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Construction & Design Deals & Dealmakers

SELLING POINTS: Jersey City chemical plant gets new life

● PROGRESS CAPITAL
Developer planning rental community at defunct chemical plant

A former chemical plant in Jersey City is to be redeveloped as a rental community with street level retail and parking.

Developer Art Johnson purchased the former site of Elementis Specialties, at 400 Claremont Avenue for $17 million.

For the past 70 years, Elementis had produced industrial dyes at the plant, a service line the UK-headquartered company sold off last year.

Johnson purchased the 2.73 acre site under an LLC, 400 Claremont Urban Renewal, LLC, and secured $11.875 million in acquisition and pre-development financing in a deal arranged by Kathy Anderson of Progress Capital.

Anderson, who also arranged for JV equity partner, said the financing allows the partnership to purchase the property, demolish the existing building, remediate the site and provides funds for predevelopment costs such as architectural, engineering and carry costs.

Anderson will continue to represent the owners as they source construction financing options for the project.

“The location of this site at the West Side Avenue Station of the Light Rail is ideal for our planned redevelopment into a residential rental building with parking and retail. Our proposed plans will focus on the key elements driving rentals today which are a safe, trendy building with an overabundance of amenities. Our goal is to create a community,” said Johnson, who recently completed a 265-unit development at 25 Senate Place, in Jersey City.

400 Claremont Urban Renewal was represented by Leo Leyva and his team at Cole Schotz while Gibbons Law represented the lender in the transaction.

The Cole Schotz team advised on the acquisition and the financing of the project, as well as provided guidance on the corporate structuring and environmental remediation related to the purchase of the project at 400 Claremont Ave.

●HFF
Hotel operator buys Montauk restore

Hotel operator Atit Jariwala has purchased the Atlantic Terrace Beach resort in Montauk for an undisclosed amount.

Holliday Fenoglio Fowler brokered the sale of the 96-room, full-service resort at 21 Oceanview Terrace.
Atlantic Terrace sits on more than 100,000 s/f of oceanside land in the year-round destination at the tip of Long Island’s South Fork peninsula 100 miles from New York City.

Atlantic Terrace Resort, 516 Montauk Point.

The family-owned hotel is in a high-barriers-to-entry area within walking distance to Montauk Plaza Village close to restaurants, bars and nightlife. The hotel is also a short drive from Ditch Plains Beach, known as the best surf spot on Long Island.

Atlantic Terrace features oceanfront views with direct beach access, a heated outdoor swimming pool, fitness center and a locally-sourced food and beverage outlet serving hot breakfast and lunch options.

The HFF team marketed the hotel on behalf of the private seller. Bridgeton Holdings purchased the property unencumbered of existing management.

The property will be managed by Bridgeton Holdings, a luxury, boutique hotel operator that owns and operates a number of hotels throughout the country, including The Walker Hotel in Manhattan.

The HFF investment advisory team representing the seller included senior director KC Patel and senior managing director and head of HFF’s hotel group Daniel C. Peek and executive managing director Manuel de Zárraga.

●GAIA REAL ESTATE
Texas sold ’em for GAIA

GAIA Real Estate, together with its partners Menora Mivtachim Insurance and Grand China Fund, announced the sale of five properties in Houston, Texas.

The package is part of a larger, nine-building portfolio the company acquired in 2013 for $245 million. The financial terms were not disclosed.

The properties sold include: The Veranda at Centerfield, Club at Copperleaf, Lighthouse at Willowbrook, Villas at Coronado and Enclave at Mary’s Creek in Pearland. They are all located within the North and Northeast sections of the city, and near the Houston Medical Center.

Over the last three years, GAIA sold four other properties from the original nine-building portfolio that included: Ranch at City Park, Cyress Commons, Timberlakes at Atascocita and Eagle Crest.

Together, the full portfolio features 2,594 residential rental units.

In December, 2013 GAIA and its partners purchased the Class A- multi-family portfolio of nine garden style properties built between 1998 and 2006, ranging from 200 to 400 units each.

DANNY FISHMAN

“The full portfolio sale has achieved above market returns for GAIA and our investors,” said managing partner Danny Fishman, who explained that all of the properties were acquired at a basis well below replacement cost. “With the sale, our equity has more than doubled.”

“Since acquisition, GAIA has achieved strong annual yields at the properties through a combination of streamlined operations, a proactive capital program and the overall creation of a desirable living experience for our residents. In executing this business plan, GAIA has generated an internal rate of return (IRR) of greater than 21%,” added Fishman.

Over the last two years, GAIA has been one of the largest sellers of multifamily real estate nationwide successfully exiting 39 properties comprising 11,694 units and over $1 billion of realized property value.

● CUSHMAN & WAKEFIELD
Icon offloads Village building

228 Thompson Street, Manhattan.

Cushman & Wakefield brokered the $14.3 million sale of 228 Thompson Street, a five story, mixed-use building in Greenwich Village.

Senior Managing Director Hall Oster along with Guthrie Garvin, Michael Gembecki and Teddy Galligan led the marketing efforts.

“The buyer secured a turn-key mixed-use building with significant in-place cash flow that will continue to benefit from its world-class location,” said Hall Oster of Cushman & Wakefield.

The building was sold by Icon Management which carried out a gut renovation after buying the building for $5.5 million in 2013.

The property contains ground floor retail space with four apartments above, a common roof deck and private outdoor spaces for bottom two units.

● AKELIUS
Akelius buys Avalon building

Ballston Place at 901 North Pollard Street, Washington, D.C.

Swedish investor Akelius has purchased a 383-unit apartment building in Washington DC from Avalon Bay Communities.

The company paid $170 million for the 25-story property known as Ballston Place at 901 North Pollard Street.

Currently 95 percent leased, the property was built in 1999 and acquired by AvalonBay in 2013. Ground floor retail includes a gourmet market, a barbershop and a dry cleaners.

Ballston Place is located six kilometers west of the White House in the Ballston neighborhood of Arlington, Virginia.

Akelius owns 50 000 apartments in Sweden, Germany, France, Canada, England and the United States.
Since it first entered the US market in 2015, Akelius has built its multifamily portfolio to over 1,100 units across the north east.

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