By Gregory Schaffer Pennsylvania property owners and tenants, who pay some of the highest property taxes in the nation, are no doubt aware of the annual deadline to file a property tax appeal. After all, one look at a new tax bill is often enough to make even the most seasoned tax manager scramble to contact their local tax counsel. However, very few taxpayers are aware that the assessment they may have accepted as favorable could easily trigger a reverse appeal filed by the local school district. Assessment appeals filed by the taxing entities, often referred to as reverse appeals, are increasingly common as cash-strapped school districts seek to fill their coffers. Just as a tax manager might view an inflated assessment as a reason to appeal, more and more school districts see potentially under-assessed properties as a much-needed source of additional revenue. To the bane of many taxpayers, this tactic has now reached the city of Philadelphia. Despite undergoing a citywide property revaluation for the 2014 tax year, with another currently slated for 2018, the Philadelphia School District recently decided to begin filing reverse appeals against properties it feels are under-assessed. On Sept. 15, 2016, for the first time, …
BOSTON — Skanska USA has topped out 121 Seaport, a 17-story, 400,000-square-foot office building under construction in Boston. The construction milestone marks the completion of the building’s steel frame. Designed by CBT Architects, 121 Seaport is scheduled for completion in the first quarter of 2018. The property is located in Boston’s Seaport district across from District Hall and Seaport Square Green. Its three-story lobby will face Boston Harbor and open onto Harbor Way, a 70-foot-wide pedestrian street. A team of nearly 200 construction workers has put more than 35,000 hours into the project to date.
TARRYTOWN, N.Y. — Cushman & Wakefield has arranged the $30 million sale of 660 White Plains Road, an office building in Tarrytown. GHP Office Realty, a privately held real estate firm, acquired the property from RA 660 White Plains Road LLC, an entity controlled by RNY Property Trust. The six-story building totals 279,000 square feet and features on-site food service, 24-hour access and access to public bus service. It sits on 11 acres in the Tarrytown Corporate Center. Cushman & Wakefield’s Andrew Merin, David Bernhaut, Gary Gabriel, Brian Whitmer, Frank DiTommaso and Al Mirin brokered the transaction. The property is 87 percent leased to more than 40 tenants ranging in size from less than 1,000 square feet to nearly 60,000 square feet.
NEW YORK CITY — The Singer & Bassuk Organization (SBO) has secured a $15 million permanent loan on 9 E. 38 St. for a joint venture between Juster Properties and ClearRock Properties. Lincoln Financial Group funded the 20-year loan, which includes a fixed rate of 3.86 percent. Craig Bjornsund of NorthMarq Capital advised Lincoln Financial Group. Scott Singer and Jeffrey Moroch of SBO worked with Howard Juster of Juster Properties and Steve Grant and Joshua Weiner of ClearRock in the transaction. The joint venture purchased the office property in 2013 along with the adjacent 14 E. 39 St. After the purchase, ClearRock subdivided 9 E. 38 St. and sold 14 E. 39 St. plus the northern portion of the 38th Street property as a development site to hotel developer Sam Chang. 9 E. 38 St. is located in Midtown within walking distance of both Grand Central Station and Penn Station.
WORCESTER, MASS. — David Cohen and Jim Cozza and Kelleher & Sadowsky Associates have brokered the $5.5 million sale of 225 Shrewsbury St. in Worcester. The 33,000-square-foot retail space is located on 2.4 acres. The property currently includes four current tenants and will be expanded this year.
ASBURY PARK, N.J. — Asbury Park Brewery has purchased a 28,369-square-foot former warehouse located at 810 Sewall Ave. in Asbury Park. Glenn Jaffe of Sheldon Gross Realty represented the seller, Flexcraft Co. Asbury Park Brewery initially signed on to lease the property, then decided to purchase it during the lease term. A Family Dollar store also occupies a portion of the property.
Investors are attracted to Boston due to its diverse economy, education base and strong market fundamentals. In fact, major corporations like GE, Reebok, New Balance, and most recently Asics have all relocated to the city or are in the planning to relocate or rebrand here. As a result of this heightened interest in Boston as a global headquarters destination, the city is expected to grow, which in turn creates housing demand. Rhythm between Cap Rates and Interest Rates As investors know, there is a direct correlation between cap rates and interest rates. However, while a correlation exists, not all buyer profiles are necessarily affected in the same way in a shifting interest rate environment. Highest impact: Leveraged buyers would be most impacted by rising interest rates since they are typically trying to maximize leverage when pursuing an acquisition. With shifting interest rates, higher rates have a direct impact to potential returns. If leveraged buyers can borrow less at high rates, this has a direct impact to pricing/cap rates. Within the leveraged buyer profile, groups possessing strong balance sheets and banking relationships will be less impacted than groups not necessarily in the same financial position. Moderate impact: Cash and low-leverage buyers …
ARLINGTON, N.J. — Gebroe-Hammer Associates has arranged the $23.5 million sale of The Carriage Club, a 106-unit multifamily property located at 1 Hillside Dr. in Mt. Arlington. Gebroe-Hammer’s Adam Zweibel and Stephen Tragash secured the seller, Carriage Club Associates LLC, and procured the unnamed buyer, a private investment group, in the transaction. Built in 2003, Carriage Club is a Class A, 55-and-over apartment community offering one- and two-bedroom units, the latter of which offer a choice of one or two baths. Carriage Club was 98 percent occupied at the time of sale. The complex offers access to I-80, I-287 and the Garden State Parkway, and is within walking distance to NJ Transit service at Mount Arlington Station. Community amenities include a clubhouse with a heated indoor pool, billiards room, fitness center, golf putting green, outdoor sundecks and a grill and picnic area.
WINDSOR, CONN. — CBRE/New England has negotiated the $5 million sale of the Griffin Office Park Portfolio, a five-building office complex located in Windsor. Investors Warranty of America LLC sold the property to Griffin Park Realty VV LLC, a Brooklyn-based private equity partnership managed by Vasco Ventures. CBRE/NE’s John McCormick and Patrick Mulready represented the seller and procured the buyer in the transaction. Vasco Ventures is a real estate investment firm specializing in distressed real estate. The company owns and operates properties in New York City, upstate New York, Philadelphia and Galloway, N.J. The Griffin Office Park Portfolio is the company’s first acquisition in Greater Hartford. The purchase includes two four-story office buildings located at 1 and 2 Waterside Crossing, and three two-story office buildings located at 4, 6 and 8 Griffin Road N. The portfolio’s properties are located within Griffin Office Center, a 600-acre development featuring a full-service restaurant, open-air performance center and a network of walking trails and open space. Tenants include Cigna, Great American Insurance, SwissRe, RR Donnelley, Prochimie International and the United States Postal Service.
PHILADELPHIA — Marcus & Millichap has brokered the sale of 58 apartment units in the Germantown neighborhood of Philadelphia. The contiguous properties, Wissahickon Apartments and 5228-5232 Laurens St., sold for $3.8 million. The buyer plans to renovate and reposition the properties. Fred Paisley and Jonathan Massaro of Marcus & Millichap’s Philadelphia office marketed the property on behalf of the seller. Paisley secured and represented the buyer. Wissahickon Apartments includes 52 one-, two- and three-bedroom units located at 5215 Schuyler St. The historically registered property was constructed in 1910 and operated as a hotel before renovations in the mid-1980s.