NEW YORK CITY — Hersha Hospitality Trust has opened Hilton Garden Inn Midtown East. Located on 52nd Street in Manhattan, the hotel brings 205 rooms to Manhattan’s office market, which totals approximately 20 million square feet. Based on the company’s forecasts, the development represents a first full-year economic capitalization rate of approximately 8.1 percent and a hotel EBITDA of 11.2x. Additionally, on a stabilized basis, the investment represents an economic capitalization rate of 11 percent and a hotel EBITDA multiple of 8.4x.
Northeast
NEW YORK CITY — GFI Realty Services has brokered the sale of a vacant, five-story walk-up apartment building located in Manhattan’s East Harlem neighborhood. A local investor acquired the 10-unit property for $3 million or $300,000 per unit. Constructed in 1930, the 9,656-square-foot building is located two blocks from the 116th Street subway station, which services the 2, 3 and 6 lines. Yosef Katz and Yisroel Pershin of GFI represented the seller, a local investor, in the transaction.
NEW YORK CITY — Bridgewater, N.J.-based Kushner Real Estate Group (KRE) and Hoboken, N.J.-based Ironstate Development Company have completed the disposition of a development site at 241 Fifth Avenue in Manhattan’s Madison Square neighborhood. Victor Homes acquired the 132,000-buildable-square-foot site for $99 million. KRE purchased three adjacent buildings and spent the last few years acquiring air rights to develop a luxury condo building. KRE and Ironstate engaged Hollwich Kushner (HWKN) to design the property, but ultimately decided to sell the site at the corner of Fifth Avenue and 30th Street. Yoav Oelsner and Glenn Tolchin of JLL brokered the transaction.
NEW YORK CITY — RKF has arranged the sale of a 27,164-square-foot mixed-use property located at 257 Water Street in Lower Manhattan. 257 Water Street LLC bought the property from 810-257 Water Street LLC for $23 million. Located at the northwest corner of Water Street and Peck Slip, the property consists of two commercial and residential buildings, including 20 market-rate apartments. Mark Joseph Steakhouse and Acqua Restaurant & Wine Bar occupy the property’s ground-floor retail spaces. The transaction also included additional air rights that allow for future residential expansion. Jeff Fishman, Patricia Garcia and Jonathan Butwin of RKF represented both the seller and buyer in the transaction.
NEW YORK CITY — ABJ Properties has closed on the acquisition of Manhattan Avenue Portfolio, a 12-building multifamily portfolio totaling 101 units. ABJ Properties, run by Ben Soleimani and Joe Soleimani, purchased the portfolio for $14.5 million. The properties are located at 492, 496, 498, 500, 506, 508, 510 and 514 Manhattan Avenue; 317 West 120th Street; and 301, 309 and 312 West 121st Street. Ira Zlotowitz and Meir Kessner of Eastern Union Funding arranged $9.5 million in financing for the acquisition. The loan, which was provided by Customers Bank, covers 80 percent of the buildings’ value and features a 3.75 percent rate without recourse.
JENNERSVILLE, PA. — White Plains, N.Y.-based Seavest Healthcare Properties in partnership with Anchor Health Properties has broken ground for the construction of Jennersville Medical Office Building at the Penn Medicine Southern Chester County healthcare complex. Situated on the northeast corner of Route 1 and Route 769 in Jennersville, the two-story, 72,000-square-foot building will feature primary and specialty care physician offices, diagnostic imaging, physical therapy and laboratory services. Penn Medicine Chester Country Hospital and affiliated physicians will occupy the new building. Construction is scheduled for 12 months.
WANTAGE, N.J. — Gebroe-Hammer Associates has arranged the sale of The Regency at Sussex, a garden-style multifamily complex located at 10 Layton Road in Wantage. The seller, a limited partnership that included private investor Michael Halpern, sold the property to an undisclosed buyer for $6.75 million. Built in 1975, the 100-unit multifamily property features a mix of one- and two-bedroom residences ranging in size from 850 to 950 square feet. The residential units feature spacious closets, eat-in kitchens and separate living and dining areas. Community amenitites include a playground and laundry facilities. Stephen Tragash of Gebroe-Hammer represented both parties in the transaction.
NEW YORK CITY — American Realty Capital Hospitality Trust (ARC Hospitality) has entered into an agreement to acquire Equity Inns’ lodging portfolio for $1.93 billion. Subsidiaries of W2007 Grace I and WNT Holdings, which are both indirectly owned by one or more Whitehall Real Estate Funds, are selling the 126-hotel, 14,934-room portfolio. The portfolio is franchised by various global hotel brands, including Hilton Hotels & Resorts, Marriott International, Hyatt Hotels and InterContinential Hotels Group, and includes numerous well-known hotel flags, including Hampton Inn, Hilton Garden Inn, Homewood Suites, Embassy Suites, Courtyard, Residence Inn, Hyatt Place and Holiday Inn. When complete, the acquisition will increase ARC Hospitality’s portfolio to 132 hotels totaling 16,115 rooms. Closing of the acquisition is subject to customary franchisor and lender approvals and the deal is expected to close in fourth quarter 2014. RCS Capital acted as financial advisor to the buyer, while Goldman Sachs & Co. and Deutsche Bank Securities advised the sellers. It is anticipated that Deutsche Bank Securities and Goldman Sachs & Co. will provide financing in connection with the acquisition.
NEW YORK CITY — Delshah Capital has acquired 221 West 17th Street, a loft warehouse building in Chelsea, from Doreen Interiors for $26.4 million. Along with its development partner, On The Level Enterprises, Delshah plans to redevelop the 33,000-square-foot property into a residential condominium building with ground-floor retail space. The redevelopment will include the addition of four floors to create a 10-story multifamily property.
THORNWOOD, N.Y. — CBRE Group’s Westchester/Connecticut office has brokered the sale of two buildings and 97 acres at Thornwood Conference Center in Thornwood. Legion of Christ Inc. sold the assets to EF Academy International Boarding Schools for an undisclosed price. The buyer plans to use the site to expand its main campus in Tarrytown, N.Y. The two buildings total 410,000 square feet and feature a full-service cafeteria and dining room, 300-seat auditorium and conference center, dormitory-style rooms, landscaped courtyard, indoor recreation center, tennis courts and jogging trails. William Cuddy Jr. and Budd Wiesenberg of CBRE represented the seller in the transaction.