Multifamily investment activity in Connecticut is expected to gain some additional momentum this year after a reasonably strong 2008. Last year, investors’ fears of the added risks associated with lower-tier assets limited transactions to mostly Class A and B+ properties in the state’s urban areas. While reduced investor demand for properties in secondary and tertiary locations will continue, buyers are expected to target Class B/C apartments in stable CBD markets. Buyers will likely target lower-tier properties in the New Haven and Hartford core, Hamden and the Fairfield/Bridgeport/Trumbull Triangle, where students drive demand for properties. Fewer Class A transactions and the presence of low-leverage opportunistic buyer funds will likely result in a shift in pricing trends, causing cap rates to increase to the mid-7 to 9 percent range. Apartment properties are trading and being financed in the region, thanks largely to agency lenders and still-active local and regional commercial banks. With the fall of the CMBS market, a financing void has emerged in the local and national markets. In 2006 and 2007 CMBS originations nationwide totaled more than $400 billion. Our research suggests that more than $80 billion in CMBS loans will come due in 2009-2010 and recapitalizing those loans will …
ASTON, PA. — Colliers Lanard & Axilbund (CLA) has brokered the sale of the former Greif Inc. property, an approximately 145,000-square-foot industrial property located at 3033 Market St. in Aston. The building is situated on a 17-acre site and was vacated by Delaware, Ohio-based Greif in the third quarter of 2008 following a consolidation of facilities. It was purchased by XP Properties, which plans to lease the entire facility to Priority Archives, Priority Shred and Priority Express Courier. CLA, along with the Columbus, Ohio, office of Colliers Turley Martin Tucker, represented the seller. The buyer was represented by Chadds Ford, Pa.-based Brandywine Financial. The acquisition price was not disclosed.
NEW ROCHELLE, N.Y. — New York City-based Massey Knakal Realty Services has arranged the sale of a six-story apartment building, located at 126 Franklin Ave. in New Rochelle, for $4.75 million. The elevator-served building contains 44 residences comprising 25 one-bedroom units, 18 two-bedroom units and one studio. The property features ground-floor laundry facilities, as well as 41 indoor and outdoor parking spaces. Massey Knakal’s John Barrett represented the seller, 126 Franklin Avenue Partners, and procured the buyer, Echo Bay Properties. The building traded at a 6.3 percent capitalization rate.
LONG ISLAND, N.Y. — Saratoga Springs, N.Y.-based Atlantic Energy Solutions has been awarded a $12 million contract from the Long Island, New York, School District. The project entails installing energy efficient systems in various schools in the district, including a new 200kW solar photovoltaic system, a 300kW cogeneration system, an IT network management system, weatherization improvements, major HVAC renovations, and boiler and lighting system replacements. The project is estimated to save the school district $700,000 in energy costs per year. The construction timetable was not released.
NEW YORK CITY — Law firm Duval & Stachenfeld has signed a 33,000-square-foot sublease to occupy the entire 11th and 12th floor of 101 Park Avenue, located in midtown Manhattan, New York City. Paul Revson and Zev Holzman of Studley represented the Duval & Stachenfeld in negotiating the 4-year sublease. The firm is set to take occupancy this summer. The 101 Park Avenue building totals 49 stories and 1.3 million square feet. It is owned by Kalikow.
NEW YORK CITY — Ground was recently broken for a new 103-unit affordable housing project in the Brownsville section of Brooklyn in New York City. Situated on land that fronts Watkins Street between Newport and Lott Avenue, the new community will consist of 13 four-story apartment buildings comprised of 35 one-bedroom, 57 two-bedroom, and 11 three-bedroom units with an additional unit set aside for the superintendent. There will also be on-site laundry facilities, outdoor recreation space and 22 on-site parking spaces. The development arm of The Community Preservation Corporation, CPC Resources, will oversee all aspects of the development and construction of the project until the apartments are fully leased at which point East Brooklyn Congregation will assume control. The New York City Housing Development Corporation (HDC) will finance the construction of the Watkins Street buildings by issuing $14.5 million in tax-exempt bonds and lending $5.9 million in low-interest subsidy from its corporate reserves. The total development cost is projected to be $28.5 million. In addition to HDC financing, Housing Preservation and Development will provide $6.3 million in City Capital and HOME funds subsidy through the Low Income Rental Program. During construction, the bonds will be backed by a letter of …
PHILADELPHIA — Construction is underway on Lenfest Hall, a new $65 million, 106,000-square-foot music education and student residence center for The Curtis Institute of Music in Philadelphia. Located at 1610 to 1618 Locust Street, the nine-story facility will include 88 student residences, an orchestra rehearsal room, studios, a kitchen, dining, lounge spaces and practice rooms to accommodate the school’s long-established needs for additional space. The new building is registered for LEED certification with the U.S. Green Building Council. The development manager for the project is Razak/Athenian and the architect of record is Venturi, Scott Brown Associates. The project is slated for completion in time for the fall 2011 semester.
CANTON, MASSACHUSETTS — Especially for Pets has signed on for 5,025 square feet of space at The Village Shoppes in Canton. The store is set to open this June. Owned by The Wilder Companies, The Village Shoppes is a 282,800-square-foot, open-air lifestyle center located at the intersection of Route 27 and Washington Street. The center includes 40 merchants such as Shaw’s, Jos. A. Bank, Ann Taylor Loft, Talbots, Bertucci’s, and Starbucks.
NEW YORK CITY — New York City-based SL Green Realty Corp. has completed a $40 million capital improvements program at three of its New York City office towers: 16 Court Street in Brooklyn, and 810 Seventh Avenue and 711 Third Avenue in Manhattan. Improvements at all three buildings included extensive lobby renovations. At 16 Court Street, which is a 38-story, 284,000-square-foot tower, the new lobby includes polarized quartz floor tiles, as well as black granite, white glass and walnut wood finishes. At 810 Seventh Avenue, which is a 41-story, 553,000-square-foot tower, the new lobby contains a new, subtle lighting scheme, with stone and dark-stained bamboo finishes, as well as a custom bamboo reception desk. At 711 Third Avenue, a 20-story, 553,000-square-foot building, the new lobby improvements included the restoration of a 200-square-foot mosaic mural that consists of 500,000 Venetian glass tiles in 500 different color shades. Other improvements included new windows, new elevator cabs, a façade restoration, and infrastructure, common area and restroom upgrades at 16 Court. At 810 Seventh, additional renovations included new elevator cabs, as well as restroom and common area upgrades. Finally, at 711 Third Avenue, elevator cabs and common corridors were also upgraded.
DAYTON, N.J. — Chicago-based UGL Equis has negotiated Agfa’s renewal of 172,430 square feet of warehouse space, located at 400 Heller Park Ct. in Dayton. The building is situated near the New Jersey Turnpike. It marks the second time that the analog and digital imaging company has renewed its lease for this location. Peter Yannotta and Sam Horowitz of UGL Equis represented Agfa in lease negotiations. The pair also represented Agfa in its first lease renewal. Jeffrey Milanaik provided in-house representation for the landlord, Edison, N.J.-based Heller Industrial Parks. Terms of the lease were not disclosed.