Lease Beat

Raymour & Flanigan Signs Lease at Major Harlem Development

100 West 125th Street.

Raymour & Flanigan, the American furniture store that began in 1947 in Syracuse, N.Y., has signed a lease at Jeff Sutton’s Wharton Properties’ six-story retail development on West 125th Street in Harlem.

According to The New York Post, the company has taken 40,000 square feet on the second floor of the 200,000-square-foot building at 100 West 125th Street. Other tenants who have signed leases at the development, set to open in 2016, include Whole Foods, American Eagle Outfitters, Burlington Coat Factory and the Olive Garden. Read More

Finance, Sales Beat

Bank of China Finances Beijing Insurance Company’s 717 Fifth Avenue Buy

717 Fifth Avenue.

Anbang Insurance Group, the Beijing-based insurance company that bought the Waldorf Astoria for $1.95 billion, closed on its purchase of 717 Fifth Avenue’s office space with a $260 million acquisition loan from Bank of China, Commercial Observer has learned.

Anbang acquired the 26-story tower—minus its luxury retail portion—from Blackstone Group for about $415 million, giving the debt deal a loan-to-cost ratio of just over 60 percent, a person with knowledge of the deal confirmed. Read More

Finance

Meridian Brokers $60M Wells Fargo Loan for 85 Fifth Avenue Retail Co-Op Buy

85 Fifth Avenue.

Wells Fargo originated a $60 million loan to a partnership between Jeff Sutton’s Wharton Properties, General Growth Properties and Maguire Capital for the purchase of a retail cooperative property at 85 Fifth Avenue in Union Square, Commercial Observer has learned.

The three-year loan, negotiated by Meridian Capital Group Executive Vice President Aaron Birnbaum and Vice President Tal Savariego, carries a Libor-based floating interest rate as well as loan extension options, according to the brokers. Read More

Big Sales

Sutton Closes on Crown Building and Inks Deal for Aman Hotel

Jeff Sutton.

Last Friday, Jeff Sutton closed on the jewel of his Fifth Avenue empire—the Crown Building at 730 Fifth Avenue, which he purchased for a jaw-dropping $1.78 billion, with a $1.25 billion mortgage, that he bought with General Growth Properties. The seller was Spitzer Enterprises, led by former New York Governor Eliot Spitzer, and Winter Properties.

We also heard that a deal was finalized late last week for approximately $500 million to put an Aman Hotel from the fourth floor through the 24th floor of the Crown Building. Read More

The Plan

The Plan: 1560 Broadway

1560 Broadway

Three is better than one—in buildings as much as anything else. Landlords SL Green Realty Corp. and Jeff Sutton at 1552 Broadway and Newmark Holdings and the Benenson Family at 1560 Broadway tapped Rosen Johnson Architects to figure out a way to link their two buildings, and smush in a third in between the two (which was demolished). Rosen Johnson principals Paul Rosen and Anthony Johnson designed an innovative new scheme for the space with great retail potential just off Times Square. Read More

Mortgage Observer

Jeff Sutton Receives $95M Loan for Harlem Whole Foods Project

100 West 125th Street Rendering.

Wharton Properties has obtained a construction loan from Natixis Real Estate Capital to develop a 33,000 square foot retail property along 125th Street, Harlem’s busiest commercial thoroughfare, Mortgage Observer has first learned.

A person with knowledge of the loan confirmed the amount as $95 million and added that it was a three-year, interest-only loan with two 12-month extension options. The interest rate, that person said, is roughly 300 to 399 basis points over one-month Libor. The loan closed on July 11. Read More

Sales Beat

SL Green to Sell Three Manhattan Assets

180 Broadway. (PropertyShark)

SL Green Realty Corp. has agreed to sell three of its Manhattan assets, the real estate investment trust announced today. The deals, for 2 Herald Square, 180 Broadway and 985-987 Third Avenue, will generate net cash proceeds of $240 million, according to a press release.

The REIT will sell the leased fee interest in 2 Herald Square for $365 million. SL Green acquired the interest in joint partnership in 2007 before consolidating its position in 2010, the landlord said. Read More

Sales Beat

Purchase of Thor Equities’ 530 Bway Closes at $326M [Updated]

530 Broadway

A joint venture led by Jeff Sutton’s Wharton Properties has nabbed a three-building site at 530 Broadway from Joseph Sitt‘s Thor Equities for $326 million. The sale closed on March 6 and appeared in public records today.

The retail mogul bought the 11-story property to extend his dominance in Soho. It hit the market in February 2013 and Mr. Sitt agreed to sell it to the new owners that September.  Read More

Power Broker

Adding Value with Neil Kessner

Photo by Mike Nagle

On June 17, 2013, the head of SL Green’s in-house legal team, Neil Kessner, hopped on the subway with the firm’s president, Andrew Mathias, and headed to 1 Saint Andrews Place to meet retail bigwig Jeff Sutton for a meeting with the U.S. Attorney’s Office’s head of forfeiture, Sharon Cohen Levin.  

The SL Green/Sutton team had won an RFP issued in October 2012 to purchase the 49-year leasehold interest on the roughly 32,000-square-foot retail condo at 650 Fifth Avenue, signing a letter of intent for the leasehold on January 2013.  Read More

Retail

Jeff Sutton Sole Owner of 747 Madison Avenue Retail

1-01379-0051.Fi1nKO9T

Jeff Sutton is the buyer of SL Green‘s 33.3 percent stake in the retail co-op at 747 Madison Avenue, according to a New York Post report. The deal makes Mr. Sutton the sole owner of the space.

SL Green announced earlier this week it had agreed to sell its stake in the co-op in deal valuing the space at $160 million. In conjunction with the sale, the real estate investment trust agreed to make a $30 million preferred equity investment in the property.

Read More

Sales Beat

SL Green, Jeff Sutton Acquire Retail Leasehold at Controversial 650 Fifth Ave

650-fifth

The court-appointed federal monitor and interim trustee of the controversial commercial tower at 650 Fifth Avenue has negotiated a deal for the retail space at the building.

SL Green Realty has partnered with Jeff Sutton to acquire a 49-year leasehold interest in the retail portion of the Midtown property which has previously been linked to the Iranian government. Read More

Awards

REBNY Gives Retail Deal of the Year Honors to David LaPierre, Jacqueline Klinger, Chase Welles

From left to right: David LaPierre, Jacqueline Klinger, Chase Welles

Brokers who brought big name chain retailers to a pair of Jeff Sutton properties won big last night at the Real Estate Board of New York‘s Retail Deal of the Year Awards at 101 Park Avenue.

David LaPierre of CBRE nabbed the prize for  “most ingenious and creative retail deal that demonstrates exceptional broker acumen” for a transaction that brought Express to 1552-1560 Broadway. Jacqueline Klinger and Chase Welles of SCG Retail‘s success in landing Whole Foods in Harlem (at 100 West 125th Street) were deemed the brokers behind “the retail deal which is most significant in its overall characteristics and importance to the New York City Retail Market” Read More

Lease Beat

TGI Friday’s Relocates in Times Square

Courtesy of Waiterpay

TGI Friday’s will be relocating its Times Square restaurant.

The popular chain restaurant will be moving to a 10,872-square-foot space at 147-149 West 46th Street from its current outpost less than a block away on the corner of Broadway and 46th Street, officials said.

“Their previous location at 1552 Broadway was sold and they were Read More