DH Properties makes industrial investment in Red Hook
CPEX Real Estate’s Brooklyn Development & Conversion Team has arranged the ground lease of an 88,000 s/f industrial site in Red Hook, Brooklyn.
The site, located at 537-555 Columbia Street, consists of land and multiple industrial buildings that have been vacated to allow redevelopment.
Zoned M1-1, it offers 88,000 buildable square feet for commercial or manufacturing use or 211,000 buildable square feet for a community facility, as-of-right.
CPEX Managing Partner Brian T. Leary and Associate Director Jidan Kim, along with Associate Director Sean Sears, represented the long-term ownership and procured a 99-year ground lease with Dov Hertz of DH Property Holdings.
“This is a unique transaction structure and something we are well-versed in,” said Leary. “It is tax efficient and ,given that current capitalization rates are at all-time lows, it has become difficult to find replacement properties with value, often driving sellers to seek opportunities outside New York City to obtain higher returns.
“This type of structure significantly improves property values for ownership based on the long-term stable cash flow and allows for continued ownership of an improved and highly financeable asset in New York City.”
Based on a CPEX market study with data sourced from New York City public records, the price per square foot of industrial property sales in New York City has increased 176 percent in the six-year period from 2011 to 2017. In Brooklyn alone, the price per square foot has increased 373% over the same period.
“We are seeing strong demand for industrial properties city-wide. It’s a function of the booming e-commerce market and the demand for warehouse and logistics space to meet this phenomenon, as well as the lack of inventory for quality industrial buildings and industrial-zoned sites,” said Kim.
● MERIDIAN INVESTMENT SALES
Mixed-use Williamsburg property trades for $22M
Meridian Investment Sales sold three contiguous mixed-use buildings containing luxury apartments and prime retail space in Brooklyn, NY for $22.5 million.
Senior Executive Managing Director, David Schechtman and Managing Directors, Lipa Lieberman and Abie Kassin, represented the seller, and procured the buyer, a private family via a 1031 exchange, which was advised by Steven Dweck of Marcus & Millichap.
Meridian Vice President, Shamir Seidman, arranged $12 million in financing for the acquisition.
“The property features prime retail and is located on one of the best corners in Williamsburg, at the intersection of Kent Avenue and North 7th Street, which capitalizes on many of the favorable trends in the area while also remaining true to the original aesthetic of the neighborhood,” said Lieberman.
Located at 119-123 Kent Avenue in Williamsburg, the three mixed-use properties contain 17 apartments and three ground-floor retail units.
● MARCUS & MILLICHAP
$22M multifamily sale closes
Marcus & Millichap announced the sale of Robert Towers, a 11-story, 206-unit multifamily asset in East Orange, New Jersey.
The property sold for $22 million, which equates to $106,796 per unit. Marcus & Millichap Capital Corp. (MMCC) arranged $19.8 million in acquisition financing.
Fahri Ozturk, vice president investments in Marcus & Millichap’s New Jersey office, said over 100 investors from 15 offices across the country checked out the offering.
“East Orange is going through a tremendous revitalization centered around its two NJ Transit train stations which provide commuters with direct access to Midtown Manhattan via a 25-minute train ride,” said Richard Gatto of Marcus & Millichap’s New Jersey office.
“East Orange offers investors the opportunity to invest in an urban market with strong metrics such as high demand, low vacancy, and strong cash flows with significant upside.”
Gatto and Ozturk represented the seller, Metropolitan America, and procured the buyer, EOA 206 LP. Eric Seidel, MMCC senior director, arranged 36 months of interest-only financing for the acquisition.
Built in 1950, Robert Towers is located at 60 S Munn Ave. near the East Orange and Brick Church train stations, Interstate 280 and the Garden State Parkway. The property is 10 minutes from Newark International Airport.
● MARCUS & MILLICHAP
Unification Theological Seminary’s Barrytown Campus Exclusively Listed by Marcus & Millichap
Marcus & Millichap has been selected to exclusively represent the Unification Theological Seminary in the sale of its 260 acres campus, located at 30 Seminary Drive in the hamlet of Barrytown, Town of Red Hook, New York.
Used as a religious seminary for over 80 years, the parcel includes a 120,000 square foot main building, and several ancillary buildings comprising a total of over 150,000 square feet. The asking price is $17.995 million.
The property has a colorful and rich history dating back to the 1700’s. In 1929 it was purchased by John D. Rockefeller; the main building was built by him in 1930 for use by the Christian Brothers. In 1974 it was sold to its present owner.
“The distinct nature of this property will command the attention of a specific clientele interested in purchasing this type of asset, including religious institutions, schools, cultural centers, training centers, and health related facilities,” said Jim Evans, a senior real estate broker at Marcus & Millichap, who, along with Victoria Fisher, is representing the seller.
“The campus of Unification Theological Seminary is an iconic property and we look forward to finding the right buyer with a vision to build on the steep history of this asset,” adds Fisher.
The campus, affording Hudson River and Catskill Mountain views, consists of nine buildings. The main structure is an “H” shaped building with three stories on the east side and four stories on the west side.
It houses offices, classrooms, guest rooms, dormitories, an infirmary, a two-story gym, a two-story library, a 400-seat auditorium, and a 100-seat lecture hall.
The two wings are connected by a center core containing a full commercial kitchen and dining rooms on the first floor and above that a soaring, light-filled, pastoral chapel.