Prolific development duo Joseph Chetrit and Clipper Equity received $228.5 million in construction funds to convert a Midtown hotel that was foreclosed on last year to a combination of office and residential condominiums.
The Flatotel, at 135 West 52nd Street, will become a five-floor “boutique” office condominium and 37 floors of luxury residential condos, according to a representative for Meridian Capital Group, which brokered the loan with Deutsche Bank.
Greenpoint may not be as sleek as Williamsburg, and the neighborhood is still a (diminished) Polish stronghold, but it’s gaining more attention now as residential developments, many stalled during the recession, prepare to dot the still-scrappy waterfront.
“It’s just a matter of evolution,” said Ofer Cohen, the founder and president of Brooklyn commercial brokerage TerraCRG, Read More
Chicago’s Willis Tower was transferred to special servicing this week due to “imminent monetary default,” according to Fitch Ratings, which tracks the senior CMBS debt on the building’s loan. The 110-story tower was, until last year, the tallest in America. One World Trade Center was ruled tallest in November.
The borrowers, a group that includes a number of prominent New York owners and developers led by Joseph Chetrit’s Chetrit Group, owe almost $500 million in senior CMBS debt and about $774 million total, according to data from Fitch.
A little extra money never hurts when it comes to arrested development.
Arbor Commercial Mortgage has provided a $70.1 million loan to a group of borrowers for several long-planned commercial condominium units at 511 Ninth Avenue in Hell’s Kitchen, Mortgage Observer is the first to report.
Sony Corporation of America has signed a 15-year, 525,000-square-foot lease at 11 Madison Avenue, the company confirmed today.
The U.S. branch of the Japanese conglomerate will occupy the top 10 floors of the building, as well as the rooftop overlooking Madison Square Park. Additionally, Sony will have a dedicated entrance to the building with the address 25 Madison Avenue.
There were three whopping commercial deals in New York City last year in the trillion-dollar price range, blowing away the other commercial transactions for the year in terms of price, according to a report by PropertyShark provided exclusively to Commercial Observer.
The priciest deal was Comcast’s $1.3 billion purchase of 1.3 million square feet of office and studio space at 30 Rockefeller Plaza, part of the media and communications giant’s $16.7 billion purchase of a 49 percent stake in NBCUniversal from General Electric.
Gary Barnett, founder of Extell Development, is seeking approximately $1 billion in financing from Export-Import Bank of China for the planned condominium development at 225 West 57th Street, The Wall Street Journal reported earlier today.
If the deal is closed, it would likely be the largest loan for a U.S. real estate construction project since the market downturn, according to the Journal report. The project, as designed, would be the largest residential building in the United States, rising just a block away from Extell’s soon to be completed One57 residential tower. Last year, Nordstrom agreed to anchor the development with its first New York flagship location.
From a Taconic Investment Partners project in Hunts Point to the World Trade Center site in Lower Manhattan, power in New York real estate circles has increasingly expanded from the comfortable confines of Midtown Manhattan to the fringes of all five boroughs. While large developments such as the Related Company’s Hudson Yards often dominate the conversation, Brooklyn, Queens and even the Bronx continue to grow in stature.
Long Island City is fast becoming a focal point for the real estate industry as Rockrose and other residential developers tap into the growing Queens neighborhood. In the Bronx, Taconic Investment Partners, formerly the owners of 111 Eighth Avenue, is in the process of a significant capital improvement plan at the BankNote Building on Lafayette Avenue in Hunt’s Point.
Below, a sampling of where power thrives in New York City in 2013.
The Hotel Chelsea at one time was home to literary lions including Mark Twain, O. Henry and Tennessee Williams. But since the enigmatic developer Joseph Chetrit purchased the bohemian citadel for $78.5 million in 2011, court documents have constituted the bulk of the Chelsea’s written output.
In the past year, owners have proposed a controversial expansion to accommodate a rooftop bar; tenants, joined by Christine Quinn, have rallied and brought litigation against unsafe conditions stemming from renovations; a judge demanded that the Chetrit Group return 22 paintings to an artist’s widow; a blind man sued ownership after falling into a sidewalk elevator and losing the finger with which he reads braille; and, on March 22, the Department of Buildings issued a stop work order after “illegal gas piping” cut off heat and hot water.
The city announced yesterday that it will sell two Civic Center buildings at 49-51 Chambers Street and 346 Broadway for nearly $250 million to Chetrit Group and The Peebles Corporation.
Chetrit — in the midst of a buying spree — and Peebles were selected following an RFP issued in April of last year as part of the Bloomberg administration’s plan to reduce underused government office space by 1.2 million square feet by 2014.
The developers plan to restore the buildings and redevelop them as as a mix of hotel, residential and community space.
In one of the largest real estate deals in recent memory, Comcast will purchase from General Electric the properties used by NBCUniversal at iconic 30 Rockefeller Plaza and CNBC Headquarters as part of its acquisition of GE’s remaining 49 percent equity stake in the media company, it was announced earlier this week.
Though the building is owned by Tishman Speyer, the office and studio space at 30 Rock involved in the deal is owned by GE and is considered a commercial condo. GE will keep space in the building on the 52nd and 53rd floors.
The real estate component of the deal accounts for approximately $1.4 billion of the $16.7 billion transaction and trumps the $1.1 billion sale of the Sony Building to the Chetrit Group last month.
When Aaron Jungreis sought a buyer for the Bossert Hotel at 98 Montague Street in Brooklyn Heights last year, a long list of obstacles stacked up.
The off-market deal meant potential buyers had limited access to the site. Complicated zoning meant the Board of Standards and Appeals would be thrown into the mix. And competition Read More
Apparently when it came time to triple up on the T-squares, architecture firm Goldstein Hill & West decided it was time to commit to its own office in Lower Manhattan.
The firm, which specializes in high-rise residential and hospitality buildings and counts Columbia University and Forest City Ratner Company among its roster of clients, signed a 10-year lease to take 8,500 square feet at 11 Broadway. The firm will be moving out of 4,000 square foot space it had subleased from GACE Consulting Engineers at 31 West 27th Street, Crain’s New York reported last week.
Jamestown Properties and Rockwood Capital, along with Crown Acquisitions and Murray Hill Properties, finalized their deal to purchase 530 Fifth Avenue for a reported $390 million, officials said.
The property, which was previously owned by Joseph Moinian and the Chetrit Group, will receive a $20 million renovation to upgrade the building.
The union that nearly brought a doorman strike last month is planning a move to a new headquarters.
The Service Employees International Union 32BJ announced Monday that it has signed a 245,000-square-foot, 20-year lease at 620 Avenue of the Americas, at 18th Street. The building, bought by the Chetrit Group in 2005 for $289 million, Read More