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Deals & Dealmakers

Selling points: World Wide Group buys next door neighbor, Partners close on $80M Williamsburg site

World Wide Group

World Wide Group buys next door neighbor

Building on the leasing momentum at their neighboring development, QLIC, World Wide Group just bought the apartment building next door.

Luna, a 124-unit property at 42-15 Crescent Street in Long Island City, was sold by Meadow Partners, who converted the 111,000 square foot development from office use to residential.

The Real Deal reported that Meadow Partners sold the property for “about $70 million” in a deal brokered by Rosewood Realty Group’s Aaron Jungreis.Meadow Partners paid $19 million for site in 2012,

Earlier this year, World Wide also acquired 110 Green Street from Meadow Partners, a 185,000 square foot residential property located in Greenpoint, Brooklyn.

Luna — which features a mix of studio, one- and two- bedroom apartments — is scheduled to begin leasing in May 2016 and will offer immediate occupancy to residents. World Wide has selected David Maundrell and his team at Citi Habitats as the exclusive leasing agents.

World Wide Group also announced that QLIC – which opened seven months ago – is 75 percent leased.

“We’re excited to open Luna as we complete the lease up of QLIC, which is leasing in record time,” said Rachel Loeb, director, World Wide Group.

“It’s clear that there is a great demand for this type of quality in Long Island City. We are welcoming residents from all across NYC in particular from Manhattan and Brooklyn; a testament to the transformation of the area into a thriving residential neighborhood. World Wide is looking forward to playing an even greater role in the continued growth of LIC.”

Cushman & Wakefield

Partners close on $80 million Williamsburg development site

Tavros Development Partners, in partnership with Charney Construction & Development and 1 Oak Development, have paid $80 million for a Williamsburg development site.

Cushman & Wakefield’s James Nelson, Brendan Maddigan and Matt Nickerson sold the property at 263-277 South 5th Street on behalf of The Dime Savings Bank of Williamsburgh.

“We were thrilled to be involved in this sale. The site is one of the most visible and will be a game changer for the area offering a mix of retail, residential and office which is greatly needed in the area,” said Nelson.

The site consists of a combined four properties (263-277 South 5th Street, 262-272 South 4th Street, 205 Havemeyer Street) and allows for a buildable envelope of approximately 230,000 s/f.

It spans 186 ft. along 263-277 South 5th Street and then runs block-through to 150 Marcy Avenue and 262-272 South 4th Street. Its C4-3 (R6) zoning designation permits both mixed-use and commercial development.

CIM / Kushner Companies

2 Rector trades for $225M

CIM Group and Kushner Companies have sold 2 Rector Street, a 26-story office building in the Financial District.

Kevin Hoo’s Cove Property Group and Bentall Kennedy, a pension fund, paid $225 million for the building, according to the New York Post.

Eastdil Secured’s Doug Harmon and Adam Spies brokered the deal.

Kushner and CIM bought the Downtown property for $140 million in 2013 from Stellar Management and Savanna.

The building was constructed in 1907 and is most recognized for its ornate façade, which has been preserved by the Trust for Architectural Easements (formerly known as the National Architectural Trust).

The building includes both office and ground-level retail space and spans a full block on Rector Street with additional frontage along Trinity Place and Greenwich Street.

CBRE

Charter Realty makes life science trade

Charter Realty Group has purchased a state-of-the-art life science building in Rockleigh, New Jersey.

The company bought 8 King Road from Marcus Partners as part of a 1031 exchange. The sale price was undisclosed.

CBRE ‘s Jeffrey Dunne, Kevin Welsh, and Brian Schulz of CBRE Institutional Properties in collaboration with Lee Asher and Chris Bodnar of CBRE’s Healthcare Capital Markets Group represented Marcus Partners, on behalf of its Marcus Capital Partners Fund I, L.P., in the sale.

The team was also responsible for procuring the buyer.

8 King Road is net leased to Spectra Laboratories on a long term basis and guaranteed by its parent company, Fresenius Medical Care Holdings, Inc.

The property serves as Spectra’s mission critical testing facility for the Eastern half of the United States.

Marcus Partners completed a major redevelopment of the property, which included new labs and testing facilities, new mechanical infrastructure and aesthetic enhancements.

Located in Bergen County, 8 King Road is 30 minutes from New York City and at the midpoint of the Boston to Washington DC corridor providing regional connectivity and accessibility for deliveries of samples across the Eastern half of the United States.

The area has attracted numerous healthcare and biotech companies by its educated and skilled workforce, proximity to quality housing options in Bergen and Rockland Counties, and developed highway infrastructure.

Dunne commented: “The sale of 8 King Road marks the end of a highly successful repositioning strategy and execution by Marcus Partners. Charter Realty Group was attracted to Spectra’s investment grade credit and substantial investment in the property and will benefit from secure long-term cash flow.”

Lotus Equity Group

Jersey stadium set to be redeveloped

Lotus Equity Group has purchased the Bears & Eagles Riverfront Stadium,in Newark, NJ, for $23.5 million.

Mayor Ras J. Baraka and Essex County Executive Joseph N. DiVincenzo, Jr. announced that the City of Newark, Essex County and the Essex County Improvement Authority had agree toi sell the property at 450 Broad Street “to increase taxable space and relieve the taxpayers of the stadium’s current $4 million annual debt-service obligation.ˮ

The stadium sits on a site ripe for development. The sale includes the stadium and more than 7.5 acres of land, all located near major forms of transportation.

The Lotus team is currenlty consulting with urban planners, designers and engineers to assess, conceptualize and recommend the development’s scope to ensure the project’s long-term viability.

“We believe that this is an incredibly exciting site for Newark,” said Ben Korman, founder of Lotus Equity Group. “Though we’re still in the midst of formulating plans for the land, we have the ability to create a vibrant, multifaceted downtown destination for residents and visitors alike.

“And as longtime investors in Newark, we understand this is a unique opportunity to harness the city’s incredible energy to build an enduring economic driver for generations to come.”

Mayor Baraka said, “This is a transformative, urban-development project that will bring jobs, housing and new opportunities to current Newark residents, new Newarkers, commuters and students alike. Everyone wins. We expect the Lotus development project to serve as a catalyst for others as we work to grow our city.”

Cushman & Wakefield

TAMI magnet fetches $52M

Cushman & Wakefield has arranged for the sale of the fee interest in 10 East 34th Street (aka 8-12 East 34th Street).

The property, which is located on the south side of East 34th Street between Madison and Fifth Avenues in Manhattan, was sold for $51.7 million.

The 10-story property has 53 ft. of frontage and consists of full-floor office units that the broker say are “exceptionally appealing to TAMI tenants.ˮ

There is one retail unit on the ground floor and nine office units above. The total rentable square feet is approximately 54,680 s/f plus an additional 2,500 s/f in the basement designed for use by the retail tenant. The sale price equates to approximately $946 per square foot.

Bob Knakal, chairman, New York Investment Sales at Cushman & Wakefield exclusively handled this transaction with John Ciraulo and Jonathan Hageman.

“This asset is the value-added opportunity that many office building investors are always looking for and the

response from the market illustrated this. We were very pleased with the results here,” said Knakal.

“With the retail delivered vacant and 61 percent of the building vacant by January 2016, 10 East 34th Street represented a great opportunity to own an office asset ready for repositioning in the increasingly hot Midtown South office market,” added Ciraulo.

Cushman & Wakefield

Maddigan tips his cap rate to Greenpoint buyer

Two buildings on one tax lot located at 760-764 Manhattan Avenue in Greenpoint, Brooklyn, were sold for $11,000,000.

The sale price equates to $709 per square foot and an in-place 4.3 percent capitalization rate.

764 Manhattan Avenue is a mixed-use building divided into four retail units and nine residential units, of which three are rent stabilized.

760 Manhattan Avenue, adjacent to 764 Manhattan, is occupied by RadioShack on the ground floor with a vacant commercial space on the second floor.

Combined, the buildings offer 15,500 s/f with 100 feet of frontage along Manhattan Avenue.

“The in-place income for 760-764 Manhattan Avenue was at half of market and offered significant growth potential,ˮ said Brendan Maddigan of Cushman & Wakefield ,who exclusively handled the transaction on behalf of the Hazelwood family. The buyer was AGMINE CORP.

“The low four percent capitalization rate highlights the demand for space along key retail corridors like Manhattan Avenue and Franklin Street which will support the droves of new residents slated for arrival in the next few years.”

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