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June 2019

June 2019 » Market Analysis » NY New Developments

June 2019 New York New Developments

Major Developments:

The City Council approved the new headquarters for JPMorgan, the first project to take advantage of New York’s Midtown East rezoning. JPMorgan will stay and rebuild its global headquarters at 1,400 feet and 70 stories tall, and will allow the company to consolidate employees who now work out of multiple different locations.

The Port Authority of New York and New Jersey is moving ahead with plans to replace the bus terminal. The agency is moving forward with the formal environmental review process and released a document for public review.

Blumenfeld Development Group has received a $235 million refinancing package for East River Plaza, its retail project on the East Harlem waterfront. The money comes from ING Real Estate Finance for sites at 505 East 116th Street, 545 East 116th Street, 509 East 117th Street and 520 East 117th Street.

MRP Realty and AEW Capital Management are in contract to sell the 116,000-square-foot industrial property at 1300 Viele Avenue to a high net-worth family for $70 million. The contract price works out to about $600 per square foot. The building was leased to Amazon.

Nation wants to open a concert venue and event space in 80,000 square feet at the American Stock Exchange Building. Live Nation would partner on the project with Legends, an entertainment venue and stadium operator that runs the One World Trade Center observatory space.

The top 10 office lease deals totaled 1.4 million square feet, more than double last month’s top 10 leases, which totaled 637,000 square feet. However, the total does not measure up to the top ten office leases of April, 2018, which totaled 1.9 million square feet.

BMO Capital Markets signed a 15-year lease for 215,000 square feet at 4 Times Square. The building’s landlord is Durst Organization. First Republic Bank signed a lease for 211,521 square feet of space at 460 West 34th Street. The landlord is SL Green Realty. AllianceBernstein signed a 20-year lease for 189,000 square feet of space in The Spiral. The building’s landlord is Tishman Speyer. CBS signed a 15-year lease for 164,000 square feet of space at 28 East 28th Street. The landlords are George Comfort & Sons, Jamestown Properties and Loeb Partners Real Estate. Netflix signed a lease for 161,000 square feet of space at 333 Johnson Avenue. Six sound stages are planned for the space. The building’s landlord is Steel Equities. Yext signed a sublease for 142,500 square feet of space at 61 Ninth Avenue. The sublandlord is Aetna, which abandoned the space after its acquisition by CVS Health Group. FDIC renewed its lease for 119,226 square feet of space at the Empire State Building. The building’s landlord is Empire State Realty Trust. Netflix signed a lease for 100,000 square feet of space at 888 Broadway. The space will serve as corporate offices. The landlord is Normandy Real Estate Partners. SCOR signed a lease for 75,000 square feet of space at 26 Nassau Street. The landlord is Fosun International. Med Review renewed and expanded its lease for 72,000 square feet of space at 199 Water Street.

The 10 biggest retail lease deals signed last month totaled 178,200 square feet, down 15,900 square feet from March’s total of 194,100 square feet. Which is down from 313,900 square feet during the same period last year.

City Winery signed a lease for 32,000 square feet of space at Pier 57. The landlords are RXR Realty and Youngwoo & Associates. Foot Locker signed a 10-year lease for 25,000 square feet of space at 605 West 181st Street,. The store will also feature a barber shop. FlyingTee signed a lease for 22,000 square feet of space at the Empire Outlets development in Staten Island. The new venue will be its third when it opens next year. The landlord is BFC Partners. Blink Fitness signed a 15-year lease for 18,000 square feet of space at 5901 Flatlands Avenue. The building’s landlord is Laundry Capital. Salons by JC signed a 15-year lease for 16,253 square feet of space at 127 East 59th Street. The space was previously occupied by Williams-Sonoma and Pottery Barn. The landlord is Benenson Capital Partners. Blink Fitness signed a 15-year lease for all 15,100 square feet of space at 1134 Fulton Street. The landlord is Joseph Brunner. Blink Fitness signed a lease for 15,000 square feet of space at 2465 Jerome Avenue in the Bronx. The landlord is BLDG. Goldfish Swim School signed a 10-year lease for 9,660 square feet of space at 255-01 Union Turnpike. The building’s landlord is Feil Organization. Greenwich Gourmet Market signed a 21-year lease for 8,200 square feet of space at 378 Sixth Avenue, formerly occupied by a Duane Reade. The landlord is Friedland Properties. Vivvi preschool signed a 12-year lease for 7,500 square feet of space at One Hudson Square. The space will become a new campus, accommodating 90 students. The landlord is Trinity Real Estate.

Starwood Capital Group’s Opportunity Zone fund is teaming up with AB Capstone on a 10-story mixed-use development at 425 Westchester Avenue. Zeta Charter Schools will anchor the 147,000-square-foot project, which will also have office space for a non-profit group, retail stores and 11,000 square feet of outdoor space.

An Airbnb-backed startup is launching its first hotel suites in New York. Lyric closed on a $160 million funding round and has signed a long-term lease at 70 Pine Street. The rooms range from 500-square-foot studios to 1,400-square-foot one-bedrooms, and include full kitchens and living rooms.

WeWork is partnering with RXR to manage 90,000 square feet at 75 Rockefeller Plaza in a revenue-sharing agreement, the first such deal the co-working giant has reached in New York.

Princeton International Properties landed a $100 million refinancing for its 25-story, 413,000-square-foot office building at 90 Broad Street in the Financial District.

RXR secured a floating-rate, five-year loan for its office building at 32 Old Slip. The loan was valued at $404 million. RXR bought the office building in 2015 for $675 million, and then sold the land to a David Werner-led partnership in a 150-year leaseback deal. The refinancing comes after a major overhaul of the building’s lobby.

CCRE provided Chetrit Group and partner Read Property Group with a $152 million refinancing package at 65 Broadway. The financing comes at a time when the Chetrit Group has been exiting from many of its other joint-venture holdings.

LoanCore Capital and KSL Capital Partners put together a $155 million refinancing package for its 349-key Moxy Chelsea hotel. The hotel at 105 West 28th Street opened and is the second of five Moxy hotels Lightstone is developing in New York City. The financing replaces a $58 million construction loan.

Edward J. Minskoff Equities landed $245 million in financing for a portion of its tower at 1166 Sixth Avenue. The financing covers floors 7 through 12, floors 14 through 21 and the cellar.

Hidrock Properties is planning to build a 119,758-square-foot hotel at 140 Fulton Street. The building will be 41 stories and 419 feet tall and include retail space on the ground floor. The developer bought the development site and a six-story residential property for $41 million.

The New York Eye and Ear Infirmary filed plans for a 112,030-square-foot project at 315 East 13th Street. The new hospital building will be eight stories and 130 feet tall. The 14-story building at 310 East 14th Street that used to house doctors and staff for the NYEEI was demolished.

Vornado Realty Trust and Rudin Management may build a 1,450-foot tower at 350 Park Avenue that would have 1.68 million square feet of rentable space. Such a plan would require the demolition of Vornado’s existing building at 51st and 52nd streets and Rudin’s at 40 East 52nd Street.

Tishman Speyer scrapped plans to redevelop 300 Park Avenue after Colgate-Palmolive renewed 242,000 square feet at the building for its global headquarters.

Knotel has tripled its square footage at 110 William Street to 117,000 square feet, up from the 36,000 square-foot.

Nordstrom is making a bigger push into Manhattan. In addition to the seven-story flagship store Nordstrom plans to open near Columbus Circle, the department store chain is adding two smaller outposts in the West Village and the Upper East Side.

The Karfunkel family has landed $200 million in refinancing for 59 Maiden Lane and refinances the capital structure for the building just east of the World Trade Center.

Ceruzzi Properties and SMI brought a new partner Rabina Properties to develop 520 Fifth Avenue. Rabina signed a joint-venture agreement to co-develop the planned 76-story mixed-use project .

Thor Equities is in default on the $17 million loan backing at 1006 Madison Avenue. The troubled loan is just one of the latest in a string of recent setbacks that Thor has experienced on its retail properties.

A Japanese ad firm may take the largest floor in the Farley Building. Dentsu Americas is looking at the fourth floor at 390 Ninth Avenue which is almost 300,000 square feet.

Brookfield Property Partners’ Two Manhattan West where Amazon is reportedly interested in leasing space as part of a requirement for more than 100,000 square feet, is seeking $80 million in real estate tax exemptions.

The Lincoln Correctional Facility, a 72,000 square-foot Harlem prison at 31-33 West 110th Street, is close to giving developers an opportunity to seize a property with Central Park frontage.

The Safra family has taken on full ownership of two mixed-used properties on Madison Avenue for a combined price of $95.3 million from entities tied to Status Capital. Through two limited liability companies, the family paid $75.7 million to own 711 Madison Avenue. Safra also picked up a minority stake in the six-story building at 715 Madison Avenue for about $19.6 million.

WeWork has signed another four locations with APF Properties on four Manhattan locations totaling 110,000 square feet. The spaces are located at 25 West 45th Street, 28 West 44th Street and 183 Madison Avenue, will be filled with Headquarters by WeWork. Asking rents were not disclosed.

WeWork’s rented another 50,000 square at 30 Wall Street for its headquarters. It signed up for floors two through six and the 11th floor in the 108,000 square foot building.

Brad Zackson, is pitching a $3.5 billion plan to develop 5 million square feet along the Bronx waterfront. The project, which is bordered by Fordham Road and the University Heights Bridge, would include an e-sports stadium, a 700,000-square-foot Life Science Center and about 2,800 residential units. There would also be retail, a hotel, conference center and community spaces.

Flatiron Hotel was sold to Premier Equities. Premier is paying down the debt on the hotel, which was facing foreclosure, and becoming its majority owner. Israeli Discount Bank provided Premier with $30 million in financing to cover the remaining balance.

Mayflower Business Group is moving forward with its plans to build a new hotel in the Garment District. The Wei Hong Hu-led firm plans to build a 25-story, 46,000-square-foot hotel at 319 West 35th Street. The new project will have 166 rooms.

Alexander McQueen is getting a new location in Soho. The French label has leased 6,600 square feet on two levels at 71 Greene Street.

Microsoft is bringing offices downtown with a large new lease in Soho. The company signed a lease for 70,000 square feet at 300 Lafayette Street. Another 8,500 square feet is still available at the building.

A Related Companies venture landed a $1.1 billion refinancing deal for its office space at the Time Warner Center. The deal includes a $725 million refinanced mortgage, a $120 million building loan and a $255 million project loan.
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