Colliers International and its MBE (Minority Business Enterprise) alliance partner, Madison Square Realty, have jointly arranged the sale-leaseback of 1009 Nostrand Avenue.
Carver Federal Savings Bank sold its 3,500 s/f retail bank branch property in Crown Heights, Brooklyn, to 3M Management for $2.4 million.
As part of its ongoing commitment to the neighborhood and a key element of the transaction, Carver also signed a ten-year, 1,800 s/f lease to remain at the stand-alone property from which it has operated for more than 30 years.
Carver plans to upgrade its branch space, with no disruption during renovation, scheduled for a summer 2016 completion.
3M Management plans to market the remaining retail space for lease thereafter.
Carver and 3M Management have set aside $50,000 for local economic development and education in the Crown Heights community of Brooklyn.
The Colliers International team of executive managing director Eric Yarbro, executive director Peter DeCheser, and associate director Christopher Turner represented Carver in the sale-leaseback. Madison Square Realty was the co-broker on the transaction.
“Carver will continue to be a valued resource and staple of the community,” said Yarbro, noting that the sale price was above asking due to intense market demand.
“Both the buyer and the seller were highly committed to keeping Carver in its current location and worked diligently and with the utmost professionalism to complete this win-win transaction.”
“Carver Federal Savings Bank remains fully committed to the Crown Heights community,” said Michael T. Pugh, president of Carver Federal Savings Bank.
“This sale-leaseback provides us with additional capital to modernize our Crown Heights branch so that we are better positioned to serve our customers in this market and we are delighted to have signed a long-term, ten-year lease at this location with the new property owner 3M Management. We appreciate the efforts of the Colliers team in putting this transaction together.”
Yarbro, who is also founder and CEO of Madison Square Realty, added, “Unlike many investors who purchase stand-alone retail properties in the outer boroughs for their redevelopment rights to either build or package for resale, 3M Management intends to be a long-term holder with no immediate plans to redevelop the property for a different use.”
DeCheser said the deal was pitched tto owners and buyers in a specific geographic ‘hot zone’ within the neighborhood. “Smaller assets such as these tend to go overlooked at first glance, but we put our full weight behind it.”