Lease Beat

Li & Fung Subsidiary Expands at 1359 Broadway

1359 Broadway

A division of Hong Kong-based retail supply-chain manager Li & Fung will grow its footprint at Empire State Realty Trust‘s 1359 Broadway through a seven-year, 12,900-square-foot expansion deal, Commercial Observer has learned.

LF Distribution Holdings, an entity wholly-owned by the largest tenant in ESRT’s portfolio, grabbed new space on a portion of the building’s ninth floor to expand to 104,000 square feet at the property, a source close to the negotiations told CO. The building between West 36th and 37th Streets commanded an asking rent of $58 per square foot, representatives for ESRT said. Read More

Lease Beat

IQPC/Penton Media Renews & Expands Lease at 535 Fifth Avenue

535 Fifth Avenue

IQPC/Penton Media, a company that hosts conferences, summits and events worldwide for industry leaders, has renewed its lease at the Moinian Group’s 535 Fifth Avenue and has expanded its square footage in the building, Commercial Observer has learned.

According to a press release issued by the Moinian Group, the company has secured 28,340 square feet on the entire 8th floor of the property, as well as portions of the 9th and 10th floors. Read More

Mortgage Observer

Natixis Finances Extell Upper West Side Buy for Condo Development

44 West 66th Street.

Natixis Real Estate Capital gave a $96 million loan to Gary Barnett’s Extell Development for the purchase of three parcels of land on West 66th Street—one of which is occupied by a synagogue—a person with knowledge of the deal told Mortgage Observer. The borrower has formed a joint venture for a large condominium development there.

The balance-sheet loan carries a term of 18 months with a six-month extension option and will not be securitized, the person in the know said on the condition of anonymity. The financing closed yesterday. Read More

Lease Beat

Coral Reef Fund Migrates to Rock Center

45 Rockefeller Plaza

Worldwide energy investment company the Coral Reef Fund has relocated its headquarters roughly five blocks west to Tishman Speyer‘s 45 Rockefeller PlazaCommercial Observer has learned.

The company, which invests in oil, gas and other natural resources, moved last month from a smaller space at 757 Third Avenue by signing a 4,940-square-foot lease for a suite on the 23rd floor in the property that’s also known as the International Building and 630 Fifth Avenue, officials with Colliers International said. The space commanded an asking rent of $72 per square foot, they noted. Read More

Lease Beat

Flexible Workspace Provider Signs Lease at One Pierrepont Plaza

One Pierrepont Plaza.

Regus, a provider of flexible workspaces, has signed a 12-year lease for roughly 38,000 square feet at One Pierrepont Plaza in Downtown Brooklyn, according to a press release issued by Forest City Ratner.

According to Forest City Ratner, this will be Regus’ first business center in the borough. It will occupy the entire 12th floor of the building, built in 1988. The property features 19 stories and 651,000 square feet of office space. Read More

Under Construction

Under Construction: The Jerome L. Greene Science Center and Lenfest Center for the Arts

Philip Pitruzzello, Columbia University’s vice president for Manhattanville Development.

The gates at Columbia University’s main campus on Broadway and 116th Street send a strong message: students are welcome and strangers stay out.

But Columbia’s new Manhattanville campus, stretching from 129th to 133rd Street west of Broadway, now under construction, is steered by a different philosophy.  Its goal is to interact with the community and enhance it, rather than keeping out residents and city dwellers.  Read More

Mortgage Observer

Meridian Brokers Fannie Mae Loan for East Village Property

The Adele.

Meridian Capital Group negotiated a $62.7 million Fannie Mae loan to New York-based Kahen Properties to refinance The Adele, a luxury multifamily property in the East Village, Mortgage Observer has learned.

The 12-year loan, provided by PNC Real Estate, carries a fixed rate of 3.75 percent and 10 years of interest-only payments, followed by a 30-year amortization, according to the broker. A PNC representative was unable to confirm the financing. Read More

Lease Beat

Buzzfeed Signs Lease for New Space on Park Avenue South

225 Park Avenue South

News and culture website Buzzfeed has committed to 194,000 square feet of space at 225 Park Avenue South between East 18th and East 19th Streets.

First reported by the New York Post, Buzzfeed will move into offices on the 11th to 16th floors of the Midtown South property, built in 1909. Crain’s New York Business noted that the Port Authority of New York & New Jersey, relocating to 4 World Trade Center, previously occupied the space. Read More

Lease Beat

Valley National Inks 15-Year Deal in Diamond District

71 West 47th Street

Valley National Bank, a regional bank based in Wayne, N.J., has signed a 15-year lease for 7,713 square feet at 71 West 47th Street, Commercial Observer has learned.

“Valley Bank has a long, successful history on 47th Street and we are very excited to welcome them to 71 West 47th Street,” said Adam Abramson, the vice president and principal of Abramson Brothers who own the building and acts as the landlord, in prepared remarks. “We believe they will thrive at this location, with the high traffic that passes the building from both the Diamond District and Rockefeller Center.” Read More

Lease Beat

Hedge Funds to Move to New Boston Properties Building

250 West 55th Street

Two hedge funds will relocate in the first quarter of 2015 to the 30th floor of Boston Properties‘ newly-minted building at 250 West 55th Street through respective seven-year leases, Commercial Observer has learned.

Twin Capital Management will move to a 5,630-square-foot space at the building between Broadway and Eighth Avenue from its current office at 140 East 45th Street near Grand Central, while Glazer Capital will switch to a new 5,230-square-foot footprint at the new 39-story Skidmore Owings & Merrill from its spread at 623 Fifth Avenue, sources close to the negotiations told CO. Read More

Mortgage Observer

American Realty Capital Provides $35M For Newark Buy

Rugby Realty has acquired office building Three Gateway Center in Newark, N.J. with $35 million from American Realty Capital, a source told Mortgage Observer.

Rugby paid $42 million for the 579,000-square-foot building, the source said. NJBiz.com previously reported the sale, but did not provide the financial terms of the deal. The seller was New York-based developer and investor Tahl Propp Equities, according to NJBiz. Read More

Lease Beat

Outsourcing Firm Grabs Park Avenue South Lease

381 Park Avenue South

Williams Lea, a company that provides business outsourcing and marketing to corporations, has signed a five year lease at 381 Park Avenue South, Commercial Observer has learned.

According to a press release issued by ATCO Properties and Management, Williams Lea will take 14,000 square feet of space on the entire fifth floor of the property, which sits on the corner of 27th Street. Read More

Mortgage Observer

Loan Backed By Former Home of Lehman Bros. Defeased

1301 Avenue of the Americas

In the shadow of the recession, things did not look fantastic for 1301 Avenue of the Americas. Two tenants, Lehman Brothers and law firm Dewey & LeBoeuf, were casualties of the financial crisis (or, really, a cause of it, in Lehman’s case). And while the office building stands 45 stories in prime Midtown, it sits on a less than utterly prestigious strip therein: Sixth Avenue.

But fast forward a few years and bondholders behind the securitized loan on the tower, which was set to mature in 2016, can rest easy. The securitization, LBUBS 2006-1, was reported as defeased, according to data from Trepp released this week. Read More

Real Estate- Foreign Market

Normalized U.S-Cuba Relations: What it Means for the Real Estate Industry

A construction site in Havana, Cuba (Emily Assiran/New York Obsever)

Today’s historic announcement by President Barack Obama that the U.S. and Cuba will restore diplomatic relations has enormous implications for many facets of American society, including the real estate industry.

According to Jose Gabilondo, a professor at Florida International University College of Law and an expert on finance in Cuba, U.S. businesses should view the beginning of the end of the U.S. embargo in Cuba as “a very positive sign.” Read More