Here is a roundup of the latest leases, sales and other transactions in the Northeast middle markets.
This week by the numbers
Gone are the days when the renter population was represented by young people fresh out of college, making do with as little as possible to save for a house. Renting patterns have changed and more people, not just Millennials, started focusing on convenience and a quality lifestyle, according to RentCafé.
But who are the new renters? After analyzing Census data between 2009 and 2015, we realized there have been some dramatic changes: the number of renters over 55 increased by 28 percent, compared to a 3 percent increase in renters 34 years or younger. This means 2.5 million senior renter households joined the renter cohort, compared to just half a million renters under 34.
Among RentCafe’s key findings:
- Senior renters account not only for the largest percentage increases but also the largest net increases compared to other age groups.
- As Simona Solomie, real estate broker with Remax Masters puts it, “lowering living expenses, looking for a different lifestyle, less house-related work and overall less responsibility can be achieved by downsizing, so a lot of retirees opt to rent.”
- In keeping with the national trend, Philadelphia has seen a mere eight percent uptick in the number of young people joining the rental market, but a 22 percent jump in the number of renters 55 and over.
- Both families with children and families without children prefer the suburbs in Philly: families with no children saw a 22 percent increase and families with children jumped by 16 percent in suburban areas, while urban cores only saw a 13 percent increase in families without kids and a four percent uptick in the number of families with children.
Deal Tracker Daily
PHILADELPHIA, PA—Keystone Property Group has launched leasing for Lyndon at The Curtis, a new collection of 63 luxury apartment homes located in the heart of Philadelphia’s Washington Square neighborhood. Set on the western edge of Independence Mall at Sixth and Walnut streets, Lyndon at The Curtis comprises a mix of studio, one-, two- and three-bedroom apartment homes, including four bi-level penthouse units with outdoor terraces overlooking historic Center City Philadelphia. Keystone converted 90,000 square feet of former office space at its iconic mixed-use property, The Curtis, into a collection of upscale residences that set a new standard for luxury living in Philadelphia.
FLORHAM PARK, NJ—Holliday Fenoglio Fowler arranged a $14.5 million refinancing for 1 Independence Way, a 113,998-square-foot office property in Princeton, NJ. The HFF team worked on behalf of the borrower, Normandy Real Estate Partners, to secure the 10-year, fixed-rate, securitized loan through LoanCore Capital. 1 Independence Way is located just north of Princeton University off US Route 1 in Princeton. The office property was completed in the 1980’s and is fully leased to S&P Global and ALK Technologies. The HFF debt placement team representing the borrower included senior managing director Jon Mikula and associate Matthew Pizzolato.
MANASQUAN, NJ—Levin Management Corporation served as advisor to Levin Properties in its recent purchase of ACME Center in Manasquan. The two-acre property at 71 Taylor Ave. is home to a 19,000-square-foot ACME supermarket. Levin Management identified the single-tenant asset as an investment target, spearheaded the due diligence process and worked with the seller to finalize the purchase. Now, under the new ownership, Levin Management has been named as the property’s exclusive leasing and managing agent.
HACKENSACK, NJ—NAI James E. Hanson has negotiated the sale of a 5,800-square-foot industrial building at 174 Union Street in Hackensack, NJ. NAI Hanson’s vice president Anthony Cassano represented the seller, Ninth Avenue Properties, in the sale to Petaks Kosher Foods Catering and also negotiated a leaseback of 300 square feet of office space at the location on behalf of the seller. Currently located in Fair Lawn, NJ, Petaks Kosher Foods Catering has been in business since 1928. The acquisition will allow the company to expand its business to an additional location and fulfill more orders. 174 Union Street is a two-story industrial/USDA processing plant with full cooking, preparation and refrigeration equipment as well as second-floor storage and six parking spaces. The seller, Ninth Avenue Properties, will be leasing 300 square feet of office space in the building as part of the sale-leaseback agreement.
FLORHAM PARK, NJ—Bergman Real Estate Group is adding 5,000 square feet of new tenant amenities, including a fitness center, yoga studio, lounge and game room, to Florham Park Corporate Center, located at 25 Vreeland Road in Florham Park, N.J., by the end of 2017. The new amenities program is part of a company-wide capital improvement effort to upgrade the assets in its portfolio of properties to provide its tenants with added services and convenience.
NEW YORK, NY—Imperial Capital Company has closed a first mortgage loan, secured by the former landmark Bowery Savings Bank building at 130 Bowery St, NY, NY. The property was financed with a major CMBS lender for $12million, with a ten-year fixed rate and interest only loan for full term. The interest only feature allowed the ownership to maximize cash flow throughout the term, as the loan was at a very conservative loan to value amount. The property has been operating as the events center, Capitale, since 2002. The building was originally designed by the renowned architect Stanford White in 1895, The 40,000 square foot building is adorned with Corinthian columns, Venetian glass, marble mosaic floors and 65-foot ceilings. Capitale is a multi-level, multi-room venue equipped to accommodate private parties from 20 to 1300 guests.
TRENTON, NJ—Greater Trenton, an independent 501c-3 nonprofit that uses private funding and a network of collaborative relationships to advance economic revitalization efforts in Trenton, named Bryan Evans vice president of marketing and communications. Evans will lead marketing and communications efforts to bolster awareness of Greater Trenton as an essential partner in projects and partnerships while also promoting Trenton’s downtown destination for residents, community institutions, and businesses. Evans joins the organization with more than 20 years of experience leading major marketing efforts for companies in economic development, real estate, non-profit, technology, and business/financial arenas. Prior to joining Greater Trenton, Evans served as vice president of marketing at the Goldenberg Group promoting the company’s existing real estate assets and non-profit organization.
CHATHAM, NJ—Dermody Properties named Robert Borny senior vice president of capital deployment, East Region. Borny is responsible for identifying and executing industrial acquisition opportunities in the eastern United States that align with the company’s investment strategy. Borny will be based in the company’s East Region Office in Chatham, N.J., where he will work closely with East Region Partner, Gene Preston. Borny will also be working on the sourcing and execution of development projects, and the marketing and leasing of existing assets in the region.
PARAMUS, NJ—Ralph Hanan has joined Paramus, NJ-based The Goldstein Group as a lead executive within TGG Urban, the recently-formed division which has tapped into the growing shift towards creating walkable retail and residential centers in downtown City settings. Hanan will serve as vice president, Urban Retail, overseeing the brokerage of new developments and existing buildings, as well as tenant representation and investment sales in the metropolitan New York and New Jersey submarkets. He’ll also direct a team of professionals providing retail leasing and advisory services to urban mixed-use property owners, developers and management firms in the region.