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Deals & Dealmakers

SELLING POINTS: Anbau closes on $58M Village buy, Cignature closes third Sugar Hill deal

●Rosewood Realty
Rosewood reels in trio of multifamily buyers

In a flurry in the first quarter of 2016, Rosewood Realty Group has closed deals totaling over $80 million.
Rosewood’s David Berger represented Borough Park investor Bernard Miller in the $45.7 million sale of Fordham Heights apartment portfolio. The package contains 305 apartments across 271,000 s/f. Built in the 1920s and 30s, there are three six-story elevator buildings, two five-story walk-ups and one five-story walk-up. The addresses are 2063-2065, 2075, 2084 and 2095 Creston Avenue, 108 Field Place and 2324 Morris Avenue.
The deal closed at around $170 psf, or 10.5 times the current rent roll. The buildings have a cap rate of six percent.
Miller, who owned the properties since the late 1990’s, sold told John LaRocca of Arena Real Estate. Rosewood’s Aaron Jungreis represented the buyer.
LaRocca, who is also a broker in Brooklyn, is planning to hold the buildings long term and renovate them. His firm has multifamily holdings in Brooklyn, Queens and Staten Island.
Jungreis represented the buyer and seller of 730 Riverside Drive, an 11-story apartment building in Hamilton Heights in Manhattan.
Built in 1920, the property (aka 621-625 West 150th Street) is 107,530 s/f. At $33 million, it sold for 20 times the current rent roll at a cap rate of 3.64 percent.
Jungreis closed the month with the $2.01 million sale of 344 East 148th Street in Mott Haven(aka 517 Courtlandt Avenue.)
The four-story walk-up has 14 apartments and two commercial units. It is 9,870 s/f and it was built in 1910. It sold for 8.5 times the current rent roll and the CAP rate was eight percent.

● Cushman & Wakefield
Hubb buys LES building

Cushman & Wakefield announced the sale of 99 Suffolk Street, a 40-unit, mixed-used property on the Lower East Side neighborhood for $24,550,000.
Built in 2004, the 29,600 s/f elevator building stands eight stories tall and consists of 35 residential units with five commercial units.
The commercial component of the property is located on the ground level and is occupied by Elements Preschool, a community organization.
The residential component of the building is comprised of three studios, 30 one-bedroom and two two-bedroom homes. The sale price equates to approximately $830 per square foot, higher than the neighborhood’s average for multifamily properties.
The sale was handled exclusively by Cushman & Wakefield executive director, Michael DeCheser, along with Darragh Clarke and Mei Ling Wong, associated directors on the team.
“There is very low stock of newer elevator buildings in the Lower East Side. Needless to say, we had no shortage of interested buyers who saw the property’s upside potential of rents in the near term,” said DeCheser. “Ultimately, the highest and best buyer prevailed to everyone’s benefit.”
The team sold the property to Hubb NYC.

● Winick Realty Group
Bluejay buys shopping center

Winick Realty Group’s Investment Sales Team just sold The Crossings at Marshall’s Creek in East Stroudsburg, PA.
The 106,616 s/f, grocery-anchored retail center sits on 12.5 acres at the intersection of State Route 209 and Oak Grove Drive (State Route 402).
Michael Cleeman and Dovid Kaufman represented both the seller, CBL & Associates Properties, Inc., and the buyer, Bluejay Management of NYC, in the $23,650,000 off-market transaction.
“The seller developed the property in 2013 and was looking to divest and relocate their capital into other opportunities,” said Cleeman, senior vice president of Investment Sales.
“The buyer was attracted to the property’s retail dominance along the Pennsylvania – New Jersey border. Having a newly-built grocer anchor with a healthy rent-to-sales ratio, as well as the upside potential in leasing up the vacant space, made this property desirable.”
At the time of the closing, The Crossings at Marshall’s Creek was 94 percent occupied. The center is anchored by a 24-hour Price Chopper, Rite Aid, STS Tire and Family Dollar, and several regional shops.

●Marcus & Millichap
Big guns tempt family into $16M self-storage sale

Marcus & Millichap arranged the sale of a two-property self-storage portfolio located in Port Chester, New York and New Haven, Connecticut.
The portfolio sold for a total of $16 million, or more than $139 per square foot.
“These assets are high-quality self-storage facilities situated within densely populated submarkets with high barriers to entry,” said Kevin Menendez, an associate in Marcus & Millichap’s National Self-Storage Group (NSSG).
“The acquisition gives the new owner a pair of well-maintained, cash-flowing facilities with opportunities for value enhancement through lease-up and expansion.”
Menendez and Michael Mele, a senior director of the NSSG, represented the seller, a Delaware limited-liability company, and procured the buyer, a privately held company based in Santa Monica, Calif.
The properties are Byram Self Storage, 937 units, Port Chester, New York, and New Haven Self Storage, 1,063 units, New Haven, Connecticut
“These properties had been in the seller’s family for generations but after careful consideration they realized the time was right to put them on the market,” added Mele.
“We are seeing this more recently with smaller, family run, self-storage operators. Increased competition from national players and record prices make now the perfect time for smaller operations to cash in.”

●Anbau Enterprises
Anbau closes on $58M Village buy

Anbau Enterprises closed on the acquisition of three contiguous buildings in the East Village.
The properties, located at 50-58 East 3rd Street, sold for $58 million.
“We want to augment our growing in-house condominium business by investing in New York City markets that have long-term growth potential,” said Barbara van Beuren, managing director of Anbau.
“The East Village presented itself as a key candidate with its largely intact historical architecture, range of transportation options, restaurant and lifestyle.”
The portfolio includes 71 units acorss over 52,000 gross square feet. It was acquired with an in-place cap rate of five percent with upside rent potential.
Arvind Bajaj, Chief Investment Officer of Anbau, added, “We saw an inherent long-term viability in the East Village, as it is renowned for being both a great place to live and work.”

● Cignature Realty
Cignature closes third Sugar Hill deal

Cignature Realty Associates announced that a private investor has bought a mixed-use building at 1616 Amsterdam Avenue in Hamilton Heights for $23 million from Sugar Hill Capital Partners.
The 58,810 s/f, seven-story, 1916 elevator building features a mixture of 54 free market, rent-stabilized and rent controlled apartments.
The sales price was 17.3 times the current rent roll. The building also houses a grocery/deli, coffee shop, laundromat and Mexican restaurant on the street level.
Cignature Realty’s Lazer Sternhell and Peter Vanderpool represented both the buyer and the seller.
Earlier this year, Cignature Realty also brokered a large off-market four-building portfolio in the Upper West Side’s Manhattan Valley to Sugar Hill Capital Partners for $65 million or about $1,050 psf.
The five-story, walk-up buildings at 471-476 Central Park West have a total of 125 apartments – mostly rent-regulated units.
This is the third deal the firm arranged this year for the Harlem-based Sugar Hill Partners.
It also represented Sugar Hill in their $21.6 million purchase of 4300 Broadway in Upper Manhattan, a six-story elevator building with 54 residential units and one 6,000 s/f vacant retail space.
In that deal Cignature Realty also represented the seller, Quantum Equities.

●Terra CRG
New Bed-Stuy apartment building hits market

TerraCRG has been retained exclusively to sell a newly constructed building located at 902-908 Bedford Avenue in Brooklyn’s Bedford-Stuyvesant neighborhood.
Matt Cosentino and Adam Hess, along with their teams, are marketing the building. The asking price is $33,500,000.
“This is an extremely unique offering as there are very few opportunities to buy properties of this size in the area,ˮ said Cosentino, vice president at TerraCRG.
“Additionally, the properties are only in year 11 of a 25-year 421-A tax abatement and they have strong in-place income while also having upside potential as units turnover and the area continues to emerge.”
The 65,000 s/f building consists of 44 units, with the vast majority being three and four-bedrooms containing two bathrooms. There are five duplexes with direct backyard access and 30 units with private outdoor space, including the penthouse units which have large terraces.
Brooklyn-based investment firm Slope Realty bought the property for $28.6 million from Springhouse Partners in 2014, according to public records.

Design firm Flank buys development site

Cushman & Wakefield announced that a large scale development site located on three adjacent parcels in South Williamsburg, Brooklyn — 314-326 Wythe Avenue, 70 and 72 Grand Street — was sold to architecture and development firm, Flank, for $21,605,000.
The sale reflects the highest per price-per-buildable-square-foot ever achieved in the neighborhood at $803. Plans for the site include retail and office space.
Cushman & Wakefield’s Michael Collins, Tyler Peck, Robert Dicker and Jonathan Schindler along with David Giancola (formerly of Cushman & Wakefield), represented the seller.
The offering allows for a buildable envelope of approximately 26,904 square feet.
“National retailers and businesses want to be in South Williamsburg, a neighborhood that has benefitted from a population increase due to the influx high-end residential development. This development site, which covers a full block along an emerging corridor, presented the buyer with an ideal investment opportunity, one that will ultimately attract industries looking to penetrate this prime Brooklyn market,” said Collins, Associate Vice President at Cushman & Wakefield.

●Thor Equities
Sitt scoops up more Soho retail

Thor Equities has acquired the retail condominium at 45 Greene Street in SoHo.
Situated between Broome and Grand Streets, the cast-iron building features 4,000 s/f of retail space occupied by Italian lighting design store, FontanaArte.
“45 Greene Street is ideally located in SoHo, which remains one of the most sought after neighborhoods in Manhattan for high-end and fashion forward retailers,” said Joseph Sitt, CEO of Thor Equities.
Boutique and flagship stores in the surrounding area include Acne Studios, Isabel Marant, Alexander Wang, Alexis Bittar, Jonathan Adler, Fjallraven, Jeffrey Rüdes, Stone Island and Versace.
45 Greene Street is the latest addition to Thor Equities’ expanding SoHo portfolio, which includes multiple properties along Greene Street, Broadway, West Broadway, Broome Street and Mercer Street.

Equity buys Atelier W’burg

Holliday Fenoglio Fowler, L.P. (HFF) represented Fortis Property Group, LLC and Joy Construction Corporation in the sale of Atelier Williamsburg, a newly-developed, 120-unit, six-story residential property in Williamsburg.
Atelier Williamsburg is located at 239-261 North 9th Street equi-distant to the Lorimer and Bedford Avenue subway stations.
Completed in 2015, it has studio, one- and two-bedroom rental units each with stainless steel appliances, hardwood floors and washer/dryers. Amenities include a doorman, rooftop deck, courtyard and fitness center.
The HFF investment sales team representing the seller was led by senior managing director Andrew Scandalios and managing directors Jeff Julien and Rob Hinckley.
Equity Residential paid $79,672,500 for the rental building, according to publice records.

First-timers eyes young pros

CBRE’s Investment Properties team aarranged the $16.7 million sale of an eight-building multifamily and retail portfolio in Springfield/Belmont and University Heights neighborhoods of Newark, N.J.
Specifically, the properties are located on a three block radius on Martin Luther King Boulevard.
CBRE’s Capital Markets Investment Properties team of Charles Berger and Mark Silverman, in New Jersey, and Elli Klapper, in New York, represented the seller and procured the buyer.
This was the out-of-state buyer’s first purchase in New Jersey.
The portfolio – comprised of 249 residential units and two retail spaces – sold at the highest price-per-unit recorded in those neighborhoods of Newark in more than three years and recorded the lowest cap rate in that area during the same timeframe. The buyer intends to upgrade the residential units and add a number of amenities catering to young professionals working in the area.

● NAI James E. Hanson
Jersey City office building sold

NAI James E. Hanson brokered the sale of a 30,000 s/f office building located at 215 14th Street in Jersey City, New Jersey,.
Russell Verducci and Eric Demmers represented the buyer, Adithya Bathena, in the purchase from MIS, which will lease back space in the building. MIS was represented by Dan DePalma of JLL.
The four-story building features retail space on the ground floor which is currently leased to Dunkin’ Donuts. “Originally the property was on the market for lease, but we were able to negotiate for our client to buy the property since they were looking for an investment property near the Hudson waterfront,” said Verducci.
“The seller will lease back space in the building and the new owner will look to lease up the building and potentially redevelop the property in the future. ”

● Clearrock / Juster Properties
Local firms partner on $27M Leather District deal

NY-based ClearRock Properties and Stamford, CT-based Juster Properties have purchased 201-207 South Street in Downtown Boston’s Leather District for $27.5 million.
JLL managing director Jessica Hughes represented the seller, Meritage Properties, in the transaction.
Built in 1909, the 73,689 s/f six-story office building was recently revitalized with a full facade restoration, renovation of the entry, lobby, elevator cabs and common areas, and conversion of a 4,000 s/fstorage area into office space. Current tenants include Credo, Publisher’s Clearing House, BlueConic and Evidox.
ClearRock managing principal Steve Grant said web development consultants, Bocoup, also recently leased 10,000 s/f at the building, where office rents have risen to the low $40s.
“We are fortunate to have the opportunity with near term rollover to enhance an already vibrant community of tenants at the building,” added Grant.
Under the new ownership, JLL will continue as leasing agent while Lincoln Property Company will continue as property manager.

● nai james e. hanson
Gaia partnership turns Texas profit

Gaia Real Estate – together with its partners Menora Mivtachim Insurance and Grand China Fund – announced the sale of Cypress Commons in Houston, TX, their second disposition for the partnership within two months.
The property was originally acquired in December 2013 as part of a larger portfolio transaction consisting of 2,594 residential units spread over nine Class A properties.
Cypress Commons is a a 252-unit property built in 1999 in the affluent Champions submarket of Northwest Houston bookended by exclusive country club golf courses and next to The Vintage, a $1 billion mixed-use development.
The Property was the recent recipient of a capital improvement program to enhance exteriors and amenities. Additionally, 17% of units received an interior renovation and, on those units, Gaia was able to achieve significant rental premiums.
“Cypress Commons was acquired as part of a 9-property portfolio of similar Class A assets, at a basis well below replacement cost. This property disposition represents the second asset sale from that portfolio. Our generated returns on this transaction generated an IRR in excess of 52 percent for our investors,” said Gaia’s Managing Partner Danny Fishman.
“We‘ll continue to execute our business plan across the portfolio by streamlining operations, improving the properties, and creating a desirable living experience for our residents.”

● besen & associates
Same day service on Hamilton Heights transaction

Besen & Associates announced the sale of 3640 Broadway in the Hamilton Heightsfor $16.75 million.
Amit Doshi and Shallini Mehra represented the seller, and Ronnie Shaban and Amit Doshi represented the buyer. The sale prices represents a multiple of 17-plus times the gross income.
The purchase and sale agreement wwere signed and the title closed on the same day at lender, Signature Bank’s office.
The buyer was reinvesting part of the proceeds from his sale of a $40 million midtown property in a 1031 Exchange
The six-story mixed-use elevator building has 34 apartments and seven commercial spaces.
Built in 1910, the asset has 44,922 s/f with 100 feet of retail frontage on Broadway.
“The average rents were ridiculously low and the units extremely large,” said Mehra.
“The retail is primed to be upgraded, as this was the only corner left within six blocks without a national tenant or an upscale restaurant or boutique.”

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