June 10, 2014 | Issue 276
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Starwood Hotels & Resorts Is Developing Dual-Hotel Complex In Boston 

Brian McGuinness, senior vice president of specialty select brands for Starwood


   

BOSTON -- Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) is developing a dual-branded hotel complex in Boston, which will feature its Aloft and Element brands. The 330-room Aloft Boston Waterfront and 180-room Element Boston Waterfront will be located on D Street directly across the street from the Boston Convention & Exhibition Center.

 

"We look forward to opening this dual-branded Aloft and Element hotel complex as part of the ongoing redevelopment of the South Boston Waterfront, the city's fast-growing business and innovation district," says Brian McGuinness, senior vice president of specialty select brands for Starwood.

 

Aloft Boston Waterfront will include more than 10,000 square feet of meeting space, a pool, fitness center and Re:fuel by Aloft, a grab and go food and beverage area. Element Boston Waterfront will offer extended stay lodging, with studios featuring fully equipped kitchens and spa-inspired bathrooms. Facilities will include a fitness center, a pool and approximately 1,000 square feet of meeting space.

 

The 13-story Aloft Boston Waterfront will be separated from the eight-story Element Boston Waterfront by a hotel drive that runs perpendicular to D Street. The Aloft and Element will share a 120-space parking lot and each hotel will include more than 8,000 square feet of street-level retail and restaurant space.

 

The hotels are set to open in 2016. Construction on the $158 million project is already underway. RBS Citizens Financial Group and Santander Bank are providing $97 million in financing for the project.

 

A partnership between majority equity partner Ares Management-controlled funds and CV Properties will own the property, which will be developed on a 5.2-acre site leased from the Massachusetts Convention Center Authority (MCCA). Starwood Hotels & Resorts will operate the hotels.

 

"These two highly anticipated Starwood hotels will create 175 permanent jobs and 510 additional hotel rooms to help meet the rising demand for affordable, high-caliber lodging within walking distance of the Boston Convention & Exhibition Center," says James Rooney, MCCA's executive director. "This is one of several projects underway that will help keep Boston in the list of top meetings and convention destinations in the world."

 

Aloft and Element Boston Waterfront will be less than three miles from Logan International Airport. The dual hotel will be the second Aloft-Element dual hotel development in the Boston area. Aloft and Element Lexington opened in 2008.

 

The stock price of Starwood Hotels & Resorts Worldwide closed at $80.80 per share on Thursday, June 5, up nearly 23 percent from $65.77 per share on June 5, 2013.

 

-- Danielle Everson

 

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Weston Associates Reopens 150-Unit Swan Pond Village In Yarmouth 
Swan Pond Village offers 150 affordable residences in a mix of one-, two-, three- and four-bedroom units

YARMOUTH, MASS. -- Weston Associates has reopened Swan Pond Village, an affordable multifamily complex located at 1100 Alewife Circle in South Yarmouth. Situated on 30 acres, the 18-building complex features 150 affordable residential units, including 68 one-bedroom, 44 two-bedroom, 30 three-bedroom and eight four-bedroom units. Additionally, the complex includes a community building with a community room, as well as playgrounds, off-street parking, an on-site management office, 24-hour on-call maintenance and laundry facilities.  

 

Weston Associates recently completed capital improvements for the community including new roofs, windows, apartment interiors, bathrooms, HVAC systems, electrical upgrades and external site improvements. Weston Associates utilized the new Section 223(f) pilot program as part of the community's revitalization. I

 

In partnership with the U.S. Department of Housing and Urban Development, MassDevelopment, the Massachusetts Department of Housing and Community Development and private partners, Weston Associates financed the project by combining FHA loans, tax-exempt bonds and low-income housing tax credits to create a streamlined and efficient financing and redevelopment process.

 

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Sherwood Equities Tops Out 
500 West 21st Street In West Chelsea 
The 32-unit 500 West 21st Street will bring a mix of one-, two-, three-
and four-bedroom apartment units to West Chelsea.

NEW YORK CITY -- New York-based Sherwood Equities has topped out 500 West 21st Street, a condominium development located along the High Line in the heart of West Chelsea. Designed by Kohn Pederson Fox Associates, the 32-unit building will offer residences ranging from one to four bedrooms and set within a garden landscape with 40-foot trees and mature foliage. The property is slated for completion in spring 2015.  

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Jasper Venture Builds 25,000 SF
Shopping Center In Newark 

 

NEWARK, N.J. -- Jasper Venture Group is building a strip mall in Newark. Located near the New Jersey Turnpike, the completed shopping center will offer 25,000 square feet of combined retail and parking space. Jasper originally purchased the site in 2012 and plans to demolish the existing six-story building to construct the new shopping center. 


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One William Street Capital Acquires Bedrock Capital Associates 

 

NEW YORK CITY -- One William Street Capital Management has acquired Bedrock Capital Associates, a specialty finance firm focused on commercial real estate lending solutions. Bedrock was founded more than 10 years ago and serves a national client base from its offices in New York and San Francisco. Bedrock will continue to operate under the leadership of Barry Gersten and retain its own distinct brand identity. The transaction is subject to customary closing conditions and is expected to close by the end of June. Terms of the transaction were not disclosed.


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CBRE/New England Brokers $20 Million Midway Studios Sale In Boston 
The Midway Studios offers its artist tenants live/work space in Boston's Fort Point Channel district.

 

BOSTON - CBRE/New England's Capital Markets team has brokered the sale of Midway Studios, an 89-unit artist live/work community located in Boston's Fort Point Channel district. Midway Studio Associates, a joint venture between the Keen Charitable Foundation and the Fort Point Cultural Coalition, sold the property for $20 million to a joint venture between New Atlantic Development LLC and the residents of Midway Studios.  

 

 The property was originally built in 1912 and redeveloped into artist living space in spring 2005. The live/work studios, located on the second through sixth floors, are designed to accommodate a broad range of artists' mediums. The first floor features two-story space with approximately 24,740 square feet of office and retail space.  

 

The property is currently home to Elevin Studios, Studio Troika, Arts & Business Council of Greater Boston and The Club of George Foreman III. Additionally, Late July Snacks will move in this fall. Simon Butler and Biria St. John of CBRE/NE represented both parties in the transaction.

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SL Green Acquires Times Square Site For $41.1 Million  

 

NEW YORK CITY -- SL Green Realty Corp. has entered into an agreement to purchase 719 Seventh Ave. in Times Square for $41.1 million. Located on the southeast corner of 48th Street and Seventh Avenue, the site can accommodate a building up to 28,114 square feet in addition to highly coveted LED signage towers. SL Green plans to demolish the existing building to take advantage of the development rights. This acquisition will increase the size of SL Green's retail property portfolio, which features assets along New York City's primary retail corridors. The transaction is expected to close during the second quarter. David Berkley, a private investor, helped to arrange the transaction.  

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Tessy Plastics Acquires 112,644 SF Manufacturing Building In New York

 

SKANEATELES, N.Y. -- Tessy Plastics has acquired a 112,644-square-foot manufacturing and office building in Skaneateles. Situated on 31.1 acres at 700 Visions Drive, the modern, high-tech facility was built in 2002. The buyer plans to construct approximately 50,000 square feet of clean room manufacturing space, which will be used to produce minimally invasive surgical devices. The property was purchased from Hand Held Products, which will be leasing back approximately 32,000 square feet of office space. Jim Panczykowski of Binswanger's New Haven, Conn., office handled the transaction. The purchase price was not disclosed.  

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NorthMarq Arranges $16.2 Million Office Building Refinancing In Exter

Liberty Mutual and Baur Performance Sport occupy the 
263,914-square-foot office building in Exter, N.H.

EXTER, N.H. -- NorthMarq Capital's Boston office has arranged $16.2 million in refinancing for 100 Domain Drive in Exter. The loan was structured with a 10-year term and 25-year amortization schedule. John Sullivan of NorthMarq arranged the financing for the undisclosed borrower through its relationship with a local bank. Liberty Mutual and Baur Performance Sport, among others, occupy the 263,914-square-foot office building.

 

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Meridian Capital Arranges $13 Million Loan For Townhouse Conversion  

 

NEW YORK CITY -- Meridian Capital Group has arranged a $13 million mortgage for the acquisition of a townhome located on East 72nd Street in New York. The borrower, Mink Development, plans to convert the six-story, 13,300-square-foot property located at 39 E. 72nd St. into a luxury residential building. Madison Realty Capital provided the two-year, fixed-rate loan. Aggelos Sklavenitis of Meridian Capital Group arranged the financing.

 

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Marcus & Millichap Brokers $1.1 Million Multifamily Sale In Brooklyn 

 

NEW YORK CITY -- Marcus & Millichap has brokered the sale of 243 Senator Street, a multifamily property located in Brooklyn. A developer purchased the six-unit property for $1.1 million or approximately $244 per square foot. John Brennan and Mark Zarrella of Marcus & Millichap represented the seller, a private investor, and the buyer in the transaction.  

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DDR'S Joe Tichar: Making The Case
For Investing In Power Centers

 
By Matt Valley

Joe Tichar
DDR senior vice president


  

The second half of May was an especially busy time for DDR Corp., the Beachwood, Ohio-based real estate investment trust (REIT) that owns and manages a portfolio of primarily large-format power centers in 39 states and Puerto Rico.

 

DDR hosted more than 1,000 meetings with retail real estate executives and assorted shopping center industry professionals at the Bellagio Hotel in Las Vegas during RECon 2014. The three-day convention, which took place May 19-21 at the Las Vegas Convention Center, attracted more than 33,000 attendees from across the globe.

 

"The overriding theme for me coming out of RECon was the continued robust demand [for space] we're seeing from the best-in-class retailers, specifically in the power center format," said Paul Freddo, senior executive vice president of leasing and development for DDR Corp. during an investor presentation at REITWeek 2014 in New York City in early June. 

 

Added Freddo: "The question we get from these retailers who obviously we are dealing with on a daily basis is, 'How can you help me grow? How are you going to find me space in your centers, the centers I want to be in, and how do you get creative in doing it?'"

On May 29, just a week after the shopping center convention, DDR announced the launch of a multi-year lease termination initiative, known as Project Accelerate, which seeks to recapture high-quality anchor store locations across its portfolio. DDR currently owns and manages 396 shopping centers totaling 108 million square feet. 

 

Specifically, DDR is collaborating with retailers in the books, electronics, toys, office and traditional department store categories to "rightsize" their real estate footprints by regaining control of locations in advance of lease expirations. This initiative enables DDR to remerchandise its prime assets with "market-share-winning tenants" while realizing mark-to-market rental upside of 30 to 40 percent.

 

During the first phase of this initiative, DDR has identified 90 anchor locations, representing 3.3 million square feet of prime retail space that meet the company's criteria for accretive recapture. Of these leases, DDR has finalized terms to recapture 21 locations, representing 550,000 square feet primarily located in Boston, Cleveland, Denver, Orlando, Phoenix, Raleigh and San Antonio.

 

Demand for new store growth from retailers such as Nordstrom Rack, Sprouts Farmers Market, Ulta, Whole Foods, Five Below, HomeGoods, Fresh Market, Marshalls, Trader Joe's, White House Black Market, Gap Factory, Shoe Carnival, PetSmart and Carter's represents a select group of merchants that DDR is in discussions with to backfill the recaptured locations.

 

REBusinessonline.com sat down with Joe Tichar, DDR's senior vice president of corporate operations, early on the opening day of RECon 2014 to discuss the company's dominance in the power center category, its near-term strategy and the health of the American consumer.

 

Click here to read the entire Q&A with DDR's Joe Tichar

 
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Upcoming Events


Real Estate Opportunity and Private Funding Investing Forum

Overview: The 15th annual U.S. Real Estate Opportunity and Private Fund Investing Forum.
When: June 12-13, 11 a.m. to 6 p.m. 
Where: Marriott Marquis, 1535 Broadway, NYC
 

Residential Ethics Course
for New Members

Overview: Required non-credit course for new REBNY members. Registration is required.
When: June 24, 9 a.m. to 10:30 a.m. 
Where: REBNY Mendik Education Center, 570 Lexington Ave. (Lower Level), NYC
 

Certified Negotiation Expert Course

Overview: Sponsored by REBNY, the two-day course is for real estate professionals looking to obtain CNE certification or continuing education credits.
When: June 25-26, 9 a.m. to 5:30 p.m. 
Where: REBNY Mendik Education Center, 570 Lexington Ave. (Lower Level), NYC
 
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 Northeast Real Estate Business

 France Media, Inc.

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 northeast@francemediainc.com 

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