●ACADIA REALTY TRUST
Pelham shopping plaza fetches $58M
Jeffrey Dunne and David Gavin of CBRE’s New York Institutional Group represented Acadia Realty Trust in the sale of Pelham Manor Shopping Plaza for approximately $58.5 million.
The team was also responsible for procuring the buyer, Retail Properties of America, Inc., a publicly traded REIT based in Chicago.
Pelham Manor Shopping Plaza is a 228,000 s/f, high volume BJ’s Wholesale Club-anchored center 10 miles north of Manhattan.
Developed in 2008 by Acadia, the center is currently 98% leased to a mix of national tenants, including Michaels, PetSmart, Five Below and Chase, in addition to BJ’s.
Commented Dunne, “Pelham Manor provides a combination of strong in-place NOI with long term leases to national and credit tenants as well as a prime location in an extremely dense, infill market. Metro New York has continued to experience very strong investor demand for high quality, core assets like Pelham.”
● GRIFFIN CAPITAL CORP.
REIT’s $520M buy doubles portfolio
Griffin Capital Corporation purchased an 18-asset portfolio of office assets for $521.5 million.
The purchase, made on behalf of Griffin Capital Essential Asset REIT, Inc., includes the Eagle Rock Executive Office Center IV in East Hanover, New Jersey. The four million square foot package is a predominantly single-tenant office portfolio, triple-net leased to many Fortune 500 companies.
With this acquisition, the REIT now owns 41 properties, with a total capitalization in excess of $1.3 billion.
CBRE Group, Inc. acted as exclusive advisor to the seller, Columbia Property Trust.
The office properties average 91 percent leased by such high tenants as Coca-Cola Refreshments, JP Morgan Chase, General Electric Company, Wells Fargo, Aetna Life Insurance, IBM and United Healthcare.
Will Yowell, Justin Parsonnet and Jay O’Meara of CBRE’s Atlanta Office Investment Properties Institutional Group led the transaction and collaborated with local CBRE investment sales experts in 11 states.
Financing was provided by a $300 million term loan led by Key Bank,
N.A., of which $282 million was initially drawn and the remaining $18 million held back for future specific releasing costs.
The balance of the acquisition was funded with $250 million of preferred equity provided by an affiliate of Starwood Property Trust, Inc. Barclays served as financial advisor to the REIT.
Kevin Shields, Griffin Capital’s chairman said the purchase almost doubles the REITs assets “but far more important is the high quality assets and increased diversification this portfolio provides.”
●MASSEY KNAKAL
Feel-good Chinatown sale
Isaac and Joseph Oved, of The Oved Group, purchased two adjacent office buildings at 40-42 Elizabeth Street and 159-165 Canal Street in Chinatown for $33.6 million.
The properties combine for approximately 29,425 s/f, and the sale price equates to approximately $1,142 psf.
“This was a fantastic transaction because both the sellers and the buyers were able to walk away feeling good,” said Massey Knakal CEO Paul J. Massey, Jr., who exclusively handled the transaction with Robert Burton and Nick Petkoff.
“Because we were able to sell the properties together, the buyers saw more potential to
unlock value and were willing to pay a premium for each property, allowing us to set a record price per square foot for Canal Street and achieve 15 percent above-market for a side street in the neighborhood.”
40-42 Elizabeth Street is a five-story renovated office building with two ground floor retail stores with 16 office units above.
159-165 Canal Street is a two-story building with six ground floor retail tenants anchored by First Republic Bank, with office tenants above.
● KALMON DOLGIN AFFILIATES
Williamsburg buyer planning apartments
Kalmon Dolgin Affiliates, Inc. (KDA) has arranged the sale of 118-138 Hope Street, a 20,000 s/f property in Williamsburg.
Berel Nagel represented the seller, RHS Hope LLC, while Robert Klein represented the buyer, Heatherwood Communities, which plans to build a luxury residential community in the next two to three years.
The site offers 54,000 buildable square feet. Currently, there are three tenants at the property — World Trade Copiers, 4th State Metal, and Converse Rubber Tracks — which each occupying 5,000 s/f. They will remain at the property for the duration of their leases.
Neil Dolgin of KDA, said, “Williamsburg, an already popular neighborhood for both commercial and residential properties, continues to grow and attract top-quality tenants and owners. We were able to arrange a record price per square foot for the seller, and secure the buyer a prime location in Williamsburg for its future development project.”
