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Deals & Dealmakers

SELLING POINTS: Garden City offices sold for $91M, Flatiron garage fetches $32M

JV sells Garden City offices for $91 million

Onyx Equities and its Boston-based partner The Davis Companies are selling two Graden City office property to affiliates of privately held Brooklyn-based JFR Global Investments, headed by Joe Friedland.
The Town of Hempstead Industrial Development Agency (IDA) approved the sale of Atria East at 900 Stewart Ave., and Atria West at 990 Stewart Ave. for a total of $91 million.
The IDA, which granted incentive packages for the buildings in 2014 and 2015, agreed to transfer PILOT agreements, which expire in 2030 and 2031, respectively, to the new owner.
The IDA also granted the purchaser sales-tax exemptions for the cost of renovations and mortgage recording tax exemptions.
JFR plans to spend $4.23 million on parking lot repairs, roof replacement and new heating and cooling systemsat 900 Stewart, a 252,730 s/f office building
At the 297,339 s/f 990 Stewart, JFR plans to spend $3.5 million on on renvations that include replacement of a cooling tower, elevator mechanical modernization, and replacement of the common area carpeting and wall finishes.
The buildings originally were developed by Lincoln Equities Group in 1986 and 1988 as two of the first of many new buildings at the former Mitchel Field air base. They were subsequently, purchased and sold again by various entities.

Zucker sells parking garage for $32M

The Zucker Organization has sold a Flatiron District parking garage for $32.2 million.
Lee & Associates NYC announced that Sidney Rosenthal, Steve Lorenzo, Mitchell Salmon and Christopher Ventura brokered the sale of the property located at 41-47 East 21st Street, between Broadway and Park Avenue South, to Mequity Companies, a real estate investment and development firm focused on the self-storage industry.
The 50,000 s/f parking garage spans four floors. Lee NYC’s Salmon, Lorenzo and Ventura are the exclusive representatives for Mequity Companies.
“We were excited to work with the Mequity team as well as the property owner in covering all aspects of this transaction and bringing it to a prompt and amicable close in only two months,” said Salmon, who represented Mequity Companies along with Lorenzo and Ventura.
“The Lee NYC team is currently searching for similar locations on behalf of Mequity Companies throughout Manhattan, the outer boroughs and Westchester.”
The seller was represented by Lee NYC’s Sidney Rosenthal, who sold the building to the Zucker approximately 30 years ago.

Boutique landmark hits sales market

Adelaide Polsinelli, vice chair of Compass investment sales division, along with Trystan Polsinelli, are marketing the beaux-arts boutique office building at 207 East 32nd Street former home of New York magazine and the place where Milton Glaser designed the “I ❤ NY ” logo.
The four-story ffice building containing 10,000 s/f currenlty configured as four, full-floor office units.
“207 East 32nd Street is an iconic building with tremendous possibilities,” noted Adelaide Polsinelli. “It lends itself to a myriad of uses such as; residential, medical, family office, retail flagship, embassy, institution, or education. An added bonus is that the property enjoys light and air on all four sides, “added Adelaide Polsinelli.
The Tammany Central Association buildign the proeprty in 1920 t for use as a magistrates’ court. Around a quarter century later, New York magazine moved in. Soon after, the building became the headquarters to a graphic artist Glaser.
“The ultimate purchaser of 207 East 32nd Street can enjoy a gorgeous, architecturally-distinct office building with much historic significance,” said Adelaide Polsinelli.
“This is a rare opportunity to continue the legacy of exceptional ownership of this iconic trophy.”

Net lease offered on Lower East Side site

Newmark Knight Frank (NKF) has been named the exclusive agent for the development of 59 Allen Street under a proposed long-term, triple net ground lease with the property’s ownership.
The more than 8,800 s/f land parcel is a through-block site from Allen Street to Eldridge Street that features a five-story, commercial structure totaling 60,000 s/f.
The first three floors plus two lower levels are currently occupied by a commercial parking garage and the upper floors and the Eldridge Street retail by galleries and arts-related concerns, all of which can be made available in the near term.
The property has a flexible zoning designation and excess development rights of just over 11,000 s/f, which increases the above-grade zoning floor area over the existing structure.
NKF Vice Chairman Brian Ezratty and Scott Ellard are marketing the property.
“With its flexible use and proximity to the Essex Crossing mega-development just one block away, 59 Allen Street offers the advantage of a long-term ground lease at the focal point of the Lower East Side, Chinatown, Little Italy and Nolita,” said Ezratty.
“This is a great opportunity to control a well-positioned asset through a long-term triple net lease that extends to 2118 in lieu of a more capital-intensive, outright purchase of the property day one.”

JV buys last mile facility in Jersey City

A joint venture of Simi Capital in partnership Shibber Khan’s Criterion Group has purchased a 135,000 s/f indsutrial property in Jersey City for $16.75 million.
Andrew Skydell, founder of Simi Capital, said the propert, situated on six acres at 21 Caven Point Avenue, was purchased from the Avidan and Elberon Group.
Located less than three miles from the Holland Tunnel, the property is part of the Port Industrial Submarket serving as a distribution hub for Lower Manhattan and Brooklyn.
Prior to closing on the acquisition, the partnership executed a lease for the entire property with an industrial tenant out of the New York City market.
Criterion Group is based in New York City and was founded in 2002 by Shibber Khan. SA former Innovo executive, Skydell founded Simi Capital in 2017 .
“We are delighted with the acquisition of this prime industrial property in a strategic New York/New Jersey market location,” said Skydell.
‟The property is ideally located to serve the growing demand for Last Mile distribution facilities in the Northeast, and we are confident of the long term desirability for this extremely well positioned industrial space.”
Jordan Metz of Bussel Real Estate represented the sellers in the transaction. The lease was arranged by Lubna Abbassi of North Globe Properties Inc.

NNN lease opportunity in Howard Beach

Greysteel has been retained to sell a net lease and asset repositioning opportunity in Queens.
Miguel Jauregui, Lance Ahmadian, Umar Khan and Romain Sinclair from the firm’s New York and Washington, D.C. investment sales teams are marketing 163-30 Cross Bay Boulevard in Howard Beach
Built in 2009, the property is leased to Duane Reade and holds a corporate guarantee from its parent company, Walgreens.
Key Food, the sublease tenant, invested their own capital into renovating the property in 2014.
Priced at $16,350,000, the property has available air rights of 23,618 s/f for a total of 33,342 buildable square feet, making it prime for an asset repositioning in the future.
It is situated on a block-through lot with 180 ft. of frontage on Cross Bay Boulevard with two curb cuts and 203 ft. of frontage on 92nd Street.
The immediate vicinity includes well-known locally-owned businesses such as Russo’s on the Bay and Lenny’s Clam Bar, and national retailers including Gap, Petco, Planet Fitness, Starbucks, Chipotle, CVS and Launch Trampoline Park.
“The in-place cap rate on this absolute NNN investment is six percent, providing a management-free safe haven for capital within an aggressive New York City market,” said Jauregui.
“Additionally, this opportunity comes with 23,618 s/f of unused air rights to mitigant the risk of the current tenant vacating the property at lease expiration in 10 years.”

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