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Deals & Dealmakers

Selling points: Cignature brokers $65M UWS buy, Newmark triples return on CT office property

Cignature realty guides  $65M UWS buy

Cignature Realty Associates has brokered the off-market sale of a four-building Upper West Side portfolio for $65 million.

The group of buyers purchased the parcel at  a price that equates to $1,050 per square foot.

The five-story, walk-up buildings at 471-476 Central Park West have a total of 125 apartments, mostly rent-regulated units.

The buildings are located between West 107th and 108th streets, with over 160 feet of frontage on Central Park West.

The site, that allows for the development of a roughly 92,000 s/f structure, spans 61,875 s/f, with an additional 30,000 s/f in air rights.

Cignature Realty’s Lazer Sternhell and Peter Vanderpool represented both the buyers and the seller, local long-time investors Benjamin Hadar and Leonard Solomon of Upwest Co. LLC.

“Our strict focus on the Manhattan Multi-family market allowed for us to identify and complete this off market transaction,” said Sternhell.

The identity of the buyers had not been disclosed as of press time.

Newmark Holdings

Newmark triples return on CT office property

Newmark Holdings has sold One Long Wharf Drivev for $73 million.

The property is a 286,713 s/f, seven-story medical office building located in New Haven, Connecticut.

Healthcare Trust of America purchased the asset, which was acquired by Newmark Holdings in 2007, according to principals Eric Gural and Brian Steinwurtzel.

The final closed sale represents a pre-tax return of 332 percent, or 37 percent per year to investors in the property over the nine year period since it was first purchased.

Newmark Holdings also made several capital improvements to the property, including new elevators, an on-site food court and  a new paved lot with grade-level parking.

One Long Wharf Drive is currently 99 percent leased to a roster of healthcare industry credit tenants such as Yale-New Haven Hospital and APT Foundation.

The buyer will also take ownership of a 3.0 acre ground leased lot, located under a hotel at adjacent Three Long Wharf Drive.

“We’re extremely pleased to announce this sale as the conclusion to an exceptionally successful medical office investment,” said Steinwurtzel. “The fact that we have been able to more than triple returns for investors is a testament to Newmark Holdings’ ability to maximize the value of any asset we acquire.”

Gural added, “We felt the time was now right to explore potential sale opportunities for the property and not surprisingly, demand was strong when we put it on the market. In the end, we were able to secure a deal that was favorable for both Newmark Holdings and Healthcare Trust of America.”

David Noonan of NGKF Capital Markets and Richard Lee of OR&L Commercial LLC represented the seller in this transaction. The law firm of Goldberg Weprin Finkel Goldstein also represented the seller.

ARC

JV acquires seminary building

Avenue Realty Capital (ARC), in a joint venture with a partnership between Coltown Properties and Esplanade Partners Group, announced the acquisition of a mixed-use building at 3060 Broadway from the Jewish Theological Seminary (JTS).

The JV purchased the fee interest in the 48,018 s/f property with 2,895 square feet of retail space for $35.25 million.

This is the 12th investment made by ARC over the last year as it continues to add to its growing portfolio of New York City buildings.

The six-story property has been used by the JTS to house its students over the last few decades.

JTS has leased back the property from the Joint Venture for a period of up to 4 years while they reimagine and redesign the Seminary’s existing buildings and add new facilities including a performing-arts space and a residence hall.

Once the new residence hall is complete JTS plans to vacate 3060 Broadway and move their students to the new residence hall.

Israel Weinberger, principal at Coltown Properties commented,  “JTS’s improvement plans for the area will add even more vibrancy to the immediate location and we are happy to work with the JTS in the next few years until their new resident housing facility is complete”. Davidoff Hutcher & Citron represented the buyer in the acquisition

Cushman & Wakefield

Moxy Hotel garage for sale

Cushman & Wakefield has been retained to arrange for the sale of the parking garage unit at 485 Seventh Avenue.

The unit is leased to Icon through 2033 and contains 149 parking spaces across 27,235 s/f on the ground floor, basement, and sub-basement. The asking price is $30,000,000.

While the garage unit is currently located at the base of an existing approximately 235,000 ss/f office building, the property is being redeveloped into the flagship property for the Moxy hotel brand, making it a leading U.S. flagship hotel for Marriott.

The Moxy 618-room hotel will offer “stylish, high energy, and affordable lodging,ˮ ground-floor retail, a restaurant, a lobby bar and lounge, a grab-and-go eatery, a fitness center, meeting studios, a large rooftop venue with views of the Empire State Building, and event space, which will drive demand for parking.

Bob Knakal, Chairman, New York Investment Sales at Cushman & Wakefield is exclusively marketing this property with Jonathan Hageman.

New York residence

Feil buys medical office property

The Feil Organization has purchased the New York Neurological Building at 162 East 78th Street for $17.35 million.

New York Residence brokers Thomas Guss, Hanna Sternberg and Saul Lalic represented the seller in the transaction.

Estreich & Co. and Douglas Elliman represented the Feil Organization.

“We are delighted to have facilitated this highly successful transaction,” said Guss, president of New York Residence.

“The buyer added a property with a strong and stable cash flow to his portfolio. The building will not be altered in any way and continue to be a trusted address for medical services for many years to come.”

162 East 78th Street is a six-story elevator building with over 9,000 s/f.

Built in 1926, the building was completely renovated in 2010 and converted into a modern medical facility with doctor offices and treatment rooms.

It is fully rented by medical practitioners in the neurological field such as NY Neurological Associates, a Weill Cornell affiliated institution.

The Feil Organization will continue to operate the building as a medical facility.

Mission Capital Advisors

UBS to sell industrial portfolio

Mission Capital Advisors announced that its Asset Sales Group has been named by UBS as the exclusive sales agent for a portfolio of six industrial properties, comprising approximately 1.27 million square feet of rentable space.

Michael Britvan and Adam Grant of Mission Capital Advisors will procure up to six buyers for the fully occupied, triple-net-leased properties, which are located in the states of North Carolina, South Carolina, Indiana, Illinois and Tennessee.

“With full occupancy and long-term, triple-net leases in place with prominent tenants at all six buildings, these properties will be very attractive to investors,” said Britvan.

“We expect to receive a great deal of interest from a wide range of funds, REITs and other institutional investors that are attracted to the cash flow that these properties generate.”

The six properties range from 160,120 to 255,560 s/f. Four of the properties are occupied by Baldor Electronics, while Rockwell Automation and Master Power Transmission each occupy one building.

The buildings were built between the 1960s and the 1990s.

Vision Properties

Garden State investor makes $100M Florida buy

New jersey-based Vision Properties has closed on the $100 million-plus acquisition of a five-building Class A office complex in Florida.

The property consists of 573,053 s/f along Henderson Road, north of Tampa International Airport.

This acquisition represents Vision Properties first in Tampa and adds to its existing office portfolio of five million square feet.

The property also has a development pad with an active site permit for an additional office building totaling 111,600 s/f.

Fred Arena, founder of Vision Properties, expects to break ground within the next 12 months as the Tampa office market lacks large contiguous blocks of Class A vacancy.

Renaissance Park, a master-planned corporate campus situated on 71 acres, includes over 3,000 structured parking spots, a baseball field, a health and fitness center, a tennis and volleyball court, internet café‚ coffee bar, and food court.

Anthony Arena, director of Acquisitions stated, “The Tampa office market has continued to outperform many other office markets around the country with approximately 2.250 million square feet of net absorption since 2011. ”

Cushman & Wakefield’s Florida Capital Markets Group consisting of Mike Davis, Michael Lerner and Rick Brugge represented the Seller.

William Bertolero of Vision Properties will oversee the operations and asset management.

Winndevelopment

Rehab plan for Winn complex

WinnDevelopment, the development arm of a national multifamily property developer and manager, WinnCompanies, has closed on the financing to acquire and renovate 131 units of affordable housing in Jersey City, NJ.

The $40.2 million acquisition and rehabilitation project will deliver an extensive upgrade to Brunswick Estates, a 32-year-old income-restricted community.

It will address substantial deferred maintenance needs, including lingering damage from Hurricane Sandy, as well as a lack of community space, adequate security, ADA compliance and energy efficiency.

The public-private partners in the Brunswick Estates project are: The City of Jersey City, including the Jersey City Department of Community Development; the New Jersey Economic Development Authority (EDA); the New Jersey Housing and Mortgage Finance Agency (NJHMFA); Citi Community Capital; The Richman Group Affordable Housing Corporation; New Jersey Community Capital (NJCC); Boston Community Capital; and, Greater Bergen Community Action, Inc.

The deal was brokered by Dane PCG, based in New York City.

“The completion of this acquisition is the first step in what we believe will be an important development not only for the residents of Brunswick Estates, but also for the community of Jersey City,” said Lawrence H. Curtis, president and managing partner of WinnDevelopment.

“We worked hard with our public and private partners to get to this point, and we look forward to a March 10 groundbreaking to celebrate the start of these renovations.”

Brunswick Estates is a townhouse-style complex featuring 14 clusters of buildings with apartments units ranging from two to five bedrooms, as well as a central building. There are 396 bedrooms in total.

The project is expected to spur additional investment along the Montgomery Street corridor, which serves as a visible gateway to Jersey City’s downtown.

Cushman & Wakefield

Inwood multifamily building on market

Cushman & Wakefield has been retained to arrange for the sale of a multifamily building at 509 West 212th Street.

The property is located on the north side of West 212th Street between Broadway and 10th Avenue in Manhattan’s Inwood neighborhood.

The five-story, residential apartment building consists of approximately 37,940 gross square feet and features a total of 44 residential units.

The unit mix consists of 19 one-bedroom units and 25 two-bedroom units. Of the 44 units, 41 are rent stabilized, two are rent controlled and one is currently occupied by the super. Recent capital improvements to the property include a new boiler and roof assembly in 2015. The property is located within proximity to Inwood Hill Park, Fort Tyron Park and The Cloisters.

Additionally, public transportation is easily accessible with the 1 and A subway lines just a few blocks away.

Bob Knakal, Chairman, New York Investment Sales at Cushman & Wakefield is exclusively marketing this property with Jonathan Hageman and Robert M. Shapiro.

Marcus & Millicahp

Outer borough multifamily sales rush

Marcus & Millichap announced a trio of outer borough multifamily sales.

41-05 Skillman Avenue, a 16-unit apartment property in Sunnyside, sold for $4,300,000. Shaun Riney and Michael Salvatico from Marcus & Millichap’s Brooklyn office, represented the seller, a limited liability company.

The buyer, a limited liability company, was also secured and represented by the team.

“Sunnyside Gardens demands a premium and we were able to generate tremendous demand to close at over $425 per square foot and 17x the rent roll,” said Riney.

Riney, Salvatico and James Saros also sold 231 North Henry Street, a 6-unit apartment property in Brooklyn for $3,050,000.

The trio represented both the seller and the buyer, both LLCs, in what Saros called a record-breaking sale.

“We were very pleased to achieve a record breaking price for a six family in Greenpoint on behalf of our client. The purchaser recognized the opportunity to capitalize on repositioning one of the largest brick six families in the neighborhood. Not many properties of this caliber trade in the area,” sod Saros.

Finally, Riney, along with Daniel Greenblatt and Thomas Shihadeh sold 50 Starr Street, a 4,125-square foot mixed-use property in Brooklyn, for $2,100,000.

“The retail is very under-served through Bushwick at this stage of the area’s growth and investors are capitalizing on it. In today’s market, we believe free-market mixed-use product holds largest potential upside in the area over the next few years,” said Shihadeh.

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