NYC’s 10 biggest investment sales in August

There are nearly $2B in deals in the top 5 alone

TRD New York /
Sep.September 28, 2016 03:00 PM

Last month’s 10 most expensive investment sales in New York City included two big moves for Chinese investors and four major outer-borough deals. Nothing, however, could surpass Allianz’s $946 million stake purchase at 10 Hudson Yards at the start of the month.

The monthly ranking factored in closed sales of both full and partial stakes in properties. A partnership finally snapped up Dumbo’s Watchtower building and several multifamily portfolios in Brooklyn and Queens sold with enough zeros to make the list. Meanwhile, Chinese companies China Orient Asset Management and Gemdale Properties acquired sizable Manhattan stakes during the month of August.

Here’s the full list of the top closed sales from the last full month of summer, based on CoStar Group and The Real Deal reporting.

1) You’re the only 10 I see, Hudson Yards – $946 million

The largest investment sale last month was also tied to the largest lease deal of the month. German insurer Allianz SE bought a 44 percent stake in 10 Hudson Yards from leather retailer Coach, which initially bought the condo for its 738,000-square-foot corporate headquarters there. CoStar Group valued the stake sale at $946 million, making it the sixth most expensive sale of 2016 so far. The deal brings the building’s total value to $2.15 billion, according to CoStar. Eastdil Secured’s Doug Harmon represented Coach on the deal. Allianz owns at least three other properties in New York, with a total portfolio that now exceeds 3 million square feet in the city, according to CoStar.

2) SL Green sells stake in 11 Madison – $480 million

SL Green TRData LogoTINY, New York’s biggest office landlord, sold a 40 percent stake in the trophy office tower at 11 Madison Avenue on Madison Square Park. Prudential’s real estate subsidiary, PGIM Real Estate, was the buyer, paying $480 million for the partial interest and also taking on a portion of the property’s debt.  As part of the deal, PGIM will have the option to buy an additional 9 percent stake in the tower later. CBRE’s Darcy Stacom and William Shanahan brokered the sale. SL Green’s $2.29 billion purchase of the tower in full from CIM Group and Sapir Organization was one of 2015’s top deals. The building is valued at $2.6 billion if including about $300 million in lease-stipulated improvements.

3) A well-witnessed deal in Dumbo – $340 million

Kushner Companies, CIM Group and LIVWRK shelled out $340 million to buy the Jehovah’s Witnesses’ Watchtower building in Dumbo, one of the largest real estate deals in Brooklyn history. The partners plan to transform the 733,000 square feet into creative office space, sources told TRD at the time. Cushman & Wakefield’s Bob Knakal represented the Jehovah’s Witnesses on the sale.

4) Westchester takes Manhattan – $270 million

Westchester landlord RPW Group closed on its $270 million acquisition of RFR Holding’s landmarked office tower at 275 Madison Avenue. Blackstone Group and SL Green, which also joined forces on a $376 million loan for the aforementioned Watchtower deal, provided a $240 million acquisition loan. The 336,000-square-foot building is RPW’s second Manhattan office property after 240 West 35th Street, which the firm is looking to sell. A JLL team led by Richard Baxter and Yoron Cohen brokered the deal.

5) Sam Chang + hotel = $155 million

New York’s most prolific hotel developer, Sam Chang, bought two Club Quarters hotels in Midtown last month, at 25 West 51st Street and 40 West 45th Street, for $155 million. Rockwood Capital was the seller. That same week, Chang, CEO of McSam Hotel Group, separately bought Holiday Inn near LaGuardia airport for $37.6 million.  The Club Quarters deal is the sixth largest hotel investment sale of the year so far. According to CoStar, there have so far been $2.6 billion in hotel sales.

6) China Orient puts a ring on four office buildings – $143 million

The Kaufman Organization sold its majority stake in four Flatiron District office properties that were once a part of the renowned Ring portfolio. China Orient also bought out Kaufman’s partner, Iowa-based Principal Real Estate Investors. Kaufman retains a small stake in the buildings. The package includes two buildings on West 24th StreetAnd Two On West 27th Street. Together, they hold about 341,600 square feet. In 2014, Kaufman and Principal bought the four 99-year ground leases from Extell Development, which had acquired all 13 buildings in the Ring brothers’ portfolio.

7) Metropolitan and TIAA-CREF snag LIC office building – $89 million

Brickman sold its second Queens property of the year last month to a partnership between Metropolitan Realty Associates and TIAA-CREF. The buyers plan to put in about $10 million in renovations for the 342,000-square-foot commercial building in Long Island City. An Eastdil Secured team led by Adam Spies and Doug Harmon brokered the sale.

8) More at stake for a Chinese developer – $69.9 million

Chinese developer Gemdale Properties took an 81.3 percent stake from Madison Equities in its under-construction 45 Broad Street condominium project for $69.9 million. The estimated sellout of the 206-unit condo project is set at more than half-billion-dollars. Per CoStar, the stake sale is Madison’s largest disposition since it parted with an Upper East Side Marriott Hotel for $82 million in 2012.

9) Heller-of-a-deal in Brighton Beach – $57 million

Heller Realty, one of the most active Brooklyn multifamily players, sold a portion of a large portfolio it grabbed just last year. Sentinel Real Estate Group paid $57 million to Heller for three Brighton Beach rental buildings located at 2nd Street and Brightwater Court. Aaron Jungreis of Rosewood Realty Group brokered the deal. The three buildings were originally part of an 11-building portfolio that Heller acquired last year from A&E Real Estate Holdings for $206.5 million.

10) A Sunny disposition – $49 million

In another Jungreis-brokered deal, the Mytelka family parted ways with two rental buildings in Sunnyside for $49 million on Aug. 18. The buyer, RCR Management, is a New Jersey-based company mostly active on the Upper West Side. RCR has acquired $156.8 million in New York City properties over the past five years, according to CoStar. The buildings at 41-15 50th Avenue and 45-41 39th Place are the seventh largest Queens multifamily sale in 2016 thus far.

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