DRA Buys Shares In 1301 Sixth Ave. At $1.3B Value: NY Deal Sheet

Rithm Capital has sold a slice of the Sixth Avenue office tower to DRA Advisors in a deal that values ​​the property at $1.3B.

The two companies formed a joint venture for 1301 Sixth Ave., with DRA taking a 49% stake in the building and Rithm retaining majority ownership, Commercial Observer reported. The 45-story, 1.7M SF office tower also has a new tenant, with law firm Adler & Stachenfeld moving into the entire 40K SF 12th floor, according to a release from the law firm.

“Strong leasing activity in New York City’s prime office assets continues to strengthen demand for best-in-class space,” Rithm CEO Michael Nierenberg said in a release. “We are excited to begin our partnership with DRA.”

Newmark’s Adam Doneger, Adam Spies and Ben Lushing reportedly arranged the equity deal. Andrew Sussman and David Hollander of CBRE represented Adler & Stachenfeld, which joins a roster of tenants that includes KeyBank, Piper Sandler and Crédit Agricole in the building.

The building is now fully leased. Rithm took over the building in December when it acquired Paramount Group and its corporate properties for $1.6B. Rithm changed its Paramount office business name to Elecor Properties.

TOP LEASE

Morgan, Lewis & Bockius leased 210K SF in Mitsui Fudosan America’s 54-story office tower at 1251 Sixth Ave., according to Colliers. The deal is a relocation for the law firm, which lists its NYC office at 101 Park Ave on its website. Newmark leased the tower to Mitsui Fudosan.

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Fisher Brothers has two new tenants at 1345 Sixth Ave., according to a release. It signed Silvercrest Asset Management for a 15-year, 41K SF lease and i80 Group for a 10-year, 17K SF lease. CBRE’s Howard Fiddle, Peter Turchin, Gregg Rothkin, Ben Joseph, Bill Iacovelli and Charles P. Laginestra represented the holdings in both deals, along with Fisher Brothers’ Clark Briffel and Jason Vengilio. CBRE also represented the tenant, with Silvio Petriello representing Silvercrest and Hugh McDonald representing i80 Group. Blackstone bought a 46% stake in 1345 Sixth last year for $1.4B.

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Stawski Partners signed two tenants to a 29K SF joint at 1212 Sixth Ave., according to a release. Bank of India signed a 20-year, 15K SF lease on the 12th floor, led by Chris Helgesen, Dirk Hrobsky and Alejandro Alvarez of Cushman & Wakefield and Joseph Hilton of Joseph Hilton & Associates. Investor Group IQ-EQ Fund Services inked a 10-year lease for the entire 14K SF 14th floor, moving from 250 W. 57th St. It is represented by JLL’s Matthew Astrachan, Kristen Morgan, Seth Godnick and Jamie Boast. JLL’s Paul Glickman, Diana Biasotti, Greg Wang and Harrison Potter represented the landlord in both bids.

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Global investment manager Qube signed a 52K SF lease at Related Co and Oxford Properties Group’s planned 52-story office tower at 70 Hudson Yards, according to Avison Young’s third-quarter report. Qube follows consulting giant Deloitte, which signed on as an anchor tenant last summer for the building, starting its first ground-up office project since the pandemic. Qube currently registers an office across the street at 50 Hudson Yards, Commercial Observer reports.

TOP SALES

Daryl Hagler paid $75.8M for a mixed-use tower in Ridgewood that has been in development for more than a decade, Crain’s New York Business reports. Hagler, a controversial investor in nursing homes, bought a 133-unit, 17-story apartment building at 3-50 St. Nicholas Ave from AB Capstone and Arch Cos.. Hagler signed a 99-year ground lease for a parcel in the same block that is also part of the development, paying another $10.2M for all-Stahlcash Organization. The apartment building, nicknamed Myrtle Point, received a certificate on August 25 and has store offers lined up with Target and Burlington, Crain’s reported. Valley National Bank provided Hagler with a $65.8M loan for the purchase, PincusCo reported.

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Cincinnati-based Phillips Edison & Co. has acquired the Staten Island outdoor shopping center known as South Shore Commons, a 157K SF shopping center at 2965 Veterans Road W., from Joyland Management for $57M, Commercial Observer reported. Joyland’s Joel Wertzberger, Judy Wolcowitz and Jack Wolcowitz handled the deal on the home, while Newmark’s Daniel O’Brien, Conor Lalor, Caroline Hodes, Loren Valla, Felton Hatcher and Adam Spies represented the seller and acquired REIT as the buyer.

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Synergy Hospitality Management sold the 353-room DoubleTree by Hilton New York LaGuardia Airport to Palette Hotels, according to a deed filed with the city on Friday. Richard Lou’s Palette Hotel acquired the property at 104-04 Ditmars Blvd. for $72M. Pennsylvania-based Synergy acquired the hotel in 2007 for $1 from the city, according to property records. In 2024, it took out a $64.5M loan to turn the hotel into a DoubleTree after decades as the LaGuardia Plaza Hotel.

TOP FINANCING

Blue Owl Capital provided KPG Fund with a $127.9M loan to refinance three SoHo properties, PincusCo reported. The property includes one residential unit and retail space at 478 Broadway, plus an office and retail condominium at 153 Spring St. The loan replaces an $83.3M loan from BrightSpire Capital, Maxim Capital Group, Sabal Investment Holdings and GDSNY.

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The Olnick Organization secured a $170.5M loan from Chase Commercial Bank for Lenox Terrace, a Harlem multifamily complex built in 1958 at 484 Malcolm X Blvd. The property consists of six 16-story buildings with 1,696 units that are mostly rent-regulated. The new permanent financing was arranged by Walker & Dunlop’s Jonathan Schwartz, Aaron Appel, Keith Kurland, Adam Schwartz, Dustin Stolly, Sean Reimer, Michael Ianno and Cody Ela.

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ABS Partners Real Estate refinanced an office building at 915 Broadway with a $95M loan from John Hancock Life Insurance, PincusCo reported. The loan on the 216K SF Flatiron District office building replaces a previous $100M loan from MetLife.