What was previously considered a “soft patch” in the U.S. economy is now indicative of a long-term economic realignment, as previously reported in the past quarter. A reversal of economic indicators, the downgrading of the U.S. credit rating, the debt ceiling debate, the European debt crisis, and market uncertainty are the cause of a decrease in consumer and business confidence across the board, both nationally and in New Jersey. The result is a continued slow recovery in the job market as corporations continue to build cash reserves, further delaying hiring, equipment purchases and real estate expansions. The situation in New Jersey mirrors that of the national picture. The overall real estate market in New Jersey remains weak, although there was a significant shift to direct leasing of Class A space versus the previous subleasing activity. However, the reductions in labor and space needs have led subleases to play an important role in the local market — tenants are leveraging their subleased spaces to negotiate better financial terms when renewing their leases. Vacancy Rates Vacancy rates continued to climb, with Class A office space coming in at 16.4 percent, a 0.2 percent increase from the second quarter. The Class B office …
In the Greater Boston area, retail real estate seems to have a hopeful outlook for 2012 and beyond. Market conditions in the general Boston retail real estate realm improved slightly with the overall retail vacancy rate decreasing from 4.8 percent in the second quarter of 2011 to 4.6 percent in the third quarter — down significantly from the 5 percent fourth quarter 2010 (Costar Q3 2011 Boston Retail Market Retail Report). Boston’s retail net absorption increased dramatically to a positive 1.09 million square feet in third quarter 2011 — up from a positive 822,957 square feet in the previous quarter. Average quoted asking rental rates however were still low at $15.27 per square foot in third quarter 2011. In addition to improvements in vacancy rates and net absorption, the Boston retail market had several major retail lease signings in 2011, including a 60,000-square-foot Stop & Shop relocation in North Reading, Massachusetts, and a 45,000-square-foot Whole Foods Market signing in Lynnfield, Massachusetts. Also notable was the development of the 600,000-square-foot Northborough Crossing project anchored by Wegmans. The Boston area retail real estate scene should continue to show signs of recovery and positive motion, as the local economy slowly pushes upward toward …
NEW YORK CITY — NorthEnd Equities, a New York City-based investment company, has acquired a leasehold on a 65,000-square-foot building at 16 W. 36th St., between Fifth and Sixth avenues. NorthEnd made the leasehold deal for $8.2 million. About 30 years remain on the leasehold. Eric Meyer of Colliers International represented the seller, Beach Plaza Associates, in the deal. David Berger of Rosewood Realty Group represented the buyer.
CAMBRIDGE, MASS. — Vecna Technologies has purchased 54 Cambridgepark Dr. in Cambridge for $6.2 million. The 26,603-square-foot building was occupied by Pfizer Inc. for the past 10 years. Vecna, a technology company, owns a location nearby and will use the facility to expand its operations. Occupancy is slated for this spring. Jack Kerrigan and Steve Cook of Avison Young represented the seller, Samuels Property Group, in the transaction.
NEW YORK CITY — Stokholm-based Kunskapsskolan schools has inked a 10-year lease for 15,000 square feet at 38 Delancey St. on the Lower East Side. The building will house the company's first leased school in the U.S., Innovate Manhattan. The charter middle school will include grades 5 through 8. Kunskapsskolan operates 34 schools in Sweden and in the United Kingdom. Peter Braus of Lee & Associates represented the tenant in the transaction. Michael Chen of Bond New York represented the landlord.
NEW YORK CITY — Madison Realty Capital has acquired a 15-note portfolio from a regional savings bank. The loan portfolio, consisting of 15 notes throughout New York City, is secured by 11 properties in Manhattan and 14 in Brooklyn. They comprise 245 residential units and 12 commercial spaces. The loans were originated at various times between 2006 and 2009, and the combined balance of the loans is $28.7 million.
EDISON, N.J. — Futai Inc., one of the world's largest umbrella manufacturers, has purchase 7 Parkway Place in Edison. The company plans to relocate its divisional headquarters to the 50,000-square-foot warehouse, located within Raritan Center Industrial Park. Rachel Pittard and Stephen Elman of Cushman & Wakefield represented Futai in the transaction. The purchase price is undisclosed.
NEWARK, N.J. — Lino DiLascio of the New York office of Johnson Capital has arranged a construction loan for the ground-up development of the Courtyard at Marriot hotel in Newark. The 150-room hotel will include 14,780 square feet of retail space. The project, estimated to cost $35 million, is the first new hotel in Newark in more than 40 years. It is located at the intersection of Lafayette and Broad streets. Chicago-based Tucker Development and Robert Finvarb Cos. are the project developers. The partnership also includes an affiliate of The New Jersey Devils. A regional bank provided the 3-year, floating-rate loan. The hotel is scheduled to open in September 2012.
ROBBINSVILLE, N.J. — Matrix Development Group has completed a 150,000-square-foot, build-to-suit distribution building for Ritchie & Page Distributing Co. The facility is located in the Matrix Business Park at Exit 7A off the New Jersey Turnpike in Robbinsville. The building includes 20 loading dock positions and 18,000 square feet of office space. Ritchie & Page, a beverage distributor, plans to consolidate its Trenton and Wall Township locations to the new site.
EDISON, MONTCLAIR AND HIGHLAND PARK, N.J. — Beech Street Capital has arranged a $13.6 million Fannie Mae loan to refinance a four-property portfolio in Edison, Montclair and Highland Park. The portfolio totals 181 apartment units. The 7-year loan has a 30-year amortization schedule.