America’s $3.5 trillion retail sector is going through tough times. E-commerce has cut into the conventional brick-and-mortar market by roughly 12 percent, an impact that has decreased rents, increased retail vacan- cies and left landlords increasingly anxious. But even in this period of widespread adjustment, the number of store openings nationwide has outpaced closings. We see this in Fairfield County, Connecticut, with first-quarter vacancy rates in 2018 totaling 3.7 percent, 30 basis points lower than one year ago, according to CoStar Group. The retailers that aren’t surviving are those that aren’t adapting to con- temporary market dynamics. Techno- logical and social disintermediation create the chaotic decision-making process of adapt or perish. Still, amid today’s anxieties, here are three examples of adaptation that offer promise. Selling an Experience Stores that are succeeding today are often the ones that have realized that retail is now less about selling goods and more about selling an experience. Below we offer two examples in Fairfield County, both designed to add a stimulating overlay of experience into typically more tepid retail settings. The first illustration of a retail experience is the indoor adventure ropes course located within furniture and mattress retailer Jordan’s 150,000-square-foot showroom along New Haven’s Long Wharf. Touted …
The industrial real estate sector across the Northeast continues to exhibit strong rent growth due to a number of factors: increased tenant demand, decreased supply and the ever-growing presence of e-commerce companies. In the five largest metro areas, rent growth over the 12-month period that ended June 4 averaged 6.2 percent, according to CoStar Group. The vacancy rates in those same markets were all at or below 6 percent as of June 4. The Northern New Jersey industrial market led the way with rent growth climbing 8.2 percent over the 12-month period, followed by New York (+7 percent), Boston (+ 6.3 percent), Philadelphia (+ 5.3 percent), and Pittsburgh (+ 4.6 percent). In each case, the spike in rent was more than double the historical average. “Supply is really struggling to keep pace with demand,” says Alex Previdi, managing director of Transwestern’s New Jersey office. “There’s an abundance of large tenants that are looking for industrial space and there’s just not a lot of options out there.” On the demand side, the New York market led the way with a 12-month net absorption of 7.6 million square feet, followed by Philadelphia (6.6 million square feet), New Jersey (3.4 million) square feet, …
HOBOKEN, N.J. — Spirit Bascom Ventures has acquired Columbus Park Apartments, a 37-unit multifamily community in Hoboken for $17.6 million. Located at 1024 Clinton St., the eight-story property is a former warehouse that was converted to multifamily use in the 1990s. The community also includes a 37-space parking structure. Stephen Simonelli of HFF and James Giaccio and Kevin Helsinki of Chelsea Realty represented the undisclosed seller in the transaction. HFF arranged acquisition financing through CIT Group. Spirit Bascom Ventures is a partnership between The Bascom Group LLC and Spirit Investment Partners LLC. The buyer plans to reposition the asset as a boutique institutional-quality property.
NEW YORK CITY — TerraCRG has arranged the sale of a 55,000-square-foot industrial facility in the Brownsville neighborhood of Brooklyn. The property sold for $8.5 million, or $155 per square foot. Ofer Cohen, Dan Marks, and Mike Hernandez of TerraCRG represented the seller, Joseph Robles, in the transaction. The buyer was undisclosed. The building features open layouts with two drive-in doors and 13-foot ceilings on both levels as well as 290 feet of frontage on Osborn Street.
NEWTOWN, CONN. — Senior Lifestyle Corp. has broken ground on Church Hill Village, a 71-unit assisted living and memory care community in Newtown, located approximately midway between New York City and Hartford. The community will feature 49 assisted living apartments and 22 memory care apartments. The 66,000-square-foot building will be situated on four acres. Development partners for the project include Teton Capital Co. and JRP Architects. The community is scheduled to open in summer 2019.
MERIDEN, CONN. — Pennrose has opened Meriden Commons I, a 75-unit multifamily community in Meriden. The community is the first of a two-phase transit oriented development that will bring 151 mixed-income apartment units and more than 6,500 square feet of retail space to the City of Meriden. Once completed in the fall of 2019, Meriden Commons II will consist of 76 mixed-income apartments. Located at 161 and 177 State St., Meriden Commons I and II are within close proximity to downtown Meriden and Meriden’s Amtrak Center.
NEW YORK CITY — Cushman & Wakefield has negotiated the $1.6 million sale of a multifamily building in the Jackson Heights neighborhood of Queens. Stephen R. Preuss, Denise Prevete and Kevin Louie of Cushman & Wakefield represented the seller, Tina M. Ng & Katherine Y. Ng, in the transaction. The buyer was Harry Otterman. Located at 35-15 72nd St., the three-story property consists of six units. Recent upgrades to the building include an updated roof, and boiler within the past four years.
ATLANTIC HIGHLANDS, N.J. — KRE Group, in partnership with Verde Capital, has acquired Thousand Oaks Village, a 304-unit garden-style apartment property in Atlantic Highlands. The 36-acre property sold for $56 million. The seller was not disclosed. Located at 165 Thousand Oaks Drive, the community will be renamed Atlantic Pointe after capital investments that will include unit renovations and upgrades to amenities. Thousand Oaks Village is KRE Group’s fifth garden apartment acquisition within New Jersey in three years.
NEW YORK CITY — Madison Realty Capital has provided a $38 million construction loan for the development of a new hotel in Midtown, Manhattan. The borrower, McSam Hotel Group led by New York developer Sam Chang, is currently constructing a 106,827-square-foot, 28-story building that will feature a 320-key Radisson hotel upon completion. Loan proceeds will be used to finalize construction of the building. The ground-up development is slated for completion in the next 12 months. Terms of the loan were not disclosed.
ROCHESTER, N.Y. — The Rochester City Council has approved the renovation plans for Cobbs Hill Village, an affordable seniors housing community in Rochester. The approval was the last step before Rochester Management can begin work on the project. The modernization project will replace several existing structures at the property, which has served as affordable seniors housing since 1957. The new apartments will feature full-size appliances and energy-efficient HVAC systems. Amenities at the community will feature laundry rooms, a fitness center, computer lab and indoor community space accessible to those with mobility issues. Construction, expected to begin later this year, will take place in three phases, allowing current residents to move directly from existing units into newly constructed homes. All 104 units are reserved for persons over the age of 55 with maximum incomes ranging from 30 percent of area median income ($15,550) to 80 percent of area median income ($41,450).