Related drops $30M in Prospect Heights
Cushman & Wakefield’s Stephen Palmese has sold four multifamily assets on behalf of BCB Property Management. The buildings, located at 315-329 Lincoln Place between Underhill and Washington Avenues in Brooklyn’s Prospect Heights, were acquired by Related Companies in an all-cash transaction valued at $30,000,000 and for a 3.79 percent capitalization rate.
The five-story, walk-up buildings combine for approximately 52,543 square feet and occupy a combined lot size of 15,800 square feet. They are comprised of 13 two-bedroom, 11 three-bedroom and 24 four-bedroom apartments. The fifth floors on each building are recent additions and consist of two units each. Roughly half of the units were rent-stabilized at time of sale.
315-329 Lincoln Place benefits from close proximity to trendy restaurants like Bar Corvo and The Islands in addition to emerging retail like Soul Cycle and Bitter & Esters. Attractions like Brooklyn Museum and Brooklyn Botanical Garden located within Prospect Park are also nearby. The buildings can be conveniently accessed via the 2 and 3 train lines at the Eastern Parkway – Brooklyn Museum Station.
Joint venture buys Harlem portfolio
Pryor Cashman LLP announced that Partner Ronald B. Kremnitzer, Co-Chair of the firm’s Real Estate Group, along with Partner Danielle L. Schechner and Associate Ari L. Tran, represented an affiliate of Firm Capital, a Toronto-based private equity firm, in connection with a joint venture partnership with Rhodium Capital Advisors LLC. The partnership closed on the acquisition of a portfolio consisting of 7 multi-family properties located in Harlem, New York on December 21, 2016 for a purchase price of $36,955,000.00. The acquisition was partially financed through a Freddie Mac loan from Arbor Realty Trust, Inc.
Firm Capital operates as a boutique real estate and financial services private equity investment company deploying capital opportunistically between debt and equity in the real estate private and public markets. Firm Capital currently has approximately $2 billion in mortgage and real estate related assets under management, and is the largest non-bank lender in Canada.
Rhodium Capital Advisors was represented by Jeffrey Zwick & Associates, P.C.
GFI Realty LLC and FSA Realty Services LLC acted as real estate brokers on this transaction, while Palladium Capital Advisors LLC and Eastern Union Funding, LLC served as equity and mortgage brokers, respectively.
RADCO closes on Georgia complex
The RADCO Companies (RADCO) completed its 14th acquisition of 2016 with the closing of Legends at Dunwoody apartments in Atlanta, Georgia.
The 532-unit, Class B-minus property was renamed Radius Sandy Springs. It will be proudly managed by RADCO Residential, the Company’s proprietary management platform. Radius Sandy Springs is RADCO’s 66th acquisition since 2011 and its second community under its new Radius brand.
RADCO plans to spend upwards of $8.7 million on capital improvements to modernize the community, update its oversized apartments, and reset its economic clock. RADCO financed the acquisition using a $50.4 million Freddie Mac loan and $21.6 million in private capital. Since August 2011, the Company has raised over $500 million in private capital to fund its acquisitions, making it one of the largest private capital companies of its type in the nation.
SCOA closes on Atlanta Financial Center
Sumitomo Corporation of Americas (SCOA) announced the close of their purchase of Atlanta Financial Center, which consists of 3 Class A commercial office buildings. With a total of 914,774 square feet, Atlanta Financial Center is physically the largest property that SCOA has purchased to date.
According to published reports, Sumitomo paid in excess of $220M, or about $245 psf for the iconic building, which was sold by Hines Interests and its JV partner, General Motors Asset Management.
Anchored by Suntrust Bank and Morris, Manning and Martin, Atlanta Financial Center (AFC) is located in the prestigious Buckhead submarket of Atlanta, sitting directly on top of the Buckhead MARTA train station which connects the building to Midtown, Downtown and the Airport, while the Georgia 400 highway runs directly underneath. Additionally, the property sits in the heart of Buckhead’s highly affluent retail center that includes the Lenox Square mall and Phipps Plaza mall, as well as several high-end dining options. SCOA worked with an investment sales team at Eastdill Secured to complete the transaction.
The property currently boasts an 85 percent occupancy level across its three towers and a nine-level parking garage with 2,335 parking spaces.
SCOA plans to implement renovations that will create a more energy efficient property and raise its profile to the top of the building’s Class A set.
Although SCOA has a long history in real estate investments and development in the Atlanta metropolitan region, the acquisition of AFC is its first commercial office building investment in Atlanta. Over the past 30 years SCOA has invested in and developed residential communities such as Medlock Bridge and Hamilton Mill, as well as several apartment complexes; its newest investment being, The Heights, a new apartment complex in Atlanta’s Central Midtown area.
●GRIFFIN CAPITAL CORP.
Griffin acquires Class A office facility
Griffin Capital Corporation announced on behalf of Griffin Capital Essential Asset REIT II, Inc., the acquisition of a Class A, three-story, 125,735 square-foot office facility fully leased to Zoetis Services LLC and guaranteed by the Tenant’s parent company, Zoetis Inc. from Normandy Real Estate Partners and Partners Group.
The Property was originally constructed in 1984, but the Seller commenced a complete demolition and renovation after signing a lease in July 2015 with the Tenant for its global headquarters. The REIT purchased the Property for $44.0 million from Normandy Real Estate Partners and Partners Group.
The Property is located within the Mack-Cali Business Campus near Interstate 80 and Interstate 287, which are two of New Jersey’s main highways.
Jose Cruz and Kevin O’Hearn of HFF represented the Seller of the Property.
●Patriarch, Sioni group, Highgate
Group purchases Affinia Manhattan hotel
Patriarch Equities, Sioni Group, and Highgate announced that they have purchased the 618-room Affinia Manhattan NYC hotel through a joint venture.
Highgate has also assumed management of the property as part of the transaction. Pebblebrook Hotel Trust announced that the sale of the hotel closed at $217.5 million.
Patriarch Equities, founded by Isaac Chetrit and his son Abraham Chetrit, is a newly formed entity that focuses on acquiring and managing properties in New York City.
Proceeds from the sale of the Manhattan NYC will be utilized to repay the $140.0 million loan secured by the property and for general business purposes which may include further reducing the Company’s outstanding debt or repurchasing the Company’s common shares. The sale of Manhattan NYC closed on December 20, 2016.
Effective immediately, this upscale, full-service hotel has been re-branded the Stewart Hotel. The property is located at 371 Seventh Avenue, across from Madison Square Garden and Pennsylvania Station, just steps from Times Square and Fifth Avenue. The 28-story, 474,000-square-foot hotel features modern guest rooms and suites by acclaimed design firm Rockwell Group, as well as over 10,000 square feet of event space.
Hampshire Properties nabs CT apartment community
CBRE Group, Inc. announced that Jeffrey Dunne, Simon Butler, Biria St. John, Gene Pride and Eric Apfel of CBRE represented an affiliate of Fairfield Residential in the sale of Windshire Terrace, a 226-unit Class-A apartment community located in Middletown, CT to Hampshire Properties, LLC.
Built in 2000, Windshire Terrace offers convenient access to the region’s major employers in Hartford, New Haven and western Connecticut due to its proximity to I-91, I-84, I-691, Route 5 and 15.
The property boasts robust amenities that include a pool, clubhouse, cyber café, fitness center, playground, picnic areas and leasing office. Additional unit features include open floorplans, in-unit washers/dryers, gas fireplaces, vaulted ceilings and balconies.
The CBRE Institutional Properties specializes in the sale of investment properties in the suburban markets surrounding New York City, and also around the United States.