Real Estate Weekly
Image default
Deals & Dealmakers

Selling Points: Madison Ave. retail jewel being shopped for $49M, Wise partners with Manocherian on campus purchase

Eastern Consolidated

Madison Avenue retail jewel being shopped for $49M

A mixed-use retail building in the heart of Madison Avenue’s luxury shopping district is being shopped for $49 million.

Adelaide Polsinelli, principal and senior managing director, and Ety Lee, senior director, at Eastern Consolidated are marketing 23 East 67th Street, a seven-story building whose most recent retail tenant was luxury European retailer Bottega Veneta.

“The recent departure of Bottega Veneta has opened up an incredible opportunity for a new owner to capitalize on the vacancy and unlock the value of the beautifully designed retail space, which sits within the most desirable stretch of this world-renowned shopping corridor,” Polsinelli said.

“New York City’s retail market is on fire and this retail vacancy has given ownership the ability to achieve market rents far beyond what they were previously able to.”

The 11,000 s/f building features 20 feet of frontage along the north side of East 67th Street. Floors two through five are occupied by high-end galleries, while the sixth floor is a free market penthouse.

“This is a unique opportunity for a retailer to own and make a profit off their own real estate, while also showcasing their brand,” Lee added.

“The sixth floor penthouse can also be delivered vacant, which will permit future ownership to benefit from adjusting the rental rate to current market levels.”

The brokers are also handling leasing of the retail space.

Cushman & Wakefield

Wise partners with Manocherian on campus purchase

The Manocherian Family has partnered with Connecticut developer Steven Wise Associates to buy the former MBIA headquarters campus in Armonk.

Cushman & Wakefield brokered the sale of 113 King Street, a two-building, 300,000 s/f premier, Class-A+ campus on 38 acres, located within one mile of the Westchester County Airport.

The brokerage represented financial services company MBIA in the sale, for which the price was not disclosed.

C&W has also been retained by the new owners to lease the space.

“We’re truly excited about the acquisition of this extraordinary asset,” said Steve Wise, principal of Steven Wise Associates.

“As the former MBIA headquarters, the property has been impeccably maintained and offers amenities and infrastructure on a level rarely seen in the tri-state area, making it ready for immediate occupancy.

“We’re equally pleased to work with Cushman & Wakefield on a leasing assignment of this magnitude.ˮ

Cushman previously helped Wise bring NBC Sports and Chelsea Piers Connecticut to the region when he developed The Campus in partnership with Spinnaker Real Estate Partners in Stamford, Conn..

The Cushman & Wakefield sale-disposition team was comprised of Jim Jordan, senior managing director and Thomas J. O’Leary, senior director of C&W’s Capital Markets Group, along with Maureen O’Boyle, senior director, and Gerry Lees, senior director, both of C&W’s Leasing Services Group.

The Cushman & Wakefield leasing team is comprised of Trip Hoffman, senior director, Matthew Lisk, senior director and Mike McCarthy, associate director.

“Airport Campus is one of the most magnificent properties in the region,” said Hoffman.  “When you combine its state-of-the-art space and unparalleled amenities with ownership’s proven track record, I’m confident that we will lease the property in very short order.

GFI Realty

Kensington record

GFI Realty Services, Inc. announced the $10.33 million sale of 241-245 Ocean Parkway, two contiguous multifamily buildings in the Kensington section of Brooklyn.

With a price of $323,000 per residential unit, the transaction set a record for the neighborhood.

GFI Realty Senior Director of Investment Sales Erik Yankelovich represented both the buyer and the seller.

The buildings consist of a combined 32 two- and three-bedroom residential units and 24,000 s/f of air rights. The majority of the residential units are vacant.

The buyer intends to invest in the pre-war building, and will commence renovations in the near term.

“Under new ownership, the property will remain residential rental, as the buyer capitalizes on its ideal location and the strong apartment demand across the area,” said Yankelovich.

Azure Partners

Equity firm tempted to flip Bronx nest egg

Azure Partners, a New York based real estate private equity firm, has sold 1749 Grand Concourse Bronx NY for $49.5 million, two years after buying the building for $35 million.

“We are usually long-term holders of assets, but given the value we were able to create at the property during our ownership and the tremendous demand from investors for large rent stabilized properties, we were able to exit our investment at an attractive return,” said Arthur Rosenberg, CEO of Azure.

1749 Grand Concourse, known as the Lewis Morris building, was purchased by an un-named Brooklyn based private investor in an off-market deal brokered by Steven Vegh of Westwood Realty Associates.

The 17 story, 423,000 s/f elevator building has 274 residential units and four retail spaces. It has over 200 s/f of frontage on the Grand Concourse. The price equates to $178,000 per unit, a record  for the Bronx.

This is the third time since 2010 that this building has traded hands. “This is one of the nicest buildings on the Grand Concourse. The past owner has added significant value with both management and building improvements and the new owner will do extremely well with the asset.” said Vegh.

Hamilton Point investments

Fund wraps up with $41M apartment purchase

Connecticut-based Hamilton Point Investments has purchased two apartment properties for $41.2 million.

Hunterstone Apartments, a 288-unit apartment community built in 2006, is located in Leland, NC, a suburb of Wilmington.

Riverchase Apartments is a 216-unit apartment property that was built in 2001 and is located in Indianapolis, IN.

The company plans to complete modest interior upgrades at both properties over the coming year, as occupied units roll over.

The two properties were acquired by HPI Real Estate Opportunity Fund III, LLC. The $80 million private equity fund closed to new investors in December 2014 and has acquired 11 multifamily apartment properties for $242 million.

The fund is now fully invested and Hamilton Point is currently raising the $100 million HPI Real Estate Opportunity Fund IV, LLC.

The company will begin investing that equity in June 2015, with two properties under contract.

Rockfarmer Capital LLC

Investors planning luxury Flushing community

RockFarmer Capital LLC has acquired three Tudor-style apartment buildings, 189-10, 189-15 and 189-16 37th Avenue, in Flushing, New York for $11,700,000.

The properties consist of 50 residential units, nine parking spaces and three courtyards totaling 53,810 gross square feet. The sale also included a 2,500 sf nearby lot. Two of the buildings are adjacent to each other with the third across the street, all with a semi-enclosed central courtyard as an entryway.

RockFarmer will reposition and unify the three distinct properties as one luxury residential community with high-end finishes, reconfigured layouts and rebranding

RockFarmer Co-Founder and Managing Principal John Petras commented, “There are currently limited options for high-end rental apartments in the North Flushing-Bayside area, with most rentals being either small, plain apartments or two-three family houses.

“We see immense potential in creating an architecturally unique, high-end, yet affordable option to the rental market while offering the community atmosphere that Queens is known for.”

Phil Goldstein of Westwood Realty Associates represented both the buyer and seller in this transaction.

Cushman & Wakefield

Clinton Hill flats fetch $38M

The Washington Flats Portfolio, consisting of four contiguous apartment buildings in Brooklyn’s Clinton Hill neighborhood, has been sold for $38 million.

The buildings are located at 425 and 435 Grand Avenue, 29 Putnam Avenue, and 90 Downing Street. They combine for approximately 104,365 s/f and 129 apartments, with 121 rent stabilized, three rent controlled and four free market units.

Currently, the properties participate in the HPD Home Program which provides housing for low income tenants and 52 of the rent stabilized units operate under the Home Program.

The sale price equates to approximately $364 psf.

The properties are within walking distance of Atlantic Terminal and Barclays Center.

“This sale is indicative of the surge in demand and rapid absorption of residential units in the Clinton Hill market,” said Cushman & Wakefield’s Stephen P. Palmese, who exclusively handled this transaction.


Schermerhorn site smack dab in the middle 

TerraCRG has been retained to represent ownership in the sale of the development site at 215 Schermerhorn Street in Downtown Brooklyn.

Ofer Cohen and Melissa Warren’s team at TerraCRG is marketing the property with an asking price of $29,000,000.

The property is located between Hoyt Street and Bond Street with 75 feet of frontage on Schermerhorn Street.

The zoning allows for either 75,560 buildable square feet as of right for a residential, retail, hotel, office or mixed-use project.

A bonus for an inclusionary multifamily development could potentially increase the FAR to up 90,672 buildable square feet. The site is fully demolished. “The site is ideally situated in one of the fastest developing corridors of Downtown Brooklyn,” said Cohen, president and founder of TerraCRG.

“Right next door, Rose Associates and Benenson Capital are developing a 349-unit rental project. One block away, the plans are being approved for a 169-room Ace Hotel, the first in Brooklyn, and The Boerum, a new condo project under development at 265 State Street, is just two blocks away, setting record pricing for the area.ˮ

The property is next door to the Hoyt-Schermerhorn Street A, C, & G subway station, “smack dab in the middle of the fastest growing and most diverse Downtown in America,” according to Tucker Reed, president of the Downtown Brooklyn Partnership.

Ariel Property Advisors

Ariel hired to sell Sutton Place portfolio

Ariel Property Advisors has announced it has been retained on an exclusive basis to sell a portfolio of three multifamily buildings at 347-351 East 58th Street in the exclusive Sutton Place section of Manhattan.

Exclusive agents Shimon Shkury, Howard Raber, Victor Sozio, Michael A. Tortorici, and Jesse Deutch are requesting proposals on behalf of Stonehenge Partners, who own and manage the properties.

The three contiguous walk-up buildings provide 60-feet of frontage and 18,725 square feet with additional air rights. Together the buildings offer 30 residential units of which three are studios, 24 are one-bedrooms, and three are two-bedroom duplex apartments.

“Steps away from several skyline changing developments, 347-51 East 58th Street is an outstanding opportunity for investors seeking strong cash flow and location driven upside,” said Shkury, president of Ariel Property Advisors.

Cignature Realty Associates

Canadians own Manhattan block

Crest Realties, a Montreal-based real estate investment group, now owns an entire Manhattan block with the purchase of a prime Washington Heights multi-family building for $9 million.

This newest addition to their portfolio, 140 Wadsworth Avenue, is a six-story elevator building with 31 apartments and four professional offices, located on the corner of West 180th Street.

The property is adjacent to 4240 Broadway and a few blocks up from 4300 Broadway, two multi-family properties which Crest Realties purchased  in November, 2013 for $23.7 million.

Cignature Realty Associates Peter Vanderpool and Lazer Sternhell represented Crest Realties in both sales and also the seller of 140 Wadsworth, a local family estate.

The recent buy, a 39,578 s/f multi-family building, sold for 15.6 times the current rent roll, according to Vanderpool.

Crest Realties plans on holding the property and increasing the income of the building which features large apartments and fireplaces in each unit, Vanderpool commented.

“The average rent in the building is very low which leaves a tremendous amount of potential for the purchaser to capitalize on,” the broker added.

“The building is also situated at a very busy location with Broadway and the busy West 181st corridor a few steps away.”

MNS Investment Sales

Greenpoint site for sale

David Behin, partner and president of MNS’ Investment Sales & Advisory, announced that the firm has been retained to sell a 13,000 s/f development parcel at 79 Quay Street in Greenpoint, Brooklyn.

Listed at $12.95 million, the site is located one block from the recently rezoned waterfront.

“There is demand for residential development in Greenpoint and the property’s location — steps away from the waterfront — presents forward thinking developers the potential to construct a premier waterfront development,” said Behin.

New development projects in the area are currenlty averaging more than $1,300 psf with rents at more than $60 psf.

Related posts

Avison Young arranges 99-year ground lease for an estimated $21.5 million


Rosewood Realty Group Brokers $36.5 Million Sale of 15-Story Hells Kitchen Mixed-Use Building


Miller Construction Begins Work on an 80,000-Square-Foot Build-to-Suit Industrial Warehouse in Orlando