Here is a roundup of the latest leases, sales and other transactions in the Northeast middle markets.
This week by the numbers
Larger units, updated offerings ignite apartment demand. Robust job growth and household formation in the Greater New York Area continue to drive prospective tenants to Northern New Jersey. 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, according to Marcus & Millichap’s research. 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 firm expects 2017 multifamily units to total 9,500 for the year, far more than the 5,700 units in 2016. Most are in Hudson County. But the market is slowing down. The vacancy rate rose to 4.5 percent, “nearly erasing the 50-basis-point drop posted last year,” Marcus & Millichap says.
Deal Tracker Daily
NEW YORK, NY—Financial data and software company Pitchbook Data, a subsidiary of Morningstar, has signed a new 34,100-square-foot lease with Columbia Property Trust at 315 Park Avenue South, Columbia’s 20-story, 334,000-square-foot office building located in the heart of Manhattan’s Midtown South district. With the signing of PitchBook, Columbia has successfully leased five full floors for a total of 85,250 square feet of space over the past four months at this property, which is now 84 percent leased.
PHILADELPHIA, PA—CBRE has successfully negotiated a lease for SOSH Architects’ first Philadelphia location at the historic Curtis Center, 601 Walnut Street, Philadelphia, PA. SOSH Architects is currently occupying interim space at the Curtis Center while the innovative design of its new office space is being constructed. The firm is expected to move into a 3,274 square-foot office on the 10th floor of the building during the first quarter of 2018. SOSH Architects, which was founded in 1979, is expanding.
RIDGEWOOD, NJ—The Stro Companies has recently completed more than 26,500 square feet of leasing activity at 111 Moonachie Avenue, Moonachie, NJ. Stro acquired 111 Moonachie Avenue, a 52,000 square foot flex industrial building featuring 8 units, in March of 2017. Located in the heart of the Meadowlands, the property is located directly across the street from Teterboro Airport and a short distance from Routes 17, 3 and the New Jersey Turnpike. After purchasing the asset Stro instituted a repositioning program which included enhancements to the building’s façade and vacant spaces
BURLINGTON, MA—NKF Capital Markets has successfully completed the sale of Middlesex Marketplace in Burlington, MA to a private real estate fund advised by Crow Holdings Capital Partners-Real Estate. Executive managing director Geoffrey Millerd, managing director Justin Smith, associate director Paul Penman and financial analyst Christopher Peterson of the NKF Capital Markets Boston office, which is led by US head of capital markets Robert Griffin, oversaw the transaction of the newly-constructed retail offering on behalf of a private seller. Built in 2013 and totaling 38,243 square feet, Middlesex Marketplace features an exceptional food and service-oriented rent roll. The property is highlighted by a freestanding build-to-suit for Del Frisco’s Grille, the upscale-casual sister concept of the high-end Del Frisco’s Double Eagle Steak House. The asset also enjoys a strategic location along Middlesex Turnpike, a major retail corridor with an average daily traffic count of 37,400 vehicles.
RIDGEFIELD, NJ—The Ridgefield Planning Board approved an application to allow a 254,000 square foot industrial building on the 18.73-acre Pfister Site, financed by Procida Funding at its monthly meeting Thursday night. Located just off Route 46 on the Eastern shore of Overpeck Creek, the Pfister site is less than seven miles from the New Jersey Turnpike and two miles from the George Washington Bridge. The property is adjacent to the planned Hudson Bergen Lite Rail stop. The property’s long-time owner, the Bedelius family, operated a thriving chemical business on the site from the 1930s the 2000s and received numerous offers for the property from developers who expressed interest in the property and urged the owners seek a larger footprint. Bordering the eastern shore of Overpeck Creek, the property was home to the Pfister Chemical factory from the 1930s through the 1990s and went up for sale in August 2017 after the site underwent an extensive remediation process.
PHILADELPHIA, PA—PernaFrederick Commercial Real Estate has represented two tenants in the lease of approximately 14,190 square feet of center city office space here. Joe Viturello, Michael Anderson and Dan Gummel, brokers at PernaFrederick, negotiated the two space contracts. At 990 Spring Garden Street, Viturello represented immigration law firm Gian-Grasso, Tomczak & Hufe, P.C., in the lease of approximately 3,390 square feet on the fourth floor of the building. Anderson and Gummel represented SA 990 Spring Garden, LP, the private real estate investment partnership that owns the building, in finalizing the multi-year agreement. At 417 N. Eighth Street, Viturello represented Tech Impact, a provider of nonprofit technology services and solutions required for the maintenance and support of multiple projects. Tech Impact will double the size of its offices by expanding to approximately 10,800 square feet on the second floor of the five-story building. Tony Falcone, a broker with M.S. Fox Real Estate, cooperated with PernaFrederick and represented 417 N. Eighth Street Associates, owner of the 100,000 square foot multi-tenant office structure, in finalizing the terms of the renewal and expansion agreement.
TINTON FALLS, NJ—Trinity Hall, an all-girls college preparatory high school located on the former Fort Monmouth military base, plans to expand Building 2290, the former Child Development/Daycare Center on Fort Monmouth. The parcel consisted of 7.4± acres of land and a 19,600-square-foot, one-story building constructed in 1996. The Fort Monmouth Reuse and Redevelopment Plan contemplated reuse of the Building 2290 as a child care/school facility. Trinity Hall will expand the facility to accommodate its growing enrollment by constructing a two-story addition with a footprint of 11,230 square feet and a total area of 22,460 square feet. The addition will include additional classrooms, office/administrative space, a multipurpose room, a chapel and a new entrance lobby.
PISCATAWAY, NJ—NAI DiLeo-Bram & Co. named Frederick Gladstone director of capital markets. Gladstone comes to NAI DiLeo-Bram & Co. with a distinguished career in New Jersey commercial lending. He began his career in 1999 with Commerce Bank where he successfully completed the Bank’s commercial credit underwriting program. Through-out his career he has been on both the underwriting and sales sides. Most recently he was Vice President of Commercial Lending at Berkshire Bank in Kingston, NJ.
BARNEGAT TOWNSHIP, NJ—Walters Group was honored with 11 prestigious awards at the New Jersey Apartment Association Garden State Awards. Four Walters Group apartment communities – Cornerstone at Barnegat, Cornerstone At Lacey, Laurel Oaks and Whispering Hills – were recognized for Excellence in Property Management. Cornerstone at Barnegat and Cornerstone at Lacey garnered additional awards for Curb Appeal and Green Building. The Curb Appeal category recognizes properties for their beautiful and well-kept grounds. Both the Barnegat and Lacey developments were built to LEED standards, making them more energy efficient than conventional non-green housing. Walters Group employees also took home three individual property management awards. Theresa Cooke, Randi DeGraw and Myra Hamilton were honored at the event.