NEW YORK CITY — Locally based brokerage firm Stav Equities has arranged the $5.7 million sale of two multifamily redevelopment sites in Brooklyn. The buildings at 21 Montauk Ave. and 22 Milford St. were previously used as storage facilities for a local furniture business. The buyer, Moses Rabinowitz, plans to redevelop the sites into apartment buildings totaling 96 units. Jacob Stavksy of Stav Equities represented Rabinowitz and the undisclosed seller in the off-market transaction.
NEW YORK CITY — Locally based firm Extell Development Co. has topped out a 30-story, 435,000-square-foot medical office project at 1520 First Ave. on Manhattan’s Upper East Side. Designed by Perkins Eastman Architects, the building will occupy a full city block between East 79th and East 80th streets and house ambulatory care and surgical facilities. Additional building features will include multiple outdoor terraces and mechanical systems to enhance comfort and energy efficiency, as well as ground-floor retail space. The Hospital for Special Surgery (HSS) has preleased eight floors totaling 195,580 square feet to serve as the facility’s anchor tenant. HSS will house orthopedic and rheumatology physician’s offices, as well as ancillary services for treatment of musculoskeletal conditions. Newmark has been tapped to lease the remainder of the space. Lendlease provided preconstruction management services for the project, full completion of which is slated for the second quarter of 2025.
HYDE PARK, N.Y. — Pennsylvania-based developer Shaner Hotel Group has completed a $55 million Marriott-branded hotel in Hyde Park, about 90 miles north of New York City. Marriott will operate the 137-room hotel, which will be located within the $1 billion Bellefield at Historic Hyde Park mixed-use development, under its Residence Inn brand. Amenities include a fitness center, onsite restaurant and a convenience mart. T-Rex Capital Group is the master developer of Bellefield at Historic Hyde Park.
SEEKONK, MASS. — MassDevelopment has provided $11 million in tax-exempt bond financing to The Wheeler School in Seekonk, located outside Providence in southern Massachusetts. The college preparatory day school will use the proceeds to build a new pool, preschool facility and make other improvements to the campus. Construction is expected to begin in the coming weeks and to be complete by 2025. Berkshire Bank purchased the bond.
NEW YORK CITY — Cushman & Wakefield has brokered the $7 million sale of a multifamily development site in The Bronx. The site at 3083 Webster Ave. can support approximately 100,000 buildable square feet of product. Jonathan Squires, Josh Neustadter and Austin Weiner of Cushman & Wakefield represented the seller, Atlantis Management, in the transaction. The buyer, SKF Development, plans to build an affordable housing complex that will be financed with Low-Income Housing Tax Credits and subsidies from the NYC Department of Housing Preservation & Development and NYC Housing Development Corp.
SOMERVILLE, N.J. — Marcus & Millichap has arranged the $4.2 million sale of a 10-unit apartment building in Somerville, about 50 miles southwest of Manhattan. The building at 28-32 W. Main St. offers one- and two-bedroom units and houses two retail spaces that are occupied by a bank and an art gallery. Brent Hyldahl and Alan Cafiero of Marcus & Millichap represented the undisclosed seller in the transaction and procured the buyer, Harborpoint Residential.
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Lee & Associates Report: Industrial, Office Sectors Face Challenges as Retail, Multifamily Show Positive Trends
Economic headwinds such as elevated interest rates and persistent inflation led to mixed outcomes in the first quarter for industrial, office, retail and multifamily sectors, with market observers anticipating a contracting economy, as outlined by Lee & Associates’ 2024 Q1 North America Market Report. On the industrial front, market pressures — including interest rates and supply chain challenges — led to higher vacancy in the United States in the first quarter of the year. U.S. office space experienced its fifth consecutive year of contraction, as office worker attendance stagnated. Additional challenges, in the form of loans maturing in a high-rate environment, signal further challenges in the near future for the office landscape. Continued merchant demand, reduced closures and bankruptcies and limited supply converged to create a feeding frenzy for retail space, with vacancies at historic lows. And finally, geographically based factors drove multifamily markets, many of which (especially in the Midwest and Northeast) experienced a rebound in apartment demand fueled by rising consumer sentiment and moderating inflation, despite supply outpacing demand. Lee & Associates has made their full, first-quarter report available here (with breakdowns of cap rates by city, vacancy rates, market rents, inventory square footage and more). The summaries from each sector …
WINSLOW TOWNSHIP, N.J. — CBRE has arranged a $29 million loan for the refinancing of Mi-Place at Brightmoor, a 144-unit apartment complex in Winslow Township, about 30 miles south of Philadelphia. The garden-style property consists of six buildings that house one-, two-and three-bedroom units. Amenities include a pool, fitness center and a resident clubhouse. An entity managed by Argentic Investment Management provided the three-year loan to the borrower, Fernmoor Homes, which is also planning additional phases for a total of 312 units. Matthew Klauer and Cassandra Russell arranged the debt.
PHILADELPHIA — Greystone has provided a $20 million Freddie Mac loan for the refinancing of Ray Philly, a 110-unit apartment building in the city’s South Kensington area. The newly constructed building houses studio, one- and two-bedroom units and amenities such as a fitness center, rooftop garden and a coworking lounge with a kitchen. Steven Vainer of Greystone originated the loan, which carries a five-year term, fixed interest rate and a 30-year amortization schedule. The borrower is a partnership between Ray, a family office that specializes in multifamily development, and Six Acre Capital.
NEW YORK CITY — A joint venture between two locally based investment firms, Zar Property NY and HPNY, has acquired a 57,000-square-foot office building located at 26-30 W. 61st St. in Manhattan’s Lincoln Square area. At the time of sale, the property was fully leased to the New York Institute of Technology, which has 24 months remaining on its lease. The seller was The Brodsky Organization. The joint venture purchased the property in an all-cash transaction.