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Deals & Dealmakers

SELLING POINTS: Cushman arranges $75M warehouse sale, Former NJ armory to become storage

JV pays $75M for LIC warehouse site

Atalaya Capital Management, Nan Fung Group and Innovo Property Group have partnered to acquire 23-30 Borden Avenue in Long Island City, New York for $75 million.
The JV plans to redevelop the former warehouse of online grocer FreshDirect as a state-of the art last-mile distribution facility designed to service the area’s growing e-commerce market.
The site is situated at the entrance of the Midtown Tunnel and minutes away from Williamsburg, the top e-commerce market in Brooklyn.
“We are excited to establish a co-GP relationship with Innovo Property Group and look forward to designing an urban warehouse that will make multi-hour delivery a reliable reality for retailers and New Yorkers alike,” said Young Kwon, head of real estate for Atalaya.
Andrew Chung, founder and CEO of Innovo Property Group, has been focused on servicing the explosive demand for last-mile logistics facilities within New York City. In the last several months it has begun developing a warehouse at 58-30 Grand Avenue in Maspeth, another at 28-90 Review Avenue in Long Island City and it partnered with Square Mile Capital to turn the old Whitestone cinemas in the Bronx into a warehouse.
Cushman 7 Wakefield brokered the sale of 23-30 Borden Avenue on behlaf of Atlas Capital Group, which purchased the property for $48 million in 2016.

Armory to become storage facility

The Hampshire Companies is set to turn a former New Jersey armory into a state-of-the-art self storage hub
In one of the most unique adaptive reuse self-storage projects in the nation, Hampshire will turn the 100-year-old property at 189 Magnolia Avenue in Elizabeth into a modern three-story facility.
The building sits in the heart of downtown Elizabeth with a population of over 128,000 people and access to the New Jersey Turnpike, Routes 1 and 9 and the Port of Elizabeth.
Hampshire’s plan calls for preserving the building’s historic façade and exterior. Inside it will create a 100,000 s/f facility that will be managed by Extra Space Storage, a self-storage REIT.
Having repositioned or developed 33 self-storage facilities with an aggregate value of over $415 million since 2012, Hampshire has built a robust portfolio of self-storage facilities along the eastern United States.
The company has 13 self-storage development projects currently underway aggregating $239 million and has another 14 projects win the pipeline.

KABR, Capstone sell Long Island office complex

KABR Group and Capstone Realty Group have sold a Long Island office property for $16 million.
Holliday Fenoglio Fowler (HFF) brokered the sale of 330 and 350 Motor Parkway, two four-story office buildings with a combined 131,223 s/f in Hauppauge.
HFF repped the sellers and procured the buyer, Long Island-based Valley East Management.
330 and 350 Motor Parkway located off the Long Island Expresswayin western Suffolk County. Originally built in 1971 and renovated between 2012 and 2016, the complex is 94 percent leased to a tenant roster in industries such as law, accounting and financial services.
The property offers a full-service cafeteria, fitness center, conference rooms, tenant storage areas and parking.
The HFF investment advisory team included senior managing directors Jose Cruz, Kevin O’Hearn and Andrew Scandalios and senior directors Stephen Simonelli and Michael Oliver.
“The diversity in the rent roll and the infill location were the two most important aspects of the properties for investors,” stated Cruz.

Equity Residential bulks up NJ apartment portfolio

Equity Residential has scooped up a 131-unit luxury apartment community in Jersey City’s Paulus Hook neighborhood as part of a bigger expansion along theJersey waterfront.
“Equity Residential, which already owns a number of properties in the Paulus Hook neighborhood, has made a strategic play to expand its local presence,” said Cushman & Wakefield’s Brian Whitmer, who orchestrated the sale with Andrew Merin, David Bernhaut, Gary Gabriel, Adam Spies, Kevin Donner, Ryan Dowd and Mark Phillips.
The Madox, located at 198 Van Vorst Street was sold by institutional investors advised by J.P. Morgan Asset Management.
“The downtown Jersey City submarket has seen extremely limited and infrequent institutional-grade multifamily acquisition opportunities, which made this offering particularly attractive,” added Whitmer.
Constructed in 2013, Madox is a highly amenitized, LEED Silver certified community. The seven-story structure includes six levels of residential over a multi-level parking deck.
The building includes a rooftop deck with solar panels, fitness center, children’s play room, lounge and bike storage.
Paulus Hook offers a charming streetscape, walkability to restaurants and retail, and numerous public transit options to Manhattan. Residents are a short walk to the light rail, PATH trains, or multiple NY Waterway ferry stops.
Additionally, the Newark Avenue Pedestrian Plaza – which has emerged as a one of the top dining and entertainment destinations in the New York Metropolitan area – is within a 10-minute walk.

Local developer buys vacant Mack-Cali offices

Mack-Cali Realty Corporation sold a vacant 200,000 s/f office property in Bridgewater, NJ, to a local developer.
Cushman & Wakefield announced it arranged the sale of 721 U.S. Highway 202/206, a four-story office building on a nearly 16-acre site with over 200 feet of frontage along Route 202/206.
“An experienced, local developer purchased the 192,741-square-foot asset from Mack-Cali Realty Corporation,” said Cushman & Wakefield’s New Jersey capital markets team in a press release.
Local reports put the buyer as Edgewood Properties. They did not respond to a request for comment by press time.
According to C&W, 721 U.S. Highway 202/206 has a history of near-full occupancy, but is being delivered vacant, offering a variety of potential repositioning opportunities.
“The opportunity to reposition roughly 200,000 SF on 16 acres with frontage generated a significant amount of interest,” said Gary Gabriel, who led an incestment sale team that included Andrew Merin, David Bernhaut, Brian Whitmer and Frank DiTommaso. They were supported by leasing specialists Bill Brown and Shawn Straka.
“Bridgewater has historically attracted major employers, specifically within the tech and pharma industries, given its regional accessibility and access to talented labor – it continues to prove itself as one of the more dynamic markets in suburban New Jersey.”

128-key Jersey hotel sold

Holliday Fenoglio Fowler announced the sale and debt and equity financing for the Hyatt House Bridgewater, a 128-room, all-suite hotel in Bridgewater, New Jersey.
The HFF team represented the institutional seller, and procured the buyer, Gulph Creek Hotels.
HFF also repped the new owner to secure a seven-year, fixed-rate acquisition loan and source a joint venture equity partner. The hotel was marketed as part of a three-property Northeast hotel portfolio.
The Hyatt House at 530 Route 22 East comprises one two-story building and five three-story buildings with one- and two-bedroom suites featuring kitchens, separate living space, bedrooms and work areas.
Hotel amenities include a guest market, complimentary hot breakfast buffet, H Bar, business and fitness centers, outdoor swimming pool and hot tub, fire pit and patio and 1,500 s/f of meeting space.
The HFF investment advisory team representing the seller consisted of senior managing director Daniel C. Peek, managing director Denny Meikleham, senior directors Alan Suzuki and KC Patel, director Matthew Enright and senior managing director Kevin O’Hearn.
HFF’s debt placement team representing the borrower included directors Patrick Keefe and Matthew Pizzolato. Keefe also sourced a joint venture equity partner on behalf of the new owner.

Kalikow JV sells South Carolina complex for $42M

New York development and management firmn, The Kalikow Group, along with longtime development partner EYC Companies and equity partner Breakers Capital Partners (BCP), has closed on the sale of the Shade Tree multifamily community in Johns Island, South Carolina.
The sale price was $42.25 million. The buyer was an affiliate of Wicker Park Capital Management, LLC located in Savannah, Georgia.
The brokers were Tai Cohen and Marc Robinson with Cushman & Wakefield.
“When we first envisioned Shade Tree we knew it would be a terrific development in a desirable place to live and we are glad that others have recognized it too,” said Greg Kalikow, Executive Vice President of Kalikow Group.
“We know Wicker Park will continue to maintain Shade Tree with the same care that we have.”
The development was built in 2016 as a 248-unit, multifamily community, located on 9.2 acres. “The greater Charleston area has experienced explosive growth over the past ten years with much of the new affordable multifamily being built along the I-26 corridor farther and farther from downtown Charleston, the area’s beaches, boating and coastal lifestyle,” said Ellis Coleman, President of EYC Companies.
“Wicker Park Capital Management obtained this high-quality asset at a discount to replacement cost,” said Tai Cohen, Director of the Cushman & Wakefield Southeast Multifamily Advisory Group. “Well-located in the transforming Johns Island submarket and the high barriers to new development throughout Charleston, the property is positioned to enjoy long-term rent growth and return on investment.”

CGI Strategies
LA multifamily fetches $20M

CGI Strategies has acquired Parkwood Apartments, a 78-unit multifamily community in the Los Feliz neighborhood of Los Angeles for $20.15 million.
The three-story Parkwood Apartments is located at 4646 Los Feliz Boulevard. The property’s entire inventory of one-bedroom homes has not significantly been updated since it was built in 1973. CGI will immediately begin to modernize the building’s infrastructure and common areas as well as renovate units as they become vacant.
The acquisition was leveraged with financing from Bank Leumi arranged by Dekel Capital Tony Azzi with Marcus & Millichap represented both parties.

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