Bolstered by New York City’s growing and diversified economy, Manhattan’s office market continued to hum along during the second quarter, if at a slower pace than earlier in 2018. Technology, advertising, media and information (TAMI) companies are looking at in-demand submarkets such as Chelsea and Midtown South, where the bulk of new development is underway. Some financial firms are contemplating a move to the Hudson Yards neighborhood, where more than 9 million square feet of space is scheduled for completion in the next several quarters.The wave of efficiently operated properties is a magnet for the demands of forward-looking tenants and the city’s growing millennial workforce. Vacancy rates were below 11 percent across all submarkets in the second quarter, and new product scheduled to come on line during the next several quarters will help accommodate demand from creative industries and other sectors of the local economy. The supply-constrained United Nations-Turtle Bay submarket posted the borough’s lowest vacancy rate, 4.4 percent, while the famed Plaza District posted a 10.2 vacancy rate—a sign of Manhattan’s changing office landscape. Asking rents gained 40 basis points year-over-year overall to $64.86-per-square-foot. On the development front, the highlight of the second quarter was the debut of 3 …
The industrial sector continues to experience seemingly limitless success, and New Jersey is one of the nation’s leading markets. Amid record-setting asking rents, vacancy rates and leasing velocity, it would be tempting for property owners, tenants and investors to become complacent while reaping the rewards of a sophisticated global supply chain, impressive gross domestic product and strong investment returns. But challenges remain, and real estate professionals should consider them when making decisions. To continue to thrive in the industrial space, it behooves major players to explore solutions to some of the key matters facing the region. Limited Space for Development As a general rule, companies are insisting that warehouses be built within a one- or two-day drive of the customer, and from Central New Jersey, companies can reach 130 million consumers within a day’s drive. Therefore, it is no surprise that 75 percent of the industrial leases signed during the past two years for greater than 200,000 square feet occurred in Middlesex County, primarily along the New Jersey Turnpike. However, it’s becoming increasingly difficult to find sites for construction. On top of that, when sites are identified, they often come with greater capital needs driven by redevelopment and brownfield issues. …
BOSTON — JPMorgan Chase Bank has provided a $306.5 million construction loan for The St. Regis Residences a 114-unit, waterfront multifamily project in Boston’s Seaport district. The 22-story tower, which will be located at 150 Seaport Blvd., will feature a twisting and angular design evoking billowing sails in a nod to its location. Every residence in the property will offer views of the Boston skyline or Boston Harbor. The residences will also include underground parking and a two-story restaurant. Amenities will include a swimming pool, spa, health club, library and golf simulator. HFF represented the developer, Cronin Development, in the transaction. HFF also advised Cronin in structuring a joint venture for $34.5 million with a private equity partner, the JCM Opportunity Fund I LLC, a subsidiary holding of Joyal Capital Management. “With its unique design and location, The St. Regis Residences, Boston will be unlike any residential development ever built in the City, serving as an iconic landmark on the Boston skyline,” said HFF senior director Brett Paulsrud. Condominium units at the St. Regis Residences will range from one-bedrooms to penthouse homes. The 208,000-square-foot project will also include around 10,000 square feet of retail space, according to the developer’s website. …
NEW YORK CITY — NKF Capital Markets has arranged the $250 million refinancing of a two-building office portfolio in Manhattan’s financial district. Located at 80-90 Maiden Lane, the adjacent properties include a combined 610,000 square feet of office space. Both properties have been recently renovated. Dustin Stolly and Jordan Roeschlaub of NFK Capital Markets represented the borrowers — Normandy Real Estate Partners, Meadow Partners and AM Property Holding Corp. — in securing the floating-rate loan from Invesco Real Estate.
BURLINGTON, N.J. — Liberty Property Trust has broken ground on a 441,380-square-foot industrial facility in Burlington. Located at 160-180 Dulty’s Lane, the project will feature 36-foot clear heights, 54-foot by 55-foot column spacing, 88 dock doors, space for 105 trailers and 330 parking spaces. The facility, which Dishner Architects is designing, is slated for completion in the first quarter of 2019. The general contractor is Blue Rock Construction.
NEWARK, N.J. — HFF has negotiated the $8.2 million sale of a 4.5-acre land parcel in Newark. The property is located at 120 Frontage Road and is adjacent to Newark Liberty International Airport. HFF represented the undisclosed seller in the transaction. The buyer plans to construct an 80,000-square-foot industrial building on the site. The site is also located near Port Newark-Elizabeth, one of the largest containerized deep-water shipping terminals on the East Coast.
BOSTON — Cushman & Wakefield Senior Housing Capital Markets Group has arranged recapitalization financing for a 289-unit independent living, assisted living and memory care portfolio in New England. The borrower is LCB Senior Living and its joint venture capital partner, Harrison Real Estate Capital, which recently acquired the properties. The amount of the financing was not disclosed. The assets include four properties in Ipswich, Mass. (built in 2014); South Windsor, Conn. (built in 2015); Avon, Conn. (built in 2015); and Lincoln, R.I. (built in 2009). The Cushman & Wakefield team that led the transaction included Rick Swartz, Jay Wagner, Jim Dooley and Caryn Donahue. In addition to the sale, Cushman & Wakefield arranged acquisition financing on behalf of the buyer with PGIM Real Estate Finance that closed concurrently with the recapitalization. The financing holds a 10-year term that is interest-only through maturity.
FALMOUTH, MAINE — Cardente Real Estate has brokered the $1.1 million sale of a 6,085-square-foot office property in Falmouth. Located at 19 Northbrook Drive, the tenant roster includes Goldman Financial Planning, Maine Laser, Edward Jones and Joshua Rent. Matthew Cardente of Cardente Real Estate represented the seller, Mark Richards. The buyer was CPM-19 Northbrook Drive LLC.
BURLINGTON, VT. — HFF has brokered the sale of the 309-room DoubleTree by Hilton Burlington. The price was not disclosed. Denny Meikleham, Alan Suzuki and Matthew Enright of HFF represented the seller, RLJ Lodging Trust, in the transaction. The buyer was AAM 15 Management LLC. Located at 870 Williston Road, the property is the largest conference center hotel in Vermont with 30,000 square feet of event space. Amenities include an indoor heated pool, fitness center, business center and complimentary shuttle service.
BOSTON — Fantini & Gorga has arranged a $15.5 refinancing for a mixed-use portfolio in Boston. The properties are located at 167, 168, 176 and 303-305 Newbury St. in Boston’s Back Bay neighborhood. Together, the properties include 20,190 square feet of retail and office space. Wayne Clough and Despina Hixon of Fantini & Gorga secured financing on behalf of an undisclosed borrower through a life insurance company. Terms of the financing were undisclosed.