Onwards and upwards as firm closes $60M sale
Treetop Development has completed the $60 million sale of a portfolio of 12 mixed-use apartment buildings in Manhattan’s burgeoning Upper West Side neighborhood.
The sale price represents a 31 percent internal rate of return for the properties which were originally purchased by the Teaneck, N.J.-based real estate concern in 2012.
The transaction reflects the growing strength of the apartment market bordering Harlem and the Upper West Side which has gained popularity in recent years among students, young professionals and middle-class working families looking for an alternative to New York City’s high-priced rental neighborhoods.
Treetop Development sold the portfolio of 153 apartment homes and 23 commercial spaces to the Orbach Group, a New Jersey-based real estate investment firm.
“The market for multi-family buildings stretching from 96th Street to 115th Street has been strengthening in recent years as a dramatic rise in rents has made apartment assets an institutional class that investors are actively seeking to own,” said Adam Mermelstein, a principal of Treetop Development.
Treetop Development initially purchased the Upper West Side portfolio for $36 million in February of 2012 and competed $7 million in capital improvements.
Treetop Development is now planning expansion north, taking advantage of acquisition opportunities in emerging neighborhoods in Central Harlem, Washington Heights and Inwood.
The company is currently in contract on over 300 units in these locations
● simon barron / quadron
LIC apartment building has royal connection
Simon Barron Development Group announced the firm has closed on its $54M purchase of a Long Island City development site with JV partner, Quadrum Global, an international investment firm.
The site will be transformed into a new 45-story residential rental apartment building and construction is expected to start later this year.
SBD and Quadrum purchased the 29-26 Northern Boulevard site from Simon Dushinsky’s Rabsky Group.
Rabsky had begun to develop the project located near Queens Plaza into 415 apartments, with commercial space on the ground floor. Minimal changes will be made to the project’s original design by the SBJ Group, which also designed the Edge condominium in Williamsburg.
Oleg Pavlov, CEO of Quadrum, noted this is the firm’s second major transaction this year in addition to the acquisition of 1 Queen Anne’s Gate Buildings, a site located close to Queen Elizabeth’s Buckingham Palace in London.
The LIC building will be named QE7 after its location near the Q, E and 7 train stations
●cbre group, inc
Morris Corporate Center sold
CBRE Group Inc. announced that Jeffrey Dunne, Kevin Welsh, Brian Schulz and Frank Maresca, all with CBRE’s New York Institutional Group, represented STRS Ohio, in the $82.4 million sale of Morris Corporate Center 1 & 2 located in Parsippany, N.J.
The CBRE team of James Gunning and Charles Foschini was responsible for procuring the buyer, Brookwood Financial Partners.
Morris Corporate Center 1 & 2 is a 529,362 s/f office property comprised of two four-story buildings situated on 31 acres within the 182-acre Morris Corporate Center campus containing preserved woodlands, jogging trails, ponds and a magnificent waterfall unmatched in the New York Metropolitan area.
At the time of the sale, the property was leased to a range of global investment grade companies including Zurich Insurance, Medtronic, Ralcorp, and Farmers Insurance.
CBRE has been reselected to serve as the exclusive leasing agent and property manager of Morris Corporate Center 1&2. The firm has more than 10 years of experience leasing and managing the property.
CBRE New Jersey’s team of Leo Paytas, Greg Barkan, Garrett Rioux, and Erin Wenzler will oversee leasing on behalf of Brookwood. The team of Neil Kurtz, Helen Samuelson and Ria Di Popolo will oversee management of the property.
● THOR / ROCKWOOD CAPITAL
Thor closes on West End apartment buy
The residential division of Thor Equities, in partnership with Rockwood Capital, has acquired a pre-war rental apartment property at 838 West End Ave on the corner of 101st Street, the two firms announced.
“More than ever, the Upper West Side remains the classic New York City neighborhood with stunning architecture, great parks, fine dining and more,” said Joseph Sitt, CEO of Thor Equities.
“838 West End Ave. is a trophy pre-war property and is the quintessential Upper West Side apartment building.”
838 West End, one of the few rental properties on the avenue, includes 108,000 s/f and 70 units.
“Rockwood is pleased to partner with Thor as we continue to invest in the growth and vibrancy of Manhattan. Purchasing this extraordinary building, in a high-demand area and with character that cannot be duplicated, fits with our strategy of investing in well-located real estate that provides opportunity to outperform over the long term,” said Arne Arnesen, senior managing Director at Rockwood.
Thor’s Alan Klein added, “This property exemplifies the rarity that is the Upper West Side — oversized apartments, river views, quiet tree-lined streets and easy access to great shopping and dining, all while being just a short subway ride to Midtown.
“We are excited to be part of the Upper West Side community and look forward to the potential this property offers.”
Steven Vegh, president of Westwood Realty Associates, was the exclusive broker on the deal.
● massey knakal
Jamaica site ready and
Massey Knakal has been retained to sell a development site at 163-05/25 Archer Avenue in Jamaica, Queens. The asking price is $22,000,000.
The property is comprised of two contiguous lots which combine for approximately 719,736 buildable square feet. It currently holds a single-story, retail building and a seven-story parking garage.
The site is located across from York College and close to St. John’s University.
Given its large footprint, substantial frontage, and proximity to neighborhood amenities and transportation, this site offers an opportunity for commercial and/or residential development in an area in need of both, said the sales broker.
“With several residential development projects currently underway in downtown Jamaica, the retail needs of the neighborhood continue to escalate in an already underserved market,” said Massey Knakal’s Brian J. Sarath, who is exclusively marketing this property.
“This site, with its considerable footprint and prominent location would be ideal for a large mixed-use development project to serve the retail and residential demands of the area.”