Here is a roundup of the latest leases, sales and other transactions in the Northeast middle markets.
This week by the numbers
Marcus & Millichap has released its fourth quarter North Jersey multifamily report, and says the multifamily boom is not showing any signs of slowing down soon.
“Robust job growth and household formation in the Greater New York Area continue to drive prospective tenants to Northern New Jersey,” the report says. “Greater value can be found across the Hudson as renters can nearly double their square footage in New Jersey for the same price paid in Manhattan. An influx of development provides renters with more luxury choices, all while being near highways and public transportation for quick access to the city. In more suburban areas, multifamily demand remains strong as well due to the rising cost of single-family homes and rentals that are even more affordable than those along the Gold Coast.”
The report cites a 30 basis-point increase in vacancy but also says effective rents increased 4.2 percent this year vs. 2.6 percent last year, and projects 9,500 additional units will come on the market this year, compared with 5,700 in 2016, mostly in New Jersey’s Hudson County.
Deal Tracker Daily
BOSTON, MA—Boston Residential Group yesterday sold 1280 Massachusetts Ave., a fully leased five-story, 43,120-square-foot office and retail building in Harvard Square, to Intercontinental Real Estate Corporation of Boston. Boston Residential Group and its affiliates developed the mixed-use building in 1985 and have managed it since that time. Current office tenants include Harvard University, Equity Resources Investments, and Mark of the Unicorn, a music software company. Retail tenants are Tatte Bakery and Café, Qdoba Mexican Eats, and SEE Inc.
HAMBURG, PA—MRP Industrial, in a joint venture with Hillwood, has recently acquired and begun construction on Hamburg Logistics Park. The 165-acre project is approved for three (3) buildings of 1.9 million square feet in Hamburg, Berks County, PA, along the I-78 corridor in the Lehigh Valley West submarket. Phase 1 of construction in the park includes the speculative development of 101 Logistics Drive and 201 Logistics Drive. 101 Logistics is a 336,000 square foot, class-A single loaded distribution center scheduled for delivery in 3Q 2018. 201 Logistics is a 1.24 million square-foot, class-A cross dock distribution center with expected delivery in 4Q 2018. When completed, 201 Logistics Drive be the largest speculative building ever developed in Eastern Pennsylvania. Phase 2 of construction will include the development of 301 Logistics Drive, a 324,000 square foot class-A facility. When fully developed, the project is expected to create more than 1,500 full time jobs in Berks County.
WALL TOWNSHIP, NJ—Jones Lang LaSalle has completed four new retail leases, totaling 30,000 square feet, at Wall Promenade, 1919-1925 State Route 35 in Wall Township, NJ, for property owner RT 35 Wall Promenade. Aldi took 20,000 square feet, MedExpress leased 4,570 square feet, Rock On Nails signed for 4,000 square feet and Starbucks Corp. took 2,000 square feet at the 55,000-square-foot shopping center. The building owner was represented by Marta Person Villa, senior vice president, with JLL. She worked closely with Eric Mund, president, with RT 35 Wall Promenade. The soon-to-be completed Wall Promenade includes three buildings with a total of 55,000 square feet of retail shops, services and restaurants. The shopping center is located directly on Route 35, near the intersection of Route 35 and Allaire Road, and is approximately one mile south of the Rt. 138 and Rt. 35 interchange.
NEW YORK, NY—The Durst Organization today announced its partnership with Michelin-starred restaurateur and entrepreneur Claus Meyer and Convene to operate the amenity space at Four Times Square. Claus Meyer will curate and operate all food and beverage functions to create a one-of-a kind workplace eatery, which includes a food hall in the Frank Gehry designed cafeteria, coffee bar run by Meyer’s Brownsville Roasters, corporate catering and grab and go options, all on the building’s 4th floor. Convene has signed a management agreement with Durst to operate and manage the 20,000-square-foot meeting, event and conference space. The $35 million full-service amenity floor will include a dedicated meeting planning team and robust technology infrastructure, and is part of an additional $100 million capital upgrade in the building.
BERGENFIELD, NJ—NAI James E. Hanson has brokered a lease for 3,100 square feet of industrial space at 96 South Washington Avenue in Bergenfield, NJ. NAI Hanson’s vice president Anthony Cassano represented the landlord, 96 S. Washington Ave., and the tenant, Parts Authority, in the transaction. Parts Authority will use the space for warehousing to support its storefront location across the street at 91 South Washington Street. The one-story industrial space boasts a highly accessible location with 8-foot foot ceilings.
MILLINGTON, NJ—CBRE arranged the $3 million sale of 50 Division Ave. in Millington, NJ. Charles Berger and Elli Klapper of CBRE’s Tri-State Investment Properties team, along with Nicholas Nitti of Transaction and Advisory Services, exclusively represented the seller in the transaction and procured the buyer, Prism Capital Partners. Prism Capital Partners plans to redevelop the 147,000-square-foot industrial site into a transit-oriented mixed-use community on the property’s 12 acres. Situated directly across from Millington’s NJ Transit station, the new mixed-use development – whose master plan the new owners are working with the town to complete – will beautify the area, which had previously been an industrial hub in Millington.
NEW YORK, NY—Savanna, a New York City-based real estate investment manager, owner/operator and developer, has launched a $35 million capital improvement plan at the Falchi Building, a five-story, 711,194 square-foot office and retail building located at the epicenter of the Factory District in Long Island City, NY. Falchi will be among the first buildings to complete the repositioning process in a neighborhood that has seen approximately $20 billion of institutional investment into commercial and residential property in recent years. Savanna’s capital improvements will be focused on modernizing the lobby and common areas, upgrading the building systems, and reconfiguring the retail spaces to maximize value. Cushman & Wakefield is leading the leasing campaign for both office and retail opportunities.
WEST LEBANON, NH—NKF Capital Markets has successfully completed the sale of The Windalier Portfolio in West Lebanon, New Hampshire to The Davis Companies for $27.15 million. Managing director Justin Smith of the NKF Capital Markets Boston office, led by Robert Griffin, US head of capital markets, and executive managing director Geoffrey Millerd, oversaw the sale on behalf of Dead River Properties. Totaling 230,035 square feet, The Windalier Portfolio comprises Kmart Plaza, Miracle Mile Shopping Center and North Country Plaza (pictured), all of which are located along or near Route 12A, the region’s dominant retail corridor. Presently 96 percent leased, The Windalier Portfolio features an ideal mix of national retailers anchored by Kmart, T.J.Maxx and Jo-Ann Fabric and Craft Stores.
HOLMDEL, NJ—Somerset Development named Sabre Real Estate Group as exclusive retail leasing agent at Bell Works, the revitalization of the two-million-square-foot Bell Laboratories into an iconic “metroburb” in Holmdel, NJ. Sabre is responsible for attracting a variety of shopping, dining, and other experiential retail for the building’s quarter-mile-long atrium, now repurposed as a downtown-style ‘pedestrian street.’ Sabre’s New York-New Jersey leasing team at Bell Works will be led by: Scott Sher, principal; Justin Korinis, senior vice president; Dina Santarelli, director; and Sean Pyle, associate.
BROOKLYN, NY—KeyBank Real Estate Capital has secured a $19 million Freddie Mac, first mortgage loan for 178 North 11th Street, located in Brooklyn, NY. The 49-unit, class-A property was built in 2017 and is a six-story, mid-rise building with about 1,200 square feet of retail space. Ten units are reserved for tenants earning 60 percent or less AMI. Tom Peloquin of Key’s Commercial Mortgage Group arranged the full term interest only loan for a term of 11 years, which was used to refinance existing debt.
BROOKLYN, NY—Madison Realty Capital closed a $15 million bridge loan for 948 Myrtle Avenue, a mixed-use development site located along Vernon Avenue, Throop Avenue, and Myrtle Avenue in Brooklyn. The project has received approved new building plans for the as-of-right development of a 154,699-square-foot, three-building mixed-use project. The developer plans to construct a residential project incorporating both rental and condominium units into three interconnected buildings with ground floor retail. The development project is to be constructed on three adjacent sites, 936 Myrtle Avenue, 948 Myrtle Avenue, and 258-264 Throop Avenue. Together, the three sites create a 30,000-square-foot lot with 500 feet of frontage along three sides. Site excavation work is substantially complete, and the borrower is moving forward with foundation work while pursuing approval for additional FAR through the Inclusionary Housing and Food Retail Expansion to Support Health (FRESH) programs.
HACKENSACK, NJ—NAI James E. Hanson’s president, William C. Hanson, SIOR, has been named to the Strategic Leadership Committee for the 2018 NAI Global Leadership Board. The NAI Global Strategic Leadership Committee develops and manages strategic initiatives consistent with the objectives and goals of NAI professionals.