Luxury labelled in Kips Bay
Holliday Fenoglio Fowler is marketing 245 East 30th Street, a 30-unit, recently-renovated residential property in Kips Bay.
Originally built in 1910, the building has a mix of two-, three-, four- and five-bedroom units with the building’s 25 market-rate homes featuring luxury finishes. The front entrance, lobby and common area hallways have been updated and the property has a new roof, common roof deck, laundry room and gas boiler.
The six-story property lies withint multiple employment drivers in Midtown, Midtown South, the Life Science and Healthcare Corridor, and the United Nations headquarters, and is close to the 6 train.
The HFF investment sales team representing the seller is led by senior managing directors Andrew Scandalios and Eric Anton, managing directors Jeff Julien and Rob Hinckley and associate director Steven Rutman.
“245 East 30th Street is a fully revamped property with stable cash flow and additional upside through long-term appreciation,” said Julien.
“The addition of luxury features provide a competitive advantage as it will continue to attract the increasing population of millennials and professionals.”
● Avanath Capital Management
Fund makes workforce investment
Avanath Capital Management, LLC, an institutional fund manager that specializes in affordable and workforce housing investments, has acquired a portfolio of three apartment buildings in Brooklyn.
The properties were acquired in joint partnership with New York-based Oak Tree Management.
John Williams, president of Avanath, said development projects are driving investors and residents to Brooklyn.
“The result is increased pressure on renters, many of whom are already being priced out of expensive neighboring submarkets,” added Williams.
According to a recent Elliman Report, Brooklyn saw a 4.5 percent rental increase from 2015 to 2016 and posting an average monthly rent of $3,134.
“As rents continue to surge throughout the greater New York region, demand for affordable housing options in Brooklyn are stronger than ever,” Williams said.
“Located in the rapidly growing Bedford-Stuyvesant submarket, the three properties we acquired are positioned to capitalize on the continued demand from neighboring boroughs, while catering to the ever-increasing need for affordable housing.”
The three apartment buildings encompass 46 units and bring Avanath’s existing Brooklyn portfolio to a total of 195 units.
The properties are located within three miles of Avanath’s four other affordable assets in Brooklyn, which are currently 100 percent occupied at rent levels that are half the cost of average rents in the Brooklyn submarket.
Avanath acquired the properties from a private investor for $14.4 million. D.J. Johnston of Cushman and Wakefield represented the seller.
The portfolio includes 257 Quincy Street, 570 Jefferson Avenue, and 308 Stuyvesant Avenue, Brooklyn.
Bronx poftfolio sold
Citicore announced the $14.875 million sale of a mixed-use building portfolio in the Bronx with 101 residential units and seven stores.
The two pre-war buildings total 81,174 s/f and include:
340 East 184th Street, a seven-story elevator 67-unit building with two commercial stores located in Fordham Heights; 899 East 169th Street in the Foxhurst neighborhood of the Bronx. It is a five-story walkup 34-unit building with five stores.
Citicore managing partners Timour Shafran and Gem Algan brokered the deal along with colleague Steven Benatar, representing both the buyer, Steven Satz, a Bronx investor, and the seller, Semper Fi Management 7 Corp. and Cavan Properties, a small owner in the Bronx.
According to Shafran, the portfolio sold for 11 times the current rent roll and has a 4.9 percent cap rate.
“Satz plans to hold on to the buildings and improve the properties for increased cash flow,” said Shafran. “The buyer owned seven Bronx buildings and he sold six of them to purchase these two larger ones.”.
● DNA Development
Developers make their mark
DNA Development announced the purchase of 346-350 West 71st Street on the Upper West Side, and 12 West 48th Street in Midtown.
With DNA’s most recent Brooklyn project, 280 St. Marks, nearly sold out, the team was eager to expand into Manhattan. 346-350 West 71st Street comprises two adjacent, seven-story buildings totaling 72,000 s/f which DNA plans to convert into one condominium with 38 units.
DNA Development partners David Berger and Alexander J.A. Sachs have tapped DXA Studio, their architectural partners for 280 St. Marks, for 346-350 West 71st St.
At 12 West 48th Street a now vacant parking garage purchased directly from the owner in an off-market transaction, DNA will demolish the the property and create purpose-built luxury retail space.
Said Sachs, “The Upper West Side and Rockefeller Center are two thriving areas, and we are confident that New York real estate will continue to be all about location, location, location.”
Both propery redevelopments are targeted for completion in early 2018.
NJ-based Onyx Equities has bought Kmart Plaza in Hazlet, New Jersey for $26.2 million.
Jeffrey Dunne, David Gavin and Travis Langer of CBRE’s National Retail Investment Group represented seller Goodrich Hazlet LLC, an affiliate of Goodrich Management, and procured the buyer.
Kmart Plaza is a 203,912 s/f center anchored by Kmart, with tenants including Bank of America, TGI Friday’s, GNC, GameStop and Payless Shoes.
“Kmart Plaza represents a highly unique value add opportunity in a major retail market in New Jersey. The center is ideally positioned for near-term lease up and potential redevelopment,” commented Dunne.
Buyers bet on upstate hotels
Owego Associates, Inc. has sold a five-hotel portfolio in Owego, NY.
The hotels are located along Rt 17c in Owego, which is in the southern tier of New York between Binghamton and Elmira. The nearby Tioga Downs racetrack and casino has applied for a full gaming license.
The buyers were Rudra Mgmt Inc., Southern Tier Hotel LLC, TJ Hotel Holding Corp. and Tioga Hotel LLC, whose affiliates own and operate multiple hotels in the region.
The portfolio included Hampton Inn, Owego; CrestHill Suites, Albany; Holiday Inn Express, Owego; Treadway Inn & Conference Center, Owego; CrestHill Suites, Syracuse.
Tom Hamm, director hospitality council of SVN (formerly Sperry Van Ness) brokered the sales.
●RSP Group, LLC
Rye medical property sells
RSP Group, LLC recently purchased 90 South Ridge Street, in Rye Brook, New York from BRG Rye Brook, LLC.
The building is a glass, two-story, 75,000 s/f commercial office and medical property occupied by medical and professional tenants.
Colliers International brokered the sale for $11.1 million.
Robert S. Ocko, Managing Partner of the real estate and corporate practice groups at Harrington, Ocko & Monk, LLP in White Plains, New York, represented RSP Group.
●Rosewood Realty Group
Sheepshead Bay trade
Rosewood Realty Group closed an $18.3 million sale in Sheepshead Bay, Brooklyn.
The six-story elevator building at 2147 East 17th Street has 57,552 s/f and features 60 apartments. It was built in 1939.
The building has a cap rate of 4.15 percent and it sold for 17 times the current rent roll.
Rosewood Realty’s Aaron Jungreis represented both the buyer 2147 LLC and 236-2147 LLC and the seller, 2147 BKLYN 12 Realty LLC.