June 24, 2014 | Issue 280
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Fifth Avenue Office Building Sells
For $595 Million In New York City


The 26-story building offers 480,000 square feet of office space 
and 55,000 square feet of retail space.

NEW YORK CITY -- A partnership led by Thor Equities has purchased a 26-story office building in New York for $595 million. The property, 530 Fifth Avenue, occupies the entire block of Fifth Avenue between 44th and 45th streets.

 

The structure contains about 480,000 square feet of prime office space and another 55,000 square feet of retail space. Notable retail tenants include Desigual, JPMorgan Chase and Fossil. Office tenants include Massachusetts Mutual, Diageo North America, Cablevision, Lionsgate and Athyrium Capital.

 

The sellers, which purchased the building in 2011 and have invested more than $10 million to modernize its infrastructure, included Rockwood Capital, Jamestown, Murray Hill Properties and Crown Acquisitions. Eastdil represented the sellers in the transaction. The deal is expected to close in mid-September.

 

"530 Fifth's dynamic location and architectural features have provided a strong foundation from which to reposition this building as a top-tier asset," says Joe Gorin, Rockwood's managing director. "This property epitomizes Rockwood's strategy of investing in well-located real estate that provides an opportunity to outperform over the long term."

 

Fifth Avenue will always serve as an iconic location in New York City for retail and office space, says Michael Phillips of Jamestown. "Once we repositioned the 530 Fifth Avenue property with a renovated lobby, internal upgrades and amenities, it was with Eastdil's guidance we saw an opportunity to monetize the asset."

 

Thor Equities has partnered with General Growth Properties and RXR Realty on this off-market deal. The New York-based firm specializes in urban real estate development, leasing and management. Thor Equities targets retail and mixed-use assets in high-density areas.

 

-- Nellie Day

 

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Ingerman Tops Out Final Phase

Of Collings At The LumberYard

The final phase of The Collings at The LumberYard will feature
70 apartments, 12,000 square feet of office space and
1,500 square feet of retail space.

COLLINGSWOOD, N.J. -- Ingerman has topped out The Collings North, the second and final phase of The Collings at The LumberYard in Collingswood. The five-story building will feature 70 apartments, 12,000 square feet of ground-floor office space and 1,500 square feet of retail space. Located along Haddon Avenue, the second phase will feature one- and two-bedroom apartments ranging in size from 800 to 1,300 square feet. The pet-friendly residences will feature gourmet kitchens with quartz countertops, full-size washers and dryers, generous closet space and ENGERY STAR appliances.  

 

Additionally, the community features an outdoor courtyard with grill, covered parking, common-area WiFi, a community room and a fitness center. The Collings South, the community's fully leased first phase, offers 34 apartment homes featuring a mix of one-, two- and three-bedroom units, including seven townhomes with private entrances.

 

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IHG Opens First EVEN Hotels Property In Norwalk, Connecticut

The 129-room EVEN Hotel Norwalk is the first location 
for IHG's recently launched EVEN brand.

NORWALK, CONN. -- InterContinental Hotels Group (IHG) has opened its first EVEN Hotels property for the recently launched EVEN brand. Located at 426 Main Ave. in Norwalk, the 129-room hotel is designed to meet guests' desire to maintain a healthy lifestyle while traveling. The hotel features a three-zone Athletic Studio, including a flex room for spinning and yoga classes, and healthy food and beverage options from its Cork & Kale Market and Bar. The EVEN Hotel Norwalk is owned and managed by IHG. The brand currently has four hotels in the pipeline: one in Rockville, Md.; one in Brooklyn, N.Y.; and two properties in midtown Manhattan.

 

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30,000 SF Outpatient Medical Center  

To Open In Newton's Chestnut Hill Square

BID Healthcare-Chestnut Hill and BID's Advanced Urgent Care Center will occupy the fourth floor of Chestnut Hill Square in Newton, Mass.

NEWTON, MASS. -- Beth Israel Deaconess (BID) Healthcare-Chestnut Hill, a new major outpatient medical center, is slated to open in July, following the opening of BID's Advanced Urgent Care Center. Both services occupy the fourth floor of 200 Boylston St. in Newton's 240,000-square-foot Chestnut Hill Square development, which is owned by New England Development. 

 

The 30,000-square-foot, state-of-the-art facility will offer primary care and 20 medical and surgical specialties with physicians and staff from Beth Israel Deaconess Medical Center. Specialties offered at the BID Healthcare-Chestnut Hill will include OB/GYN and women's health, sports medicine with orthopedics, physical and occupational therapy, imaging with CT scanning, on-site labs, a spine center, acupuncture, and yoga. In addition, the center will offer surgical specialties including oncology, a breast clinic, colorectal and podiatry. 

 

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Fantini & Gorga Arranges $5.5 Million  

In Financing For Multifamily Project

The Turn at River Bend will bring 48 one- and two-bedroom
apartment units to West Bridgewater, Mass.

WEST BRIDGEWATER, MASS. -- Fantini & Gorga has arranged $5.5 million in construction and permanent loan financing for the development of The Turn at River Bend, a multifamily community in West Bridgewater. Located on SR 106 between South Main and East streets, the development will consist of four three-story buildings, each offering 12 one- and two-bedroom apartments, with one-quarter of the units designated for affordable housing. Casimir Groblewski of Fantini & Gorga arranged the financing with a Massachusetts-based cooperative bank for the borrower, 322 East Center Street LLC, an affiliate of The Battaglino Family LP.

 

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Cassidy Turley Brokers $43 Million Sale Of Riverworks Innovation Center

 

 

WATERTOWN, MASS. -- Cassidy Turley has arranged the sale of Riverworks Innovation Center at 480 Pleasant St. in Watertown. Farley White Interests sold the three-building office complex to Spear Street Capital for $43 million. Situated along the Charles River, Riverworks is a three- and four-story brick-and-beam office complex offering 200,000 square feet of space. The property was formerly the headquarters of Boston Scientific Corp. until the medical device company vacated the site. Farley White purchased the vacant property in 2010 and renovated it. David Pergola and Brian Doherty of Cassidy Turley represented the seller in the transaction.

 

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Cushman & Wakefield Brokers Acquisition Of 50,000 SF Office Property 
JD Companies has purchased the two-story, 50,000-square-foot
office building in Montvale, N.J.

MONTVALE, N.J. -- Cushman & Wakefield's Metropolitan Area Capital Markets Group has brokered the acquisition of 102 Chestnut Ridge Road in Montvale. JD Cos. purchased the property from an institutional seller for an undisclosed price. The buyer plans to relocate its headquarters to the two-story, 50,000-square-foot office building. Situated on five acres, the property is 76 percent occupied by Community Blood Services and NJ Lenders Corp. under long-term leases. Gary Gabriel, Andrew Merin, David Bernhaut and Brian Whitmer of Cushman & Wakefield negotiated the transaction. 

 

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PREIT Sells South Mall For $23.6 Million In Allentown, Plans Additional Sales 

ALLENTOWN, PA. -- Pennsylvania Real Estate Investment Trust (PREIT) has completed the disposition of South Mall for $23.6 million. Located in Allentown, the 406,000-square-foot mall is anchored by Stein Mart and Bon-Ton. Sales at the shopping center were $227 per square foot, and the non-anchor occupancy was 90.6 percent as of March 31.

 

Additionally, PREIT has entered into a sales agreement for the disposition of Nittany Mall in State College, Pa., and North Hanover Mall in Hanover, Pa. The 534,000-square-foot Nittany Mall is anchored by JC Penney, Sears, Bon-Ton and Macy's and has sales of $230 per square foot and non-anchor occupancy of 74.8 percent as of the end of March. The 452,000-square-foot North Hanover Mall is anchored by JC Penney, Sears, Dick's Sporting Goods and Burlington Coat Factory. Sales at the North Hanover Mall were $275 per square foot and non-anchor occupancy was 79.3 percent as of March 31, 2014. 

 

The sales per square foot and occupancies at these properties are below PREIT's portfolio average of $377 per square foot of sales and 90.3 percent non-anchor occupancy, making the properties ideal candidates for the company's disposition program. The buyers have not been disclosed.

 

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Meridian Capital Group Arranges 
$22.5 Million Multifamily Loan
The 58-unit apartment building was refinanced for $22.5 million.

 

 

NEW YORK CITY -- Meridian Capital Group has arranged a $22.5 million loan to refinance a multifamily property located at 680 West End Ave. in Manhattan's Upper West Side. Provided by a regional balance sheet lender, the five-year loan features a 3.33 percent fixed rate. Carol Shelby of Meridian's New York City office negotiated the transaction. The 13-story building features 58 apartments and seven professional units.

 

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Love Funding Secures $17.5 Million Loan For Camden Multifamily Building

 

CAMDEN, N.J. -- Love Funding has secured a $17.5 million loan for Broadway Townhomes, a 175-unit townhouse community in Camden. The loan is the first of its kind to be approved under the U.S. Department of Housing and Urban Development's Rental Assistance Demonstration program. The program allows proven financing tools to be applied to preserve and upgrade at-rise public and assisted housing and provides for a long-term Section 8 rental assistance contract. The property will be renovated using tax-exempt bonds provided by the New Jersey Housing and Mortgage Finance Agency in combination with 4 percent low-income housing tax credits and the proceeds from the loan, which is being insured through HUD's 221(d)(4) program. Leonard Lucas of Love's Boston office arranged the transaction. 

 

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Meridian Capital Arranges $18 Million Loan For 200,000 SF Office Property 

The 200,000-square-foot office building was refinanced for 
$18 million.

 

 

NEWARK, N.J. -- Meridian Capital Group has arranged an $18 millionloan to refinance 570 Broad Street, a 200,000-square-foot office building in Newark. The borrower, Berger Organization, received a seven-year loan featuring a 4.25 percent fixed rate, which was provided by a regional balance sheet lender. The 15-story office building is located within minutes of the Garden State Parkway, New Jersey Turnpike, Routes 1, 9, 21 and 22, and Interstates 280 and 78. Tal Bar-Or and Kyle Kite of Meridian's New York City office negotiated the refinancing.

 

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Sabre Real Estate Brokers $17.1 Million Brooklyn Retail Property Sale 

Acadia Realty Trust has acquired 2520 Flatbush Avenue
in Brooklyn for $17.1 million.

NEW YORK CITY -- White Plains, N.Y.-based Acadia Realty Trust has purchased a two-parcel, 1.38-acre site at 2520 Flatbush Ave. in Brooklyn. Capital One Bank sold the property for $17.1 million. The 30,000-square-foot property is leased to Capital One Bank and Bob's Discount Furniture. The acquisition also included a sale-leaseback with Capital One Bank for its portion of the property. Corey Gluckstal and Guy Canzoneri of Sabre Real Estate Group represented the buyer in the transaction.

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Madison Realty Capital Sells 20-Unit Multifamily Property For $12.28 Million

 

NEW YORK CITY -- Madison Realty Capital (MRC) has completed the disposition of 150 West 84th Street for $12.28 million. The five-story, 13,260-square-foot building consists of 20 residential units. MRC originally purchased the property in 2012 for $7.1 million and spent the last two years renovating and repositioning the building. The buyer was not disclosed.

 

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GFI Realty Services Brokers 
$3.95 Million Apartment Building Sale
The eight-unit apartment building sold for $3.95 million.

 

NEW YORK CITY -- GFI Realty Services has brokered the sale of 205 St. James Place, a four-story, walk-up apartment building in Brooklyn's Clinton Hill neighborhood. The eight-unit property sold for $3.95 million, or $494,000 per unit, which translates to 17.5 times the rent roll. Constructed in 1930, the 9,316-square-foot building is located within walking distance of the Clinton-Washington Avenues and Franklin Avenue subway stations, which service the C, G and S lines. Shlomo Antebi of GFI represented the seller and Joseph Landau of GFI represented the buyer. Both the seller and buyer are local investors. 

 

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CBRE Group Arranges $3.3 Million Industrial Purchase In Parsippany

 

PARSIPPANY, N.J. -- CBRE Group has arranged the purchase of 20 East Halsey Road in Parsippany. GTJ REIT purchased the 75,000-square-foot industrial flex property for $3.3 million. Situated on 7.8 acres, the property has been vacant for more than 20 years. The buyer plans to refurbish the property to accommodate either a single or multiple tenants. Thomas Mallaney and Susan Branch of CBRE represented the buyer in the transaction.

 

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New Haven Register Leases 18,000 SF Office Space In New Haven

 

NEW HAVEN, CONN. -- The New Haven Register has leased 18,000 square feet at 100 Gando Dr. in New Haven. The New Haven Register will occupy two floors of the building, which is known as the Star Supply Building. The new space will house a modern workspace and offer on-site parking for the company's 160 employees. Praxis Commercial, along with Tim Fegan and David Hansen of CBRE, brokered the transaction for the The New Haven Register. 

 

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Effective Leveraging For Big Data Analytics, CRE's New 'Moneyball' 
 
By Scott Reid

Craig Gillespie, CEO, Manhattan Software Group


 
NEW YORK CITY -- Manhattan Software, a provider of Integrated Workplace Management Systems (IWMS), recently released Manhattan Analytics (MA), making it available to over 500 corporate clients in the industrial, financial, technology, media, healthcare and energy sectors in 140 countries on five continents. Nearly half of the company's client base resides within the Fortune 1000. CIO Review ranked Manhattan Analytics among the top 100 data-analytics advances of 2014 for all industries. 
 
Craig Gillespie, CEO of Manhattan Software, explains that Manhattan Analytics is the first CRE enterprise system to offer comparative analytical capabilities. "Manhattan Analytics solves a long-running need where we allow all opt-in clients to benchmark against a database of peer organizations in real time on an aggregated level," he says. "The benchmarking is tied to multinational organizations that are already Manhattan Software clients, so they can leverage higher ROI on their Computer Aided Facilities Management (CAFM) and IWMS investments with Manhattan Analytics." 
 
Without platforms like MA, companies would be severely hampered by a lack of transparency that is critical for well-informed management of their real estate portfolios. That's because IWMS- and CAFM-based systems that drive MA in real time have information detailing location, occupancy, space utilization, lease terms, size, total cost of occupancy and trending of value versus cost by building. These are often used as indicators to determine outcomes like productivity, speed-to-market and competitive advantage. 
 
There's evidence to support this. The number one trend cited in a recent JLL forecast on 14 workplace trends for 2014 is 3D visualization of facilities by interoperable databases and systems from within corporate-client real estate portfolios. 
 
According to Gillespie, Manhattan has raised the visibility of IWMS to the level of ERP enterprise-level systems, a significant development considering how facility and workplace performance are now tied to organizational performance and, of course, big data analytics. 
 
REBusinessOnline.com sat down with Gillespie to better understand some of the strategy and benefits behind Manhattan Analytics, which he views as effective leverage for "CRE's new Moneyball: big data analytics."
 
Click here to read REBO's Q&A with Manhattan Software's Craig Gillespie.
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