●mack-cali realty corp.
$97M is the Sylvan Way
Mack-Cali Realty Corporation has sold its commercial office property located at 22 Sylvan Way, in Mack-Cali Business Campus, Parsippany, NJ, for $96.6 million to Griffin Capital Corporation. In addition to the sales price, Griffin is assuming responsibility for approximately $7 million in future tenant improvement allowance and commission obligations.
22 Sylvan Way was developed in 2009 to serve as the headquarters for Wyndham Worldwide Corporation, an international hotel and hospitality chain. The three-story, 249,409 s/f class A office building that has achieved LEED for Commercial Interiors and LEED for Existing Buildings: Operations & Maintenance to the Silver level. Wyndham extended the net lease term to coincide with the term on its recently completed headquarters expansion at the adjacent 14 Sylvan Way, also developed and owned by Mack-Cali. Mack-Cali was represented in the transaction by Jose Cruz and Kevin O’Hearn, both of HFF. Mitchell E. Hersh, president and chief executive officer of Mack-Cali, commented, “Due to the long-term lease with Wyndham, this was an excellent opportunity to monetize the value of this class A corporate headquarters. The proceeds will be reinvested into more strategic growth opportunities throughout the Northeast.”
●newmark grubb knight frank
Team work pays $87M
Newmark Grubb Knight Frank (NGKF)’s National Institutional Team in New York, working with NGKF Capital Markets brokers in local markets, represented a special servicer in the disposition of nine industrial/flex office properties in a national portfolio, with a 10th transaction currently under contract. The nine deals total approximately $87 million and represented more than 1.6 million square feet.
The buyers were a mix of national, regional and local firms, cultivated by both the New York team and the local brokers. “This is a perfect example of how we combine our institutional coverage in New York with our local market experts to reach a broader pool of investors and maximize returns for our clients,” said NGKF director David Colen, who facilitated the transactions nationally along with NGKF president James Kuhn and director William Lee. Transactions included five properties in Charlotte, NC, one property in Fort Lauderdale, Fla., one property in Springville, Utah, one property in Detroit and one property in Atlanta.
●besen & associates
Deals under investors’ noses Besen & Associates is marketing three mixed use properties at 360, 362 and 364 Third Avenue. The walkup buildings consist of 47 apartments and four stores and are being sold by long-term owners of a family partnership. Besen’s Daniel Shapiro has priced the protfolio at $38,000,000. 360 and 362 are both five-story walkups, and 364 is a six story building, offering a combined total of 34,130 gross square feet. Together they occupy 74 ft. of frontage on Third Avenue. There is 6,000 total square feet of retail space and 28,130 s/f of residential.
Retail tenants include a café, a pinball game parlor/showroom, a nail salon, and a Mexican restaurant, with retail rent at an average $68 per square foot, with flexible leases rolling through 2023. Residential tenancy is a mix of both free market and rent stabilized leases. The property also offers a unique and novel feature, Broadway Alley. It is directly behind the buildings, between 26th and 27th Streets, and was utilized for trucks unloading supplies, movie shoots at one point in time, and is part of the offering. According to Shapiro, “For an experienced operator, there is arguably 50 percent upside potential and a chance to redevelop the property into something significant down the road.” Matthew Garcia of Besen & Associates is also marketing 368 Third Avenue, a property with eight residential apartments, one commercial unit and a store. The asking price is $12,000,000. “Everyone’s always hunting for the next neighborhood, while Kips Bay has been under our noses the entire time,” quipped Ron Cohen, chief marketing officer of Besen & Associates.
● the herrick company
$190M CVS portfolio just the tonic for buyer The Herrick Company, Inc., a real estate investment firms with offices in New Jersey, has purchased 44 retail/pharmacy properties located throughout the United States. The properties, all of which are occupied under long-term triple net leases with CVS Caremark, were acquired for approximately $190 million. The transaction reflects Herrick’s strategy of investing in single-tenant, long-term net leased assets that are occupied by credit tenants. The CVS leases in the recently acquired portfolio each have 25 years remaining on the term.
“In real estate, there are few investment opportunities as desirable as properties that are leased on a triple net basis by creditworthy tenants such as CVS,” said Norton Herrick, chairman of The Herrick Company. “As we actively seek out additional investment opportunities that fit our requirements, we’re intently focused on acquiring this type of stable, low-management-intensive property in the retail, industrial and office sectors.” Affiliates of The Herrick Company purchased the CVS portfolio from private equity firm Fortress Investment Group LLC, with debt financing for the acquisition provided by a consortium of capital sources under a private placement arrangement.
● cole schotz
JC warehouse to go rental
Cole Schotz represented Jersey City developer and property owner 350 Warren LP in connection with the sale of the former Butler Brothers Warehouse, a landmark building located in Jersey City’s Powerhouse Arts District. The 500,000 s/f 366-unit building at 350 Warren St. sold for more than $38 million. Mill Creek Residential was the buyer and it will redevelop the building into high-end residential rental apartments. CBRE Group’s Jeffrey Dunne, Gene Pride and
Patrick Carino brokered the sale for buyer and was also responsible for procuring the buyer. The Cole Schotz legal team that advised 350 Warren LP was led by members Leo V. Leyva, Joseph Barbiere and John S. Stewart, who were assisted by paralegal Thomas Vogel. An eight–story, former industrial building , 350 Warren’s redevelopment offers an opportunity to provide loft-style units within a rehabbed historic industrial building with 12.5-foot ceilings, exposed brick, large windows, wood beams and columns. Mill Creek Property Trust, a national multifamily company focused on the development, acquisition and operation of apartment communities in targeted markets nationwide, is teaming with equity partner Rockwood Capital to transform 350 Warren into loft-style luxury apartments. The property will have a rooftop deck, fitness center, clubroom with bar, dog washing station, bicycle storage and repair station, conference rooms and 24-hour concierge.
● massey knakal
Williamsburg site hits market Massey Knakal Realty Services has been retained to sell or ground lease a development site at 215 North 10th Street. The property is located on the corner of North 10th and Roebling Streets in Brooklyn’s Williamsburg neighborhood. The property is available for sale with an asking price of $24,000,000 or for ground lease. The site is an a 18,000 s/f lot two blocks from McCarren Park and zoned for residential or commercial use. It holds approximately 48,600 buildable square feet, which can be raised up to approximately 64,800 with inclusionary housing. “This is a great corner development site not far from McCarren Park and the entrance to the Bedford Avenue L train station,” said Massey Knakal’s Mark L. Lively, who is exclusively marketing this property with Brendan T. Maddigan and Andrew J. Posil. “There really are not too many good sized properties left for development in the Northside,” added Maddigan. “The location and existing zoning offer a variety of development options .”