Acadia Realty Trust is nearing completion of a $3.7 million capital improvements campaign at five properties the firm acquired in Sheepshead Bay, Brooklyn in 2012 for $18.5 million.
The properties — located at 3780-3858 Nostrand Avenue — total more than 70,500 s/f and feature both office and retail space.
Acadia renovated the façade, storefronts, vacant office suites, lobbies, elevators and bathrooms, and installed new signage. Additional improvements are underway to re-open the below grade garage to better service tenants and customers.
“The Sheepshead Bay retail and office market — especially in the Nostrand Avenue area — has been under the radar for some time, but has recently piqued the interest of potential tenants thanks to responsible redevelopment and better management,ˮ said Chris Conlon, executive vice-president and chief operating officer of Acadia Realty Trust.
“The Nostrand Avenue Portfolio presented us with an opportunity to bring a unique product to the Brooklyn market, one not comparable to any properties in the region.ˮ
According to Conlon, the neighborhood was hit hard by Hurricane Sandy, but has “bounced back” in such a way that “Nostrand Avenue is becoming one of the premier retail corridors, generating interest from local companies and national retailers.”
The Nostrand Avenue Portfolio currently has 11 office and retail spaces available, ranging from 724 to 5,670 s/f.
Acadia Realty Trust’s Brian Bacharach is the project manager overseeing the capital improvements campaign at the Nostrand Avenue portfolio and Trent Dickey, also in-house at Acadia, is overseeing the leasing and marketing efforts for the portfolio’s retail spaces.
Current retail asking rents are approximately $40 psf. Recent leases include a local dance studio and two lease renewals — a nail salon and physical therapist. Additionally, the Acadia team has three leases out to national tenants.
CPEX Real Estate Services (CPEX) has exclusively been tapped to oversee the leasing and marketing efforts for the Nostrand Avenue portfolio’s office spaces. Current asking price for office space is approximately $35 psf. CPEX has already received interest from prospective tenants ranging from medical and dental facilities, trade schools and billing companies.