Proving its historic resilience once again, a hale and hearty multifamily investment market continues to outpace other commercial real estate sectors in the wake of the latest economic dip. Thanks to an ailing housing market that doesn’t seem to have a tangible cure in the foreseeable future, the “new normal” in residential living is apartment rentals. Strong leasing fundamentals; 1950s-era, bank-friendly interest rates; and the lack of other risk-averse investment options have contributed toward a dramatic increase in sales velocity along the highly sought-after South/Central/Northern New Jersey corridor. Demand is unrelenting. Just 18 to 24 months ago, many investors were sitting on the sidelines waiting for multifamily properties to follow in the footsteps of other hard-hit commercial real estate assets, including office, non- grocery-anchored retail and industrial, where vacancies skyrocketed and lending came to a virtual standstill. These fears had little-to-no impact on multifamily properties, which possess certain inherent “recession-proof” characteristics. Rental living provides a viable, affordable alternative to people who are concerned about their long-term employment outlook, cannot qualify for a single-family residential home loan or are displaced due to rising foreclosures or natural disaster, such as flooding in the aftermath of Hurricane Irene. As the economic recovery continues …
PA. AND N.J. — Stanbery Development has selected Fameco Management Services (FMS) as property manager for its 430,000-square-foot retail portfolio, which includes four shopping centers in Pennsylvania and New Jersey. Karen Cahill of FMS will manage The Shoppes at Susquehanna Marketplace in Harrisburg, Pa.; Kathy Blessing of FMS will oversee The Shoppes at English Village in Montgomeryville, Pa.; and Wayne Neis of FMS will manage The Shoppes at Old Bridge in Old Bridge, N.J., and The Shoppes at Union Hill in Denville, N.J.
LOWELL, MASS. — Autoliv has selected Margulies Perruzzi Architects to provide space planning and interior design services for its 60,000-square-foot expansion, located at 1001 Pawtucket Blvd. in Lowell. Autoliv currently occupies 20,000 square feet of space. The expansion will include 30,000 square feet of office space with workstations, conference rooms and open work areas, as well as 30,000 square feet of production, engineering and testing space, including ground-floor space for vehicle testing. Winstanley Enterprises owns the building.
NEW YORK CITY — New York City-based Ariel Property Advisors has negotiated two sales in New York City totaling $1.7 million. A 7,579-square-foot retail property, located at 5048-50 Broadway & 4022 10th Ave., sold for $900,000. Also, a 10-unit multifamily walk-up, located at 100 E. 123rd St., sold for $825,500. The buyers and sellers in both transaction were local investors. Victor Sozio and Michael Tortorici of Ariel Property Advisors represented the sellers in the transactions.
NEW YORK CITY — Meridian Capital Group has negotiated $6.3 million in financing for the purchase of a seven-story multifamily building, located on Bronx Boulevard in the Bronx. A local savings bank provided the 10-year loan, which carries a 3.6 percent interest rate. Charles Grussgott of Meridian's New York office arranged the loan. The property includes 92 apartment units.
NASHUA, N.H. — Israeli-based investor, B.U.L.U. LLC has purchased a 78,000-square-foot flex/manufacturing building, located at 24 Simon St. in Nashua. The building is fully leased to Axysys Technologies, an imaging and optical systems manufacturer. Andrew Sandquist of CBRE Capital Markets Group represented the seller, Hampshire Co., in the transaction.
NEW YORK CITY — Pace University has signed a new 20-year lease for 50,000 square feet at Fulton Crossing, located at 140 William St. in New York. The private university will occupy the entire seven-story property and use it for classrooms, faculty offices and performance space for Pace's dance programs. Peter Braus, James Wacht, Gabe Isaacs, Peter Levitan and Garry Steinberg of the New York office of Lee & Associates represented the landlord, Crikos LLC, in the transaciton. David Falk and Kyle Ciminelli of Newmark Knight Frank represented the tenant.
PENNSAUKEN, N.J. — National Gypsum Co. has sold a 275,517-square-foot warehouse/prodution building at 175 DeRousse Ave. in Pennsauken. The buyers, New Mill Capital and Global Equipment, plan to use the facility for equipment storage and will offer space for lease. Marc Policarpo of the Philadelphia office of Binswanger represented the seller in the transaction.
BOSTON — Local property developer and investor Raj Dhanda has purchased two Boston properties for $12 million. The buildings, located at 131 Newbury St. and 569 Boylston St., total 12,230 square feet and include a mix of apartment units and retail spaces. The seller was Abbey Road Back Bay LLC, a division of Abbey Road Advisors in Westport, Conn.
NEW YORK CITY — In a joint venture, HFZ and Vornado Capital Partners have purchased 11 E. 68th St., a 100,000-square-foot apartment building, for $170 million. The 12-story property also includes 5,000 square feet of retail that will be owned and managed by Vornado. New York-based HFZ will own and renovate the rental housing. Eastdil Secured represented the seller in the transaction.