New York

Alchemy Properties Acquires Former School on Upper West Side for $158M, Plans to Develop Condos

by David Cohen September 12, 2018

NEW YORK CITY — Alchemy Properties has acquired the former Collegiate School on the Upper West Side of Manhattan for $158 million. The property, which is located at 378 West End Ave. and 260-262 West 78th St., will be redeveloped into two ground-up residential condominium buildings rising 19 and 12 stories, respectively. When completed, the project will bring anywhere from 58 to 62 condominium units to the Upper West Side as well as 20,000 square feet of amenities, including an outdoor pool, squash court and fitness center. Alchemy has partnered with South Korean investment bank Daishin Securities to develop the project. Architectural firm COOKFOX Architects has been commissioned to design both the exterior and interior of 378 West End Ave. Bank OZK provided pre-construction and construction financing for the project. Construction on 378 West End Ave. is scheduled to start in the third quarter of 2018. Alchemy Properties recently completed Two Fifty West 81st St., a 31-unit condominium project on the Upper West Side. The project is currently 85 percent sold, according to Alchemy. — David Cohen

September 12, 2018

Market Reports New York Northeast Northeast Market Reports Retail

New York City Retail Opportunity Never Better, Nor as Challenging

by David Cohen September 12, 2018

2018 is a compelling time to be in retail real estate, especially in New York. Sure, rents are probably still too high, but the vacancy rate keeps pressure on landlords and developers. There is no doubt Amazon will continue to disrupt and dominate, but reports of retail’s demise have been greatly exaggerated. The lower rents and vacancies are creating opportunity for retailers who can adapt to the factors driving consumers’ shopping habits. Perhaps more importantly, many of the city’s most desirable retail corridors such as Fifth Avenue and SoHo were historically difficult to come by, regardless of a tenant’s ability to pay. Now, opportunity beckons. The latest census data indicates New York City is growing and that the trend will continue as people seek urban environments to live, work and play. Futurists predict urban population growth to continue throughout the century. But it isn’t just residents and workers flocking to the Big Apple. More than 60 million tourists visited the city in 2017 and even more are projected to visit in 2018. Recent technological advancements have changed many aspects of human behavior, from the way we interact with one another to how we get around and how we purchase products. …

September 12, 2018

Loans New York Northeast Office

New York Life Provides $75M Mezzanine Loan for Office Tower in Manhattan

by David Cohen September 10, 2018

NEW YORK CITY — New York Life Real Estate Investors has provided a $75 million mezzanine loan for Park Avenue Plaza, a 1.1 million-square-foot office tower in Manhattan’s Plaza District. A joint venture between Fisher Brothers and Sungate Park Avenue Trust owns the property. Mark Youngof New York Life Real Estate Investors’ New York Regional Officearranged the fixed-rate loan, which has a term of seven years.

September 10, 2018

Civic Development New York Northeast

CTA Architects Completes $20M Renovation, Expansion of Bronx Charter School in New York

by David Cohen September 7, 2018

NEW YORK CITY — CTA Architects P.C. has completed the final phase of a renovation and expansion project at the Bronx Charter School for Excellence in the Bronx.Located at 1952-1960 Benedict Ave. in the Bronx, the $20 million project included construction of a new, seven-story tower spanning 35,000 square feet; the renovation of an existing 10,000-square foot, two-story building; and a 4,500-square foot, two-story addition to the existing structure. The project team included Collado Engineering, Robert Silman Associates Structural Engineers, DPC Engineers, Hubert H. Hayes Inc. and Municipal Building Consultants Inc.JLL served as the owner’s representative.

September 7, 2018

Leasing Activity New York Northeast Office

Knotel Signs 19,563 SF Lease in Hudson Square

by David Cohen September 7, 2018

NEW YORK CITY — Workspace provider Knotel has signed a 19,563-square-foot lease in the Hudson Square neighborhood of Manhattan. The lease will encompass a large portion of the 3rd floor of the property, which is located at 250 Hudson St. The 15-story, 400,000-square-foot building is owned by Jack Resnick & Sons. Tenants at the building include Daniel J. Edelman, Bed Bath & Beyond, Gluckman Tang Architects, Sopexa, Lieff Cabraser Heinmann & Bernstein and Writers Guild of America East. Knotel, which was founded in 2016, designs, builds and operates custom spaces for companies of 50 employees or more. The company currently has more than 70 locations worldwide. Michael Morris and Greg DiGioia of Newmark Knight Frank represented Knotel in the leasing transaction.

September 7, 2018

Loans New York Northeast Office

NKF Capital Market Arranges $125M Refinancing of Office Tower in Manhattan

by David Cohen September 6, 2018

NEW YORK CITY — NKF Capital Markets has arranged the $125 million refinancing of Tower 56, a 33-story office tower in Midtown, Manhattan. Jordan Roeschlaub, Dustin Stolly, Nick Scribani and Chris Kramer of NKF represented the borrower, Pearlmark, in securing the financing through Blackstone. The financing will be used to retire existing debt and will include a funding component to support future leasing costs during the loan term. The 186,811-square-foot building was designed by Fox & Fowle Architects and is located on 56th Street between Park and Lexington avenues. Currently, the property is 92 percent leased by tenants in the finance, legal, technology and entertainment sectors.

September 6, 2018

Acquisitions Mixed-Use New York Northeast

Brookfield Properties Acquires Two Development Sites in the Bronx for $165M

by David Cohen September 6, 2018

NEW YORK CITY — Brookfield Properties has closed on the acquisition of two development sites along the Harlem River waterfront in the Bronx for $165 million. The two sites are located at 101 Lincoln Ave. and 2401 Third Ave. in the Mott Haven section of the Bronx. Brookfield plans to continue construction on a mixed-use project at the two sites that will include a total of 1,253 residential units and four retail stores. Doug Harmon and Adam Doneger of Cushman & Wakefield brokered the transaction on behalf of the buyer. Todd Soloway, Danielle Schechner, and Ari Tran of Pryor Cashman represented the seller, a joint venture comprised of affiliates of The Chetrit Group and Somerset Partners, in the transaction.

September 6, 2018

Acquisitions Mixed-Use New York Northeast

Marx Realty Purchases Two Mixed-Use Properties in Manhattan for $48.5M

by David Cohen September 5, 2018

NEW YORK CITY — Marx Realty has purchased two mixed-use properties on the Lower East Side of Manhattan for $48.5 million. Located at 135 and 161 Bowery, the two properties include 48,000 square feet of office and retail space combined. Built in 2016, 135 Bowery is an eight-story building that includes street-level retail and office space on floors two through eight. The building is fully leased to a tenant roster that includes visual effects company Lola, creative agency Minds + Assembly, trading technology firm Tradewind and attorneys Martin Liu & Associates. Originally built in 1920 and redeveloped in 2016, the seven-story building at 161 Bowery also includes street-level retail and office space. Tenants at the fully leased building include Warner Music, Kik Interactive, advertising firm Space 150, and educational startup Brainly. Artemis Real Estate Partners was the seller for 135 Bowery, while 161 Bowery was sold by a joint venture in partnership with Ultimate Realty.

September 5, 2018

Acquisitions New York Northeast Office Top Stories

Lexington Realty Trust Sells 21 Office Assets for $726M

by David Cohen September 5, 2018

NEW YORK CITY — Lexington Realty Trust (NYSE: LXP) has sold a 21-office asset portfolio for $726 million to a joint venture between affiliates of Davidson Kempner Capital Management LP and Lexington. The office properties are spread across the U.S., with properties in the eastern and western regions, the South and the Midwest. The 3.8 million-square-foot portfolio is currently 98.6 percent leased to a tenant roster that includes Amazon, Experian Holdings, Motel 6 and Nissan. “This transaction marks a major step forward as we execute on our strategy to efficiently recycle capital out of suburban office properties and concentrate our portfolio on single-tenant, net leased industrial properties,” says T. Wilson Eglin, CEO of New York City-based Lexington Realty Trust. We intend to use transaction proceeds to continue to acquire high-quality industrial properties and repay our revolving credit facility and other debt, which we believe is the best path to create meaningful long-term shareholder value.” Following the transaction, Lexington’s percentage of industrial assets based on consolidated revenue is expected to increase to 60 percent from 44 percent at year-end 2017. Lexington received net cash proceeds of approximately $565 million at closing. The joint venture is expected to assume approximately $57 million …

September 5, 2018

Market Reports New York Northeast Northeast Market Reports Office

Office Market Picking Up the Pace in Manhattan

by David Cohen September 5, 2018

After a sluggish start to the year, the Manhattan office market has experienced a strong rebound. In the second quarter, more than 10 million square feet of space was leased, the highest quarterly total since 2014, pushing year-to-date leasing activity to just over 17 million square feet. At mid-year 2018, there were 17 new leases exceeding 100,000 square feet and 35 new leases of more than 50,000 square feet. Although the economy has been at a peak for an unusually long time, the Manhattan office market has reached new highs. This presents an interesting exception to the norm, where real estate typically lags the economy, and it is good news for the market. Market Drivers While demand has come from a variety of sectors, the most recent top occupiers have come from the FIRE (financial services, insurance, and real estate), TAMI (technology, advertising, media and information), law firm and coworking sectors. Early in the year, the FIRE sector dominated large-block transactions. Examples include JPMorgan Chase’s 420,000-square-foot lease at the newly renovated 390 Madison Ave., and Bank of America Corp.’s 343,000-square-foot lease at 1100 Avenue of the Americas and 127,000-square-foot lease at 1114 Avenue of the Americas. This level of expansion …

September 5, 2018

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