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Deals & Dealmakers

SELLING POINTS: Mount Sinai selling UWS apartment building; Jersey investor’s record deal

Investors buy Staten Island office complex

Colliers International arranged the $21.5 million sale of Edgewater Plaza, located at One Edgewater Plaza in Staten Island, New York.
Edgewater Plaza Loft, LLC, acquired the complex. This group has acquired other Staten Island properties and plans to keep and maintain Edgewater Plaza as an office building.


The seven-story office property totals to 268,938 s/f, offering views on each floor, as well as parking with 465 spaces.
Edgewater Plaza’s current tenant roster occupies a total of 181,172 s/f. Ranging from small law firms to large city institutions, the tenants are a mix of businesses and services that include The City of New York Board of Elections, The New York Police Department, and the Staten Island University Hospital, among others.
“The new ownership acquired a unique, value-add opportunity with the ability to lease the remaining vacant space, while relying on dependable cash flow from credit tenants,” said Jacklene Chesler, managing director at Colliers International, who along with executive managing director Richard J. Madison and executive managing director Jeffrey Oram represented the seller in the transaction.
Chesler added that although there is 6.3 million square feet of space throughout the 839 buildings in Staten Island, there are very few large buildings in prominent areas, as there are less than 15 Class A and B buildings that are greater than 50,000 square feet.
This shortage of large, contiguous blocks of space drives up leasing demand at superior properties.

Mount Sinai selling UWS apartment building

Cushman & Wakefield has been retained on an exclusive basis by Mount Sinai St. Luke’s to sell the fee position of an apartment building at 1080 Amsterdam Avenue.
The property, located on the corner of Amsterdam Avenue and West 113th Street on the Upper West Side, is subject to a 99-year net lease.
Ownership is requesting proposals for the fee position.
The 20-story pre-war apartment building contains approximately 82,250 s/f and was leased in 2012 to a partnership of SL Green and Stonehenge, who have since completed a full gut-renovation of the entire property.
Constructed circa 1932, the building is the tallest multifamily building in the area.
Mount Sinai said the proceeds of the sale will be uysed “to further enhance the quality health care services offered by Mount Sinai St. Luke’s.”
The property is adjacent to Columbia University, Morningside Park, St. Luke’s Hospital, and The Cathedral of St. John the Divine.
“Purchasers should be excited by the rapid escalation of rent to the fee position over the course of the next 18 years followed by three substantial fair market resets at 25 year intervals,ˮ said Cushman & Wakefield’s Hall Oster, who is marketing the fee position with president, New York Investment Sales, Paul J. Massey Jr., Teddy Galligan, and Andrew Berry.
“The structure of the lease provides an investment with the safety of a long term bond and the potential yield of a value-add investment.”

Brokers arrange record deal

The Manhattes Group has closed on the sale of a 28,600 s/f commercial building at 438 West 51st Street, between 9th and 10th Avenue.

438 West 51st Street
438 West 51st Street

The five-story building with 60 feet of frontage was owner occupied for many years by a record storage company. It was sold to a New Jersey investor for $15 million.
Alan Shmaruk and Michael Sherman of the Soho-based Manhattes Group represented the seller, 438 W51st Street Group.
The purchaser was represented by Jonathan Stravitz and John Aires of BIOC Commercial Real Estate.

Tribeca loft plan

A New Jersey developer plans to turn a former door company property into luxury lofts.
ML7 Construction purchased two commercial condos at 72 Reade Street in Tribeca for $18 million.
Located in the Tribeca South historic district between Church Street and Broadway, the 32,000 s/f condos comprise the lower four levels of a seven story building. The property, which has been home to the Mackenzie Door Company for several decades, has 50 ft of frontage on both Reade and Duane Streets.
Robert  Khodadadian oif Skyline Properties represented the buyer, who plans to convert the second floor into two luxury residential loft condos that will each be around 4,000 s/f .
Brian Segall and Chris Masi of RKF represented the seller in the transaction.

Harlem apartment building fetches $10M

Marcus & Millichap announced the sale of 2070 Frederick Douglass Blvd., a six-story elevator building with 16 residential units and two commercial spaces.
The $10.1 million sales price equates to $667 per square foot.
Peter Von Der Ahe, Scott Edelstein, Seth Glasser and Brett Garson, all in Marcus & Millichap’s Manhattan office, represented the seller, 2070 Uptown LLC and the buyer, Prince Street LLC.
“The property is a fully rent-stabilized, low-maintenance apartment building with market- rate upside two blocks from Central Park,” says Glasser.
The building is proximate to Columbia University, Barnard College and the A and C subway lines.

Investcorp taps Cushman to sell Bob’s CT office/warehouse

Investcorp has retained Cushman & Wakefield to market a 527,000 s/f  mixed-use warehouse/office property at 181 W. Johnson Avenue in Cheshire for sale.
The multi-tenant facility, anchored by Macy’s regional internet fulfillment center, sits at the intersection of interstates 691 and 84 – in the heart of the central Connecticut industrial market.

181 W. Johnson
181 W. Johnson Avenue

Currently 75 percent leased to three tenants, including YRC Inc. (Roadway Express) and Alexion Pharmaceuticals, Inc., 181 W. Johnson Avenue features 74,500 s/f  of cross dock space and 64,000 s/f of office accommodations. It can accommodate a 380,000 s/f expansion as well.
“This asset is an ideal logistics facility and one of the larger industrial properties on the market in Connecticut,” noted Cushman & Wakefield’s Sean Duffy, who is based in the commercial real estate services firm’s Hartford, Conn., office.
He is heading the assignment with Andrew Merin of the company’s Metropolitan Area Capital Markets Group in East Rutherford, N.J., and Matthew Pullen from its Boston office.
“The distribution sector is playing an increasingly important role in the Connecticut economy, as ecommerce and the demand for next-day and same-day delivery drive users toward large population centers,” Duffy said.
“And in a market with limited large blocks of modern industrial product and high barriers to entry, 181 W. Johnson Avenue is positioned to compete for tenants on both a local and regional level.”
181 W. Johnson was originally built as a single-tenant property for the corporate headquarters and distribution operation of Bob’s Stores.



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