Here is a roundup of the latest leases, sales and other transactions in the Northeast middle markets.
This week by the numbers
Though the office investment market in Philadelphia cooled off quite a bit compared to Q1 with the total sales volume dropping 46%, Yardi’s Commercial Café website says the pace of investment and number of deals remain steady.
- Q2 office sales volume dipped 46% from Q1 but increased 26% year-over-year, from $211 million in Q2 2016 to $265 million;
- Average price per square foot dropped below a 5-yearaverage to $137 from $163 in Q1, but is on the uptick year-over-year from $103 in Q2 2016;
- The office transaction that topped the list in the second quarter was the sale of Valley Creek Corporate Center in Exton for $45.3 million to a joint venture between Pembroke Hobson and Ten Capital Management;
- A total of 5 office construction projects came online this quarter, Brandywine’s FMC Tower at Cira Center South and CHOP’s Roberts Center for Pediatric Research at 700 Schuylkill Avenue, totaling 1,000,000 square feet were the most anticipated ones in Philadelphia;
Deal Tracker Daily
NEW YORK, NY—Newmark Holdings says Times Square Alliance and law firm Jun Wang & Associates renewed and expanded their leases for a total of 14,886 square feet at 1560 Broadway. The 17-story, 225,000-square-foot mixed-use building is located on West 46th Street in the heart of Manhattan’s Times Square neighborhood. Times Square Alliance renewed and expanded its lease for a total of 10,365 square feet at the building. Jun Wang & Associates renewed its lease and added 2,627 square feet to its 1,894-square-foot space for a total of 4,521 square feet on the 11th floor.
BUFFALO, NY—A real estate investment trust sold the McKinley Plaza shopping center to a private real estate investment firm in a sale that drew multiple bidders from across the country. Based in East Rutherford, NJ, Cushman & Wakefield’s Metropolitan Area Capital Markets Group was exclusive agent for the property and procured the buyer as well as the seller. The 95,544-square-foot retail center at 3670 McKinley Parkway is 98 percent leased to 12 tenants with T.J. Maxx and A.C. Moore Arts & Crafts as anchor tenants at 32,000 and 22,000 square feet, respectively. National chains account for 88 percent of the space in McKinley Plaza. Built in 1991, the center underwent extensive renovations in 2015 and has 503 parking spaces.
BRONX, NY—Construction has begun on Martin Luther King Plaza, a new 167-unit affordable housing development located at 869 East 147th Street in the Mott Haven neighborhood of the Bronx. MLK Plaza is one of the first projects to be financed under the City’s Mandatory Inclusionary Housing program and will include 67 permanently affordable units – 42 of which are made possible through MIH. The development of this site was made possible following approval of a rezoning through the City’s Uniform Land Use Review Procedure by the Department of City Planning, in coordination with Radson Development, City Council Speaker Melissa Mark-Viverito, Bronx Borough President Ruben Diaz, Jr., and Bronx Community Board 1.
FLORHAM PARK, NJ—Holliday Fenoglio Fowler arranged the $21.5 million financing of Mill Pond at Franklin Lakes, a 100-unit, class A multi-housing community in Franklin Lakes, Bergen County, New Jersey. The HFF team worked exclusively on behalf of the borrower, Sterling Properties Group, to secure the long-term, fixed-rate refinancing through New York Life Insurance Company. Mill Pond at Franklin Lakes is located at 1100 Sterling Drive just off Old Mill Road convenient to Route 208, Interstate 287, Route 17 and Route 80. The property has 10 residential buildings comprising a variety of one- and two-bedroom units ranging from 816 to 1,317 square feet. The property is 100 percent leased. The HFF debt placement team representing the borrower included senior managing directors Jim Cadranell and Jon Mikula.
PHILADELPHIA, PA—Avison Young’s Adam Gillespie, principal and James Pasquarella, senior vice president of the Philadelphia firm’s Investment Real Estate Brokerage business, Capital Markets Group, brokered the sale of 207 and 255 South Street in Pottstown, PA. The industrial buildings, which total 124,585 SF, were sold to a 1031 investor in New York. The buildings have a long-term lease with SFC Global Supply Chain, an affiliate of The Schwan Food Company. Avison Young represented the owner, Pottstown Redevelopment Group, in the sale.
SECAUCUS, NJ—NAI James E. Hanson negotiated a lease for 17,900 square feet of industrial space at 300 Castle Road in Secaucus, NJ to K&C Warehousing. NAI Hanson’s Russell Verducci and Eric Demmers represented K&C in the lease transaction with the landlord, MRH Real Estate Services. 300 Castle Road is a 61,000-square-foot, two-story industrial building less than a mile from the New Jersey Turnpike in the heart of Secaucus’ industrial zone. K&C Warehousing will be relocating its e-commerce distribution and warehousing business from Jersey City.
PHILADELPHIA, PA—Colliers International concluded the $2.25 million sale of a 17,352-square-foot development site in the highly desired, rapidly developing residential area of Northern Liberties. The property, located at 201-11 E. Allen Street, is just steps from the Delaware River waterfront, public transit, and I-95 access. The site consists of a 15,300 square-foot industrial property and 17,350 square feet of land. It was sold to a private investment group that plans to redevelop it into residential units. Colliers’ Michael Barmash and Richard Gorodesky were the sole brokers in this transaction. Colliers also represented the seller, Exceptional Foods, in relocating to a large, modern industrial facility in Pennsauken NJ to accommodate its expansion and enable it to better serve customers.
HARDING TOWNSHIP, NJ—Robert Kimmerle, son of founder/president George J. Kimmerle, recently rejoined Kimmerle Architects in the role of Chief Financial Officer. He will focus on financial and consultative support for all real estate development efforts, including modeling/proformas and financial sourcing. Coupled with these responsibilities, Robert will take leadership on other administrative areas within the firm working closely with George and managing director Patrick Luzzi to support business development and real estate assignments for the firm’s corporate and health clients. Before coming to Kimmerle Group, Robert served as the financial controller of ADP’s corporate Payroll Services for over a decade for the US Portfolio, concentrating on corporate real estate and facilities management. Additionally, he oversaw select international operations for the company.
NORTH PLAINFIELD, NJ—Paul Tavaglione of Bridgewater, NJ has been promoted to vice president and chief financial officer at Levin Management Corporation. Tavaglione joined Levin as controller in 2001 and became assistant vice president in 2007. In 2016, he was named deputy chief financial officer. Before joining Levin, Tavaglione was an accounting supervisor at Edison Properties. He earned a bachelor’s degree in business administration from Wilkes University.
HAUPPAGE, NY—Joseph Scaretta and Moses Carrasco have launched CS Hudson, a full-service project and program management firm that specializes in turnkey, purpose-built facility solutions backed by a powerful team of industry experts with more than 50 years of combined experience. It’s the second joint venture for this resourceful, versatile and creative duo who together built their first business, Empire Facilities, from the ground up; CS Hudson helps clients with dispersed portfolios deliver the consistent high-quality brand experiences customers expect. Scaretta and Carrasco are working alongside powerful experts Todd Bernstein, Josh Cohen and Desiree Russo to build CS Hudson into a key player in both the construction and facility industries.