$47M Brighton Beach trade
Westwood Realty Associates’ Steven Vegh brokered the sale of two Brighton Beach apartment buildings for $46,9 million.
The 11-story 1125 Banner Avenue and seven-story 2750 East 12th Street were sold by Hudson Companies. Richard Scharf’s Abro Management purchased the properties which together comprise 102 apartments and span 115,000 s/f.
The properties were building 2013 by GFI Capital Resources Group developed and subsequently sold to Hudson Companies for $39.5 million in 2014.
Hudson had purchased them as part of a $200 million fund it created to invest in real estate in New York City neighborhoods hit hard by Hurricane Sandy.
Matsil Building sold
Metropolitan Realty Associates LLC (MRA) founder and CEO Joseph Farkas announced the firm’s second major Long Island City acquisition with the $55 million purchase of the former Matsil Bros. building with equity partner TH Real Estate, an affiliate of Nuveen (the investment management arm of TIAA).
Located at 48-49 35th Street, the three-story 246,000 s/f warehouse was originally built in 1949 and last traded hands nearly 40 years ago.
It is currently 79 percent leased, with international shipping company AirSea Packing as the largest tenant occupying 100,000 square feet.
“MRA intends to maintain the property in its current industrial use,” said Todd Bassen, MRA’s managing partner and chief investment officer.
“As more and more warehouse and distribution properties in LIC are being redeveloped into residential, office and retail space, industrial users increasingly struggle to find quality properties in the neighborhood.The former Matsil building will serve these tenants’ needs for years to come.”
Jeff Unger and Neil Dolgin of Kalmon Dolgin represented the Matsil family in the sale of 48-49 35th Street. Law firm Duval & Stachenfeld provided legal services to the buying entity.
“Given the varied tenant needs in LIC, it made sense for us to diversify our offerings with this second acquisition,” said Farkas, whose firm also owns a mixed-use redevelopment project nearby with TH Real Estate.
School for sale
Ariel Property Advisors has been retained to sell 2045 Linden Boulevard, a school building in East New York.
The asking price for the three-story property is $11 million.
Spanning 42,112 s/f, the New York City Department of Education has been its sole tenant since the property was developed in 1973. A new 15-year lease was signed in February of 2015, which generates $737,100 annually, or $17.55 per square foot. The lease also includes escalations of three percent every two years.
Jonathan Berman, Daniel Tropp, and Alexander McGee are representing the seller.
“This property is absolutely perfect for an investor seeking a high return from a long-term lease, with a secure tenant,” said Berman, director at Ariel Property Advisors.
Housing P.S. K36, the school is top-performing, with its rankings ranging between good to excellent.
55-plus apartment sale closes
Gebroe-Hammer Associates has arranged the $23.45 million sale of 106 multi-family units at The Carriage Club, located at 1 Hillside Dr. in Mt. Arlington, NJ.
Vice President Adam Zweibel along with Stephen Tragash represented the seller, Carriage Club Associates, LLC, and procured the private investment group buyer in the transaction, which garnered a $231,000 per unit price.
Built in 2003, Carriage Club is a Class A, 55-and-over apartment-rental community offering a mix of one- and two-bedroom units. The clubhouse community is a magnet for empty nesters and retirees drawn to Carriage Club’s new construction, family-friendly locale and proximity to transportation and shopping, dining and recreational venues.
“Mt. Arlington and its neighboring boroughs on the shores of Lake Hopatcong are enjoying the fruits of their efforts to establish themselves as thriving bedroom communities of New York City dominated by an executive-level, diverse-age population,” said Zweibel, who noted Carriage Club was 98 percent occupied at the time of sale.
“As a result of this new identity associated with year-round living, Mt. Arlington has become a magnet for families, empty nesters and active adults,” added Tragash. “In turn, it has emerged as an in-demand, high-barrier-to-entry submarket for multi-family investors.”
Cushman & Wakefield
$19M industrial legacy deal
Cushman & Wakefield brokered the $18.9 million, off-market trade of a 360,000s/f industrial property in North Brunswick.
A private investor purchased the warehouse asset at 1735 Jersey Ave. from Murray Construction in a value-add play.
Built in 1980 and located on 16.5 acres, 1735 Jersey Ave. is a former Church & Dwight facility that has been occupied by a subtenant for several years.
Jason Goldman, an industrial specialist who headed the assignment with capital markets leader Andrew Merin, and other members of the firm’s New Jersey industrial and investment sales teams, said the legacy industrial property requires a significant upgrade to bring it to current standards.
However, the property is rail-served and benefits from ample parking, favorable local taxes and a deep regional labor base.
Buyer, 1735 Jersey Avenue LLC, is pursuing approval to raise the roof from its current 21 feet to 40-foot clear. Other improvements will include ESFR sprinklers and a new, energy-efficient lighting program.
Marcus & Millichap
Artists loft to stay rental
Marcus & Millichap announced the sale of 35 Claver Place, a Brooklyn building featuring 13 residential lofts and two commercial units.
The $14.2 million sales price equates to nearly $1 million per unit.
The building has been home to many established and emerging artists over the years, according to Shaun Riney of Marcus & Millichap’s Brooklyn office.
“The property’s unique configuration, prime location and below-market rents provide the new owner with tremendous upside.”
Riney and Jonathan Cypers in Brooklyn, along with Peter Von Der Ahe and Joe Koicim in Manhattan, represented the seller, a company that had been at the property since purchasing it in 1985.
The buyer is an active New York City private investor who, according to Cypers, has an eye towards keeping the building as a rental.
LIC land parcel hits market
The CBRE team of Richard Karson, Joshua Kleinberg and Elli Klapper is marketing a 90-year net lease/joint venture opportunity in Long Island City at 9-03 44th Road.
The land parcel has water views and is zoned for M1-4 redevelopment. It can hold 275,000 s/f of mixed-use facilities, including a combination of commercial, school, community, entertainment and medical/hospital. “Over the past few years, Long Island City has undergone a major transformation and is today one of the hottest residential neighborhoods in the city,” said Kleinberg. “However, due to the conversion of a significant amount of the existing commercial properties to residential use, there are very few opportunities for commercial development the caliber and quality of 9-03 44th Road.”
The flexibility provided by this site is quite unique for LIC as it can be developed into an 84,000-square-foot office property or can combine various uses that total 275,000 feet (office, medical, community-use center, storage facility, retail or an entertainment complex.