NEW YORK CITY — SL Green Realty Corp. has entered into an agreement to sell its leasehold interest in 673 First Avenue for $145 million. The price represents a capitalization rate based on an in-place net operating income of 4.7 percent. NYU Hospitals Center is purchasing the 422,000-square-foot office building. The buyer, along with NYU School of Medicine and New York Presbyterian, occupy the building. The acquisition is expected to close during second quarter 2014. Bruce Mosler, Michael Rotchford, Mark Mandell and David Heller of Cushman & Wakefield represented the buyer in the transaction. Fried, Frank, Harris, Shriver & Jacobson LLP represented SL Green in the transaction.
Northeast
FAIR LAWN, N.J. — Suan Farma Inc. has purchased an industrial building at 17-09 Zink Place in Fair Lawn for $2 million. The 20,316-square-foot Class B manufacturing facility was constructed in 1978 and underwent extensive renovations in 2007. The company will relocate to the facility from its current location in Hackensack, N.J. Steven Leitner of New Jersey-based NAI James E. Hanson represented the buyer in the transaction. The seller was not disclosed.
YORK, PA. — Bennett Williams Realty has brokered two property sales in York. In the first transaction, Susquehanna Renovations purchased a 10,500-square-foot, seven-unit multifamily building at 101-103 S. Queen St. Carlos & Grace Giordano sold the property for an undisclosed price. In the second transaction, MTO Properties LLC acquired a 2,138-square-foot commercial building at 226 W. Market St. from Magnolia Investments for an undisclosed price. Brad Rohrbaugh, Chad Stine and Abe Khan of Bennett Williams represented all parties in the transactions.
NEW YORK CITY — Besen & Associates has completed the off-market $5.6 million sale of a mixed-use property at 361 First Ave. in the Gramercy neighborhood of New York. The four-story, 5,000-square-foot building consists of five free-market apartments, one office and one retail store, which is occupied by Dunkin’ Donuts through 2025. Shoy McKen of Besen & Associates represented the undisclosed seller, while Amit Doshi and Ishan Chhabra, also of Besen & Associates, procured the undisclosed buyer.
SALEM AND MANCHESTER, N.H. — Linear Retail Properties has refinanced two retail properties in New Hampshire. Needham Bank provided $8.24 million in loans for the two properties. The 27,353-square-foot Salem Village, located at the intersection of South Broadway and Pond Street in Salem, is occupied by Pet Life, Sherwin-Williams and AutoZone. The fully leased 9,870-square-foot Manchester Shopping Center in Manchester was renovated by 2012 and is occupied by Chipotle, Sleepy’s, US Cellular and Hannoush Jewelers. Linear Retail purchased Salem Village in January 2007 and Manchester Shopping Center in April 2012.
The New Jersey retail marketplace is finally showing signs of modest recovery for the first time since the recession. Retail is on somewhat stable ground, but not as solid as we would hope. We expect continued bumps caused by the harsh winter we have experienced, the closing of stores by some major national and regional retailers nationwide, and the fact that consumer confidence is still not in a fully stable position. Retail closings and bankruptcy filings continue to remind us that nothing is certain. For example, RadioShack recently announced it will close 1,100 stores nationwide; Pathmark and A&P supermarkets continue to close underperforming stores; and some other retailers such as Loehmann’s, and more recently, Dots women’s apparel chain have filed Chapter 11. But all is not so bleak. There are some new trends in retail that show how the sector continues to reinvent itself in an effort to thrive in this new economy. We saw the economy start to come out its doldrums, especially this past year, with many furniture and home furnishing stores opening in New Jersey for the first time. Paramus — which is one of the strongest retail markets in the U.S. — had several out-of-state furniture …
PHILADELPHIA — Liberty Property Trust and Synterra Partners are breaking ground for the development of a Class A, flex building at the Navy Yard Commerce Center in Philadelphia. Located at 4000 S. 26th St., the 75,000-square-foot building is slated for completion in December. The building is 100 pre-leased to a variety of tenants, including Australia-based EcoSave, United Kingdom-based Clinigen and WuXi AppTec Inc.
NEW YORK CITY — SL Green Realty Corp. plans to acquire the fee interest at 635 Madison Ave. in New York. The $145 million, off-market transaction, which is subject to customary closing conditions, is expected to be completed during the third quarter of 2014. Designed by Emery Roth & Sons, the 19-story, 176,530-square-foot office tower is occupied by office and medical tenants, including Raymond Weil, Baccarat, Molton Brown and Camper. A ground lease through April 2030 with one 21-year renewal extension option encumbers the property.
HOBOKEN, N.J. — Marcus & Millichap has arranged the sale of an apartment property in Hoboken. A private investor sold the property to an undisclosed buyer for $4 million. Located at 834 Hudson St., the four-story, walk-up building offers 18 one-bedroom units. The property recently underwent capital improvements that included upgraded windows, hot water heaters, fire pump and equipment, and laundry equipment. Nat Gambuzza and Kevin Taub of Marcus & Millichap’s New Jersey office represented the seller and buyer in the transaction.
MELVILLE, N.Y. — Rechler Equity Partners has leased space at 10 Hub Drive in Melville to Ferrellgas, a propane supplier. The company will occupy 31,000 square feet of the 95,671-square-foot property, which features 20-foot ceilings and quick access to the Long Island Expressway. The property is part of Rechler’s 13-building Melville portfolio, which totals 1 million square feet of office, R&D, manufacturing and warehouse space. Ted Trias of Rechler Equity Partners provided in-house representation for the ownership in the lease negotiations. Terms of the lease were not disclosed.