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Deals & Dealmakers

SELLING POINTS: NBPA sells Red Rooster building; New Yorkers buy Yale apartment building

NBPA sells Red Rooster building

310 Lenox
310 Lenox

Avison Young announced the $21 million sale of 310 Lenox Avenue, a three-story office and retail building in Central Harlem.
The property was acquired by a group of New York-based real estate investors.
The building is best known as being home to Red Rooster, the restaurant led by chef Marcus Samuelsson that has operated in the building since 2011.
Avison Young’s New York City-based Capital Markets team of Principals Neil Helman, Charles Kingsley, Jon Epstein and Vincent Carrega represented the seller, the National Basketball Players Association (NBPA).
“When 310 Lenox Avenue came to market as a result of the NBPA having outgrown its space at the building, there was immediate interest in the unique opportunity to acquire a truly outstanding commercial property in a premier Harlem location,” Helman said.
“With an abundance of development along 125th Street, and the continued renaissance that’s taking place in Central Harlem, it is quite apparent that the new ownership will surely realize a significant return on its investment as they have an opportunity to reposition the property now and in the years to come.”
Built in 1940 and improved in 2006, the architecturally distinct property consists of approximately 24,659 gross square feet of above-grade space and a full basement of approximately 8,493 gross square feet.
The property also has approximately 9,313 square feet of additional zoning floor area that is expected to be accessed by the new ownership entity.
The property is close to the new development currently under construction at 125 Street and Lenox Avenue that will bring the neighborhood its first Whole Foods,.

New Yorkers buy Yale apartment building

Institutional Property Advisors (IPA), a division of Marcus & Millichap, announced the sale of Cambridge Oxford Apartments, a multifamily restoration property consisting of 84 apartment homes in New Haven.
The property sold for $22.25 million.
“Construction began in 1860 and was finished in 1926. The property was completely and meticulously renovated in 2001,” said Victor Nolletti, IPA executive director. MAY11MARCUS22M
“Just steps from the Yale University Arch, Cambridge Oxford Apartments are poised for significant upside through the continuation of the unit upgrade program for the 58 unrenovated units.”
Nolletti and Steve Witten, IPA executive director, who head the IPA Northeast & Florida team with IPA senior director Still Hunter, and Gary Witten, a Marcus & Millichap vice president investments, represented the seller, Beacon Communities, which is based in Boston, Massachusetts.
The team also procured the buyer, East River Partners, a New York-based private equity investment and real estate development firm.
The property is located at 32 High Street.
“This unique property attracted institutional and private client interest on the national level, demonstrating the strength of the New Haven and Connecticut markets,” added Gary Witten.

Lightstone closes on its next hotel site

Rosewood Realty Group announced they have closed Midtown East-based Lightstone Group’s purchase of a six-building, 181-unit residential portfolio in East Village for $130 million from Pan Am Equities.
Rosewood’s Aaron Jungreis represented both Lightstone and the seller. The buildings are 85 East 10th Street, (a six-story building with 106 apartments) and 112-120 East 11th Street ( five, five-story buildings with 75 units).
“These prime East Village properties with development rights were on the market a few weeks and The Lightstone Group saw this incredible opportunity and grabbed it,” added Jungreis, who said the buyer plans to build a hotel on the property that is joined by a common courtyard.
Recently Lightstone secured $330 million in financing for the hotel conversion of a 16-story office building at 485 Seventh Avenue in Times Square, as well as a $75 million construction loan for its new 10-story rental building in Long Island City.

Stonegate bulks up New Jersey portfolio

Transwestern represented 545 Cedar Lane Associates LLC in the disposition of 545 Cedar Lane, a 27,000 s/f office and retail property in Teaneck, New Jersey.
The buyer, Stonegate Realty, owns an additional property on Cedar Lane.
Transwestern Partner and City Leader James Postell and Vice Presidents Rick Rizzuto and Dan Ligoner facilitated the sale on behalf of the seller.

545CedarLane“Given this property’s central location and accessibility to several major highways, we were able to quickly attract a buyer that was looking to expand its already extensive portfolio in Bergen County,” Postell said.
“This office property is within walking distance of parking, which was a major factor in the buyer’s decision to act quickly on this strategic investment.”
“We are very excited to add this property to the Stonegate portfolio, as we enhance our growing presence in the Northern New Jersey market,” said Steven Gelbtuch, co-CEO of Stonegate Realty.
“Cedar Lane is Teaneck’s main commercial corridor and continues to attract many businesses, restaurants and retailers to the area. This property benefits from great access to shopping and is situated in a well-regarded retail district.”
The well-maintained building, which was used as a bomb shelter in the early 1940s, currently offers dedicated loading dock and freight facilities.
The property’s 8,300 s/f retail space is available for lease, along with a fully functional basement.

Investors drawn to ‘wealth beltʼ

Bergman Real Estate Group has sold 100 Eagle Rock Avenue in East Hanover to Zeinvest Real Estate Group.
The sale was orchestrated by Cushman & Wakefield’s Metropolitan Area Capital Markets Group.
Situated on 8.6 acres within New Jersey’s “Wealth Belt,” the 90,339 s/f three-story Class A building drew strong interest from the regional investment community.100Eagkerock
The property is 79 percent leased to 11 tenants across various industries and has a strong history of tenant retention..
“100 Eagle Rock Avenue offers stable cash-flow with upside potential,” noted Cushman & Wakefield’s David Bernhaut, who headed the assignment with Andrew Merin, Gary Gabriel, Brian Whitmer and Andrew Schwartz.
“In a market with significant vacancy in bigger buildings with large floor plates, this offering provided a very viable office investment.
“100 Eagle Rock Avenue is perfectly sized for this niche market, with easy divisibility that enables it to accommodate tenants from as small as 1,000 square feet to those over 30,000 s/f.”
This is the Cushman team’s second sale of the property in less than two years.
Bernhaut noted, “We originally sold the property to Bergman Real Estate Group in August 2014, who did a nice job repositioning the asset … Now Zeinvest can benefit from the stabilized cash flow and concentrate on leasing up the remaining vacancy.”

Hartz continues its industrial evolution

Hartz Mountain has purchased a business park located in Charlotte, North Carolina.
CBRE Group, Inc. announced that Jeffrey Dunne of CBRE’s New York Institutional Properties team, represented the buyer, an entity controlled by Hartz Mountain Industries, in the purchase of the Lakemont West Business Park. lakemont
Patrick Gildea, Bryan Crutcher and Anne Johnson of CBRE’s National Partners team represented the seller.
Jim Gunning and Donna Falzarano of CBRE’s Capital Markets Debt & Structured Finance team have been retained to secure financing.
Lakemont West Business Park is a 969,633 s/f property that is 84 percent leased with over 50 percent of the portfolio rolling within the next five year.
It has upside through the lease up of 159,000 s/f of vacant space and moving below market in-place rental rates to market upon lease expiration.
Hartz Mountain’s purchase of Lakemont West Business Park is the latest in the company’s current investment strategy of acquiring high quality, stable industrial assets in first tier markets across the United States.
The portfolio is located in Charlotte’s largest industrial submarket. Charlotte is the second leading financial center in the US, second only to New York City, and has a mature, 160 million square foot industrial market servicing a rapidly growing population of over 2.4 million people.
Dunne commented: “Hartz has added a premier asset to their expanding industrial portfolio along the East Coast. Lakemont’s location within Charlotte’s Southwest Submarket promises the opportunity for rent growth driven by the submarket’s historically low vacancy, positive absorption and extensive transportation network.”

Town seeking buyers for redevelopment opportunity

Colliers International has been named the exclusive advisor for the sale of Kemble Plaza I, the former corporate headquarters of AT&T.
The property is a 387,277-rentable square-foot, Class A office building located at 340 Mount Kemble Avenue in Morris Township, Morris County, New Jersey.
kembleplazaThe property will be sold through an auction process that begins May 31.
Situated in a vast corporate park that sits on 40 acres of land, the building’s large acreage as well as its close proximity to major roadways will likely inspire investors to undertake a repositioning of the building, such as conversion to hotel or another type of mixed use project.
Due to the tightening office availability in Morristown, the property will also appeal to office investors.
The Colliers International team led by Senior Managing Director Jacklene Chesler, along with Executive Managing Director Richard J. Madison and Associate Jonathan Schlussel, will be representing the property on behalf of ownership.
“Kemble Plaza I is located in a progressive municipality that is open-minded towards finding re-uses for property, offering unmatched redevelopment potential for investors,” Chesler said.
“This prime location has expanded the buyer audience that is assessing the site for a wide range of alternative uses.”
Mayor Daniel W. Caffrey said the Township will work with interested parties to reposition the site for alternative commercial uses including retail, medical and hotel use.
The Township would also consider a mixed use development, single family homes or townhome community.

Flatbush walkups for sale

Westbridge Realty Group has been retained to broker the sale of 2908-2914 Clarendon Road, three contiguous walk-up apartment buildings in Flatbush.
The three-story high buildings total about 15,436 s/f and feature six units per building (for a total of 18 residential apartments).
Westbridgepresident Steven Westreich said the price is $3.6 million which equates to $200,000 per unit. The owner is Clarendon Properties NY LLC.
“This property represents a compelling investment opportunity to purchase quality assets from long-term owners, possessing massive upside potential in a submarket of Flatbush experiencing rapid gentrification and redevelopment,” said Westreich.

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