Sutton and GGP Land $1.25B Loan from Four Banking Giants for Crown Purchase

The Crown Building (Winter Properties).

Billionaire New York developer Jeff Sutton and Chicago-based General Growth Properties closed on their $1.78 billion acquisition of the Crown Building at 730 Fifth Avenue with a $1.25 billion mortgage provided by Deutsche Bank, Morgan Stanley‎, Goldman Sachs and Citigroup, Commercial Observer has learned.

The loan closed last Friday. Oxford Finance and another, unnamed, mezzanine lender grabbed junior portions of the enormous debt deal, a source with intimate knowledge of the transaction said. Read More

Lease Beat

85 Broad Street’s First Major Lessee Signs On

85 Broad Street.

WeWork, a company that offers monthly access to office space and services to small businesses and anyone comfortable with shared working quarters, signed a lease for 240,000 square feet at 85 Broad Street between South William and Pearl Streets, the former headquarters of Goldman Sachs. It’s the first significant lease in the 30-story building owned by MetLife and Beacon Capital Partners, and the first sizable deal of 2015 in the Financial District, the New York Post reported.

Private offices (as opposed to a desk in a shared space) are already being advertised on WeWork’s website, starting at $750 per month. Read More

Mortgage Observer

Now Is Not Prime Time on the CMBS Channel

An MBA CREF pool party (Photo: Damian Ghigliotty).

Despite recent growth, now may not be the best time for CMBS lenders.

At a panel on the CMBS market at this year’s MBA CREF conference in San Diego, four seasoned players warned of increased deal constraints, an overly competitive marketplace and a decelerated rebound. One panelist even joked that giving a negative outlook on CMBS helps stave off competition. Read More

1000 Dean Street

Brownstoner and Partners Open Renovated 1000 Dean Street [Updated]

Ribbon Cutting

Brownstoner Media, BFC Partners and the Goldman Sachs urban investment group opened a 150,000-square-foot gut renovated office warehouse at a ribbon cutting ceremony at 1000 Dean Street in Crown Heights this morning.

The roughly $19 million facelift at the four-story former storage facility at an old Studebaker service station has flipped a building Brownstoner founder Jonathan Butler says he and his backers purchased for $11 million in March 2012, as Commercial Observer reported in February. Read More

Mortgage Observer

Thor Equities Takes Goldman Sachs Loan for Row NYC Retail Space

700 Eighth Avenue

Goldman Sachs provided a $50 million mortgage to Thor Equities for its recently acquired retail condominium space in the Row NYC Hotel at 700 Eighth Avenue, a person familiar with the transaction told Mortgage Observer on background.

The Midtown-based real estate firm bought the retail condo from a venture between Highgate Holdings and Rockpoint Group, which owns the hotel, for $64 million on March 27. The acquisition took the form of a long-term lease that extends to Feb. 29, 2112, according to the person familiar with the transaction. Read More

Mortgage Observer

Multifamily Financing in Manhattan Faces Rising Hurdles

(Illustration by Thomas Pitilli)

While Manhattan is clearly one of the most desirable places on the planet to live—and much ink has been spilled over rising rental prices therein—there is another side to the coin. The sky-high land values that come along with rising rents are now keeping a firm lid on multifamily development in Gotham.

Despite the enormous demand from renters, lenders are far more interested in financing luxury condominiums, hotels and office and retail development in Manhattan, sources told Mortgage Observer. And while developers and bankers cite myriad economic and practical reasons for the hampered development pipeline for multifamily projects, the ever-loftier land costs are the bedrock issue. Read More

Lease Beat

Revlon Relocates to 1 New York Plaza


Revlon has reportedly signed a 15-year lease for the top two floors at Brookfield Office Properties1 New York Plaza in a relocation from 237 Park Avenue, joining a flight of value-seeking firms to recently head Downtown.

The 91,194-square-foot lease covers floors 49 and 50, the latter of which is a glass box-style penthouse with 15-foot ceilings, according to the New York Post, which first reported the deal earlier this week and noted that former occupant Goldman Sachs removed columns from the space to accommodate their trading floor. Read More

MO's Top 50

Jonathan Pollack Takes Top Spot On This Year’s 50 Most Important People in CREF

Jonathan Pollack.

Deutsche Bank’s CMBS guru and real estate financing head honcho, Jonathan Pollack, took the No. 1 spot on this year’s 50 Most Important People list due to several colossal deals and his team’s top ranking in the global and U.S. securitized debt markets.

While the German global banking and financial services company reported an unexpected overall loss of 965 million euros, or $1.3 billion, for the fourth quarter of 2013, its real estate debt operations have continued to show clear gains. Read More

Mortgage Observer

HKS Negotiates $120 Million Loan from Goldman Sachs for 12 East 88th Street Acquisition

12 East 88th Street

In one of its largest brokered deals in the last year, HKS Capital Partners has arranged a $120 million loan from Goldman Sachs for Simon Baron Development Group’s acquisition of 12 East 88th Street in Carnegie Hill, Manhattan.

Ayush Kapahi, a founding partner at the boutique brokerage firm, negotiated the three-year loan out of HKS Capital’s Manhattan office, Mortgage Observer has exclusively learned. Read More

Lease Beat

Comerica Expands at 230 Park Avenue

230 Park Avenue in lit in Seattle Seahawks colors for the Super Bowl

Comerica Incorporated has expanded by 7,286 square feet on the sixth floor of 230 Park Avenue, the building’s landlord announced this week.

The Dallas, Texas-headquartered financial services company now occupies a total of 13,158 square feet at the Monday Properties and Invesco-owned building. The company has steadily grown its presence at 230 Park Avenue over the past year, expanding by 2,000 square feet in 2013 to approximately 5,900 square feet. Read More

The Lobby

Marty Burger Officially Takes Over as CEO of Silverstein Properties

Marty Burger

Marty Burger has been appointed as chief executive of Silverstein Properties, the company announced today, taking over sole ownership of the title he previously shared with Larry Silverstein.

Mr. Burger, who held the title of co-chief executive for two years during a period of transition, will take over responsibility of the real estate company’s day-to-day operations. A veteran of the industry, the 48-year-old first joined Silverstein Properties in 2010 after stints with Goldman Sachs, Blackstone, Related and Artisan Real Estate Ventures, a firm he founded. Read More

Mortgage Observer

Q&A: Peter Sotoloff, Managing Director and Head of Originations at Blackstone Real Estate Debt Strategies

Peter Sotoloff

Mortgage Observer met with Mr. Sotoloff, who BREDS Managing Director and Chief Investment Officer Michael Nash calls ‘employee No. 1.’ He spoke about his experience on both the financing and development/acquisition sides of commercial real estate and the opportunity to help establish Blackstone’s debt business in the fall of 2007. Read More

Lease Beat

Law Firm Renews, Expands at 230 Park Avenue

230 Park Avenue.

McKenna Long & Aldridge LLP has signed a 12-year renewal at Monday Properties230 Park Avenue.

The law firm has increased its space by 2,000 square feet in the deal and will now occupy 32,052 square feet on the entire 17th and a portion of the 18th floor. The tenant has increased its space in the building by 50 percent since moving in in 2007.

Read More