At the end of 2013, the Federal Reserve Bank of Philadelphia reported that year-to-date building permits rose by 17 percent in Pennsylvania, 36 percent in New Jersey, and 21 percent in Delaware as compared to the same 11 month period in 2012. Much of that increase was due to multifamily development. While not yet back to pre-recession levels, multifamily permitting has steadily increased since the third quarter of 2010 in the Philadelphia metro area. As of August, there were a total of 3,485 units approved for the previous 12 months, high enough to rank 25th in the nation for multifamily permit authorizations. In 2013, there were 1,183 multifamily units delivered in eight new development projects. Currently, there are nearly 4,800 units in 27 separate projects in various stages of construction and some 70 projects in the planning stages for a total of 12,740 additional units in the pipeline. Then there are proposed new developments that have been announced, but are not yet in the permitting process. These represent an additional 3,280 potential units scattered throughout the tri-state area in 15 projects. It is unlikely that all of these proposed projects will be constructed, but it is indicative of the optimism …
Northeast
PROVIDENCE, R.I. — Construction is underway on 257 Thayer, a 267-bed student housing community, developed by Gilbane Development Co. The property will cater to undergraduate and graduate students attending Brown University and Rhode Island School of Design (RISD). It opens January 2015, and according to Gilbane, it is the first off-campus, purpose-built student housing community in Providence. Asset Campus Housing will lease and manage the property. The four-story community, located in the College Hill area, will be a multi-purpose facility that includes retail space on Thayer Street and an underground, heated parking garage with 75 spaces. Community amenities include a clubhouse room with high definition TVs and gaming tables; group study rooms; fitness center; bike storage; high-speed internet and Wi-Fi; and 24-hour resident services.
DARIEN, CONN. — Washington Trust’s commercial real estate group has provided a $1.5 million loan to Darien Hospitality Group LLC for the refinancing of a Whole Foods property. The five-acre parcel is located at 150-152 Ledge Road in Darien. Whole Foods Market leases 50,000 square feet at the property. Darien Hospitality Group LLC acquired the property in 1994. Howard Johnson hotel occupy the building until Whole Foods Market executed its lease in 2008.
PHILADELPHIA —Prestige Group Inc. has arranged the $ 3 million sale of Brighton Court Apartments, a 70-unit multifamily building located at 6212 Chestnut St. in West Philadelphia. A private investment group purchased the building from ELW Inc. Jon Mirsky and Michael Weiner of Prestige Group represented the buyer and the seller in the transaction. Built in 1920, the four-story multifamily building was 90 percent occupied and has a strong rental history.
NEW YORK CITY — Eastern Consolidated has arranged a 12-year lease for Pita Grill in New York City's Greenwich Village. The 2,700-square-foot space comprises 1,350 square feet on the ground floor and 1,350 square feet on the lower level, and has 25 feet of frontage on LaGuardia Place. The location will replace a Five Guys Burgers & Fries, and will be Pita Grill's ninth location since the first one opened on West Fourth Street in 1994.
EDGEWATER, N.J. — Meridian Capital Group LLC, has arranged $33.2 million in permanent financing for the Infinity Apartments, a new 100-unit, Class A multifamily property located in Edgewater. The five-year loan, provided by a national balance sheet lender, features a LIBOR-based floating rate and interest-only payments for the full term. Waterton Associates LLC purchased the property in conjunction with Clal US, a 49 percent co-investment partner. Clal US is a wholly owned subsidiary of Clal Insurance, a publicly traded insurance company, pension fund manager and one of Israel’s largest financial institutions. Infinity Apartments is located at 340-342 Old River Road. Units in the property feature custom cabinetry, granite countertops, stainless steel appliances, full-size washer/dryer, walk-in closets and private balconies. Jacob Schmuckler, Abe Hirsch and Zev Karpel of Meridian Capital Group negotiated the transaction.
BOSTON — The Fallon Co. has broken ground on 100 Northern Avenue, a 17-story, 515,000-square-foot, build-to-suit tower that will house the Boston office of global law firm Goodwin Procter LLP. The tower will be located in Fan Pier, one of the country’s largest privately-funded development sites, featuring three million square feet of mixed-use office, residential and retail space spanning 21 acres and nine city blocks. Designed by global architectural firm HOK, 100 Northern Avenue will feature 500,000 square feet of commercial space, 380,000 of which will be occupied by Goodwin Procter, which plans to relocate to the new building by spring 2016. The building also features more than 15,000 square feet of ground-floor retail space.
NEW YORK CITY — Marcus & Millichap Capital Corp. (MMCC) has arranged a $16.5 million loan for the refinancing of a 46-unit, mid-rise multifamily property in New York City. The seven-year loan carries a fixed interest rate of 3.7 percent and includes a 25-year amortization schedule and a 70 percent loan-to-value ratio. Christopher Marks and Steven Rock of MMCC arranged the loan. John Krueger, also of the firm, represented the borrower.
CHELMSFORD, MASS. — CBRE/New England’s capital markets team has secured $16.1 million in financing for the purchase of The Meadows, a 180-unit, garden-style community located in suburban Boston. The buyer, a joint venture between Taurus Investment Holdings of Boston and Water Street/PhilMor Real Estate Investments LLC of Newton, Mass., purchased the multifamily asset for $20 million. The community, located approximately 1.5 miles from I-495 in Chelmsford, was constructed in 1987 with an average unit size of 668 square feet. The Meadows includes 10 three-story buildings with a unit mix of 18 studio, 42 one-bedroom and 120 two-bedroom units. John Kelly of CBRE worked on behalf of Taurus and Water Street/PhilMor to secure the financing.
NEWARK, N.J. — Three long-term leases totaling 53,000 square feet have brought 570 Broad in Newark to 85 percent occupancy. The 200,000-square-foot, 15-story tower was 20 percent leased in 2011, when The Berger Organization acquired a controlling interest in 570 Broad Street LLC, the partnership that owns the asset. Brendan Berger of The Berger Organization represented his company in negotiating the latest leases at 570 Broad. Programs for Parents leased 22,000 square feet, relocating from another Newark property. McElroy, Deutsch, Mulvaney & Carpenter LLP leased 19,000 square feet. Peter Blanchard and Lee Barnes of The Garibaldi Group served as the tenant’s broker in the transaction. Health Republic Insurance of New Jersey leased 12,000 square feet. Harlan Hollander of Cushman & Wakefield served as the tenant’s broker.