BISNOW: Behind The Deal: 333 W 34th St

on August 13, 2013.

At a $630/SF purchase price, how much value can American Realty Capital New York Recovery REIT actually recover on its $220.3M acquisition of SL Green's 333 W 34th St? NYRR announced the deal's closing yesterday.
This morning, Avison Young's Steve Kurtz (snapped with Little Moose) told us 77k SF of the building's 347k could roll soon (the remaining 270k SF is captured in the four major leases SL Green did since it acquired the building in 2010). The building rents for the low $40s/SF now, Steve says, and it very well could become a $50/SF building in a year or two if American Realty Capital can boost rents on spaces like National Benefit Health's 50k SF, assumed to be rolling soon since it signed back in '95. And the submarket is ripe; in Penn Plaza, rent growth has outpaced CPI since the recovery, Steve says. When asked if the building has a green "ruff", Little Moose shook his head and launched into a lecture on TI.

The Deal Sheet
FINANCING
TF Cornerstone refinanced 660 Twelfth Ave, the FedEx Distribution Center it built 10 years ago, with a $90M loan arranged by The Singer & Bassuk Org.


Capital One Bank provided a $90M, 10-year refi for The Feil Org's 446k SF, landmarked 488 Madison Ave at East 51st Street next to Saint Patrick's Cathedral.


GCP Capital Group's Paul Greenbaum arranged a $41M loan for 11 properties totaling 546 apartments and 6,600 SF of commercial space in Queens and the Bronx.


Meridian Capital Group's Cary Pollack and Charles Grussgott put together $15M for a 17k SF retail condo on Sixth Avenue, and their colleague Jacob Schmuckler negotiated a $13M refi for the 152k SF half office/half retail property at 40 W 14th St.
SALES
Staten Island Marine Development bought the former International Speedway Corp site and, under an agreement approved by the State, will reclaim 300 acres and enhance and preserve 260 acres for fresh water and tidal wetlands.


777 West Putnam Avenue LLC—repped by CBRE's Jeffrey Dunne, Steven Bardsley, and Steven Greenbush—bought the 130k SF Greenwich building of the same address for $38.9M.


A local investment group, repped by Rosewood Realty Group's Samuel Kooris, paid $25.1M for 304 units in the Bronx's Soundview at 1121, 1133, 1141-45, 1155, and 1171-75 Morrison Ave. Rosewood's Aaron Jungreis repped the seller, a local fund. Aaron also repped SMJ Associated II LLC in its $10.5M sale of 72 apartments at 3111 Brighton 7th St in Brighton Beach. His colleague Michael Guttman repped the buyer.


250 VE LLC sold the 11k SF retail condo at 250 Bowery between East Houston and Prince streets to 250 Bowery Star LLC, an affiliate of developer David Edelstein's Tristar Capital, for $15.8M. RKF's Jeff Fishman, Brian Segall, and Jonathan Butwin arranged the deal.


Michael Schwartz, repped by Meridian Capital Group's Shamir Seidman, took out a $10.7M mortgage from a regional balance-sheet lender to buy a four-story, 90k SF flex property at 168 Seventh St in Brooklyn's Gowanus neighborhood.
LEASING
By year's end, AFS-USA will move 180 employees from Baltimore, Portland, St. Paul and 1 Whitehall St into 41k SF in Silverstein's 120 Wall St under a 15-year lease. Colliers' Alan Desino repped the tenant, which was motivated by the property's 501(c)(3) incentive program. Roger Silverstein and Joe Artusa repped the landlord internally.


Select Office Suites expanded by 13k SF and renewed 35k for 13 years at 1115 Broadway. Adams & Co's James Buslik repped Eleven Fifteen Associates and the tenant.


Fairway will open in 46k SF in the South Tower of Related and Oxford Properties' Hudson Yards in 2015.


Pacific College of Oriental Medicine—repped by NGKF's Mark Weiss, Robert Eisenberg, and Nick Berger—leased 42k SF for 15 years in Swig Equities 110 William St. Jonathan Dean repped Swig internally.


Development Corp for Israel is relocating to 25k SF in Rudin's 641 Lexington Ave at 54th Street from 575 Lexington Ave. It signed a 15-year lease that will start in Q1 '14. Rudin Management's Robert Steinman repped the owner, and Colliers' James Emden repped the tenant.


According to CompStak, investigative services firm James Mintz Group is relocating from 32 Ave of the Americas to 16k SF at 110 Fifth Ave, starting in the low $60s/SF.


Jeffrey Lefcourt and Glenn Harris of Corner Table Restaurants are opening a fourth location of The Smith in 15k SF at 230 Fifth Ave, aka 1150 Broadway, at 27th and Broadway. NGKF's Harvey Richer and Jonathan Krivine repped both sides, including Newmark Holdings.


Mack-Cali completed the following New Jersey leases:

  • Diane Chayes: T-Mobile USA, repped by JLL's Jim Medenbach and Fred Hyatt, renewed the entire 105k SF office at 4 Sylvan Way in Parsippany's Mack-Cali Business Campus. She also put American General Life Insurance Co, repped by CBRE's Joseph Sarno and Jeremy Neuer, into 74k SF at 3600 Route 66 in Neptune, NJ.

  • Toni Casiano: Public Service Electric and Gas Co, repped by Colliers' Bryn Cinque, renewed 48k SF at 20 Commerce Dr in Cranford.

  • Christopher DeLorenzo: Sunovion Pharmaceuticals—repped by CBRE's Richard Charles, Masahiro Tanaka, Thomas Shirocky, Jeff Babikian, and Ron Volk—took 46k SF at One Bridge Plaza in Fort Lee.

  • Brian Golden: Toyota Motor Credit Corp, repped by Resource Realty's David Warren and JLL's Wade Clark and Ronda Clark, renewed 22k SF at 4 Gatehall Dr in Parsippany.

  • Erin Moran and John O'Hearn put Hammerman & Gainer into 21k SF in 3 Paragon Way in Freehold's Monmouth Executive Center.

  • Richard Travaglini: Orloff Lowenbach Stifelman & Siegel, repped by Cushman & Wakefield's David Stifelman, renewed 20k SF in 101 Eisenhower Pkwy in Roseland, NJ. He also renewed Greenbaum Rowe Smith & Davis, repped by American Properties Realty's Doug Rowe and Associated Realty's Jackie Witmondt, for 17k SF at 75 Livingston Ave in Roseland.


The landlord also completed these leases in Westchester, Rockland, and Fairfield counties:

  • Carol McGuire: Xand Operations renewed 46k SF at 11 Skyline Dr in Hawthorne and 44k SF at 17 Skyline Dr, where it also expanded by 41k SF. It now leases each entire building in Mid-Westchester Executive Park. And Westchester Community Opportunity Program, repped by Rakow Commercial Realty Group's Paul Moulins, leased 13k SF at 2 Westchester Plaza in Elmsford's Cross Westchester Executive Park. Danielle Rollins renewed Evening Out for 33k SF of office/flex at 75 Clearbrook Rd in the same park, and Ivan Abry renewed Fire-End & Croker Corp, repped by CBRE's Ian Ceppos and Al Gutierrez, to a 13k SF renewal at 7 Westchester Plaza there.

  • Louis Amalfitano: Knighted—repped by NGKF's Keith Cade, Dominick Soltero, and Glenn Walsh—took 30k SF in Elmsford's 555 Taxter Rd in Taxter Corporate Park.

Regina Glick

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