Real estate experts continue to keep a close eye on the Manhattan retail market in 2018. Having wrapped up 2017 with challenges and opportunities for landlords and tenants alike, it appears the biggest strides toward adjusting to new conditions are behind us, though further rent adjustments are never out of the mix. At year-end 2017, average asking rents across Manhattan’s 16 main retail corridors declined by 18.4 percent, compared to those from year-end 2016, while availabilities ticked up slightly. Leasing velocity was strong in 2017 with 2.6 million square feet of transactions closing during the year, posting a year-over-year increase of 8.2 percent. Food and beverage tenants dominated the market in terms of deal volume, inking 172 leases (the most in Manhattan) at year-end 2017, which encompassed nearly 556,000 square feet. The apparel industry also posted strong numbers in 2017, leasing 459,200 square feet of space across 91 deals. 2017 data shows that SoHo was the most active neighborhood in terms of square footage leased (approximately 227,000 square feet) and the number of closed deals (43). The neighborhood outpaced the runner up, Midtown West, by more than 60,000 square feet. After suffering from consistently high vacancy rates, SoHo is …
GREENPORT, N.Y. — Cushman & Wakefield has negotiated the sale of Claudio’s Restaurant, a retail complex located at 111 Main St. in Greenport on Long Island’s North Fork. The property consists of three restaurants, including Claudio’s, Claudio’s Clam Bar and Crabby Jerry’s as well as two deep-water docks and 2.1 acres of developable land. Claudio’s is the oldest family-owned restaurant in the United States, and has been open since 1870, according to Cushman & Wakefield. Guthrie Garvin, Michael Gembecki and Alexander Ball of Cushman & Wakefield represented the seller, The Claudio Family in the transaction. Perry Weitz, David Weitz, Ian Behar and Ryan Sasson were the buyers. The sales price was not disclosed.
NEW YORK CITY — Madison Realty Capital and an investment fund managed by an affiliate of Apollo Global Management LLC have provided a $155 million loan to Sumaida + Khurana and LENY Equities for the construction of a 35-story condominium in the Hudson West neighborhood of Manhattan. Located at 611 West 56th St., the building will feature 83 units as well as a landscaped roof garden and sundeck. The building, which was designed by Pritzker Prize-winning Portuguese architect Alvaro Siza, is being co-developed by Sumaida + Khurana and LENY Equities. Carl Schwartz and Susan Saslow of Hunton Andrews Kurth LLP provided legal representation for the joint venture. Adi Chugh of Maverick Capital Partners arranged the financing.
NEW YORK CITY — Rosewood Realty Group has brokered the $287 million sale of Stonehenge Village, a 420-unit, three-building apartment community on the Upper West Side of Manhattan. Aaron Jungreis of Rosewood Realty represented both the buyer, A&E Real Estate Holdings, and the seller, Ofer Yardeni’s Stonehenge Partners. The seller acquired the property for $115 million in 2005. Signature Bank and Mesa West Capital provided $145 million in acquisition financing to A&E for the purchase of the property. The buildings, which were built in 1968, total 69,605 square feet. At the time of sale, the buildings were 98 percent occupied, with a mix of free-market and rent-stabilized tenants.
NEW YORK CITY — Lightstone, a national real estate investor and developer, has acquired the 183-room Hilton Garden Inn in Long Island City, Queens for $60 million. The hotel is located at 29-21 41st Ave. Lightstone plans to continue operation of the hotel, which was constructed in 2015, as a Hilton Garden Inn for the immediate future. The developer opened the 612-room Moxy Times Square hotel in fall 2017 and plans to open the 37-story, 349-room Moxy Chelsea hotel this fall. The acquisition of the Hilton Garden Inn is a joint venture between Lightstone’s REIT II and REIT III.
NEW YORK CITY — Madison Realty Capital has provided a $72 million first-mortgage loan for the nearly completed condominium development in the Chelsea neighborhood of Manhattan. The financing retires the previous debt of the borrower, Highline Development Group. The property is being developed by Highline and Tamarkin Co. Currently in the final stages of interior construction, 550 West 29th St. will include 19 residential units and 5,022 square feet of ground-floor retail space. The property is adjacent to the High Line between 10th and 11th avenues. Amenities will include a 24-hour doorman, fitness center, sauna and storage units for each residence. Select units will have private terraces. Prices range from $4.6 million to $13.5 million. The project is expected to be completed in mid-2018.
NEW YORK CITY — Marcus & Millichap has brokered the sale of a 10,001-square-foot retail property in the Jackson Heights neighborhood of Queens. The property, which is located at 74-12 to 74-24 37th Ave., sold for $16 million or $1,600 per square foot. The buyer was the estate of Fazlur Khan. Dana Newton, Donovan Mackey and Scott Plasky of Marcus & Millichap represented the seller, Chui King Yee in the transaction. Nineteen offers were received on the property, according to Newton. The property was fully occupied with long-term tenants at the time of the sale.
GLENS FALLS, N.Y. — Muroff Daigle Hospitality Group has negotiated the sale of The Landmark Motor Inn, located in Glens Falls, for $3.6 million. Glens Falls is approximately 14 miles north of Saratoga Springs. The seller was John Naja of Landmark Motor Lodge Corp., who had owned the property for more than 43 years. The buyer was Nadeem Lodging Corp. Glens Falls National Bank and the U.S. Small Business Administration provided financing for the project. The Landmark Motor Inn contains 77 updated guestrooms as well as two pools and a fitness center. Muroff Daigle and Vanguard–Fine LLC brokered the transaction.
NEW YORK CITY— SL Green Realty Corp. (NYSE:SLG) and joint venture partner Ivanhoé Cambridge have agreed to sell their office condominium space at 1745 Broadway in Manhattan for $633 million. The 930,000-square-foot tower includes retail spaces, offices and residential condominiums. SL Green and Ivanhoé will sell their portion of the property, totaling 674,000 square feet and spanning floors two through 26, to an institutional client of Invesco Real Estate. In deals separate from Ivanhoé Cambridge, SL Green also agreed to sell two suburban office properties in New York —115-117 Stevens Ave. in Valhalla and Reckson Executive Park in Rye Brook — to two different buyers for a combined price of $67 million. The transactions are expected to generate combined net proceeds to SL Green of approximately $190 million, which will be used toward the company’s $1.5 billion stock repurchase program. To date, SL Green has repurchased a total of 12.3 million shares. “We continue to make strategic divestments of non-core assets to both support the stock repurchase program and strengthen our portfolio,” says Isaac Zion, co-chief investment officer of SL Green. 1745 Broadway occupies the entire block front between 55th and 56th streets and is located three blocks from Central Park and …
NEW YORK CITY — Cushman & Wakefield has brokered the $12.8 million sale of a commercial building and lot in the Gowanus neighborhood of Brooklyn. Located at 80 4th St., the purchase includes a 180-by-107-foot lot and a 17,942-square-foot, single-story, brick warehouse. Winfield Clifford and William Barrett of Cushman & Wakefield represented the seller, sculptor Tom Otterness, in the transaction. The final closing price of $12.8 million equates to approximately $714.40 per square foot and more than $300,000 above the original asking price. The buyer was The Brooklyn Home Company. The property is located in an M3-1 zoning district, allowing for 35,954 square-feet of commercial development.