5 Times Square is undergoing notable changes, both at its surface and beneath.
RXR Realty, alongside Apollo Global Management and SL Green, has received approval for a partial residential conversion of the prominent office building.
Currently, the 39-story structure stands out for its recently upgraded trophy office space, enhanced with a flashy amenity floor last winter.
This makeover was financed via a substantial $1.2 billion loan secured by RXR, which included $300 million in sponsor equity in 2022.
However, by August 2023, discussions began regarding converting the building into partial residential use.
The plans have gained traction, with approval secured to transform the building into 1,250 residential units, 313 of which will be designated as permanently affordable housing.
In a significant development this week, RXR signed two financing agreements with Corebridge Institutional Investments, including a $561 million project loan and a $13.6 million security instrument.
Additionally, RXR, which holds a ground lease for the 1.1 million square feet tower, also initiated a transaction with the city to acquire the land beneath the building, involving an $8 million payment.
The bustling scene at 5 Times Square reflects a broader trend in commercial real estate financing and leasing activities within New York City.
In other financing news, United American Land secured a $56 million mortgage from Citibank for a 56,000 square foot office property located at 71 Spring St. in SoHo.
The new loan refinances a $36 million mortgage previously held with JPMorgan Chase, as United American Land has owned this property since 2004, when it purchased it for $14.8 million.
Meanwhile, a joint venture between Carlyle Group and Stonehenge NYC successfully refinanced their residential building located at 42-20 24th St. in Long Island City for $158.2 million.
The facility has 391 units and the refinancing arrangement, facilitated by Natixis, pays off an earlier $179.8 million loan from MetLife.
Fortuna Realty Group has also made strides, securing a $52 million refinancing from BridgeInvest for their 525 Greenwich St. hotel property in Hudson Square.
This new loan replaces a previous $45 million amount from Prime Finance, with Fortuna having owned the 60,000 square foot building since 2011.
In another notable financing deal, M&T Realty Corp. issued a $50 million mortgage to refinance The Alyn, a luxury multifamily building located at 152 E. 87th St., which is owned by an affiliate of Gordon Property Group.
Simon Kaufman has taken out a $70 million refinancing loan with Greystone & Co. for a 151-unit apartment building situated at 322 Grand Concourse in Mott Haven, replacing an earlier $63 million debt from the same lender.
On the leasing front, the United Nations has made headlines by renewing a massive 425,000 square foot lease at 1 United Nations Plaza.
This consolidation of office space allows the U.N. to establish a presence across 26 stories of the building and vacate its space at 2 United Nations Plaza.
Both buildings are owned by the U.N. Development Corp., which is currently engaged in a $500 million capital improvement program aimed at enhancing sustainability and security features, upgrading infrastructure, and renovating building lobbies and systems.
Newmark’s Jim Saunders, Jason Perla, and Roy Abernathy represented the U.N. in this landmark deal, while CBRE’s Scott Gottlieb acted on behalf of the landlord.
In a shift towards wellness, fitness chain Life Time has secured a 52,000 square foot lease at 425 Fifth Ave., previously known as HSBC Tower.
In this Class-A office building, Life Time plans to offer unique amenities such as a cold-plunge pool, steam room, luxurious spa services, and dedicated training spaces.
Other notable tenants within the 30-story structure include Generate Capital, Tilden Park Capital, and 17Capital.
Atlantic Retail’s Joe Mastromonaco represented Life Time, while JLL’s Patrick Smith represented the landlord, Property & Building Corp. Ltd.
Sky Zone is also entering the market, signing a lease for 52,000 square feet at a Brighton Beach warehouse located at 2350 E. 69th St. to open a new indoor trampoline park.
As Match Point NYC’s lease expires, Sky Zone aims to take control of the space this summer.
Turnbridge Equities, the current owner of the property, has eight NYC industrial assets following its acquisition last year.
Turnbridge represented itself in this transaction, while Sky Zone enlisted the help of Josh Gosin and Jordan Gosin from Newmark.
Manhattan’s NYC Elite Gymnastics has renewed its 21,000 square foot lease at GFP Real Estate’s 40 Worth St., committing to stay for an additional 20 years.
The facility, known as the Merchants Square Building, was completed in 1929 and spans 800,000 square feet in total.
Besides the gymnastics program, notable tenants include nonprofit organizations such as the Legal Aid Society and the Innocence Project.
In this deal, Roy Lapidus of GFP represented both the landlord and tenant.
Another notable move in the market includes TickPick, a no-fee ticketing platform, doubling the size of its office space in a lease agreement with Vornado Realty Trust for its new headquarters at One Penn Plaza.
This deal includes a 17,000 square foot lease agreement, and Alec Kirschner of Vestian represented TickPick throughout the negotiations.
Macerich signed a full 12,000 square foot lease at The Durst Organization’s 825 Third Ave., with the 13-year lease featuring asking rents of $96 per square foot.
This arrangement likely signals a relocation for Macerich, currently operating from 500 Fifth Ave., yet specific moving details remain unclear.
Durst’s team, including Tom Bow, Ashlea Aaron, Bailey Caliban, and Sayo Kamara, represented the landlord in-house, while Gordon Ogden and James Hart of Bradford Allen represented Macerich.
In the latest sales news, Trammell Crow Co. acquired a 99-year ground lease for a development site located at 126 Lafayette St. in SoHo for $14.7 million.
The seller was a joint venture of Carolwood and Stellar Management, which had held the ground lease since August 2021.
A recent neighborhood rezoning allows for construction possibilities of up to 27 stories and around 115 residential units on this site.
The CBRE subsidiary involved believes that the site will be capable of achieving high enough rents to justify utilizing the 485-x tax abatement, even amid ongoing debates about minimum construction wages.
The specifics of whether Trammell Crow is additionally pursuing the fee interest in the building alongside the ground lease remains unclear.
In another transaction, Terreno Realty Corp. purchased an industrial property at 11-40 Borden Ave., a two-story, 36,000 square foot building in Long Island City, for $16 million.
Wickersham Realty LLC, the previous owner of the property for over 50 years, was the seller in this deal.
The building is currently occupied by Distribution International, a company specializing in construction distribution.
Chad Sinsheimer from Adirondack Capital Partners represented both Terreno and Wickersham in the transaction.
Also of note, Ryco Capital has divested its ownership of 145 Second Ave., selling it for $20.4 million.
Lockhill Properties is the new owner of the seven-story building, which features 24 residential units as well as retail space occupied by Burgerhead.
Ryco had previously acquired 145 Second Ave., along with eight other multifamily buildings on Second Avenue, for $132 million just last August.
Lastly, a notable commercial transaction involved a three-story, 5,000 square foot property located at 1192 Sixth Ave. in the Diamond District.
This building has been sold for $27 million, with celebrity jeweler Avi Davidov signing the deed as the buyer.
Retired boxer Floyd Mayweather Jr. is also reported to have invested in the shell company that now holds ownership of the property.
The building had remained within the Gelbard family since the 1960s, highlighting the significance of this transaction in terms of real estate lineage.
As 5 Times Square pushes forward with its transformative journey, the New York City real estate market continues to show vibrancy and activity across various segments.
image source from：bisnow
