WINDSOR LOCKS, CONN. — Farmington, Conn.-based Konover Development Corp. has completed construction of a new 14,820-square-foot Walgreens pharmacy located at the corner of Main and Elm streets in Windsor Locks. The location is scheduled to open in early spring. In keeping with the city’s Main Street redevelopment plan, the pharmacy features a pedestrian-friendly design and a façade that complements the adjacent Memorial Hall and the Congregational Church of Windsor Locks — both of which were constructed in the 1880s. Konover also worked with the city to preserve the mature oak and maple trees that line Main Street in front of the new building.
CORTLANDT, N.Y. — White Plains, N.Y.-based Acadia Realty Trust has purchased Cortlandt Towne Center, a 640,000-square-foot regional shopping center located within the town of Cortlandt in Westchester County. The property was purchased through Acadia Strategic Opportunity Fund III LLC, which is Acadia Realty Trust’s third discretionary investment fund. Anchors at the center include Wal-Mart, A&P Food Market, Marshalls, Barnes & Noble, Regal Entertainment Group and Best Buy. The cost of the all-cash acquisition was $78 million.
SOUTH BRUNSWICK, N.J. — Construction is underway on a 583,376-square-foot distribution warehouse in South Brunswick, which is being built to Silver LEED specifications by an investment client of BlackRock. Environmentally friendly features include a roof made of heat-reflecting material, energy-efficient insulation, T-5 lighting, low-flow plumbing fixtures and paint with low Volatile Organic Compound content. The warehouse will include 108 dock doors and a minimum 36-foot ceiling height.
MALVERN, PA. — Binswanger has represented VWR International LLC in its 150,000-square-foot build-to-suit corporate headquarters lease located within Worthington Town Center in Malvern. The 1.6 million-square-foot Worthington Town Center mixed-use development is owned by O’Neill Properties Group. The building that VWR will occupy will total 240,000 square feet, and is slated to include a major fitness center as well as several restaurants. In addition to brokering the transaction, Philadelphia-based Binswanger will act as project manager for VWR’s headquarters. VWR is expected to move its existing West Chester, Pa., operation to the new location in the third quarter of 2010. David Binswanger and Scott Grabrielsen represented VWR in negotiations.
HAMILTON TOWNSHIP, N.J. — Yellow Roadway Co. has signed a 44,975-square-foot lease with Matrix Development Group for space in its warehouse at 15 Quakerbridge Dr. in Hamilton Township. The firm will use the warehouse as a truck terminal and for office space. The warehouse includes 40,000 square feet of industrial space and 4,100 square feet of office space.
We expect 2009 to continue to be a tough year for commercial/investment real estate, but multifamily is certainly the preferred product type for institutional and private investors delivering stable, solid returns, particularly in the supply-constrained New England markets. Transaction velocity was actually fairly strong through EOY 2008 although cap rates and IRR have increased by 100 to 150-plus basis points from a year ago, and currently we are pricing properties using cash-on-cash returns based on true, twelve month trailing operating data. Fortunately, the greatest demand from institutional investors is for well-constructed Class “B+” to “A” properties in the region. While we don’t have the problem of shadow inventory that we do in Florida, Arizona and other markets, we have noticed an increase in vacancy for Class A and B properties in the region. Occupancy in a number of properties we analyze for our monthly same-store rent comp survey has dipped, but we’re still ahead of most other national markets. We are generally seeing an increase in vacancy in New Haven, Fairfield, Middlesex, New London and Hartford County properties from 100 to 400 basis points but we expect strengthening later this year. After 30-plus years in this business, my honest opinion …
NEW YORK CITY — New York City-based Jonathan Rose Cos. has acquired a 198-unit affordable housing portfolio in Harlem, New York City, for approximately $26.5 million. The portfolio consists of 10 six-story, elevator-served buildings located at 107-145 W. 135th St. The buildings also contain 4,500 square feet of ground-floor retail space. Jonathan Rose renewed the buildings’ HUD Section 8 contract for an additional 20 years and plans to renovate the property with a focus on energy efficiency and sustainability. The acquisition was made on behalf of The Rose Smart Growth Investment Fund I, the company’s real estate investment fund.
HANCOCK, MASS. — Orlando, Fla.-based CNL Lifestyle Properties has acquired Jiminy Peak Mountain Resort, a ski and snowboard resort located in Hancock, for $27 million. Established in 1948, Jiminy Peak attracts more than 350,000 visitors annually and is known as the largest ski resort in southern New England. CNL acquired the property from Jiminy Peak Mountain Resort, Inc., which will continue to operate the resort under a 40-year lease. CNL currently owns 14 ski resorts and eight ski village-centered retail properties nationwide.
BETHLEHEM, PA. — Allentown, Pa.-based Summit Management & Realty Co. has completed the sale of the former Kospiah’s Nursery located at 2897 Easton Ave. in Bethlehem. The undisclosed buyer plans to raze the building and construct a 20,000-square-foot neighborhood shopping center on the property. It will contain 12 stores, and the grand opening has been scheduled for October. Jennifer Gold of Summit negotiated the transaction between the buyer and the sellers, Marion and Barry Kospiah. The acquisition price was not disclosed.
NORWELL AND SOUTHBOROUGH, MASS. — Quincy, Mass.-based Marcone Capital has arranged a total of $13.75 million for two Massachusetts office properties. In the first transaction, Mike Marcone of Marcone Capital secured $7.35 million in permanent financing for 600 Coordwainer Dr, a 54,000-square-foot office building situated on approximately 5.3 acres within Accord Business Park in Norwell. The borrower was 600 Coordwainer Drive LLC, an entity controlled by James Rader of Rader Properties. The lender was a regional bank. Mike Marcone also arranged a $6.4 million permanent loan for 333 and 337 Turnpike Street, two office buildings located in Southborough. Both properties are two stories and consist of 39,774 and 36,728 square feet, respectively. The borrower was Southborough Equity Partners LLC, an entity controlled by Kambiz Shahbazi of KS Partners. The lender was a regional bank. Terms of both loans were undisclosed.