Rudin has secured a four-year extension for the $425M CMBS loan secured by the 27-story, 1.2M SF office tower at 32 Sixth Ave.
32 Sixth Ave., where Rudin secured an extension on a $425M CMBS loan this week.
The loan entered special servicing in September, ahead of its November maturity date. But it could now mature as late as November 2029 if Rudin exercises two one-year extension options.
The family office will invest $100M in capital improvements as part of the deal and create a prebuilt program with spaces between 5K SF and 10K SF. Iron Hound Management advised the borrower.
Rudin has owned the 1.2M SF landmark art deco tower since 1999, when the firm acquired the property from AT&T. The telecommunications giant long had its headquarters there, and it served as a central switchboard for phone lines after it was built in the 1930s.
The building’s office occupancy fell to 57% in June, and its cash flow dropped last year to 49% below its 2015 issuance projections, Commercial Observer reported. The building’s data and telecom component is 91% leased, the landlord said in a press release.
TOP FINANCING DEALS
Vanbarton Group refinanced 980 Sixth Ave. with a $224M loan from Invesco, PincusCo reported. The sum for the 380-unit multifamily building replaces a $244.6M loan from Blackstone. The developer started converting the building to residential use in November 2023, The Real Deal previously reported, after WeWork exited its location there amid its bankruptcy restructuring.
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Jack Resnick & Sons refinanced its 600K SF full block at 255 Greenwich St. The $147M loan for the 14-story Tribeca tower came from Morgan Stanley and Société Générale and replaces a 10-year CMBS loan. Tenants at the building, which the developer built in 1987, include Cornell University, Icahn School of Medicine at Mount Sinai and Target Corp.
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The Domain Cos., LMXD and Bridge Investment Group refinanced The Jasper, a mixed-use Long Island City apartment tower with a $290M loan from Wells Fargo. The mortgage replaces a $220M construction loan from the same lender for the property at 2-33 50th Ave. The 499-unit building has 150 affordable units and retail space leased to 10 shops.Â
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Arden Living refinanced 4650 Broadway, a 222-unit, 22-story multifamily property in Inwood known as Forty Six Fifty, Commercial Observer reported. Starwood Property Trust provided the $161M loan.
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A Murphy & McManus affiliate refinanced 225 E. 126th St., home to the New York Proton Center, PincusCo reported. Funds managed by Nordic Trustee provided the $245M loan, replacing a $150M loan from Nomura Holdings. The treatment facility opened in 2019 as a for-profit partnership of Memorial Sloan Kettering Cancer Center, Montefiore Health System and Mount Sinai Health System and was partially financed by the hospitals, The Wall Street Journal previously reported.
TOP SALES
The development site at at 563 Sackett St. in Gowanus changed hands for $58.5M this week.
Fulltime Management’s David Tabak acquired a 421-a-vested development site from the Mazzei family at 563 Sackett St. for $58.5M. The 29K SF Gowanus site is zoned for a 12-story, 350-unit multifamily property that Tabak plans to move forward with. The site is also zoned for ICAP tax abatements. A JLL Capital Markets team including Michael Mazzara, Ethan Stanton and Brendan Maddigan arranged the deal.
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The Democratic Republic of the Congo acquired 765 First Ave. from the Permanent Mission of the State of Qatar for $33.3M, Commercial Observer reported. Both buyer and seller used entities named for their permanent mission to the United Nations. The deal follows the June consolidation of the U.N.’s NYC operations on the East Side of Manhattan.
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Bayrock Capital sold 160 W. 74th St. to Apex Investments for $26.4M, Crain’s New York Business reported. Bayrock acquired the property in 2023 for $14M, the same year that private education institute the Calhoun School moved its Lower School from the five-story property to 325 W. 85th St., CO reported. The property is slated to become a 146-bed homeless shelter operated by Volunteers of America and was expected to open last fall, although its current opening timeline remains unclear.
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Rabsky Group and Spencer Equity Group went 50-50 on the $37.8M acquisition of a development site at 356 Fulton St. from Extell Development, PincusCo reported. Rabsky and Spencer are expected to build a 299-unit rental development, with 90 apartments reserved as affordable housing, plus 200 for-sale condos. The Downtown Brooklyn site is zoned for 363 residential units, after The Feil Organization, which signed a 99-year ground lease with Extell in 2022, received development permits in 2022. The sale is part of a deal worth $56M disclosed on the Tel Aviv Stock Exchange in late October, which places total development and acquisition costs at $400M. The buyers plan to spend a further $6M on air rights.
TOP LEASES
Hair and body care company Moroccanoil signed a 40K SF lease at SL Green’s 1185 Sixth Ave. this week.
Moroccanoil Inc. signed a 10-year, 40K SF lease at SL Green’s 1185 Sixth Ave. for the entire 33rd and partial 32nd floor of the 42-story office tower. The hair and body care company’s new neighbors include the Industrial & Commercial Bank of China and Hartree Partners. Cushman & Wakefield’s Deborah Van Der Heyden, Yarden Drimmer, Tamar Wartanian and Andrew Chase represented the tenant. Newmark’s Brian Waterman, John Fanuzzi, Brent Ozarowski, David Waterman and Kevin Sullivan represented the landlord.
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Sigma Computing signed a 28K SF expansion deal at SL Green’s One Madison Ave., adding to its 64K SF footprint in the 27-story office tower. The 11-year lease brings the tower to 93% leased. Newmark’s Brent Ozarowski, Jeffrey Rodgers and Stephen Cisarik represented the tenant, while JLL’s Paul Glickman, Alexander Chudnoff, Ben Bass and Diana Biasotti represented the landlord.
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Sixth Street signed a 103K SF sublease at Tishman Speyer’s The Spiral in Hudson Yards, Commercial Observer reported, citing a Colliers office report. The deal was one of the largest leases in Midtown South during October and expires in 2042. Tishman Speyer spent nearly $3.7B developing the 2.8M SF office tower, and it refinanced its construction loan with a nearly $3B CMBS deal in January. It is unclear who Sixth Street’s sublandlord is, but the five largest tenants in the building are Pfizer, Debevoise & Plimpton LLP, TPG Global, HSBC and AllianceBernstein.
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BakerHostetler renewed its 115K SF at Tishman Speyer’s 45 Rockefeller Plaza for 16 years, Commercial Observer reported. The law firm has been in the 39-story building since 2001. CBRE brokered the deal.