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Deals & Dealmakers

SELLING POINTS: Olshan expands hospitality footprint; BSP has big Williamsburg retail plans

●hff
Lamar sells repositioned retail center

Holliday Fenoglio Fowler, L.P. has closed the $30.5 million sale of Linden Commons, a 115,500 s/f fully-leased, retail center in the northern New Jersey community of Linden.
HFF marketed the property on behalf of the seller, Lamar Companies. Prestige Properties & Development purchased the asset.
Linden Commons was originally built in 1955 and renovated and reconfigured in 2014 from a single-tenant (K-mart) retail center to the one-building multi-tenant center it is today.
The property is 100 percent leased to eight tenants, including Burlington Coat Factory, Blink Fitness, T.J. Maxx, Buffalo Wild Wings and Sprint.

Linden Commons
Linden Commons

Situated on 10.74 acres at 1701 West Edgar Road (Route 1 and 9), Linden Commons is located in the southern part of Linden, a community about 12 miles southwest from Manhattan.
The HFF investment sales team representing the seller was led by senior managing director Jose Cruz, managing directors Kevin O’Hearn and Chris Munley and associate directors Michael Oliver and Steve Simonelli.
“We are extremely pleased to have helped Lamar Companies with this successful sale that concluded their business plan of repositioning a vacant K-mart box into a thriving multi-tenant shopping center,” stated O’Hearn.
“This acquisition far outperformed our expectations, as we were able to stabilize a vacant center within 18 months by capitalizing on the strong tenant demand for Class A centers in dense infill locations in the Northern New Jersey market. We appreciate the valued efforts made by HFF on this sale as it provides us an excellent opportunity to redeploy the capital into our value add business as we are actively seeking and working on additional redevelopment opportunities,” stated Ralph Pugliano of Lamar Companies.

●lee odell real estate
Midtown walkup fetches $20M

Lee Odell Real Estate announced the sale of 259 West 34th Street.
The property is located between Seventh Avenue and Eighth Avenue. The four story walk-up had Wendy’s as a tenant.
The property has a buildable of 21,690 s/f. The selling price for the transaction was $20,500,000.
The seller was represented by Lee Odell and the purchasers were procured by Randye Hubsher.

●olshan properties
Olshan expands national hospitality footprint

Olshan Properties has acquired the Hilton Orrington in Evanston, IL for approximately $60 million. The seller was a joint venture of the Carlyle Group and Dow Hotel Company.
“Olshan Properties is thrilled to lend our name and hospitality expertise to the historic Hilton Orrington/Evanston. Not only does this newly-renovated property boast a fantastic location in one of Chicago’s hottest submarkets, but also is the market leader and hotel of choice for visitors to prestigious Northwestern University, as well as the greater Chicago region,” commented Andrea Olshan, CEO of Olshan Properties.

ANDREA OLSHAN
ANDREA OLSHAN

“We are also very pleased to have expanded our national hotel presence in the Midwest through this acquisition, which represents another prominent Hilton flag in our family of hotels,” she added.
The Hilton Orrington/Evanston is Olshan’s third full-service Hilton under management, and the company’s first Chicagoland property.
With this transaction, Olshan Properties now owns and manages six hotels throughout the nation including award-winning Marriott, Sheraton and Hilton-flagged properties.
One of the finest hotels on Chicago’s North Shore, the 269-key, full-service Hilton Orrington/Evanston first opened its doors in 1928.
Today, the Hilton Orrington enjoys multi-faceted, year-round demand based on the corporate, leisure and university-related sectors thanks to its location one block from ‘Big Ten’ school, Northwestern University, and 15 miles from downtown Chicago.
“As Olshan Properties looks to further expand our national real estate footprint, the Chicago region has long been in our sights but proved elusive until today,” commented Michael Odell Managing Director of Capital Markets at Olshan Properties.
“We’re very excited that a property with such an irreplaceable location, unique market positioning, and rich history, was able to meet the disciplined investment criteria to which we adhere when making additions to our portfolio.”
JLL represented The Carlyle Group and The Dow Hotel Company in their sale of the Hilton Orrington.

●houlihan-parnes realtors
NJ Garden apartment complex sold

Rob Tiburzi of Houlihan-Parnes Realtors announced the sale of Inverness Apartments, a garden-apartment complex at 5600 Shetland Way in Westville, New Jersey.
The complex, which includes 368 units on over 30 acres, was sold by Coolidge Inverness LLC for $27,300,000.
According to Tiburzi, “The sale represented the successful conclusion of a ten-year investment. The combination of low interest rates and a well-managed property led to us obtaining a sales price higher than most of the brokerage community expected.”

●abs partners / acre valley
JV grows national portfolio
ABS Partners Real Estate and Acre Valley Real Estate Capital LLC have joined forces to purchase Kenton Circle, a 135,757 s/f, three-building office park in Huntersville, North Carolina, located 30 minutes from Charlotte, N.C., near Lake Norman.
The property is leased primarily to Wells Fargo, Bank of America, Merrill Lynch, IMG, and Berkshire Hathaway.
Gregg Schenker, president of ABS, announced the acquisition along with Acre Valley managing principal Andrew Hananel.
Acre Valley is a real estate investment management firm based in Chicago, Illinois; ABS is a full-service commercial real estate firm based in Manhattan.

Kenton Circle
Kenton Circle

The property sold for $27 million. Hananel and Schenker noted the property’s superior fixed income yield, the benefits of depreciation, and the possibility for growth in both income and value, particularly compared to alternative available investments.
“Our two companies will use each other’s strengths to pursue further investment opportunities across the U.S., specifically in established central business districts with long-term growth prospects,” Hananel said.
“Andrew is one of the most capable acquisition professionals in the country, so we are fortunate to be partnered with Acre Valley,” Schenker added.
“Richard Hadar, chairman of Acre Valley, was a driving force in our acquisition of 915 Broadway in 2012 and continues to be an intellectual leader for our business activities.”
“The partnership between ABS and Acre Valley will provide both firms with a platform to expand their investment activities,” Hadar said.
“We plan to identify value investment opportunities in stable and mature markets, and deliver favorable long-term risk adjusted returns for our capital and investment partners.”
Josh Hostetter, Partner at Acre Valley, and Jason Fein, Partner at ABS, also played instrumental roles in the Charlotte-area acquisition.

● time equities
TEI closes on $18M retail purchase

New York-based Time Equities Inc. (TEI) today announces the acquisition of four Wisconsin multi-tenant retail assets for $18,106,530, spanning 307,668 square feet in total.
The acquisitions, consisting of two separate transactions, include The Geneva Commons purchased for $1,300,000, in addition to Oak Creek Centre, Park Plaza and Taylor Heights acquired for $16,806,530.
“Time Equities Inc. recognized this opportunity to acquire highly visible and heavily trafficked centers in several Milwaukee suburbs with strong retail fundamentals,” said Ami Ziff, director of National Retail with Time Equities Inc.
“With average portfolio occupancy of approximately 71 percent, we are excited about the prospects for leasing and bringing the portfolio to stabilization.”

ami ziff
ami ziff

Geneva Commons, located at 800 North Edwards in Lake Geneva, WI, and shadow-anchored by Target, is currently 70 percent leased by several nationally recognized tenants.
The acquisition marks TEI’s fourth property in the state.
Quantum Real Estate Advisors represented the seller, Ryan Companies US Inc. Leasing will be handled by Mid-America Real Estate.
Time Equities has also closed on a three-center portfolio including Oak Creek Center, located at 8571 S. Howell Avenue, a 95,042 s/f retail center located in Oak Creek, WI; Park Plaza, located at 1140 S. 30th Street in Manitowoc, WI and; Taylor Heights, located at 549 S. Taylor Drive in Sheboygan, WI.
Joe Girardi and Dan Rosenfeld of Mid-America Real Estate represented the seller of the three-center portfolio.

● BROOKLYN STANDARD PROPERTIES
BSP tapping into retail opportunity

Brooklyn Standard Properties, BSP, announced it has purchased a 50-ft. wide residential building in Williamsburg, Brooklyn for $8 million.
The 5,550 s/f site at 157-159 Wythe Avenue, between North 6th Street and North 7th Street, is comprised of two, three-family connected buildings that are currently vacant.
BSP also sold 136 North 8th Street for $3.525 million – a four-story, walk-up building in central Williamsburg which they purchased for $2.35 million back in October, 2014.
This was the first of four Williamsburg buildings purchased over the last year by BSP, a company co-founded by David Manheimer and Benji Kohn.
At 157-159 Wythe Avenue, BSP plans to extend the ground floor and convert it to retail. They will also add a fourth floor onto the building.

BSP plans a retail conversion
BSP plans a retail conversion

The broker was Jim Saros at Marcus & Millichap’s Brooklyn office who represented the seller, an estate.
“We love Wythe Avenue,” said Kohn. “As national retailers continue to come, we see this area of Williamsburg as the next Soho. “
Added Manheimer, “Our intentions are to modernize rental units to fit a newer and trendier Brooklyn renter. The zoning of Brooklyn has provided some interesting challenges and we are doing amazing things to transform the interiors of some very old buildings.”
On the sale of 136 North 8th Street, BSP was represented by Brendan Maddigan of Cushman and Wakefield.
The building was delivered vacant, as BSP purchased it.
This past summer, BSP purchased a four-story Williamsburg building at 116 Bedford Avenue for $5.2 million which they are converting from a vacant residential building into a mixed-use building with six upgraded apartments and an extended ground floor space for a medical office.
In April, BSP purchased a four story, 20,000 s/f mixed use building at 39 Ainslie Street with nine residential units and a ground-floor commercial space for $7 million.

●hamilton point investments
$26M exchange sale closes

Hamilton Point Investments LLC has completed its fifth DST 1031 exchange transaction,
HPI Waterford Landing DST, comprised of the Waterford Landing Apartments, is a 260-unit multifamily apartment property located in the Atlanta suburb of McDonough. The sale price was $26 million.
“The deal was well-received and the equity sold out in just a few weeks” said Matthew Sharp, co-founder and managing principal of Hamilton Point Investments.
“I think this may be marked as the last DST to be funded by CMBS debt,” he added, noting that securitized lenders fully stopped lending on this structure a few weeks ago.
Hamilton Point Investments owned and managed Waterford Landing Apartments for nearly four years on behalf of HPI Apartment Opportunity Fund II LLC prior to its sale into a 1031 DST.
David Kelsey, co-founder, added, “This is a nice sale for our fund II investors and the DST investors have comfort that we’ve owned and managed the asset for the last four years, so there won’t be any surprises.”

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