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Deals & Dealmakers

SELLING POINTS: Innovo pays $54M for Bronx warehouse

● PINNACLE REALTY
Innovo pays $54M for Bronx warehouse

Innovo Property Group (IPG), a real estate investment and operating company founded by Andrew Chung and backed by Nan Fung Group, announced the closing of 511 Barry Street for $54.25 million.

Granite Point Mortgage Trust Inc., a Pine River Capital managed company, funded the $46,345,625 first mortgage loan for the acquisition.

The 140,000 s/f warehouse is in the Hunts Point neighborhood of the Bronx and features a 90,000 s/f paved yard for parking and truck loading.

Located near a cluster of logistics and food distribution users and close to densely populated areas in the Bronx, Queens and Manhattan, the facility is positioned to serve a variety of uses, including last-mile distribution, cold-storage and traditional industrial.

511 Barry Street was the former headquarters of a major food distributor and is fully refrigerated. It has 32 loading docks, six drive-in bays, up to 22 ft. ceilings as well as an approximately 90,000 s/f truck court and parking lot.

The location and physical characteristics make the property an ideal urban logistics facility for traditional warehouse, distribution, e-commerce as well as cold-storage users, according to the buyer.

“Our investment philosophy focuses on value-add properties in the outer boroughs and we are thrilled to announce our latest closing in the Bronx,” said Chung, founder and CEO of IPG.

“We believe that last-mile distribution will become increasingly important with the rise in e-commerce and the demand for same- and next-day delivery. 511 Barry Street is a great facility in an ideal location poised to service all of New York City.”

David Junik and Fred Stein of brokerage firm Pinnacle Realty represented IPG on the acquisition.

Since 2015, IPG has been investing in New York City and is one of the city’s most active industrial players focused on last-mile warehouse facilities. 511 Barry Street is IPG’s second significant investment in the Bronx.

In 2017, the company purchased 2505 Bruckner with affiliates of Square Mile Capital Management. 2505 Bruckner will be New York City’s largest, last-mile, multi-story urban logistics facility with state-of-the-art features.

IPG and Nan Fung Group also recently announced a $438 million recapitalization of 24-02 49th Avenue in Long Island City, Queens, anchored by the New York City Housing Authority.

That building is being renovated, with the project nearing completion. IPG will soon be in the market to lease the remaining available space, approximately 230,000 s/f that includes the building’s top two floors and ground floor retail.

● ABS PARTNERS REAL ESTATE
$25M Pay-O-Matic sale-leaseback closes

ABS Partners Real Estate,has completed the $25.3 million sale-leaseback of 12 Pay-O-Matic (POM) locations located in Manhattan, Brooklyn, Queens and the Bronx.

The going in cap rate was just under five percent.

ABS Partners Real Estate’s Steven Hornstock, Randy Modell, Ryan Cerqueira and Alex Warner acted on behalf of Pay-O-Matic, while the buyer, Global Asset Management, was represented by ABS’ Mark Tergesen.

The assignment began in 2016 when ABS was retained as a consultant managing and leasing agent for 14 locations owned by Pay-O-Matic, which is New York’s largest provider of check cashing services, operating 150 retail locations, as well as a major regional armored courier company.

Many of the locations are mixed-use containing apartments and other retail uses.

“The initial phase of the assignment was to stabilize the residential and ancillary retail uses at the properties,” said Hornstock, a founder and co-managing partner of ABS.

“Thereafter, we decided to pool 12 of the properties together and sell them as a sale-leaseback package. Included within this package was a POM garage and truck depot in Bushwick, as well as their corporate office on Syosset, Long Island. During the process ABS also helped determine the market rents for the sale-leaseback properties.”

Other notable buildings in the portfolio include 254 Scholes Street in Williamsburg, a 27,500 s/f, block-through lot with a 17,500 s/f industrial property onsite; 94 8th Avenue, a three-story walkup between 14th and 15th streets in Manhattan’s Meatpacking District; and 4551 3rd Avenue, a 5,400 s/f corner lot with a one-story taxpayer, with the potential for 29,700 buildable square feet, located directly across from St. Barnabas Hospital and adjacent to four properties owned by the hospital.

● CUSHMAN & WAKEFIELD
Medical office property fetches $16M

Cushman & Wakefield announced that the firm has arranged the sale of 310 East Shore Road, a 52,517 s/f office facility in the Long Island town of Great Neck.

The final closing price is $16.5 million, equating to approximately $315 per square foot.

Stephen R. Preuss, Denise Prevete and Kevin Louie and represented the seller, 310 East Shore Road Realty, LLC, in the transaction. The property was purchased by Kane, LLC & Monitor Holding Corp.

“Medical tenants have bolstered the Long Island office market,” said Preuss.

“Rising demand for office space in the region and the property’s location in the densely-populated yet affluent North Shore of Long Island presented favorable market conditions for our client to move forward with this transaction.”

310 East Shore Road is a 52,517 s/f, 20-unit elevatored medical office building on the Manhasset Bay waterfront.

The three-story, plus lower level, property is currently 96 percent occupied with a total of 14 tenants, some of which have been in place since the 1990s, as well as approximately 2,235 s/f of vacant office space.

The property is situated on two adjacent tax lots with a total of approximately 1.55 acres on the Manhasset Bay.

● JLL
Luxury Harlem apartment building hits market

JLL Capital Markets experts have been selected by ABR Builders LLC to sell 308 East 109th Street in East Harlem.

The eight-story building features 20 luxury residential units and one commercial ground-floor unit. ABR Builders is asking $15.25 million for the property.

308 East 109th Street totals 24,655 s/f and includes 13 one-bedroom units and seven three-bedroom units. All apartments feature outdoor spaces and have individual HVAC systems.

The ground-floor retail space totals 1,273 s/f and is occupied by Dear Mama Coffee.

Amenities in the building include a private roof deck with a view of the Manhattan skyline, a bike storage room and a full-service gym.

The property benefits from a fifteen year 421-A tax abatement that expires in 2029, at which point all residential units will become free market.

The building is steps from the 6 train and the shopping corridor on Second Avenue. It will benefit from the second phase of the Second Avenue subway expansion, which will include a Q subway at Second Avenue and East 106th Street.

The subway expansion project is scheduled to be completed by 2029 and is expected to encourage retail and residential rental growth in the area.

The JLL professionals overseeing the sale assignment include Managing Directors Hall Oster and Tom Gammino; Vice Presidents Conrad Martin and Teddy Galligan; and Associates Chris Skitch, Jeremy Simon, Braedon Gait and Connor Murphy.

“308 East 109th Street is a quality construction, boutique apartment building that is both fully amenitized and 100% occupied,” Oster said.

“This is a turnkey investment opportunity in a neighborhood primed for continued growth due to the recent rezoning and the next phase of the Second Avenue subway expansion.”

● CBRE
State set to auction historic office building

The office of General Services Commissioner RoAnn Destito tannounced that the Senator Walter J. Mahoney State Office Building at 65 Court Street in Buffalo will be sold at auction in 2020.

A work group formed earlier this year made up of City, County, and State officials working with real estate consultants CBRE, determined that in the current competitive Buffalo real estate market, the highest and best use of the building is no longer State office space.

The committee recommended that the property be sold on the open market. The date and further details on the auction will be announced in the near future.

“As Buffalo’s transformation continues, the Senator Walter J. Mahoney State Office Building presents an incredible opportunity for further development in the heart of downtown,” said Lieutenant Governor Kathy Hochul. “For almost 90 years, the Mahoney Building has served our state well, and I look forward to seeing how it will be repurposed and used in the future.”

State employees will remain in the downtown footprint that currently encompasses more than 600,000 s/f of space leased by the State in the City of Buffalo. Approximately 130 employees who work in the building are being relocated to leased space in the City of Buffalo.

The five-story, 69,000 s/f building sits on a 0.61-acre parcel on Niagara Square.

Architectural highlights of the property include an impressive lobby, tall ceilings, and intricate facade work. Portions of the movie “Marshall” were filmed inside the building.

The property originally housed the City’s first public high school, built in 1854, until the City of Buffalo sold it to the State. The City used proceeds from the school to help build City Hall.

After acquiring the property, the State demolished the school and built the State Office Building in 1930.

The building was named for Walter J. Mahoney who served as a State legislator for nearly 30 years before becoming a New York State Supreme Court judge.

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