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Deals & Dealmakers

SELLING POINTS: Dermot pays $75M for The Kestrel; Orbach offloads UWS  portfolio

Dermot pays $74M for luxury Brooklyn building

The Dermot Company has bought The Kestrel, an eight-story, 126-unit luxury multi-housing property in Brooklyn’s Windsor Terrace submarket.
According to public records, the purchase price was $74.7 million and Dermot secured a $45 million mortgage from MetLife.
Constructed in 2014, the Kestrel is located at 33 Caton Place, to the east of Prospect Park.
Apartment units average 844 s/f and include a mix of studios, one-, two- and three-bedroom floor plans.
HFF and Savills Studley worked on behalf Dermot Company, to secure a fixed-rate loan for the acquisition. Savills Studley also arranged the capital for the purchase, securing an equity investment with a new US-based capital partner, which marks the beginning of a new relationship for The Dermot Company.
HFF’s investment advisory team also arranged the sale of the property. The seller was the Vanbarton Group, which paid $75.9 million for the Sam Boymelgreen-developed building in 2015, according to property records.
“The Kestrel is a fantastic cash-flowing building in a fast-changing neighborhood that we are acquiring at a very attractive basis for a long-term hold,” said Andrew Levison, Principal and Director of Acquisitions for The Dermot Company.
The HFF debt placement team representing the borrower included managing director Steven Klein and senior director Geoff Goldstein. The HFF investment sales team representing the seller included senior managing director Andrew Scandalios and managing directors Jeffrey Julien and Rob Hinckley.
The Savills Studley team representing the borrower in the financing and equity investment for the purchase included senior managing directors David Krantz and Paul Leibowitz.

Orbach offloads UWS  portfolio for $57M

Rosewood Realty Group announced the $57 million sale of five UWS buildings located at 4, 8, 10-16 Manhattan Avenue and 3-5 and 7-9 West 108th Street.
The Orbach Group, a multifamily investment firm headed by Meyer Orbach, sold the 120-unit portfolio.
Three of the five buildings — 10-16 Manhattan Avenue and 3-5 and 7-9 West 108th Street — are part of a 33-building portfolio that Orbach bought in 2013 for $246 million from a joint venture of Heritage Real Estate Partners and Dune Real Estate Partners.
Rosewood Realty’s Aaron Jungreis also brokered that sale and has sold over 70 buildings for Orbach over the last three years.
The other two UWS buildings in the most recent deal include 4 and 8 Manhattan Avenue.
Rosewood Realty’s Michael Guttman and Aaron Jungreis represented the buyer, a 1031 exchange investor.
According to public records the purchase price for the five building portfolio is a 57 percent premium over the $36.15 million the investment firm paid between 2013 and 2015.
Orbach said it plans to invest the proceeds into affordable housing.
The prtfolio sold for a 4.7 percent cap rate, at 15 times the annual rent roll, for $485 psf or $440,000 per unit.
“The sale was a win-win for all parties involved,” said Guttman. “The seller was able to execute on their business plan while the buyer gained a substantial presence in one of the most desirable Upper West Side neighborhoods at a price that is well below replacement cost.”

Partners strike deal on affordable homes

Camber Property Group, in partnership with Belveron Partners, has closed on the $60 million acquisition of three northern Manhattan buildings.
The deal will preserve 143 affordable apartments, according to the companies.
The aggregated portfolio comprises 287 Audubon Avenue in Washington Heights, 107 West 109th Street in Morningside Heights and 1871 7th Avenue in West Harlem. Financing for the transaction was provided by Greystone.
The existing affordability restrictions of all three properties were set to expire within five years, at which point tenants would have lost protection from rent increases.
The sale structure preserves affordability for residents — all of whom receive Section 8 vouchers — though a new 40-year regulatory agreement with HPD and the extension of the Section 8 contract with HUD.
Harlem Congregations for Community Improvement (HCCI) is the non-profit partner for each of the transactions.
Rick Gropper, principal at Camber Property Group, said, “We’re glad that residents of these buildings will have the peace of mind that their rents won’t skyrocket and that they’ll be able to live comfortably in their homes for years to come.”
Louis A. Harrison of Belveron Partners, added, “We make investments in affordable housing across the country and continue to be impressed by the intrepidness of NY agencies.”

● cushman & wakefield
Flatiron development site offered for $24M

Cushman & Wakefielda block-through development site in the Flatiron District with approved plans for to new apartment buildings.
Executive Vice Chairman Tara Stacom along with John F. Ciraulo and Craig Waggner are marketing the property on behalf of the seller, C.A. White, Inc.
The asking price for 16 West 18th Street and 21 West 17th Street, with 49,680 buildable square feet, as-of-righ, is $24 million.
LPC-approved plans show a 13-story building on 17th Street and a 10-story building on 18th Street designed by Morris Adjmi Architects with full floor units.
“The site is an ideal opportunity for any developer looking for a sizable, unencumbered development project within one of Manhattan’s most sought-after submarkets,” said Ciraulo.

● cignature realty associates
Big City buys apartment building

Cignature Realty Associates has closed the $18.45 million sale of a six-story elevator apartment building with 34 residential and seven commercial units in Hamilton Heights.
3440 Broadway is located on the northeast corner of Broadway and West 140th Street. The 47,714 s/f building was built in 1906.
The building’s commercial units include five retail stores and two professional offices.
Cignature’s Peter Vanderpool represented the buyer, Big City Realty LLC.

● gfi realty
Developer buys Downtown Brooklyn site

GFI Realty Services announced the $14.8 million sale of 275 Livingston Street (23-25 Hanover Place), a development site in Downtown Brooklyn.
The property was sold by Harry Blaustein and purchased by AVEQ 275 Livingston LLC.
The GFI team of Yosef Katz and Zachary Fuchs arranged the transaction.
The property is currently occupied by a vacant, three-story commercial building, and allows for 43,760 s/f of as-of-right development.
The buyer plans to commence a redevelopment campaign that will retain part of the existing structure, to recreate the property as a commercial facility.
“The seller has held the site for more than 20 years, and he recognized the changing neighborhood dynamics that made this property an excellent development opportunity,” said Katz.

● cushman & wakefield
Harbor, Turnbridge strike deal on NJ warehouse

The Harbor Group has partnered with New York-based Turnbridge Equities in the sale/leaseback of PNY Technologies’ Global Headquarters at 100 Jefferson Road in Parsippany, NJ.
Professionals from four Cushman & Wakefield service lines — Investment Sales, Finance, Leasing and Asset Management — worked to structure the deal on the 540,103 s/f property.
PNY Technologies leased back approximately 25 percent of the building on a long-term basis, leaving 400,000 s/f of industrial space for Turnbridge Equities to rent.
Members of Cushman & Wakefield’s New Jersey capital markets team – including Gary Gabriel, Kyle Schmidt, Andrew Merin, David Bernhaut, Brian Whitmer and Ryan Larkin – represented the seller and procured the buyer in the transaction.
John Alascio, Sridhar Vankayala, Mark Ehlinger, Noble Carpenter III and Zachary Kraft from Cushman & Wakefield’s Equity Debt & Structured Finance group arranged acquisition financing.
Additional support was provided by New Jersey industrial leasing experts Jason Goldman and Andrew Siemsen, and property management specialists Mike Nevins, Sam Collison, Cliff Mortara and Mike Baldino.
PNY Technologies spent many years and a considerable amount of capital improving the building after purchasing it from Pfizer.
Turnbridge and HGI have commenced a $4.5 million capital improvement program that will introduce Class A warehouse space in an attractive, mixed-use campus environment.
The project – for which Cushman & Wakefield Asset Services is providing both property management and construction management services – will include new parking and loading areas, office space and mechanical systems.
Cushman & Wakefield’s Jason Goldman and Andrew Siemsen have been retained as leasing agents for 100 Jefferson Road and are representing Turnbridge and HGI in leasing the vacant space.

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