In Pittsburgh’s industrial market, the fourth quarter of 2013 finished in much the same way it began and maintained throughout the year; solid if unspectacular growth. The vacancy rate fell from 7.9 percent in the third quarter to 7.7 percent in the fourth quarter and dropped three basis points in total over the course of the year. The lack of quality Class A warehouse space continues to be a factor with vacancy levels dropping to an astounding 2.97 percent. The greater Pittsburgh’s industrial market is approximately 172 million square feet spread out over the six-county region that includes Allegheny, Butler, Beaver, Westmoreland, Washington, and Armstrong counties. The Class A portion is approximately 17.5 million square feet. With a vacancy rate of 2.97 percent, we only have a total availability across our total market of 519,750 square feet of Class A product. This is below equilibrium for a healthy market. Furthermore, the definition of Class A product in the Pittsburgh region would not necessarily hold up in markets with more speculative developments such as Columbus or Lehigh Valley. Although Pittsburgh has hit the radar of the national real estate community for the opportunity on the investment side, we are still very …
Northeast
NEW YORK CITY — Meridian Capital Group has arranged a $30 million first mortgage construction loan for the ground-up development of a multifamily property located at 501 East 74th Street in New York. The borrower, Golden Asset LLC, plans to develop a 20-story, 83-unit property, which is being designed by Steven B. Jacobs Group Architects. Aaron Birnbaum and Tal Savariego of Meridian Capital Group negotiated the three-year loan, which features a competitive spread over LIBOR, interest-only payments for the full term and several extension options.
NEW YORK CITY — Capital One Bank has introduced Capital One Multifamily Finance, a commercial real estate organization that combines the company’s balance sheet and agency lending groups into a single entity. This is the next stage in Capital One’s integration of Beech Street Capital, the agency originator and servicer acquired by Capital One last year. Capital One Multifamily Finance is entering the market as top-five U.S. multifamily originator and will offers its expanded client base the capabilities of Capital One’s Commercial Banking group in related asset classes and in services, such as treasury management. The multifamily group will offer a national platform with offices across the country.
UNION CITY, N.J. — Moonachie, N.J.-based Weiss Realty Co. brokered the sale of a Walgreens located at 3333 Park Ave. in Union City. A 1031 buyer acquired the 11,000-square-foot property for $5.3 million. Jaime Weiss and Arnold Litt of Weiss Realty Co. represented the seller and buyer in the transaction.
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.
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.