The office market in 2017 has rebounded from the slowdown of 2016 — suggesting that Manhattan market conditions remain stronger than some might have imagined at the end of last year. Growth in office-using employment has picked up steam this year, and New York’s Gross City Product expanded at a faster rate than in 2016. Buoyed by large transactions in the financial services and government sectors, leasing activity also expanded in the first half of 2017, outpacing 2016’s mid-year leasing activity by 19 percent. Asking rents continued their trajectory of modest growth, though tenant improvement allowances have grown at a far faster rate, suggesting tenants are paying lower net effective rent; meanwhile, the number of upward repricings on existing listings fell off considerably in the first half of 2017, while downward repricings continue unabated from last year. Despite the increase in both leasing activity and velocity in the first half of 2017, Manhattan continues to see negative net absorption this year, largely due to the delivery of new office product in Midtown South and Downtown. This has pushed up the availability rate to 12.0 percent — suggesting increasingly tenant-favorable conditions in the market. New York City Employment After a relatively …
NEW HAVEN, CONN. — Institutional Property Advisors, a division of Marcus & Millichap, has arranged the sale of The Novella, a mixed-use property located in New Haven. 1245 Chapel Street LLC acquired the property from RMS Chapel Street for $39.6 million. The Novella features 136 apartment units above the 1,135-square-foot Chapel Street Pharmacy, 3,380 square feet of available retail space and 85 parking spaces. Victor Nolletti, Steve Witten and Eric Pentore of IPA represented the seller and procured the buyer in the deal.
SHREWSBURY, N.J. — HFF has secured a $43.6 million refinancing for The Grove at Shrewsbury, a 148,000-square-foot lifestyle center located 25 miles south of New York City in Shrewsbury. The center is home to 35 retailers, including Williams-Sonoma, Pottery Barn, Bluemercury, Lululemon Athletica, Anthropologie, Madewell and Starbucks Coffee. Jon Mikula and Connor Milanaik of HFF worked on behalf of the borrower, Federal Realty Investment Trust, to secure the 10-year, fixed-rate loan through Principal Commercial Capital.
CALDWELL, N.J. — Cabot Properties has purchased an industrial facility located at 8 Fairfield Crescent in Caldwell. Tulfra Real Estate sold the 62,200-square-foot property for $7.8 million. Built in 1975, the property was fully renovated in 2014 and features 10,000 square feet of office space and 52,200 square feet of warehouse space. The building is fully leased through 2021 by two companies: Regi USA and Inline Distributing Co. Robert Borny and Jose Cruz of HFF brokered the transaction.
SCRANTON, PA. — Millett Real Estate, as owner and manager, has opened Home2 Suites by Hilton Dickson City Scranton, located at 914 Scranton-Carbondale Highway in Scranton. Featuring 70 guest suites, the hotel also offers complimentary internet access, communal spaces, a complimentary breakfast, Home2 MKT for grab-and-go items, and Spin2 Cycle, a combined laundry and fitness area. The pet-friendly hotel also features an indoor pool and whirlpool.
RAMAPO, N.Y. — Gebroe-Hammer Associates has arranged the sale of Suburban Manor, a garden-style apartment community located at 214-226 Old Nyack Turnpike in Ramapo. Suburban Manor LLC acquired the property, along with a four-acre development site, from Ramapo Knolls for $6.3 million. The four-building property features 53 apartment units in a mix of studio, one- and two-bedroom layouts. David Oropeza and Debbie Pomerantz of Gebroe-Hammer arranged the transaction.
NEW YORK CITY — Sumaida + Khurana and LENY have acquired a vacant commercial building located at 611 W. 56th St. in Manhattan’s West Side for $65 million. The joint venture plans to demolish the existing structure and redevelop the site into a 35-story residential condominium building. Alvaro Siza designed the building, which will feature 80 units ranging from one- to four-bedroom layouts and penthouses. Amenities will include private terraces, a roof garden, sun deck, fitness center and retail components. Carl Schwartz, Susan Saslow, Douglas Hoffmann and Michal Baum of Hunton & Williams advised the joint venture on the acquisition. The name of the seller was not released.
WALTHAM, MASS. — Newmark Knight Frank (NKF) has arranged the sale of Totten Pond Office Park, an office complex located in Waltham. Anchor Line Partners in a joint venture with Northwood Investors acquired the property from TA Realty for $51.5 million. Located at 400, 410 and 460 Totten Pond Road, the three-building office park was 87 percent leased to 43 tenants at the time of sale. On-site amenities for the office park include a cafeteria, fitness center, conference room and café. Robert Griffin, Edward Maher, Matthew Pullen, James Tribble and Samantha Hallowell of NKF represented the seller in the deal.
SYRACUSE, N.Y. — Pyramid Management, as owner, has opened Embassy Suites by Hilton Syracuse Destiny USA, located at 311 Hiawatha Blvd. W in Syracuse. Situated at Destiny USA, a shopping, dining and entertainment destination, the hotel features 209 suites, 10,000 square feet of flexible meeting space, an indoor heated pool, fitness center, full-service restaurant and 24-hour convenience shop. Aimbridge Hospitality manages the hotel.
SHELBURNE, VT. — Ziegler, a specialty investment bank, has arranged $67.1 million in bond financing for Wake Robin, a continuing care retirement community in Shelburne, located along Lake Champlain just south of Burlington. The community is situated on 136 acres and feature 212 independent living units, 31 assisted living units and 51 skilled nursing units. The nonprofit Wake Robin Corp. was incorporated in 1984 to develop, own and operate the community. It was the first CCRC in Vermont. Wake Robin is undergoing an expansion that will add 38 independent living units, 10 assisted living units and six skilled nursing units, as well as renovate common areas and the skilled nursing facility. The proceeds of the fixed-rate bonds will be used to refinance 2006 bonds, finance the expansion, pay the costs of bond issuance and fund a debt service reserve fund. M&T Bank was the purchaser of the bonds, and Greenbrier Development acted as development consultant on the expansion project.