Lee & Associates has formed a new acquisition division through a partnership venture with Cogswell Real Estate.
Lee — with its affiliate Sierra Real Estate — and Cogswell Realty have formed Cogswell Lee Development Group to jointly pursue acquisition opportunities in the New York City Metropolitan area.
The original relationship between the two firms began in 2012 when Sierra and Cogswell integrated their property management operations to create a broad real estate operating platform.
Soon thereafter, the partnership rolled out a project/construction management venture, Sierra Development Associates, which provided project/construction oversight services for assets under management, as well for third party client projects.
“There is an obvious synergy between the three companies and together, we bring much added value to the market, as well as to our respective firms,” said James Wacht, president of Lee & Associates NYC and Sierra Real Estate.
“We can now offer our clients the best brokerage and management services, as well as construction management and wide range of investment opportunities. In addition, our acquisition platform allows us to create wealth for our brokers, whom we encourage to invest in our deals.”
Currently, the partnership has approximately one million square feet of commercial office space, 100 retail spaces, and 650 residential units under management throughout a 35-property portfolio.
In addition, the commercial brokerage entity, Lee NYC, continues its growth and increased presence with more than 40 brokers and agents offering a full range of retail, office, industrial, and hospitality brokerage services, as well as seniors housing and healthcare facilities leasing, sales and investment sales.
Notable commercial buildings under ownership by the company include 875 Sixth Avenue, 215 West 125th Street, 55 West 125th Street, 12 East 46th Street, and, most recently, 183 Madison Avenue, which the group bought in partnership with Tishman Speyer Properties. Among its residential assets are 45 West 55th Street, 1125 Lexington Avenue, 1307 Madison Avenue and 971 First Avenue
Arthur Stern, the CEO of Cogswell, said, “With cap rates near historic lows for all asset classes, our fully integrated platform provides our investors with the critical value add that provide enhanced yields for the assets we acquire.”