Mortgage Observer

Has New York Multifamily Lost Its Sheen?

From left, Matthew Galligan, Peter Nicoletti, Chad Tredway and Jeremy Shel. (Patrick McMullan Company)

It almost starts off like a joke. Two lenders, a developer and a broker walk into a panel hosted by a lawyer. What can they all agree on? That rising land and construction costs could imperil New York development and multifamily deals.

That was the prevailing sentiment among four panelists at a Mortgage Observer breakfast event today at Herrick, Feinstein’s Park Avenue office. Read More

Mortgage Observer

TF Cornerstone Closes Two Agency Loans Totaling $365M

95 Horatio Street.

The Singer & Bassuk Organization advised TF Cornerstone in the arrangement of two permanent agency loans totaling $365 million for the New York developer’s rental apartment buildings at 95 Horatio Street in the Meatpacking District and 4610 Center Boulevard in Long Island City, Mortgage Observer has first learned.

TF Cornerstone secured a $165 million Freddie Mac loan through Capital One for its Horatio Street property, said Jeremy Shell, the company’s head of finance and acquisitions, and Andrew Singer, chairman and chief executive officer of Singer & Bassuk. Read More

Lease Beat

Juice Generation Takes Clarke’s Standard Old FiDi Space

101 Maiden Lane.

Popular juice bar Juice Generation has signed a lease for its first Financial District location, in the ground-floor space formerly occupied by Clarke’s Standard at 101 Maiden Lane, Commercial Observer has learned.

Juice Generation, which has 12 locations in Manhattan and Brooklyn, is taking 1,683 square feet at the base of one of TF Cornerstone‘s two luxury residential buildings collectively known as 2 Gold Street, Winick Realty Group announced. The asking rent was $200 per square foot, as Commercial Observer previously reported, and the lease is for 10 years. Juice Generation is slated to open in early 2015. Read More

Mortgage Observer

TF Cornerstone Scores Construction Loan for 606 West 57th Street

606 West 57th Street rendering.

TF Cornerstone landed a $384 million construction loan for its 80/20 rental development at 606 West 57th Street from a consortium of banks led by Wells Fargo, Mortgage Observer can exclusively report.

Buffalo, N.Y.-based M&T Bank and Germany-based Helaba also participated in the deal, with each lender taking about one third of the loan, sources said. The loan carries a term of four years plus extension options and is funded through 80/20 bond financing from the state Housing Finance Agency, according to two people privy to the negotiations. The three banks declined to comment. Read More

Assignments

Clarke’s Standard FiDi Space Hits the Market

101 Maiden Lane.

Clarke’s Standard, a burger joint owned by P.J. Clarke’s, plans to vacate its 1,683-square-foot, Financial District location at 101 Maiden Lane, Commercial Observer has learned.

Winick Realty Group was tapped to exclusively market the ground-level retail space, which is located inside one of TF Cornerstone’s two luxury residential buildings which are collectively known as 2 Gold Street. Read More

Feature Story

A New Lease on…Leasing

Hunters Point Park pier in Long Island City.

Landlords across the city are embracing non-traditional leases in the hope of avoiding two problems: a less than fresh roster of tenants and empty rental space. And property owners are taking advantage of the perks of filling commercial space with creative companies under a wide range of lease terms to amp up property presence, community engagement and, of course, the bottom line.

And while pop-ups came into their own amid the recession for the basic reason of filling space, landlords are increasingly using them as a way to market properties even with much improved vacancy rates, according to reports. Read More

Lease up

Winick Leases Up LIC’s EastCoast Development

EastCoast development.

Winick Realty Group has finished leasing the eight retail spaces in TF Cornerstone’s massive EastCoast development on the banks of the East River in Long Island City, Queens, Winick announced today. The most recent lease in the 30,000-square-foot retail space was for European Wax Center, whose 1,252-square-foot space is under construction.

Other tenants that have or will fill the spaces along the seven-tower luxury development’s main drag, Center Boulevard, include fitness studio I Love Kickboxing, which took 2,967 square feet, and Mimi & Mo, a children’s salon and clothing store, which signed a lease for 1,239 square feet. An Italian restaurant from TD Restaurant Group, whose name has not yet been released, will fill a 7,733-square-foot waterfront space with an outdoor terrace. Read More

Grand Openings

TF Cornerstone Completes LIC Waterfront

Tom and Fred Elghanayan

TF Cornerstone principals Tom and Fred Elghanayan toasted the final of the firm’s seven residential towers which have transformed the Long Island City waterfront in a dedication celebration Thursday night at 4610 Center Boulevard.

On land the company bought from PepsiCo for $85 million in 2003, TF Cornerstone erected 2.6 million square feet of new space, with 2,800 rental apartments, 184 condos, 35,000 square feet of retail and public parks for the  complex of gleaming towers at the firm’s EastCoast development. Read More

Mortgage Observer

Doing Deals in Any Economic Climate: TF Cornerstone

From left: Jeremy Shell and Tom Elghanayan of TF Cornerstone

On September 10, 2001, the Elghanayan brothers, then operating as Rockrose Development, closed a loan for a luxury rental building in Battery Park City. However, the loan had not funded. The following day was, obviously, a devastating one for New York City. The damage left much in doubt—especially real estate developments in the immediate area of the World Trade Center. But the lenders, the New York Common Fund and New York Life, who could easily have opted not to provide the money in light of the terrorist attacks, decided to go ahead and fund the loan anyway. And that was because they knew the borrowers so well.

“They did it as a sign of faith in Elghanayan and in New York,” said Andrew Singer, chairman and CEO of The Singer & Bassuk Organization, who has worked with K. Thomas and Frederick Elghanayan—the founders and principals of TF Cornerstone—since 1975. He also brokered the loan for that development, at 2 River Terrace. Read More

Mortgage Observer

Prudential, AXA Provide $300M Refinancing on LIC’s 4545 Center Boulevard

4545 Center Boulevard

Developer TF Cornerstone closed a $300 million permanent loan from Prudential Mortgage Capital Company and AXA Equitable Life Insurance Company for 4545 Center Boulevard, part of the developer’s EastCoast residential complex in Long Island City. The loan is one of an increasing number of large deals from leading lenders focused on the area.

The Singer & Bassuk Organization brokered the 15-year, fixed-rate mortgage to refinance a $265 million construction loan on the 40-story rental tower, said Andrew Singer, chairman and chief executive officer of the New York brokerage firm. Prudential took $200 million, and AXA took $100 million, he said. The new loan closed on March 10. Read More

Lease Beat

New York Kids Club Heads to Queens, Leases at TF Cornerstone High Rise

4545 Center Boulevard (Credit: TF Cornerstone)

In further confirmation of the stroller army’s successful invasion of Long Island City, New York Kids Club signed a 15-year, 5,003-square-foot lease at 4545 Center Boulevard.

The private “enrichment center” for preschool children will open by the LIC waterfront in September 2014 in TF Cornerstone‘s new mixed-use high-rise. This space–the tenant’s first in Queens–will offer preschool classes as well as after school, art, music and fitness programs. Read More