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Deals & Dealmakers

Selling points: HUBB NYC buys Fifth Ave. retail, Akelius buys Clinton Hill walk-up

HFF

HUBB buys Fifth Ave. retail

HUBB NYC Properties has purchased a fully-leased retail property and parking garage at 325 Fifth Avenue in Midtown.

Holliday Fenoglio Fowler closed the $38 million sale and arranged $18 million in acquisition financing for the 35,262 s/f property.

HFF marketed the property on behalf of the seller and worked on behalf of the new owner to place a 10-year, fixed-rate loan with Allianz Real Estate of America.

Completed in 2005, 325 Fifth Avenue consists of two condo units: a 5,972 s/f ground-floor retail condo leased to Bonchon Chicken, I Love Souvenirs and Hanmi Bank, and a 174-space, 29,290 s/f, below-grade parking garage leased to GGMC Parking.

The HFF investment sales team was led by senior managing director Andrew Scandalios and managing director Rob Rizzi. HFF’s debt placement team was led by senior managing director Michael Gigliotti and managing director Scott Aiese.

“HUBB NYC is very excited about this transaction and appreciative of the opportunity to work with the sellers and HFF,” said Jesse Terry, HUBB NYC Director of Acquisitions.  “We can only hope to acquire more assets like this one.”

“We’re thrilled to close the sale of this property, which is one of the largest Manhattan retail trades in 2017,” Rizzi said.

“The transaction demonstrates that there is still a healthy appetite for retail investments, particularly those with strong locations and stable cash flow.”

“A number of lenders aggressively pursued this opportunity; however, Allianz Real Estate of America was ultimately selected due to its outstanding track record and strong long-term, fixed-rate quote,” added Aiese.

Akelius

Swedes continue north east expansion

The Sweden-based Akelius continues to expand its East Coast holdings. The company announced that it purchased 90 Clinton Avenue in Clinton Hill, Brooklyn, for $13.3 milion.

Built in 1905, the 17,968 s/f, five-story walkup building is located less than 1.5 miles from Brooklyn Bridge. The property contains 54 units.

Ralf Spann, Akelius Country Manager US, said: “We will continue to look for opportunities to grow further, especially in Brooklyn and on Manhattan.”

Akelius also acquired 168 apartments in Washington, DC. for $34 million.

Both the Capitol East Apartments at 816 East Street NE and the Lexington Apartments at 1114 F Street NE were built in 1927.and are located five kilometers east of the White House.

Marcus & Millichap

Business booming in Little Italy of The Bronx

Marco Lala has closed on the $26.5 million sale of a 10-building Bronx portfolio.

The Marcus & Millichap broker represented both the seller and the buyer, a partnership of Brooklyn Standard Properties and Cohen Commercial.

The portfolio comprises 104 residential units in the Fordham/Belmont neighborhood. The seller is L.A.L Property Management Corporation, a NYC development and property management company run by Leslie A. Lerner.

Lalla sold this portfolio for the original developer to the current seller almost 10 years ago as they were being built.

He said, “The properties are primarily rented to Fordham University students and St Barnabas medical students. Although rent stabilized, these properties are operated as a form of high-quality off campus housing.

“I’ve been calling the Little Italy section one of the Bronx’s best kept secrets. It’s actually a thriving sub market and major destination point amongst all the boroughs.ˮ

With this 10 building sale, Lalaʼs team has closed on over 60 properties in the neighborhood.

Rosewood Realty

A&E buys another chunk of Ares portfolio

A & E Real Estate Holding has purchased another chunk of Ares Management’s portfolio.

Rosewood Realty Group announced it brokered the $82.8 million sale of a seven-building Queens portfolio that featured 343 rental apartments and six retail spaces located in Flushing, Sunnyside, Astoria and Elmhurst.

Aaron Jungreis represented both the buyer and the seller, Ares Management.

Built between 1913 and 1941, the seven properties are comprised of both elevator and walk-up apartment buildings that sold for 14.5 times its annual rent roll. The cap rate is 4.25 percent.

The four-story walk-ups include 40-11-40-19 79th Street, Elmhurst: 41-41 44th Street, Sunnyside; 47-07 39th Street, Sunnyside,; 151-10 35th Avenue, Flushing; 22-73 41st Street, Astori.

The six-story elevator buildings are: 132-70 Sanford Avenue, Flushing; 42-29 Judge Street, Elmhurst.

Over the past three years, A&E has around 40 buildings from Ares Management.

AREA Property Partners and Vantage Properties, two large private equity-backed shops active in the mid-2000’s, acquired the seven buildings for a combined $54 million in 2008.

In 2011, AREA bought Vantage out of its stake, and then, in 2013, Ares, a Los Angeles-based global alternative asset manager, acquired AREA Property Partners.

Cignature Realty Associates

Fund makes Hell’s Kitchen purchase

Cignature Realty Associates recently closed the sale of a three-building multifamily portfolio with 34 low-rent apartments in Hell’s Kitchen for $15.5 million.

The three building portfolio includes: 439 West 48th Street, with 12 apartments; 441 West 48th Street, with 12 apartments and; 443 West 48th Street, with 10 apartments

The three adjacent five-story buildings were owned by the same long-term owner for 39 years and together total 24,515 s/f. They were built in 1901.

The buildings sold for 23.36 times the current annual rent roll and at a 2.38 percent cap rate. The price per square foot is $632.

Cignature represented the buyer, a private interest fund, and Cignature Realty’s Michael Rahimzada represented the seller, Yaron LLC.

MLK Real Estate Capital

Riverbrook continues to bulk up on residential

MLK Real Estate Capital (MLK) advised Riverbrook Equities (RBE) on the acquisition of Marina Del Ray; a 225-unit garden style Multi-Family complex, located at 112 Atlantic Avenue, Pleasantville, NJ.

Built in 1950, there are 20 buildings across 11.8 acres with a mix of one and two bedroom units.

RBE and its partner, Blue Onyx Group, jointly purchased the property for $11.3 million.

The property is 94 percent occupied and the buyers intend  to upgrade the exterior of the property and interior units to increase rents, in conjunction with increasing the property’s operational efficiency, where RBE believes there to be significant additional upside to the operating margins.

Steven Mendel, Executive Vice President of RBE, said, “This property further expands our residential portfolio and complements our hospitality portfolio.”

Marcus & Millichap

NNN Walgreens fetches $10M

Marcus & Millichap announced the sale of a triple-net-leased, 12,350 s/f  Walgreens in West Milford, NJ, for $10,655,238, or more than $860 per square foot.

Karly Iacono, associate director of Marcus & Millichap’s National Retail Group, said, “The high barriers to entry for new construction in West Mitford and the attractiveness of the market in Northern New Jersey for income-producing properties add to the intrinsic value of this asset.”

Iacono represented the seller, a private client. The buyer is a private investor undergoing a 1031 exchange.

Built in 2009, the property is located on West Mitford’s main retail corridor, Union Valley Road. A Shoprite-anchored plaza is directly across the street.

Mitford’s main retail corridor, Union Valley Road. A Shoprite-anchored plaz is directly across the street.

Savanna

Savanna buys NoMad classic

Savanna announced the acquisition of 31 West 27th Street, a 12-story, 144,500 s/f office and retail building located on 27th Street between Broadway and Sixth Avenue in NoMad.

The Beaux-Arts style building, featuring paneled limestone and cast-iron columns, originally constructed in 1910, is a loft-style building with open floor plates of 11,578 s/f and barrel-arched ceilings.

Savanna plans to implement a capital improvement plan that includes renovations of the lobby, building systems, façade, roofs, and sidewalk vault. It will also renovate and reposition the retail storefront.

Savanna has engaged Paul Amrich, Neil King, and Patrice Meagher of CBRE to lead office leasing efforts at the property.

Cooper Kramer, Managing Director of Savanna, commented, “Our aim is to implement strategic renovations that will make this property an even more compelling proposition for office tenants seeking the best of New York, as well as a prime retail destination within a dynamic area that continues to transform.”

Hodges Ward Elliott’s Will Silverman, Paul Gillen, and Daniel Parker represented the seller on the sale.

Aareal Capital Corporation, a subsidiary of Germany-based Aareal Bank AG, provided the financing, which was arranged on behalf of Savanna by Hodges Ward Elliott’s Lawrence Britvan, Matt Jacobs, and Michael Straw.

Attorneys Laurie Grasso, Susan Saslow and Douglas Hoffmann of Hunton & Williams represented Savanna in connection with the transaction.

Harbor Group International

Harbor Group sells Princeton apartment community

Harbor Group International, LLC, has sold a 439-unit New Jersey apartment community for $73.25 million.

Holliday Fenoglio Fowler represented Harbor in the sale of The Addison at Princeton Meadows, a garden-style apartment community in Plainsboro.

Gebroe-Hammer Associates managing director Joseph Brecher procured the buyer, KRE Group with Oxford Realty Group, which purchased the asset free and clear of existing debt.

HFF previously brokered the sale of the property to the seller in 2014.

The Addison at Princeton Meadows is located at 1912 Pheasant Hollow Drive in the affluent Princeton submarket. It has studio, one- and two-bedroom units averaging 759 s/f each, a fitness center, outdoor adult and children’s pools, basketball and tennis courts. It’s also located next to the Meadows at Middlesexgolf course.

The HFF investment sales team representing the seller was led by senior managing director Jose Cruz, managing director Kevin O’Hearn and directors Michael Oliver and Steve Simonelli.

“The demand for core plus multifamily in the State of New Jersey remains very high and investors are continuing to underwrite renovation premiums,” said Cruz.

TerraCRG/ Rosewood Realty

Kushner to sell Brooklyn Heights buildings

TerraCRG and Rosewood Realty Group have been retained by Kushner Companies to sell two multifamily properties at 18 Sidney Place and 144 Willow Street, in Brooklyn Heights.

TerraCRG’s Ofer Cohen, Adam Hess and Daniel Lebor, and Rosewood Realty’s Aaron Jungreis and Brendan Cohen are marketing the properties.

“This presents an incredible opportunity to purchase multifamily properties in one of the city’s most coveted neighborhoods,” said Laurent Morali, president of Kushner Companies.

“We’re thrilled to unveil these fully renovated buildings, which feature high-end finishes and an ideal location in the exclusive Brooklyn Heights Historic District.”

The buildings combine for 18,105 s/f and 29 residential units, of which 27 are market rate and two are rent stabilized units. There are 11 studio apartments, 14 one-bedroom s and four one-bedroom duplex apartments. 144 Willow Street has a 2B tax class, limiting New York City property tax increases.

Colliers International

Tony Westchester shopping center hits market

Colliers International is marketing the newly renovated Barnwell Shopping Center in Westchester’s Pound Ridge.

The 16,000 s/f mixed-use neighborhood shopping center is 100 percent occupied. The site houses five buildings on 3.33 acres.

“It is incredibly rare that something comes available for sale in Pound Ridge, an ultra-affluent market that commands lease rates and property values at the top end of the Westchester County market,” noted Colliers’ Enzennio Mallozzi, who is heading the assignment.

“The lack of suitable land for expansion makes the area even more attractive for investors.”

Pound Ridge stands out as one of the wealthiest communities in the United States based on average household income ($291,216) and median home price ($927,300), according to Mallozzi. The community sits just 30 minutes north of Manhattan by car.

The seller, PMNG Management LLC, recently completed more than $1.5 million in renovations at Barnwell Shopping Center.

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