● ABS PARTNERS
ABS brings Bronx development site to market
ABS Partners Real Estate has been retained to advise a long-term family partnership that owns 40 Bruckner Boulevard, a 250,000 s/f development site in an opportunity zone, in the South Bronx.
The sellers are looking to monetize the asset by identifying a developer and structuring a long-term ground lease.
The site, which has flexible zoning that allows for residential, commercial, industrial or community facility use, consists of several low-rise buildings that will be delivered vacant.
“We are excited to be working as advisors to the owners of this site, located in one of the city’s most active neighborhoods,” said Alex Kaskel, Managing Director at ABS, who is leading the efforts for the site, along with Randy Modell and Ryan Cerqueira.
“There are always challenges and risks with development, but the upside, especially with the scale of a 250,000 s/f site, could be tremendous. Scale allows the developer to think outside the box and dedicate more services and amenities to the tenants, thereby allowing a more marketable building. The tax advantages of developing property in an opportunity zone should attract many high-quality partners”
Located in the Mott Haven neighborhood, the site is near Brookfield Properties’ planned 1,300-unit development. Other developers in the area include the Lightstone Group while Related Companies, Somerset Partners and the New York City Football Club have submitted a proposal for the city’s first soccer stadium now under consideration by state authorities as part of a development that would also have 550 apartments, a medical facility, retail, and a park.
● MARCUS & MILLICHAP
Sun Equity Partners selling NJ shopping center
Marcus & Millichap has been retained to sell Greenleaf at Howell, a newly constructed, open-air community shopping center in Howell Township, New Jersey. The price is $78.5 million.
“Currently 100 percent occupied, Greenleaf at Howell is an exceptional, core-plus asset with the opportunity to add value through the development of an additional 117,505 square feet of entitled commercial space,” said Karly Iacono, vice president investments in Marcus & Millichap’s New Jersey office.
“National, regional and credit tenants account for 85 percent of the center’s net operating income.”
Iacono and Bill Rose, senior managing director, are representing the seller, Sun Equity Partners, a New York-based real estate investment firm.
Brian Hosey, vice president and regional manager is Marcus & Millichap’s broker of record in New Jersey.
Built between 2015 and 2019 on more than 50 acres, the property is on the northeast corner of U.S. Route 9 and Lanes Mill Road along the Route 9 Corridor, the main thoroughfare between Freehold and Trenton.
The property’s five-mile population increased from 140,118 to 147,785 between 2010 and 2018. In that same period, average local household income increased from $103,027 to $117,125.
The Jersey Shore lies 20 minutes away to the east and Monmouth Medical Center’s Southern Campus and OHI Lakewood Health Center are within four miles of the center.
Greenleaf at Howell consists of five separate parcels with an existing 228,664 s/f of commercial space anchored by BJ’s Wholesale Club, LA Fitness and Xscape Theatres.
A mix of restaurant and shop tenants on long-term net leases include Starbucks, T-Mobile, ClimbZone, Hair Cuttery, Mattress Firm, Jersey Shore Supplements and Children’s Dental.
Retail REIT makes first New York buy
ShopOne Centers REIT has acquired Hubbards Commons, a 65,970 s/f shopping center in West Babylon, New York.
The purchase marks ShopOne’s first shopping center in New York as it continues to grow its national portfolio within the densely populated markets along the I-95 corridor.
ShopOne recently acquired properties in Philadelphia and Washington, D.C.
The center was purchased for $17 million and brokers of the deal were JLL’s Jose Cruz, Steve Simonelli, Kevin O’Hearn, Michael Oliver, Andrew Scandalios and Grace Braverman.
Hubbards Commons, which will be anchored by one of the first Lidl locations (36,000 s/f) in Long Island when it opens in 2020, is home to a mix of national and local tenants including Orangetheory Fitness, Rite Aid, Subway and U-Need-A Bagel.
ShopOne also has the opportunity to develop an additional 10,900 s/f of space on an existing pad.
“With fitness, restaurant and daily needs tenants, backed by a strong grocery anchor, Hubbards Commons creates a unique one-stop destination for the nearly 150,000 residents within a three-mile radius of the center,” said John Roche, CEO and CFO of ShopOne.
“This acquisition presented us a strong opportunity to break into the competitive Long Island and suburban New York market. Adding Hubbards Commons to our portfolio helps exemplify our core strategy acquiring grocery-anchored shopping centers in fundamentally strong, densely populated markets.”
Hubbards Commons is 98 percent leased.
Medical center trades for $18M
JLL closed the $18 million sale of Crouse Medical Center, which comprises two connected buildings totaling 173,466 s/f of medical office space in Syracuse, New York.
The firm repped seller Brittonfield Associates. ICONIC Property Partners purchased the asset and assumed the existing loan.
Crouse Medical Center consists of a one-story medical office building along with a three-story professional office building that is transitioning into a medical office. The 88.8 percent leased property is anchored by Crouse Health System, which is a two-hospital, 514-bed, not-for-profit integrated health network.
The JLL Capital Markets team representing the seller was led by director Steven Rutman, Ben Appel, Senior Jose Cruz and Rob Rizzi.
Investor drawn to health care artery
CBRE announced the $20 million sale of the Bergen Medical Center located at 1 West Ridgewood Avenue in Paramus, NJ.
The buyer, a private investor, acquired the 75,000 s/f medical office property from the Eye Institute of New Jersey.
The CBRE team of Nat Gambuzza, Jeffrey Babikian, Bob L’Abbate, Nor Ramos and Allyson L’Abbate represented the Eye Institute of New Jersey in the sale and procured the buyer.
Built in 1988, Bergen Medical Center sits on five acres in one of the County’s health care arteries, off Route 17. The property is in close proximity to Valley Medical Center, Bergen Regional Medical Center and Hackensack University Medical Center.
“The purchaser will benefit from bringing managerial efficiencies to the building that will better serve the tenants, as well as improve the overall performance of the asset,” noted Gambuzza.
“The property provides the ideal value-add opportunity for the new ownership to lease vacant space and increase NOI through its hands-on management approach.”
● COLLABORATIVE GROUP
Buyer sees upside in Upper East Side building
Collaborative Group has closed on the sale of an Upper East Side apartment building for $13 million.
The firm’s Andrew Natter and Hal Fuchs repped the long-term family owners in the sale of 1685-1687 1st Avenue, a five-story walk-up containing 27 residential units and two stores.
The pair also repped the buyer, Jared Pinchasick of Jam Real Estate Partners, who intends to reposition the property with high-end renovations and adding bedroom. 24 of the units are free market and three are rent stabilized while the retail has been occupied by neighborhood restaurants on a long-term basis.
“90 percent free market units is very attractive to investors given today’s legislative environment,” said Natter. “ The buyer sees plenty of room to increase rents.”