Benchmark multifamily sale in New Jersey
Gebroe-Hammer Associates has represented Forest Realty in the estate sale of two separate multi-family properties sold for a combined $113.5 million in Springfield and Morristown, N.J.
The firm’s brokerage teams, led by managing director Joseph Brecher, also identified the buyers of Short Hills Village Club (Springfield) and Franklin Manor (Morristown).
The sale of the properties, which were owned by Forest Realty for over 40 years, represents one of the state’s largest multi-family transactions recorded in 2015 thus far.
“Both of these well-maintained properties are at the center of it all in terms lifestyle amenities and access to mass transit, shopping and dining,” said Brecher.
“Springfield and Morristown are highly desirable multi-family investment markets due to the strength of their tenant pool, sustained population growth and proximity to employment centers and some of the state’s largest employers, such as Bayer and Honeywell.”
Short Hills Village Club, which was acquired for $83.5 million by SH Club Village, LLC, is a 286-unit garden-apartment and townhome community located at 67A Forest Dr., on the Millburn/Short Hills border of Springfield.
The 26-building complex is comprised of three different phases, each of which has been newly renovated or newly constructed in the past five years.
The second property, located at 114 Franklin St. in Morristown, was acquired by RK Franklin LLC, for $30 million.
Franklin Manor is a 140-unit garden-style apartment community on a private road in a residential neighborhood.
Hampshire sells industrial building for $50M
TIAA-CREF has paid $49.5 million for a newly developed industrial building in Carteret, New Jersey.
CBRE Group’s Jeffrey Dunne, Kevin Welsh and Brian Schulz represented The Hampshire Companies in the sale of 200 Milik Street. The team also procured the buyer.
The property, which contains 232,134 s/f of warehouse/distribution space, was constructed in 2012.
Hampshire began construction on a speculative basis and fully leased the building to FedEx Ground prior to completion.
The Exit 12 industrial market, also known as Port South, has evolved into one of the leading industrial markets in New Jersey, evidenced by a rise in construction and substantial tenant commitments.
A key component can be traced to the 2010 completion of the Exit 12 interchange expansion.
At 200 Milik, Hampshire demolished the former Pathmark office headquarters in 2011, and developed a modern generation industrial building.
Since 2007, more than 4.7 million sq. ft. has been developed or is close to being completed in the market (a 24% increase in inventory), which has attracted internationally recognized tenants such as Amazon and FedEx.
Sugar Hill sells apartment building
Sugar Hill Capital Partners has sold 580 St. Nicholas Avenue in Hamilton Heights for $25.5 million.
The six-story elevator apartment building features 93 apartments and one commercial unit. It is 60,078 s/f and was built in 1914.
Rosewood Realty Group’s Michael Guttman represented the seller, Sugar Hill Capital Partners, and Roni Abudi of GFI represented the buyer, a private investor.
The building sold for 15.16 times the current rent roll.
$21M East Haven apartment buy closes
Paredim Partners LLC (Paredim) and LEM Capital (LEM) have acquired the $21 million Stony Brook Village Apartments, an apartment community of 165 units on 20 acres in East Haven, Conn.
The 1990s-era Class A property is almost fully occupied and serves young families and professionals that commute to employment centers in New Haven and central and southern Connecticut.
“We are investing in a well-located, high-quality asset with great upside potential,” explained David Parisier, Paredim’s managing director and founding principal.
“Value enhancing renovations are planned under the direction of our experienced redevelopment and management team that has overseen similar projects in our nearly 2,000 unit portfolio throughout New Haven, Fairfield and other Connecticut markets.”
LEM’s investment was made on behalf of one of the firm’s managed institutional real estate funds.
“After completing the value-add renovation program and installing Paredim’s more attentive management approach, Stony Brook has the potential to be a best in class asset within its submarket,” said Herb Miller, a founding partner at LEM.
“The lack of new supply in the market and submarket combined with the property’s proximity to strong employment drivers should enable Stony Brook to attract a high quality resident and generate value for our investors.”
$72M Astoria sale closes
E&M Associates paid $72.3 million for a pair of Astoria rental properties owned by a Related Cos. fund, in the second sale since Shibber Khan’s Criterion Group developed them just three years ago.
The market-rate apartment buildings at 11-15 Broadway and 30-50 21st Street, known respectively as Astoria at Hallet’s Cove and the Montenegro of Astoria, hold a total of 144 units and 64 parking spaces. They are located five blocks away from each other in southern Astoria, but have sold as a package.
Astoria at Hallet’s Cove is an eight-story, 76,100 s/f elevator building with 79 apartments, while the Montenegro of Astoria is an eight-story, 59,240 s/f elevator building with 65 apartments.
The off-market deal closed last week, according to Rosewood Realty Group’s Aaron Jungreis, who brokered the transaction and represented both the buyer and the seller. It sold for 15.5 times the current rent roll.
Related Fund Management, the fund management platform of the development giant behind the Hudson Yards megaproject, bought the buildings from Criterion for a combined $60 million in 2013, a year after they opened. Earlier this year, E&M, a Flatbush-based multifamily investment firm led by Irving Langer, sold four Bedford-Stuyvesant rental buildings to Bushburg Properties.
Plasky takes it to the bank
Marcus & Millichap arranged the sale of a 4,467 s/f, single-tenant, net-leased Bank of America branch near Long Island’s North Shore in Syosset.
The $12 million sales price equates to $2,686 psf.
Scott Plasky in Manhattan represented the seller, a private investor.
“Net-leased assets of this quality in the affluent parts of Nassau County rarely trade hands,” said Plasky.
“The offering’s combination of zero management, great location, “A”-rated-tenant, lease with 16 years remaining, and bank with huge deposits generated strong activity and a premium price.”
The property is located on the corner of Jericho Turnpike and Oyster Bay Road at 378 Jericho Turnpike in Syosset. Both Jericho Turnpike and Oyster Bay Road are five-lane roads.
Nearby retailers include Starbucks, Dunkin Donuts, King Kullen, Chase Bank, Panera Bread, Chipotle, Marshalls, HomeGoods and Petco.
The building is on a 28,433 s/f corner lot with a double drive-thru and parking for 48 cars.