CRE lender takes 20K sf at Hell’s Kitchen office conversion

787 11th Avenue

787 11th Avenue

Real estate lender Dwight Capital inked a 20,000-square-foot lease at Georgetown Company’s office development 787 11th Avenue.

Georgetown landed a $349.5 million construction loan from the Blackstone Group last October to fund the conversion of the former Ford Motor Company industrial building.

Savills Studley represented Dwight while CBRE represented the landlord.

Led by Adam and Josh Sasouness, Dwight claims it was the second-largest multifamily HUD lender in FY 2016 in terms of both transactions and dollar amount, with $902 million in commitments.

Last year, Bill Ackman’s Pershing Square Capital Management inked a 67,000-square-foot lease at the Hell’s Kitchen building, which will reportedly feature a rooftop tennis court and an office penthouse. [NYP] — Konrad Putzier

Investment Firm Buys 13K-SF Midtown South Office Condo For $11M

Economic Growth Group, a financial services firm, has purchased the ninth-floor office condominium at 207 West 25th Street from The Nugent Organization for $10.8 million, Commercial Observer has learned.

The financial company, which manages retirement and pension funds, intends to move its offices to the 13,307-square-foot condo between Seventh and Eighth Avenues, according to the seller’s broker, Rudder Property Group.

Economic Growth Group operates the subsidiary Economic Growth Pension Services and will relocate from nearby 333 Seventh Avenue between West 28th and West 29th Streets, where the company has 10,000 square feet on the third floor.

The Nugent Organization has owned the condo for more than two decades and since 2008 rented it out to a marketing printing company NugentAlison, which recently moved to 47-50 30th Street in Long Island City, Queens in search of cheaper rent, according to Vincent Longo, a managing partner of The Nugent Organization. The rent was $27 per square foot. (The Nugent Organization and NugentAlison are different companies, but have some of the same investors.)

“The seller took advantage of the extraordinary appreciation in the value of office condominiums in the Midtown South submarket, which have doubled in the past five years,” Rudder Property Group Principal Michael Rudder said in prepared remarks. ”The purchaser recognized the benefits of office ownership, including eliminating any future rent escalations and permanently securing their office space needs.”  Mr. Rudder represented The Nugent Organization in the sale with colleague Michael Heller.

Economic Growth Group’s new digs features loft-like ceilings, windows on four sides, an open layout and exposed brick walls and steel columns. The firm is planning to renovate the condo, Mr. Rudder said.

CBC Alliance’s David Toran and Corey Abdo represented the buyer in the transaction. Mr. Toran did not return a request for comment.


Dwight Capital Moves to Boston Properties’ 250 West 55th Street

Commercial mortgage banking and investment firm Dwight Capital has moved its digs to 5,800 square feet at Boston Properties’ 250 West 55th Street between Seventh and Eighth Avenues, Commercial Observer has learned.

Dwight Capital has assumed the space on the 30th floor through a 10-year deal with an asking rent of over $100 per square foot, according to a source with knowledge of the deal. The firm moved from 2,200 square feet at the Paramount Building at 1501 Broadway between West 43rd and 44th Streets.

Josh Sasouness, a managing principal at Dwight Capital, told CO the firm wanted to move because it has added “more businesses and [has] more employees.” The company has launched a $30 million hedge fund as well as an asset-based lending arm, he explained.

“The new businesses entail managing equity so we needed a nicer more presentable space for that,” Mr. Sasouness said. “We went from a B-plus building to an A-plus building.”

Prior to the move to the 30th floor at 250 West 55th Street, Dwight Capital spent three months in temporary space in the building.

CBRE’s Peter Turchin, Sam Seiler and Christie Harle represented Boston Properties in the deal. A CBRE spokesman didn’t respond with a comment from the brokers. Daniel Lolai of LSL Advisors brokered the deal on behalf of Dwight Capital. He declined to comment.