Alloy JV to redevelop DUMBO property
Dumbo-based Alloy Development and The Davis Companies acquired two buildings at 42 and 50 Jay Street for $52.25 million for conversion into a single development to be renamed 168 Plymouth Street.
The development will feature 46 units including townhouses, lofts and penthouse units with the two original buildings connected by a private courtyard entrance.
168 Plymouth Street marks Alloy Development’s fifth project in DUMBO, following 192 Water Street, 185 Plymouth Street, Dumbo Townhouses, and One John Street.
The company expects to break ground later this month.
JLL brokered the sale and Holliday Fenoglio Fowler (HFF) secured joint venture equity and construction financing for the development. JLL’s Bob Knakal, Stephen Palmese and Michael Mazzara represented the buyer and the seller Phoenix House, an inpatient-care rehabilitation company.
According to Knakal, the seller recently completed a gut renovation designed by Gensler at 50 Jay Street and also enhanced 42 Jay Street.
‟The buildings are extremely well-positioned within the Brooklyn Tech Triangle, one of New York’s most desirable office destinations for TAMI (technology, advertising, media and information services) tenants,” he added.
As well as arranging the JV with The Davis Companies, JLL secured construction financing from Bank OZK for the redevelopment.
The HFF debt and equity placement team included Christopher Peck, David Giancola, Jeff Julien, Peter Rotchford and Kristen Knapp.
● COMPOUND ASSET MANAGEMENT
Fund buys $47M Manhattan apartment portfolio
Compound Asset Management, the venture capital backed firm co-founded by Janine Yorio and Jesse Stein, has acquired a 49 percent interest in properties Located in Chelsea, Flatiron and East Village at a valuation of $47 Million.
The deal represents the first investment by Compound’s Manhattan Residential Fund.
Two Kings Real Estate will contribute the other 51 percent of the purchase to the fund.
Compound’s Cityfund allows accredited investors the opportunity to invest a minimum of $2,500 in city-specific residential real estate assets.
Manhattan Residential Fund will acquire condominium units, apartment buildings and townhomes.
The firm plans to continue to expand its Cityfund offerings to key United States markets as well as abroad.
“What Casper did for mattresses, we will do for real estate,” said Yorio, Compound’s CEO. “We are revolutionizing a highly desired investment strategy traditionally available only to the city’s wealthiest families and institutional stakeholders and enabling investors of all sizes to own a piece of New York City real estate.”
“Accredited investors can leverage Compound’s Manhattan Residential Fund to get in what was once a very exclusive game.”
The four building portfolio, totaling approximately 45,000 s/f and comprised of 86 units total, including the following properties:
41 West 24th Street, a 13 unit, eight-story residential building totaling 15,700 s/f and currently 100 percent occupied;
310 West 20th Street, a 34 unit, three-story apartment building totaling 8,000 s/f and currently 94 percent occupied;
424 East 14th Street, a 23-unit, five-story building totaling 9,000 s/f and currently 100 percent occupied;
220 Avenue A, a 16 unit, five-story building totaling 12,000 s/f and currently 100 percent occupied.
● GEBROE HAMMER
Investor to reposition NJ mtulifamily property
SELA Realty Investments, a Fort Lee, NJ-based investment and property management company has acquired Landmark West Apartments, a 168-unit class B property located in Newton, NJ.
The purchase price was $18 million. Located on 13.5 acres of landscaped ground, the property was 97 percent occupied at time of acquisition.
Located at 100 Swartzwood Rd., Landmark West Apartments is an 11-building garden-style complex comprised of one- and two-bedroom units ranging from 750 to 1,041 s/f.
SELA plans to repostion the property with a series of interior and exterior upgrades.
“This acquisition is a pure value add property where the previous owners, who were the original builders, have had it for 44 years and, as a result, rents are substantially under market,” said
Tal Steinberg, managing partner for SELA Realty Investments.
“We are planning to revive this gem by renovating the exterior and adding amenities for the residents. We want to position ourselves as the most pleasant community in the area with affordable rent prices and we believe that, with some improvements, we can achieve a much higher NOI.”
Adam Zweibel and Stephen Tragash both Gebroe Hammer represented both the buyer and the seller, Newton West Limited.
“Landmark West presented an exceptional investment opportunity given its posture as a historically well-occupied, principal multi-family asset within a budding bedroom community,” said Tragash, “Modern-day Newton is considered hip and trendy thanks to its cultural, recreational and commercial centers – all of which appeal to today’s former urbanites from New Jersey and New York.”
Mixed-use Soho building comes with options
Adelaide Polsinelli and her team at the Compass investment sales division have been tapped to sell 143 Grand Street in Soho.
The building is a gut renovated, four-story property with one ground floor retail space and three full-floor offices on the upper stories.
Award-winning Indian pancake shop, Hampton Chutney, occupies the retail space on a long-term lease.
The property includes unused development rights, offering the potential for a one-story penthouse addition, according to Polsinelli.
“143 Grand Street is a mixed-use, commercial and retail building with tons of opportunities,” she added. “It can be converted to a townhouse use, retail flagship, or boutique office.”
● AVISON YOUNG
New Harlem office building offered at $14.5M
The Tri-State Investment Sales group for Avison Young is marketing 286 Lenox Avenue, a newly-constructed four-story office and retail property in Harlem.
The asking price for the property is $14,500,000.
Located between West 124th and 125th street, the property has nearly 44 ft. of Lenox frontage.
It is fully occupied with Wells Fargo on the ground floor and cellar, Child Mind Institute on the second floor and Visiting Nurses on the third and fourth floors.
All tenants have signed 10-year leases and the property will be delivered fully occupied.
James Nelson, PAsher Wenig, Brent Glodowski, Willis Fries, David Lawrence and Carter Lovejoy are handling the assignment.
“We’re offering prospective buyers a fully leased, turn-key office building positioned on a prime Harlem thoroughfare with growing pedestrian traffic year-over-year,” said Nelson.
“Its Central Harlem location and affordable taxes as part of the city’s ICAP abatement program make this newly-constructed building an excellent investment.”
Medical portfolio trades
Holliday Fenoglio Fowler announced the sale of a two-property portfolio that includes 460 Hartford, a 36,000 s/f outpatient facility, and 8 Keynote, a 22,500 s/f home health service facility.
Both properties are fully leased to Eastern Connecticut Health Network (ECHN), a subsidiary of Prospect Medical Holdings, and are in the Hartford-area community of Vernon, Connecticut.
The HFF team represented the seller, Bellevue Street Capital LLC. Global Medical REIT Inc. purchased the assets. This sale was part of a larger transaction consisting of an eight-property portfolio of hospital-occupied medical office buildings.
460 Hartford was redeveloped in 1999 and is home to DaVita Dialysis, the second largest dialysis provider in the area. 8 Keynote houses the operations for the ECHN’s home health care.
The Prospect Eastern Connecticut Health Network is a two-hospital, 242-bed, for-profit health system with campuses within a 10-mile radius of the portfolio.
The HFF team representing the seller included Ben Appel, Evan Kovac, Andrew Milne, Bryan Rosenberg, Dana Brome and Ron Ott.
● MARCUS & MILLICHAP
BP headquarters complex sold
Marcus & Millichap announced the sale of BP Lubricants USA Inc. headquarters in Wayne, NJ, for $19,200,000.
Alan Cafiero and Ben Sgambati from the firm’s New Jersey office, represented the seller, a private investor, and the buyer, a private investor in a 1031 exchange.
BP Lubricants USA Inc. headquarters is a 100,000 s/f building on 10.52 acres of land used as the HQ for Castrol Oil. Located at 1500 Valley Road, it hosues lab technicians, engineers, analysts, upper management and corporate services as well as a sales team. BP has made a significant investment in the building, including renovations to the second and third floors, the expansion of lab and testing operations spaces.
● MERIDIAN INVESTMENT SALES
Meridian marketing Greenpoint offering
Meridian Investment Sales is marketing a retail and commercial property in Greenpoint, Brooklyn, for $11 million.
David Schechtman, Lipa Lieberman and Abie Kassin, are representing the seller of 144-150 Greenpoint Avenue.
The property consists of two contiguous buildings on a 7,600 s/f lot. Rising two stories, the retail spans 12,000 s/f and offers 22,800 total buildable square feet and 80 ft. of frontage.
The site has flexible C4-3A (R6A) zoning that permits for a variety of uses, including repositioning the existing asset or designing a new building that capitalizes on the property’s development rights.
“This is a very rare and valuable offering thanks to the property’s rare 80 feet of frontage along prime Greenpoint Avenue and the ability for vacant possession,” said Lieberman. “The fact that the site offers 22,800 s/f ripe for a user or redevelopment priced in line with market expectations makes the property even more desirable.”