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Deals & Dealmakers

Selling points: Rockaway Beach building hits the market, McSam closes on $42M site

Cushman & Wakefield

Beach homes hit market

Cushman & Wakefield has been retained to sell a newer construction mixed-use building at 88-02 Rockaway Beach Boulevard, in Rockaway Beach, Queens.

The asking price is $7,500,000. Thomas A. Donovan and his sales team are exclusively marketing the property.

The seven-story, elevator-serviced, mixed-use apartment building is comprised of two ground floor medical offices and 19 luxury apartments above.

All units are finished with stainless steel appliances and granite countertops. Other building features include a rooftop terrace, a video intercom system, and balconies with ocean views.

The offering also comes with a 421a tax abatement in place until June 2026.

“Rockaway Beach has cultivated a unique beach town feel with the steady growth of the surfing community that frequents the beach for its well-known waters. Retailers, supermarkets, and entertainment continue to fuel this revitalization,” said Donovan. “We expect this growth to continue.”

Cushman & Wakefield

McSam closes on $42M hotel site

Cushman & Wakefield has closed on the sale of a development site at 292 Fifth Avenue to the McSam Hotel Group for $42,420,000.

Bob Knakal, John Ciraulo, Jonathan Hageman, Craig Waggner and Patrick Yannotta exclusively handled the sale.

“Recently we have seen a surge in development site activity citywide and this transaction demonstrates that positive trend. At $610 per buildable square foot for a hotel development site, this sale bodes well for the market moving forward,” said Bob Knakal.

McSam purchased the property from hotel developer Richard Born, who had planned to build his own hotel there.

According to the CO, McSam will building a 20-story, 150-key hotel with 16 residences above. The building will be designed by Gene Kaufman.


Price Chopper retail cut by Capstone

Holliday Fenoglio Fowler, L.P. (HFF) has closed the $15.1 million sale of Columbia Plaza, a 137,647 s/f grocery-anchored retail center in the Albany-area community of East Greenbush, New York.

HFF marketed the property on behalf of the seller, a partnership between Capstone Realty Group and WP Realty. Nigro Companies, based in Albany, purchased the asset free and clear of existing debt.  Anchored by Price Chopper, Columbia Plaza is 89.3 percent leased and home to Peebles, Dollar Tree, Pet Stop, Vineyard Wine & Spirit, and others. The three-building center was completed in 1988.

Situated on 14.6 acres at 501 Columbia Turnpike, Columbia Plaza is 3.5 miles southeast of Albany, one of the fastest growing areas in the state.

The HFF investment sales team that represented the seller was led by senior managing director Jose Cruz, managing director Kevin O’Hearn, directors Michael Oliver and Stephen Simonelli with assistance from senior managing director Andrew Scandalios.

“There was a great response to this offering given it’s a well leased grocery anchored retail center in the northeast,” Cruz said.  These assets are in high demand these days.”

Rob Friedberg, managing partner of Capstone Realty Group, said, “The sale of this property completes our value-add strategy of turning around properties in great locations in need of capital.”

Advalurem Group

New Yorker bags office bargain

New York-based Advalurem Group ihas acquired 1150 Northbrook Corporate Center, a 108,000 s/f Class A, multi-tenant office building in the Philadelphia MSA of Bucks County, Pennsylvania.

“Central business districts are becoming increasingly unaffordable and burdened by higher taxes and overall cost of doing business,” said Julie Tran, Director at Advalurem Group.

“We see the yield spread between CBD and suburban office widen beyond their historical average.”

As employers and employees shift away from CBDs, Advalurem Group continues its investment in institutional quality, suburban office properties that provide appealing work environments and are positioned for growth.

Northbrook Corporate Center was built at the end of 2007 at approximately $27 million. Now, less than ten years later, Advalurem Group has acquired the property for approximately 50 percent of replacement cost.

“Northbrook Corporate Center represents the last asset in a fund that has reached its ten-year expiration,” Advalurem Group founder and principal Gabriel Pozo said.

“This dynamic, coupled with valuations being much higher than when the property was originally constructed, has enabled us to purchase the property at a significant discount.”

The low basis provides Advalurem and its partners, including RedRiver and Lincoln Property, with an ability to upgrade on-site amenities to give existing and future tenants a high-quality office product at competitive lease rates.

Wharton Equity Partners

Wharton continues to bulk up on multifamily

Wharton Equity Partners has acquired Cedar Pointe, a 210-unit multifamily property located in Antioch, TN.

The property, built in 1988, was acquired from the original developer in an off-market transaction.

The purchase follows almost $400 million of multifamily acquisitions and dispositions the firm has undertaken over the last few years which have generated annual weighted average returns in excess of 20 percent.

Antioch is an emerging sub-market in Nashville, TN catering to residents seeking workforce housing.

“Cedar Pointe fits squarely with our strategy of purchasing assets in growing markets where we can … upgrade the character of a property and provide a wonderful living experience at a great value,” said Peter C. Lewis, President and founder of Wharton Equity.

Thor Equities

Thor buys Bowery retail

Thor Equities has bagged another Bowery retail property.

Sources say Joe Sitt’s firm paid $5.5 million for the retail condo at 259 Bowery, where Soho Contemporary Art is the tenant with a lease running trhough 2020.

The condo encompasses 3,000 s/f across the ground and lower floors and sits at the base of six-story pre-war building that has five full-floor lofts, including a duplex home currently listed at $5.5 million, according to StreetEasy.

The retail condo was sold by an LLC connected with artist-turned developer Charles Saulson.

Thor — which owns several properties in the neighborhood, including 306, 195 and 176 Bowery — declined to comment on the purchase.

However, a spokesman said, “An opportunity became available and we decided to buy the property as a long-term hold.”

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