Mortgage Observer

Titan Capital Lifts Brooklyn School Out of Bankruptcy

Adelphi Academy.

Westport, Conn.-based bridge lender Titan Capital ID provided $8.8 million in exit financing to take a struggling Brooklyn private school out of bankruptcy, Mortgage Observer has first learned.

Adelphi Academy, one of Brooklyn’s oldest preparatory schools, filed for Chapter 11 in June to reorganize its finances and continue operations during the bankruptcy process. Adelphi had planned the financial reorganization with Titan Capital prior to its bankruptcy filing, according to the the school’s general counsel. Read More

Retail Eyes West 34th Street for First Store Offline

7 West 34th Street

Website behemoth will open its first brick-and-mortar store, according to a Wall Street Journal article published Tuesday.

The enormous online empire and largest Internet-based company in the U.S. will have space at 7 West 34th Street, a property owned by Vornado Realty Trust. The 10-story commercial building includes 23,000 square feet of retail space and over 400,000 square feet of office space. Read More

Lease Beat

Digital Ad Agency Expands in Dumbo

45 Main Street

Digital marketing firm Huge will expand from 55,000 square feet to 80,000 square feet through a five-year lease with a five-year renewal option at Two Trees Management‘s 45 Main Street in the Dumbo section of Brooklyn, The New York Post reported Tuesday.

The firm with 850 employees worldwide and over 500 in Brooklyn first occupied a 2,500-square-foot space on the site that’s one block from the East River waterfront off of Water Street, but it’s now building out for the large-scale expansion in space where asking rents range from the low-$40s to the low-$50s per square foot, said Dan Conlon, director of leasing for Two Trees. Read More

Lease Beat

Tech Firm Relocates to Former NYT Building

229 West 43rd Street.

PubMatic is relocating to the former New York Times Building at 229 West 43rd Street between Seventh and Eighth Avenues.

The technology platform, which powers the programmatic advertising strategy of leading publishers and premium brands, signed a seven-year, 18,911-square-foot office lease on the seventh floor in the 16-story 480,000-square-foot tower, now known as 229W43, according to an announcement from Transwestern. PubMatic outgrew its nearby space at 220 West 42nd Street. Read More

Investment Beat

Economic Trends Point to More Asian Investment Deals

Paul Hastings

Just days after the announcement that Chinese company Anbang Insurance Group purchased the Waldorf-Astoria Hotel for $1.95 billion, five expert lawyers from the international real estate group at Paul Hastings LLP predicted that investors from Asia would continue their massive investments in markets like New York City at a panel at the firm’s Midtown headquarters this morning.

Recent trends like the deceleration in the growth in the Chinese economy, rumors surrounding potential real estate investments by Japan’s Government Pension Investment Fund and the fact that “every major commercial brokerage” now has dealmakers recruiting overseas investors in Asian capital cities show that observers should be prepared for more big-ticket plays, said Joel Rothstein, the firm’s longest serving real estate attorney in Asia. Read More

New Hire

Internal News: CO Gets New Editor-in-Chief

The New York Post‘s Max Gross has been tapped to run Commercial Observer, Observer Media announced today. He will step into the editor-in-chief role for the commercial real estate publication as of Oct. 20.

“We’ll be exploring new, innovative online and print initiatives that will maintain Commercial Observers cutting edge approaching to delivering premium content,” Mr. Gross said in a prepared statement. Read More

Mortgage Observer

Macklowe Completes 1 Wall Street Buy With $460M in Financing

1 Wall Street.

A joint venture led by Macklowe Properties sealed its $585 million purchase of 1 Wall Street from Bank of New York Mellon with $460 million in acquisition financing serviced by Deutsche Bank Trust Company Americas, city records show.

The transactions closed on Sept. 30 and hit records this morning. Qatar National Bank is listed as the agent bank in the deal. No other lenders are named. Read More

Market Reports

Reports: Downtown Vacancy Rates Fall While WTC Rises

Downtown Vacancy

Downtown Manhattan’s vacancy rates decreased by more than three percentage points in the last year despite large amounts of space for tenants at the World Trade Center, according to new quarterly data released by JLL and other market observers.

Downtown’s overall vacancy rate dropped from 13.7 percent to 10.6 percent between the third quarter of 2013 and the third quarter of this year, while downtown Class A vacancies plummeted from 15.5 percent to 11.2 percent over the same period, according to the JLL report. The trend reflects the area’s growing appeal to tenants from the technology, advertising, media and information sector who are moving from other neighborhoods, said John Wheeler, the director of JLL’s downtown office. Read More

Lease Beat

Milestone Auto Parts Moves from LI to Williamsburg

616 Scholes Street in Brooklyn.

Milestone Auto Parts has relocated from Hicksville, Long Island, to 13,000 square feet in a one-story Williamsburg building.

The auto body parts supplier signed a five-year lease at 616 Scholes Street between Scott and Onderdonk Avenues and is paying $13.50 per square foot, or approximately $175,500 in annual rent, The New York Times reported.  The asking rent was $14 per square foot, according to a spokeswoman for Kalmon Dolgin Affiliates, and the lease was signed Sept. 1. Read More

Transit Beat

Tracking NYC’s Transit Development Projects

7 Train.

New York City is in the midst of a transportation renaissance; East Side Access will bring Long Island Railroad commuters to Grand Central Terminal, the Second Avenue Subway will give straphangers a long-awaited lift east of Lexington Avenue and the 7 train will spark development on the Far West Side. But when will these projects actually be completed? Commercial Observer has the answers. Read More

Lease Beat

Midtown’s Tower 52 Secures Five Separate Leases

150 East 52nd Street.

Tower 52, a Midtown office building at 150 East 52nd Street, has secured five leases that total more than 23,000 square feet.

Situs Group, a current tenant, is renewing and expanding its space on the fourth floor. The company initially had 4,615 square feet but now will enjoy 9,987 square feet of space. CBRE’s Joseph Fabrizi and Arkady Smolyansky represented the tenant in this deal. Read More

Mortgage Observer

Wells Fargo Syndicates Westin Diplomat Loan

Westin Diplomat Resort & Spa.

Wells Fargo has syndicated a $260 million senior loan it provided to Thayer Lodging Group Fund VI and Brookfield Asset Management for a joint-venture acquisition and renovation of the Westin Diplomat Resort & Spa, in Hollywood, Fla., Mortgage Observer has exclusively learned.

Wells Fargo completed the syndication this week with three participating lenders, which the San Francisco-based bank declined to name. Michael Brown of the bank’s real estate syndication team under Wells Fargo Securities led the transaction. Read More

Lease Beat

CBS Signs for Space at Worldwide Plaza

Worldwide Plaza

CBS TV will consolidate several current locations for the famous network’s East Coast distribution offices during the first quarter of 2015 through a 12-year, 32,598-square-foot lease for the entire 30th floor at 1 Worldwide Plaza in Midtown, Commercial Observer has learned.

The network joins a growing list of media tenants at the 1.8-million-square-foot building in the mixed-use complex owned by a partnership between George Comfort & SonsRCG Longview, DRA Advisors and New York REIT, said Peter S. Duncan, the chief executive officer of George Comfort & Sons and the head of the investment group. Read More

Lease Beat

Having Recovered From Superstorm Sandy, 199 Water Street Now 100 Percent Leased

199 Water Street.

The property at 199 Water Street, a 35-story, 1.1-million-square-foot building that was battered by Superstorm Sandy in 2012, is now 100 percent leased after two separate, long-term leases were signed.

BCG Partners, a global financial services company, has signed a 15-year lease that will start on Jan. 1, 2015. It will occupy 79,900 square feet of space on the entire 18th and 19th floors. Before signing a direct lease, BCG Partners had previously subleased space in the building. The company was represented by Newmark Grubb Knight Frank’s Hal Stein and Michael Ippolito in negotiations. Read More