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Deals & Dealmakers

Selling points: Waterfront site offers chance to redefine skyline, LI apartment property sold

Cushman & Wakefield

Waterfront site offers chance to redefine skyline

Cushman & Wakefield has been retained to sell a Greenpoint development site (above) and a chance to change the skyline with a high-rise icon.

The site at 1 Huron Street on the waterfront of Greenpoint Brooklyn is being offered at $60 million.

The property includes one rectangular-shaped parcel totaling 1.46-acres with a vacant two-story warehouse building.

With a total of 177,788 s/f of ZFA, and a potential up-zoning to 330,000 s/f by extending an immediate adjacent R8 district, buyers will have the opportunity to build a new high-rise tower.

Additionally, due to the disparity between base-flood-elevation and the elevation of grade, a waterfront regulation may allow development of ground floor retail without it counting as zoning floor area.

“This water front site represents the rare chance to construct a one-of-a-kind mixed-use building with unobstructed water views,” said Mitchell Levine.

“The site offers a chance to develop a flagship retail space in one of the City’s strongest markets, along the quickly developing West Street retail corridor,” added Brendan Maddigan.

The site is being exclusively marketed by Levine, Maddigan and James Nelson.

Rosewood Realty

LI apartment property sold

Fairfield Properties, a family owned real estate firm in Melville, Long Island, has purchased 365 Stewart Avenue in Garden City, Long Island for $36.5 million.

The 80-unit, four-story, elevator apartment building, is 76,354 s/f and was built in 1938.

Aaron Jungreis, the co-founder and president of Rosewood Realty Group, represented both the seller, Va Garden City LLC National Registered Agents Inc., and the buyer.

The property sold for 12.5 times the current rent roll and has a four percent cap rate.

Kalmon Dolgin Affiliates

Staten Island broker creates new future for old complex

Kalmon Dolgin Affiliates, Inc. (KDA) has sold a sub-divided 9-acre-plus industrial complex in the Mariners Harbor section of Staten Island to two Brooklyn-based buyers for a total of approximately $13 million.

Gary Mayzlin of KDA represented both buyers and the sellers in the sale of t 125 and 175 Lake Avenue.

The property at 125 Lake Ave sits on seven industrial acres (zoned M3) incorporating 100,000 s/f of warehouse buildings.

With a long history of various owners and companies occupying the property, notably Cross Sinclair Paper Company until early 2000s, the property was ultimately sold to an investor and repositioned as a multi-tenanted industrial complex.

“With commercial real estate market values on the rise on Staten Island, it came time for investor, 135 Lake Avenue Realty LLC, to cash out,” said Mayzlin.

“The property afforded buyers a highly desirable location with existing structures at a fraction of the cost of compatible properties and sites in Brooklyn.”

Mayzlin was approached by principals of Brooklyn-based World Wide Plumbing, a long-established and successful operation that was looking for a new home, having outgrown its existing facilities in Brooklyn.

“The property at 125 Lake Avenue was very appealing to the principals of World Wide Plumbing because of the existing buildings with yard it could occupy immediately and the opportunity for expansion in the future to redevelop land for more usable space,” said Mayzlin.

“With M3 zoning, allowing 2.0 FAR, the property can support over 600,000 s/f of industrial / commercial buildings. The deal was negotiated and closed recently for approximately $9 million.

The adjacent property at 175 Lake Avenue, which was subdivided from larger plot of 125 Lake Avenue, was also sold to Royal Food Baza, a Brooklyn-based food distributor which acquired property for its distribution and processing operation.

Mayzlin originally negotiated a net lease of 175 Lake Ave to Royal Food Baza with an option to purchase. During lease term, the property was renovated and converted to a first-class food distribution and processing facility. The purchase option was exercised by the tenant for approximately $4.05 million with seller.

Riveroak Investment Corp.

Former church to become place for Women in Need

RiverOak NYC I, LLC, and an affiliate of Azimuth Development, has completed the purchase of 316 East 91st Street, a three-story converted church building located on a mid-block parcel on East 91st Street between 1st and 2nd Avenues.

Stephen DeNardo, CEO of RiverOak Investment Corp., said the purchase price was $13.525 million.

The developer plans to demolish the existing structure to ground level, preserving the basement, to construct 17 two-bedroom apartments totaling 22,966 s/f and a community facility of 6,918 s/f.

Total development costs for the project, including acquisition and construction financing, totals approximately $27.5 million.

The project is pursuant to a Regulatory Agreement with ADHP Housing Development Fund Company, Inc., the City of New York, and the Department of Housing and Preservation and Development.

Construction will take place under an Alteration 1 permit since the building will be built upon an existing foundation. No underpinning of adjacent properties will be required. Construction is expected to take 24 months. TD Bank is the acquisition and construction lender.

The building is 100 percent pre-leased, with the entire residential portion leased to Women In Need (WIN) a not-for-profit qualified under the HPD program.

The community center space is pre-leased to a daycare facility that has a purchase option of their condo which is triggered on the 366th day of the lease.

The agreement with ADHP also awards the developer 80,381 inclusionary air rights for use in Community Board 8 (Upper East Side) or within a half-mile radius of the site. There are contracts or negotiations for the sale of 100 percent of these air rights.

“RiverOak NYC I will have a preferred equity interest in this transaction that includes a current pay feature equal to eight percent per annum,” explained DeNardo.

“Upon completion of construction, the issuance of a TCO and the closing of air rights sales, RiverOak will receive the remainder of its capital plus a preferred return that will equate to a 22 percent IRR or a multiple on our investment of about 1.5.”

CBRE

Bronx professional center sold

The Hampshire Companies has sold the 76,529 s/f Pelham Bay Professional Center in Bronx to Rester USA, LP.

The sale price of the multi-tenant mixed use retail and medical office property anchored by CVS Pharmacy was north of $30 million, according to sources.

The sale provides Rester USA, LP with additional retail and potential residential development opportunities along Bruckner Boulevard.

“We expect the buyer will fare well due to the Property’s strong in-place income, upside opportunity through lease-up of the vacancy and the Property’s longer term redevelopment potential,” said CBRE capital markets executive Jeffrey Dunne, who brokered the sale with David P. Gavin and Travis Langer.

Derek Gardella, Portfolio Manager for The Hampshire Companies, noted, “Pelham Bay Professional Center sits in the middle of a strong real estate market with excellent demographics and amenities. The property is poised for expanded mixed-use development and redevelopment.”

The potential conversion of medical suites to retail spaces along the 418 feet of frontage on Westchester Avenue could position the location as the finest retail location in the area.

On a larger scale, the potential also exists to construct a mixed-use, transit oriented retail and residential property on this lot.

Cushman & Wakefield

Midtown East building offers fast track to profit

Cushman & Wakefield has been retained to sell 316 East 55th Street, a multifamily building between First and Second Avenues in Midtown East. The asking price is $19,975,000.

“316 East 55th is a cash-flowing, value-add property that will benefit from the area’s resurgence,ˮ said Clint Olsen who is marketing the property on behalf of George Dermskian and family.

“With luxury developments, a burgeoning retail stretch and the slated Second Avenue subway line, this will prove to be a smart investment with significant upside potential.”

The 25,040 s/f, seven-story property contains 41 rent-regulated units of which seven are either owner-occupied or can be delivered vacant. There is an elevator, basement laundry and 1,000 ft. of unused space that can be potentially converted to other amenities.

According to Olsen, “It is also well-positioned as rents are currently just 42 percent of market value.”

Broadstone Real Estate

Broadstone ups the steaks

Broadstone Net Lease (BNL), a private real estate investment trust (REIT) managed by Broadstone Real Estate, announced the acquisition, via sale leaseback, of a 24-property Bloomin’ Brands portfolio.

The package includes includes 22 Outback Steakhouses and two Carrabba’s Italian Grill properties in 13 states.

Established in 1988, Bloomin’ Brands, operates approximately 1,500 casual dining restaurants in 48 U.S. states, Puerto Rico, Guam, and 22 countries under the Outback Steakhouse, Carrabba’s Italian Grill, Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar, and Abbraccio brands.

“BNL’s acquisition of this Bloomin’ Brands portfolio further diversifies our REIT’s retail holdings. Bloomin’ Brands is now BNL’s third largest tenant,” said Amy Tait, chairman and CEO of Broadstone.

“BNL has now surpassed over $2 billion in total assets, and plans to announce additional acquisitions throughout the fourth quarter.”

Tones Vaisey PLLC represented Broadstone Net Lease.

Greystone Real Estate Advisors

Senior housing sale closes

Greystone Real Estate Advisors closed the $21,500,000 sale of Wyndham Lakes in Jacksonville, FL.

A private equity group purchased the seniors housing property from a publicly-traded REIT. Mike Garbers and Cody Tremper of Greystone represented the seller in the transaction.

Formerly operated by Brookdale Senior Living, Wyndham Lakes is a 245-unit assisted living, independent living, and memory care community situated on 14 acres of land. The facility is 160,970 square feet and offers a variety of amenities including a library, general store and beauty/barber shop.

Greystone’s Debt and Structured Finance Team, led by Cary Tremper, arranged the acquisition financing through a regional bank. This non-recourse debt provided a low rate with prepayment flexibility to meet the client’s financing objectives.

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