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\n 650 Fifth Ave., which changed hands in a complex $435M transfer this week as part of a settlement\n <\/p>\n
The building was 60% owned by nonprofit Alavi Foundation and 40% owned by Assa Corp., which the U.S. Treasury said in 2008<\/a> was owned by a front for the Iranian government, Bank Melli.\u00a0<\/p>\n A jury\u00a0ruled\u00a0that\u00a0the U.S. government could\u00a0seize the asset in 2017, The New York Times previously reported<\/a>, although that verdict was overturned\u00a0by an appeals court<\/a>.<\/p>\n The transfer was approved by the New York State Attorney General in January after the litigation in the Southern District of New York led to the settlement, PincusCo reported last month<\/a>.<\/p>\n Alavi, which promotes Persian culture in the U.S., said in a statement<\/a>\u00a0it \u201ccategorically rejects any allegation\u201d that it acted on behalf of the Iranian government and asserts it did not know that Assa Corp. was indirectly owned by Bank Melli.<\/p>\n Alavi was a successor to the Pahlavi Foundation, controlled by the former Shah of Iran. Pahlavi developed the building in 1978, a year before the Iranian Revolution. Prosecutors allege that the building’s ownership concealed its ties to the\u00a0current regime\u00a0following sanctions in 1995.\u00a0<\/p>\n The transfer is part of a settlement that includes payments to private judgment creditors who hold legal claims against the Iranian government as a state sponsor of terrorism.<\/p>\n The Amir Kabir Foundation borrowed $189M to finance the acquisition, provided by Alavi as a structured mortgage obligation as part of the settlement. The financing arrangement is part of\u00a0a larger $318M settlement<\/a> that will draw on millions of accumulated rental income from the office tower that was frozen during the asset forfeiture process.\u00a0<\/p>\n The foundation\u00a0now also owns the building\u2019s retail portion, which is occupied by Nike’s House of Innovation and controlled by SL Green Realty via a long-term net lease.<\/p>\n The debt allows the Amir Kabir Foundation to retain property ownership while guaranteeing a way for creditors to collect the unsatisfied judgments. The mortgage has a 7% annual interest rate, but the Amir Kabir Foundation can defer 3% and is only required to pay 4% over a three-year term unless it refinances the property earlier.\u00a0<\/p>\n TOP SALES<\/p>\n Delshah Capital acquired the 142-unit Williamsburg apartment building at 34 Berry St. from LCOR for $76M, Commercial Observer reported<\/a>. LCOR acquired the 2010-built property for $53M in 2024. JLL\u2019s Jeffrey Julien, Rob Hinckley, Steven Rutman and Ethan Stanton represented the seller, while the brokerage\u2019s Michael Zaremski and Clayton Ross arranged a $62.3M acquisition loan.<\/p>\n ***<\/p>\n Empire State Realty Trust continued its Williamsburg retail acquisition spree, paying $46M to Joyland Management for a retail condominium unit at 127 Kent Ave., PincusCo reported<\/a>. The condo spans 21K SF in total, split between 15K SF on the ground floor and 6K SF on the lower level. JLL\u2019s Ethan Stanton, Michael Mazzara and Brendan Maddigan brokered the sale.<\/p>\n ***<\/p>\n Aurora Capital acquired 597-599 Fifth Ave. from Starwood’s special servicing arm, LNR Partners, for $54M, Commercial Observer reported<\/a>. The Charles Scribner’s Sons Building at 597 Fifth Ave. was last valued at $84M in 2024 when LNR foreclosed on it from its previous owner, Thor Equities.<\/p>\n TOP LEASES<\/p>\n \n Soloviev Group’s 9 W. 57th St., where the landlord signed a lease with record-breaking asking rents last week\n <\/p>\n Soloviev Group\u00a0made NYC\u00a0office history\u00a0last week when it signed<\/a> a 10-year, 5K SF lease at $327.50 per SF with an unnamed tenant last week at 9 W. 57th St.\u00a0The Real Deal reported<\/a>\u00a0on Tuesday that\u00a0the tenant is holding company HBeyond, owned by 28-year-old Mexican billionaire Gonzalo Hevia Baill\u00e8res. HBeyond \u201coperates across venture capital, public and private markets, as well as the creation of new businesses,\u201d the landlord told TRD. Balli\u00e8res is the grandson of a Mexican mining magnate, the CEO of\u00a0artificial intelligence\u00a0firm LOK, and\u00a0dating Emma Watson<\/a>.<\/p>\n ***<\/p>\n Law firm Sher Tremonte signed a 26K SF, 10-year renewal at Princeton International Properties\u2019 90 Broad St. in the Financial District, where it has been a tenant since 2017. The property is more than 80% occupied. Cushman & Wakefield\u2019s Josh Turman and Jon Fein represented the landlord, and JLL\u2019s Seth Hecht represented the tenant.<\/p>\n ***<\/p>\n Financial services platform Marex inked a 40K SF lease at Rudin\u2019s 400K SF 560 Lexington Ave. office tower, the New York Post reported<\/a>. The deal is a relocation for the tenant from 2 Grand Central Tower. Asking rents were $84 per SF. Marex plans to put its previous space in the Sovereign Partners-owned Midtown office up for sublease as part of an 80K SF block.<\/p>\n ***<\/p>\n GFP Real Estate signed two tenants to a\u00a0combined\u00a017K SF at\u00a0the 21-story, 185K SF office building at 322 Eighth Ave. in Chelsea. AccuWeather will combine two suites in a five-year, 7K SF\u00a0deal. The forecasting company\u00a0was represented by Newmark\u2019s Dan Appel. Construction firm Promethean Builders LLC signed a seven-year, 10K SF lease to relocate from 505 Eighth Ave. GFP\u2019s Allen Gurevich represented Promethean and also represented the landlord in both deals.<\/p>\n ***<\/p>\n Winter Organization signed fintech firm Adyen to 90K SF at its two conjoined\u00a0Flatiron buildings, 111 and 115 Fifth Ave., Commercial Observer reported<\/a>. Adyen will occupy the fourth floor of 115 Fifth Ave. and the fifth floor of 111 Fifth Ave. during the 10-year lease. Asking rents were $89 per SF. JLL\u2019s Justin Haber and Kyle Riker represented the tenant, while Newmark\u2019s David Falk, Rob Silver and Anthony Sciacca represented Winter Organization.<\/p>\n TOP FINANCING DEALS<\/p>\n \n Rabsky Group’s 625 Fulton St. in Downtown Brooklyn under construction in 2024\n <\/p>\n Rabsky Group refinanced its 35-story, 1,102-unit development at 625 Fulton St. in Downtown Brooklyn with a $765M permanent loan from JPMorgan Chase, The Promote first reported<\/a>. Galaxy Capital\u2019s Henry Bodek arranged the financing, which replaced a $555M construction loan from Madison Realty Capital, Commercial Observer reported<\/a>.<\/p>\n ***<\/p>\n MJ Orbach Associates signed a $29.5M bridge loan with Ladder Capital to refinance the 19-story, 176K SF Garment District office building at 260 W. 39th St. Arrow Real Estate Advisors\u2019 Morris Betesh, Jack McPhail, Alex Ellman and Joseph Kean arranged the financing.<\/p>\n ***<\/p>\n<\/p>\n<\/p>\n