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Deals & Dealmakers

SELLING POINTS: German’s first JV is 5th Ave. retail condo; Greystone buys Rabsky sites

● L&L HOLDING CO. / BLACKROCK
It doesn’t get much better

Cushman & Wakefield represented L&L Holding Company and BlackRock in the $145 million sale of the leased fee at 635 Madison Avenue.

635 Madison
635 Madison

The property is encumbered by a ground lease through April 2030 with one 21-year renewal extension option.
Designed by Emery Roth & Sons, completed in 1958, the improvements of the fee interest include a 19-story 176,530 s/f office tower occupied by a selection of office and medical tenants, including the watchmaker Raymond Weil.
On the ground floor, the property features world-class luxury retail tenants Baccarat, Molton Brown and Camper.
A Cushman & Wakefield New York Capital Markets team of Steve Kohn, Helen Hwang, Alex Hernandez, Chris Moyer, and Alex Lapidus represented L&L Holding Company and BlackRock in the transaction.
“Land doesn’t get much better than Madison Avenue and 59th Street,” said Kohn, president of Cushman & Wakefield’s Equity, Debt & Structured Finance.
SL Green acquired the fee interest in an off market transaction, according to published reports.

 ● DEKA IMMOBiLIEN / Ashkenazy 
Germans first JV is Fifth Ave. retail condo

Deka Immobilien GmbH has acquired a retail condominium at 522 Fifth Avenue in a joint venture with New York-based Ashkenazy Acquisition Corporation for approximately $170 million. The seller was Morgan Stanley.
The luxury, two-level flagship location currently encompasses 8,411 s/f of corner retail space, with 25 feet of frontage along Fifth Avenue.
There is an opportunity to reposition the property, potentially adding approximately 16,000 s/f of retail space and expanding the property’s storefront by 44 feet.
Savills Studley’s US Cross-Border Group, led by Robert Stamm, advised Germany-based Deka in the acquisition and represents the investment company exclusively in the United States.

522 Fifth Avenue
522 Fifth Avenue

Deka has about $25 billion in real estate assets under management globally on behalf of private and institutional clients. This is the firm’s first joint venture acquisition the U.S.
“522 Fifth Avenue presented a unique opportunity to bring together the expertise of a local operator with the span of a global institutional investor such as Deka,” said Stamm.
“Together, the firms have the ability to create a global showcase for luxury brands along one of the most desirable and dynamic retail corridors in the world. This milestone partnership sets the stage for future opportunities and we envision replicating this success going forward.”

●northstar healthcare
REIT buys $125m senior housing portfolio

NorthStar Healthcare has purchased a 70-unit portfolio of senior housing assets for $125 million, plus closing costs.
The properties are located in Long Island and consist of four assisted living facilities totaling 404,000 s/f.
The facilities are 100 percent leased to Arcadia Management, Inc. which has managed the properties since 2005. The portfolio’s overall resident occupancy was 89 percent as of July 31, 2014.
The portfolio is currently unlevered and NorthStar Healthcare intends to secure financing for the investment.
Additionally, NorthStar Healthcare closed an investment in a $45 million mezzanine loan secured by a pledge of an ownership interest in a portfolio of 16 healthcare properties (14 skilled nursing facilities and two assisted living facilities) located in nine states.
“These investments represent strategic additions to the NorthStar Healthcare portfolio and highlight our commitment to generating value through relationships with strong senior housing owners and operators,” said Daniel R. Gilbert, executive chairman.

● greystone
Greystone buys Rabsky sites

Greystone, a New York-based real estate development and financial services company, has acquired two development properties in Clinton Hill, Brooklyn,
The seller was the Rabsky Group and the purchase price was $17 million. Greystone said the investment has a total projected value of over $50 million.

531 Myrtle Avenue
531 Myrtle Avenue

The first property is located at 531 Myrtle Avenue on the corner of Steuben Street, and the second is located at 100-102 Steuben Street between Myrtle and Park Avenues.
Both development sites will be transformed into individual luxury rental apartment buildings with high-end amenities.
“With Greystone’s past success on Printhouse Lofts in Williamsburg and the buzz about upcoming Waterbridge 47 in DUMBO, we are thrilled to be able to bring additional new housing to the Brooklyn market that will be truly Greystone,” said Jeffrey Simpson, head of Greystone Property Development.
“Brooklyn’s appeal is only growing, and we are excited to add high-quality residential offerings to meet the demand.”

●athena real estate
RV deal marks beginning of Athena’s northeast tour

Athena Real Estate has purchased Atlantic Blueberry RV Park, a 171-site RV Park located in Port Republic, New Jersey.
The property, acquired through an Athena affiliate, is located 16 miles from the Atlantic Ocean.
The RV Park has a loyal seasonal camper base, and strong amenities including a recreation hall, swimming pool, Wi-Fi, cable, playground, volleyball, horseshoe pits and laundry facilities.
Athena plans to make capital improvements and upgrade the 25-acre RV Park.
Richard J. O’Brien, CEO and founder of Athena RealEstate, said, “We expect the purchase of our first New Jersey property to lead to other New Jersey acquisitions, as we like to cluster properties.
“Athena Real Estate continues to grow and is on pace to close an acquisition each quarter,” added O’Brien. The company is seeking value-added acquisitions on the East Coast from Florida to Maine.

●diamond properties
Bronx multifamily porftolio trades for $24M

GFI Realty Services arranged the sale of a portfolio of five adjacent multifamily properties on Bronx Park South for $24 million.
Shulem Paneth and Eli Matyas represented the buyer. Yosef Katz represented the seller, Rising Development-BPS, LLC.
According to Paneth, “The purchaser recognized the long-term upside potential in the strengthening real estate fundamentals of Bronx residential properties, as demand for housing continues to drive rents and sales pricing in stable neighborhoods such as Bronx Park South.

SHULEM PANETH
SHULEM PANETH

“The pricing of $117,000 per unit we achieved is indicative of the increased focus of investors on opportunities in the Bronx real estate market,” said Paneth.
Consisting of 206 units and 190,000 s/f, the properties are near Bronx Park, the Bronx Zoo and Pelham Parkway.
The property addresses include 922-926, 932-934, 938-940, and 944 Bronx Park South, and 2137 Vyse Avenue, which are all contiguous on Bronx Park South.
“The seller was seeking to take advantage of increased investor interest in stable Bronx neighborhoods, with more attractive yields in comparison to Manhattan, Brooklyn and Queens, and the current competitive market for well-maintained market-rent residential properties, where rents are in the range of 20 percent below the overall market,” added Katz.

●diamond properties
Nyack industrial building fetches $36M

Robert Martin Company and MAG Real Estate Advisors have sold 100 Brook Hill Drive in West Nyack, NY, for $36 million.
Buyer, Diamond Properties will use part of the proceeds from the $46.8 million sale of Bedford Green in Bedford Hills, NY, to satisfy their 1031 exchange needs.
CBRE handled the Bedford Green sale, which closed in July, 2014.
The CBRE team of Jeffrey Dunne, Kevin Welsh, Brian Schulz and Frank Maresca, along with Michael Hines, Brian Fiumara, Brad Ruppel and James Tully, repped both sides in the Brook Hill Drive sale.
The 490,795 s/f industrial building was repositioned by Robert Martin and MAG Real Estate Advisors into a multi-tenant distribution warehouse in 2013.
Previously 100 Brook Hill was occupied by Cambridge University Press. It is now fully net leased to three financially strong tenants with an average lease term of eight years.
Dunne commented: “Diamond’s 1031 Exchange into 100 Brook Hill Drive provides an exceptional investment into a very stable, cash flowing investment in one of the premier industrial markets in the Northeast. I expect Diamond will do very well with this investment both in the short and long term.

 

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