CommonWealth Partners refinanced a 50-story Midtown office building with a $780M loan, PincusCo reported.
CommonWealth Partners netted a new $780M loan for 787 Seventh Ave. this week.
The California Public Employees’ Retirement System provided the new financing for the 1.6M SF skyscraper at 787 Seventh Ave. The loan replaces a $780M CMBS loan that was set to expire this month, according to Morningstar Credit.
CalPERS paid $1.9B for the property in 2016, The Real Deal previously reported.Â
The tower faced financial difficulties in 2024, despite being 96% leased, including to tenants like UBS and law firms Sidley Austin and Willkie Farr & Gallagher, Crain’s New York Business previously reported.Â
UBS’ lease was set to expire in 2025, while fellow tenant BNP Paribas had cut its footprint in the building by roughly a third, Crain’s reported, triggering KBRA to reduce its value from $1B to $917M.
However, UBS still lists the Seventh Avenue location on its website, and the property was 98.5% leased as of June, according to Morningstar.
TOP FINANCING
RXR refinanced a 38-story office tower at 450 Lexington Ave. with a $407M loan. Morgan Stanley led the financing, which included Bank of America as a lender. The loan replaces a $272M mortgage in addition to financing a comprehensive redevelopment. A Walker & Dunlop Capital Markets team arranged the deal for owners RXR, PSP Investments and institutional investors advised by J.P. Morgan Asset Management. The 910K SF, 39-story building’s tenant roster includes Davis Polk & Wardwell, which expanded to 700K SF in 2023, Commercial Observer previously reported.
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A joint venture between Lendlease and Aware Super landed $450M from Ares Management to refinance its geothermal-powered 834-unit luxury residential building in Greenpoint, Commercial Observer reported.
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Vornado Realty Trust refinanced 1 Park Ave., a 22-story, 947K SF office tower, replacing an interest-only $525M securitized loan set to expire next month with a $525M mortgage, PincusCo reported. The new lenders are Wells Fargo, Morgan Stanley, Goldman Sachs and PNC Bank. Midland Loan Services, which had been acting as the master servicer since 2023, contacted Vornado in December about the expiring financing that the landlord had already extended twice and received confirmation last month that Vornado was set to close a deal for new financing this month, according to Morningstar Credit commentary.
TOP LEASES
Four tenants signed deals totaling 110K SF at SL Green’s 1185 Sixth Ave.
SL Green has signed a quartet of deals at 1185 Sixth Ave. totaling 110K SF and bringing the building to 91% leased. Groombridge, Wu, Baughman & Stone LLP signed for 43K SF and was represented by JLL’s Lisa Kiell and Andrew Coe. UHY Advisors NY signed for 28K SF and was represented by CBRE’s Silvio Petriello and Tamika Kramer. MTS Health Partners LP signed for 29K SF and was represented by CBRE’s Stephen Siegel and Sinclair Li. CFGI LLC signed for 9K SF and was represented by CBRE’s Joe D’Apice. Newmark’s Brian Waterman, Jonathan Fanuzzi, Brent Ozarowski, David Waterman and Kevin Sullivan represented the landlord.
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TransUnion signed a 30K SF lease at The Durst Organization’s 42-story 1155 Sixth Ave., according to a release. Thomas Bow, Rocco Romeo and Nora Caliban represented Durst in-house. Cresa’s David Wilson, Jonathan Zeitler, Mike McKenna and Barry Spagna represented the tenant.
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TF Cornerstone signed Gotham Pickleball to 26K SF at 52-37 Second St. in Long Island City. The facility will have six indoor courts, two outdoor courts and an event space. It is expected to open this fall. Golden Goose Realty’s Jack Gabay represented the tenant, while Pinnacle Realty’s Paul Bralower, Brendan Burke and Decio Baio represented the landlord.
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Chobani signed a 21K SF lease at Olshan Properties’ 99 Hudson St., Crain’s New York Business reported, close to the yogurt company’s global headquarters at 360 Bowery, where it occupies the whole building. The new lease runs through September 2027. Asking rents were $70 per SF on the 14th floor and $64 per SF on the 15th floor. Newmark’s Eric Cagney and Jon Franzel represented the landlord, while JLL’s Peter Michailidis represented the tenant.
TOP SALES
Two of the Madison Avenue storefronts acquired by Acadia Realty Trust this week.
Acadia Realty Trust acquired four Upper East Side storefronts from Naftali Group for $20.7M, Crain’s reported. Two of the properties are at 1165 Madison Ave. and two are at 1045 Madison Ave., but all four traded as separate commercial condo units at values between $4.9M and $7.8M. The storefronts house brands including Swarovski, Malin + Goetz and Le Labo.
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GDC Properties acquired a 30-unit Brooklyn apartment building at 335 Carroll St. from Stephen Mack, who is affiliated with Solon Mack Capital, for $24.1M, PincusCo reported. The price is a discount from the $27.2M Solon paid for the property in 2016. JLL’s Ethan Stanton, Brendan Maddigan, Michael Mazzara, Jeffrey Julien, Steven Rutman and Rob Hinckley represented the buyer and seller, Commercial Observer reported.
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Chess Builders acquired a Williamsburg development site spread across three lots for $19.6M, PincusCo reported. Two properties, 56 Meserole St. and 346 Lorimer St., are zoned as industrial, while the third adjacent property on Meserole Street is zoned as an unlicensed parking lot. The seller was the estate of landlord Gregory Pasternak through the entity Browar Corp.