Silverback braced for HQ2 rush
Greystone Development sold the residential component of 24-16 Queens Plaza South in Long Island City to a joint-venture between affiliates of Silverback Development and AEW Capital Management.
Drew Fletcher, head of Greystone’s capital markets advisory team, negotiated the sale and arranged the acquisition financing for the buyers.
The development is currently 60 percent complete, with Silverback stepping in to complete construction and convert the project from a multifamily rental apartment building into for-sale condominium.
Fletcher’s team, including Matthew Hirsch and Matthew Klauer, arranged a $54 million acquisition and construction loan from Benefit Street Partners for the completion and stabilization of the project.
The project was grandfathered under the prior 421a tax abatement program, which provides a tax exemption for a construction period of up to three years followed by a 15-year-long tax exemption period post-construction.
Originally acquired in 2016, Greystone completed a significant conversion from an existing five-story Post Office building dating back to 1925 into a 23-story tower with 109 residential units.
Woods Bagot designed the building to “merge the heritage of the existing building with a contemporary tower above it.”
“This project speaks to the demand for distinctive condominium buildings in neighborhoods like Long Island City, which has been overloaded with rental inventory in recent years,” said Josh Schuster, founder and managing principal, of Silverback Development.
“We are proud to be entering the thriving Long Island City market and repositioning this important building to meet the demand that we know is coming with the exciting addition of Amazon HQ2.”
● ROSEWOOD REALTY GROUP
Benchmark back in buying mode
Benchmark Real Estate Group has paid Renaissance Properties $21 million for a six-story mixed-use building in the West Village.
The 17,556 s/f property at 35 Bedford Street has 33 apartments and three retail units that include a fitness studio and a psychic. Built in 1900, the property is part of the Greenwich Village Historic District Extension.
Aaron Jungreis of Rosewood Realty Group brokered represented both the buyer and the seller. The stone and brick building sold for about $1,196 per square foot and 16 times the rent roll, with a cap rate of 3.8 percent.
The deal represents a rare purchase for Benchmark, which recently focused more on selling its properties. Between 2015 and the end of 2017 the firm sold more than $400 million worth of its holdings, including 82 West 12th Street and 65 Bank Street in Greenwich Village.
Jordan Vogel of Benchmark said they plan to renovate the property and was interested in it because of its location and the upside they saw in its rents.
● GOLDENWOOD PROPERTY ADVISORS
Re-zoned Inwood site offered to market
Goldenwood Property Advisors Group has been retained to sell an Inwood development site.
Located at 3966 10th Avenue on the corner of West 212th Street and 10th Avenue, the 100 by 100 ft. lot totals 9,992 s/f and is occupied by an auto repair shop and garage.
A new C4-4D zoning designation, allows for an FAR of 7.2 utilizing the Mandatory Inclusionary Housing bonus. This equates to 71,942 total buildable square feet for a mixed-use project.
“3966 10th Avenue offers a prime opportunity for a developer to capitalize on the new re-zoning of Inwood and the multiple uses this zoning allows for,” said Goldenwood’s Lev Kimyagarov, the exclusive broker who is listing the site at $11.25 million.
“Transportation is also ideal, as the site is near the A and 1 subway lines. The property also lies in a Qualified Opportunity Zone making this an attractive site for Opportunity Zone Funds.”
Development opportunity on Windsor Terrace
A JLL Capital Markets team is soliciting offers for a block-through development site in Windsor Terrace, Brooklyn.
Aview Equities and 57 Caton Partners is selling 57 Caton Place with a proposal for a mixed-use building of 163,191 s/f.
The site consists of a three-story office building on Ocean Parkway that is connected to a partially demolished single-story brick warehouse.
Ownership will deliver the entire property vacant upon sale with proposals for a nine-story mixed-use building with 107 apartments, 10,000 s/f of ground-floor retail, 74 below-grade parking spaces and 10,000 s/f of outdoor space.
“Windsor Terrace has become a destination for spillover demand from Brooklyn’s Dumbo, Park Slope, Brooklyn Heights and Cobble Hill neighborhoods,” said Stephen Palmese, who is leading the JLL marketing team that includes Hall Oster, Ethan Stanton. William Barrett and Teddy Galligan.