 320,000-square-foot building will include a coworking space, game room, fitness center, yoga room and multiple resident lounges. Hill West Architects designed the project. Construction of the project began in late 2019. An expected completion date was not disclosed.
ALBANY, N.Y. — As the COVID-19 pandemic continues to gradually ease in the state of New York, indoor dining and personal services have reopened in the Mid-Hudson region, according to a statement from New York Gov. Andrew Cuomo on June 22. The Mid-Hudson region, which is located directly north of New York City, has entered Phase III of the state’s reopening plan. As such, restaurants may resume indoor dining service at 50 percent capacity, and other personal service businesses including nail salons, tattoo parlors, tanning salons, massage parlors and waxing services have also been cleared to reopen. As of June 23, the Centers for Disease Control and Prevention reported more than 390,000 cases of COVID-19 in the state of New York and nearly 31,000 deaths.
Cushman & Wakefield Arranges $57M Acquisition Loan for Multifamily Property in Brooklyn
by Alex Patton
NEW YORK CITY — Cushman & Wakefield has arranged a $57 million acquisition loan for a 183-unit multifamily property in Brooklyn. USAA Real Estate provided the fixed-rate loan to an undisclosed borrower. Located at 1 Flatbush Ave., the 19-story, Class A apartment building was constructed in 2018. Amenities include a fitness center, resident lounge and landscaped roof deck. Gideon Gil, Alex Lapidus and Maya Steinberger of Cushman & Wakefield arranged the loan. Adam Spies, Adam Doneger, Dan O’Brien and Avery Silverstein represented the seller, a partnership between Meadow Partners and Slate Property Group, in the transaction.