Here is a roundup of the latest leases, sales and other transactions in the Northeast middle markets.
This week by the numbers
While the downward adjustments are stabilizing the Manhattan retail landscape and encouraging tenants to take advantage of a healthy New York City economy, a new CBRE report says challenges are being created for some landlords and investors.
“Since peaking in 2014, the overall average asking rent among Manhattan’s main corridors has decreased by 23 percent,” says Nicole LaRusso, director, research and analysis, CBRE Tri-State. “This adjustment is bringing rent growth between 2010 and 2017 closer to the trajectory of retail sales growth, which has expanded steadily in recent years. Taken together, these two trends suggest that the market might be coming closer to alignment between what tenants can afford to pay and the revenue they can achieve.”
Among the findings in the CBRE report:
- Nearly all of Manhattan’s main shopping corridors have experienced meaningful declines in their average asking rents in recent years; some of the biggest declines have been seen among corridors where rents had more than doubled in previous years
- In much of Manhattan, the overall trend has been a significant decline in both asking and taking rents to a level more in line with the revenue potential. Additional rental adjustment is possible and likely in some locations.
- The taking rent index has fallen considerably to the lowest percentage seen since 2010: taking rent is currently 82 percent of asking rent, while at peak, it was between 96 and 98 percent.
Deal Tracker Daily
JERSEY CITY, NJ—Jersey City Mayor Steven Fulop joined developer Manhattan Building Company today to celebrate the launch of leasing for the newest phase of the SoHo West (South of Hoboken, West of New York City) community, an emerging neighborhood mixing luxury residences with shops and retail on the border of Jersey City and Hoboken. Fulop cut a ceremonial ribbon to signify the public opening of Soho Lofts, a new collection of 377 luxury apartments and state-of-the-art, resort-like amenities located at 273 16th Street . The industrial-inspired community offers one-, two-, three and four-bedroom apartments, as well as a limited number of private townhome rentals. Monthly rents begin from the $2,000s, with initial occupancy this month. City Homes and Gardens, which is directing the building’s leasing and marketing program, has debuted Soho Lofts from an onsite leasing office with fully-furnished models merchandised by renowned interior designer Kim Depole.
ENGLEWOOD, NJ—Metro Community Church has renewed its 6,200-square-foot lease at 291 South Van Brunt Street in Englewood. Key Properties brokered the lease, which maintains full occupancy at the 9,000-square-foot, Bergen County property. Situated in the Palisades submarket, one block from Route 4 near a Radisson hotel, 291 South Van Brunt Street offers easy access to the George Washington Bridge, local hospitals, shopping and dining. Key Properties acquired the asset as a flex building in 1979 and gradually transitioned the single-story structure to full office use, according to Marc Schlussel, co-managing partner.
PEABODY, MA—KeyPoint Partners negotiated the sale of Route One Marketplace, a retail property in Peabody, MA. Don Mace, KPP vice president of leasing, handled negotiations between the buyer and seller, who were not identified, to close the $6.1 million sale. Route One Marketplace is a 68,530 square foot strip center located at 216 Newbury Street (Route One) in Peabody, MA, visible from Interstate 95. Tenants at the center include Work Out World, Namco, Mass Bay Hockey Center, and Revival Church for the Nations. The Marketplace was purchased by the owner and operator of FUNCITY and Aero Trampoline Parks, who plans to open a FUNCITY facility at the property in the Spring of 2018.
JENKINTOWN, PA—Jones Lang LaSalle’s Capital Markets team completed the sale and financing of One & Two Pitcairn Place, a two building, Class A office complex in Jenkintown, PA. Joss Realty Partners purchased the 98,057 square-foot complex from Pitcairn Properties for $12.1 million, with JLL securing $9.225 million in acquisition financing from Beneficial Bank. JLL managing director James Galbally and senior vice president Brett Grifo led the transaction with senior vice presidents Erin Miller and John Plower. Senior vice president Chad Orcutt secured the acquisition financing for Joss Realty Partners.
EDISON, NJ—CBRE arranged the $6.2-million sale of a 52-unit garden-style apartment complex in Edison, NJ. The sale of Washington Park Apartments—located on a 1.9-acre parcel at 1940 Lincoln Parkway, Route 27—was facilitated by the CBRE team of Nat Gambuzza, senior vice president, and Spencer Beriont, associate. The CBRE team served as the exclusive listing agent on behalf of the seller, Joseph’s Wish, and procured the purchaser. CBRE attracted more than 20 competitive offers for the development, which is fully occupied and where rents are currently running 45 percent below market rate. The property, comprising all one-bedroom apartments of various sizes, traded for a cap rate of less than five percent.
SADDLE BROOK, NJ—NAI James E. Hanson negotiated a lease for a 3,200-square-foot flex office building at 186 Saddle River Road in Saddle Brook, NJ. NAI Hanson’s vice president Anthony Cassano represented the landlord, HRR Realty Associates, and the lessee, Aircraft Interior Services, in the transaction. 186 Saddle River is a two-story, freestanding building with 1,600 square feet of office space on the ground floor and 1,600 of flex space on the lower level.
PHILADELPHIA, PA—Workhorse Brewing Company has signed a long-term lease at 250 King Manor Drive for 62,324 square feet. The property is managed by Equivest. Workhorse Brewing Company, a family-run production facility opening in Spring 2018, will be King of Prussia’s only brewery. The building will be home to Workhorse’s brewing operations, including manufacturing and warehousing, as well as a family-friendly, experiential tasting room that provides a unique consumer experience for beer tasting and other social events. The lease negotiations were handled by Paul French and Scott Williams of Avison Young and Ed Banes of PRA Realty Advisors, who represented Workhorse Brewing Company.
FALL RIVER, MA—Picture Show at SouthCoast Marketplace has officially opened its premium movie theater experience to the community of Fall River. Picture Show’s latest location marks the return of a movie theater to Fall River in over ten years. Picture Show at SouthCoast Marketplace features 11 screens and 1,200 seats, offering guests a high-quality movie experience complemented with luxury leather electric reclining seating, wall-to-wall high-definition screens and cutting-edge digital projection and sound systems.
PRINCETON, NJ—The repositioning of 211 College Road East is underway, and Colliers International has been named marketing agent for the 39,000-square-foot Princeton Forrestal Center office property. Owner ML7 is renovating and rebranding the three-story boutique building, renamed Hub 211. The renovation work incorporates an urban feel, with exposed structural steel beams and ductwork, 12-foot ceilings and polished concrete floors, Hub 211 already boasts superior technology infrastructure with fiber optic connectivity and an onsite 200 kW backup generator.
LYNDHURST, NJ—Team Resources completed several leasing deals in October. Eric Lewin Sr., executive vice president, with David Cantor, CEO, and Greg Sholom, president, leased 38,000 square feed at 95 Mayhill Street in Saddle Brook, NJ (pictured) to AJ Worldwide Services. Team Resources represented the landlord while Jeff Chaus, Principal at Chaus Realty represented the tenant in this transaction. Cantor and Sholom also leased 26,900 square feed at 235 Murray Hill Parkway in East Rutherford to GOFFA International. Team Resources represented the tenant, while Jeff DeMagistris of NAI James E. Hanson represented the landlord. Edward Schein, senior vice president and Jeffrey Fulton, vice president, leased 10,000 square feet at 426 Sand Shore Road in Mount Olive to Qnix. Team Resources represented both the landlord and tenant.
BOSTON, MA—Arrowstreet Capital named Kate Bubriski, AIA, LEED AP BD+C, Fitwell Ambassador, its director of sustainability and building performance. Bubriski will lead the implementation of the strategic plan and Arrowstreet’s environmental and sustainability initiatives.