24 Hour Local Real Estate News

Middle Market Digest – The Northeast

NEWS & NOTABLES

 NEW YORK CITY—Cushman & Wakefield announced recently that 500-512 Seventh Avenue Ownership has tapped the firm as the exclusive agent for the adjoining towers located on a prime corridor near the Hudson Yards District.

The New York-based Cushman & Wakefield team of Bruce Mosler, Ethan Silverstein, Mitchell Arkin, Haley Fisher and Whitney Anderson will lead the property’s leasing and marketing efforts. The Cushman & Wakefield Asset Services team of Joseph A. Manasseri, Sal Ariganello, Sheila Mahaney, Alan Cohen, Teresa Ginyard and Alice Chen has been selected to provide property management, lease administration and client accounting services.

The ownership group is embarking on an ambitious capital improvement campaign for both buildings located on Seventh Avenue between West 37th and West 38th streets, which together total approximately 1.1 million square feet, with 400,000 square feet of space currently available for lease. The capital improvements program includes infrastructure and cosmetic upgrades to the elevators, HVAC system, and retail facade, with the lobbies being completely updated with glass and metal finishes. Construction is expected to commence by the third quarter of 2017. Spivak Architects designed the upgrades.

BOSTON—Equity Office Properties has promoted Brenda Haraldstad to the role of vice president – regional finance. In her new role she will oversee all portfolio financials for the eastern U.S.

Haraldstad has more than 20 years of experience in commercial real estate accounting and finance, 15 years of which have been spent at Equity. Prior to her new role, she served the past six years as director of regional finance f where she was responsible for the accurate and timely management of the regional finance operations and provided monthly and quarterly analyses.

NEW YORK CITY Newmark Knight Frank has been awarded the exclusive agency for the leasing of 85 Broad St., the 1.1-million-square-foot former Goldman Sachs headquarters located at the corner of Broad and Stone streets in Manhattan’s Financial District.

EVP and managing director Hal Stein, executive managing director Andrew M. Peretz, managing director Todd Stracci and senior managing director Ben Shapiro are handling the assignment on behalf of the new ownership Ivanhoé Cambridge and partner Callahan Capital Properties.

Built in 1983, 85 Broad St., a Class-A, 30-story office building, was recently transformed into a property that offers innovative workspaces. These amenities include an upgraded lobby, a new, 14,000-square-foot wellness center, a high-end Le Pain Quotidien, a 125-seat cafeteria, a conference center, 77-space bike room with repair center, and open, column-free floor plates with views.

NEW YORK CITY—Cushman & Wakefield has been retained on an exclusive basis to sell a mixed-use property at 44 Carmine St. Located on the South side of Carmine Street between Bedford and Bleecker Streets in Manhattan’s West Village neighborhood. The asking price has been set at $6.95 million

44 Carmine St. 44 Carmine St.

A Cushman & Wakefield brokerage team led by vice chairman James Nelson and director David Shalom are exclusively marketing the property.

The four-story walk-up, 3,419-square-foot building is comprised of four residential apartments and one retail space on the ground floor. Heirloom Woods, a purveyor of high-end wood, occupies the ground-floor retail space through October 2025.

PARSIPPANY, NJ—NAI James E. Hanson, a leading New Jersey-based full-service commercial real estate firm, announced that Ken Fioretti has rejoined its Parsippany office as a sales associate. Fioretti brings nearly 15 years of commercial real estate experience to his role and will focus on sales and leasing in the northern New Jersey retail market.

Previously, Fioretti was a sales associate with NAI James E. Hanson before taking a position as director of acquisitions & development with PMG Retail in 2015. At PMG Retail, he was responsible for overseeing the acquisition team and identifying target expansion markets for new developments and generating marketing programs for the retail and brokerage communities. In addition, Fioretti currently serves as principal and chief technology officer of MarkertView Solutions. He was previously a VP of commercial leasing at Edgewood Properties, Inc. and a VP of marketing and leasing at Crossroads Cos.

DEAL TRACKER DAILY

NEW YORK CITY—TD Bank has leased 3,915-square feet at 90 Fifth Ave., a newly repositioned, 140,000-square-foot office building located in the heart of Midtown South

Jordan S. Claffey, EVP of RFR Retail handled the negotiations directly with the tenant. “TD Bank is a tremendous tenant, and we’re thrilled to restructure our lease agreement at 90 Fifth Avenue,” Claffey said. “By relocating to the inline portion of Fifth Avenue, we’ve created an exceptional retail corner opportunity.”

NEW YORK CITY—The William Kaufman Organization reported that three companies have signed long-term leases and expansions at its 437 Madison Ave. building totaling approximately 35,682 square feet.

In the largest transaction, Munich American Reassurance Co. is opening a new U.S. life office at the 40-story, 850,000 square-foot property in the heart of Midtown East. The reinsurer’s new 10-year, 18,650 square-foot lease encompasses the entire 26th floor of the property. The company is currently located at 1177 Avenue of the Americas and expects to take occupancy in the fourth quarter of 2017.

Also signing on at the property is investment firm Eos Management, L.P., which has taken a seven-year, 9,576 square-foot lease on a portion of the 14th floor of the building. It plans to move from 320 Park Ave. to the building in the third quarter of 2017. In addition, law firm Montgomery McCracken Walker & Rhoads LLP is expanding by 7,458 square feet in the building. In total, the firm will now occupy 35,755 square feet spanning the entire 23rd and 24th floors.

STAMFORD, CT—O’Shaughnessy Asset Management, LLC has renewed its long-term lease at 6 Suburban Ave. in Stamford. Colliers International Group Inc. orchestrated the 12,000-square-foot transaction at the distinctive manor-style, brick-clad office building.

6 Suburban Ave. 6 Suburban Ave.

A quantitative money management firm, O’Shaughnessy Asset Management maintains its headquarters on two floors of office space at 6 Suburban Ave. The firm also occupies the property’s lower level, which is fit out with a television studio, and fitness area with locker rooms, sauna, two bathrooms, exercise rooms and a server room.

Colliers’ Jeffrey Williams and Hollis Pugh, based at the global commercial real estate services firm’s Stamford office, represented the property’s ownership, Six Suburban Avenue LLC, in negotiating the renewal. Williams also brokered a previous renewal, as well as the initial O’Shaughnessy Asset Management lease at the property in 2007.

NEW YORK CITY—Six months after ATCO Properties & Management finalized its multi-million dollar acquisition of 240-246 West 35th St., three companies have signed long-term leases and renewals totaling approximately 22,898 square feet at the 18-story Class A property in the Garment District.

In the largest transaction, telecommunications company Fidelus Technologies, LLC is extending its 11,070-square-foot lease for the entire sixth floor for an additional five years. The firm, which specializes in Microsoft and Cisco solutions, has been located at the property since 2003. Barry Zeller of Cushman & Wakefield and Mitchel Kunikoff and Mo Dweck of Lee & Associates represented the tenant in the transaction, while John Cinosky and Jarad Winter of ATCO Brokerage Services represented ownership in-house.

Also renewing is Cablevision-owned media group Newsday LLC, which has taken a 10-year, 10,100 square-foot lease on a portion of the ninth floor. The space houses the offices of amNewYork. Greg Kraut of K Property Group and Frank Pagano of Avison Young represented the tenant in the long-term transaction, while William Cohen and Andrew Weisz of Newmark Knight Frank represented the landlord.

Northstar Business Enterprises, LLC, the publisher of The Source, a rap and hip-hop magazine, and Jones Magazine, has signed a new 1,728 square-foot lease comprising a portion of the fourth floor. William J. McCollum of Prime Manhattan Realty represented the tenant in the transaction, while Cinosky and Winter of ATCO Brokerage Services represented ownership in-house. Asking rents were $56-per-square-foot in all three transactions, ATCO reported.

MONEY MOVES

BOSTON, MA—Holliday Fenoglio Fowler, L.P. has arranged $180 million in financing for One Congress St. and the Government Center Garage, an 11-story mixed-use asset in Boston comprising a 1,960-space parking garage with 202,854 square feet of office space and 23,212 square feet of retail space.

One Congress St. One Congress St.

HFF worked on behalf of the borrower, a joint venture between National Real Estate Advisors, LLC and its Boston-based development partner, The HYM Investment Group, LLC, to secure the short-term, floating-rate loan through Oxford Properties Group.

The property is also the site of Bulfinch Crossing, a 2.9-million-square-foot mixed-use development project that will consist of residential, office, hotel and retail uses. Led by the borrower, this project will contribute to a transformation of the neighborhood and provide an additional long-term source of demand for the Government Center Garage. Bulfinch Crossing’s first phase, a 46-story luxury residential tower, broke ground earlier in 2017.

The HFF debt placement team was led by executive managing director John Fowler, senior managing director Riaz Cassum, director Jennifer Keller and associates Xave Jacoby and Chris Thomas. The legal team working on the financing, restructuring and land use matters consisted of four firms: Difede Ramsdell Bender PLLC and Goulston & Storrs, which represented the borrower and Milbank, Tweed, Hadley & McCloy LLP and DLA Piper, which represented the lender.

“Over the next 10 years, the property will be the location of one of the largest and most exciting mixed-use developments in Boston, while providing unprecedented demand for parking,” Cassum said. “This financing represents the first step in a long-term development plan and the formation of a strategic lending relationship.”

BOSTON—NAI Hunneman’s Capital Markets Team recently co-brokered the sale of 1257 and 1299 Highland Ave. in Needham MA.

NAI Hunneman EVP David N. Ross represented the buyer, South Street 4414 Holdings, LLC, while Craig Barker from Boston Real Estate Advisors represented the seller, DWM Interests, LLC and LGM Interests, LLC.

The two retail buildings, totaling 21,252 square feet, are set on a 1.41-acre site that fronts Highland Avenue and share a parking lot. No financial details of the transaction were released.

NEW YORK CITY—Brokerage firm RKF has arranged the $17.5-million sale of a 50,000-square-foot retail building at 344-352 East 149th St. in the heart of The Hub retail corridor in the South Bronx. The transaction closed on May 18, 2017.

356 East 149th St. 356 East 149th St.

RKF VP Zach Mishaan represented the seller, 149th Street Realty Corp, and the buyer, an affiliate of ABCAPSTONE, which plans to redevelop the building with the potential for up to 100,000 square feet of retail space. Mishaan, along with RKF director Eddie Mamiye, is handling the marketing and leasing of the project, which is expected to be completed by May 2018.

Situated on the corner of 149th Street and Courtland Avenue, 344-352 East 149th Street is a two-story, 50,000-square-foot building with 250 feet of frontage. The space was previously occupied by Rite Aid and is currently occupied by The Salvation Army Family Store and Donation Center.

“The City of New York has worked relentlessly to make The Hub more pedestrian and bike-friendly. As a result, this retail corridor is particularly compelling for retailers wanting to serve the neighborhood’s growing residential population, as well as area office workers,” said Mishaan. “There is no better opportunity in the market than 344-352 East 149th St. to establish a highly visible presence for one or more retailers.”

NEW YORK CITY—Mission Capital Advisors’ Debt and Equity Finance Group has arranged $41.6 million in financing for the construction of Kingswood Plaza II, a 106,000-square-foot office and retail development located at 1715 East 13th St. in the Midwood section of Brooklyn.

The Mission Capital team of Jason Cohen, Ari Hirt, Steven Buchwald, Justin Hunt and David Behmoaras arranged the loan with a foreign bank on behalf of a joint venture between Infinity Real Estate and the Nightingale Group.

The development, which is 56% pre-leased to Target and Marshalls, will include three floors of professional/medical office space, in addition to its retail component.

The property, a former two-story parking garage, is fully approved for the development and undergoing demolition, Mission Capital stated.

BOSTON—Clarion Partners has sold 400 Manley St., a 215,000-square-foot industrial facility in Greater Boston’s Route 24 corridor, to a private investment group for $13.1 million. JLL Capital Markets managing directors Frank Petz and Jessica Hughes and associate George Gregory led the JLL team on the transaction on behalf of Clarion Partners in the sale of the Bridgewater, MA building.

“400 Manley offered investors an increasingly rare opportunity to purchase a quality, high-bay warehouse within 20 minutes of Boston,” Petz said. “Although the property will be occupied for the next several years, e-commerce trends have brought newfound tenant demand to Boston, and 400 Manley will be positioned to capture this demand for years to come.”

CHERRY HILL, NJ – Markeim Chalmers, Inc., a commercial real estate, appraisal and property management firm in the Philadelphia metropolitan area, negotiated the $2.9-million sale of 1101 Kings Highway N. in Cherry Hill, NJ. The firm represented both 1101 N Kings Highway LLC (the buyer) and 1101 Associates LLC (the seller). The four-story 40,000-square-foot multi-tenant office building is 100% occupied and the new local private investor owner has plans to renovate the site’s common areas. Kevin Burns, SVP of Markeim Chalmers, coordinated the sale.

NEWTOWN, CT—For a 1031 exchange transaction, Eastern Union Funding senior managing director Michael Muller arranged a $1.91-million loan for 14 Commerce LLC’s acquisition of 14 Commerce Road in Newtown, CT.

The 15,617-square-foot, two-story office building situated on two acres was purchased by a New York City-based investor for $2.55 million via auction through Ten-X, an online real estate marketplace. It is 100% occupied with tenants TR Paul and Ogilvy Pharmaceuticals.

The loan was provided by Lakeland Bank. Bryan Atherton of Northeast Investment Realty represented the seller, 14 Commerce Road LLC.

 

 

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