While the meltdown of the housing market originally benefited the multifamily sector — as more homeowners transitioned to renters — the current recession and its rising unemployment has started to affect activity. “Right now, it is all about the economy,” says Kevin Wolfgang, president of New Castle-based Evergreen Realty and recently elected president of the Delaware Apartment Association. “Our industry is directly affected by the job market, so the increased amount of unemployment has created significant operation challenges.” Multifamily owners in Delaware are weathering the storm by focusing on the operation of the properties — trying to find ways to make them as efficient as possible. This has slowed down sales considerably. Owners who are still receiving a steady cash flow are seeing no reason to sell for less money. “Most investors are very cautious right now,” Wolfgang says. “No one is chasing deals, and there is nothing that I have seen as having a major impact on the market right now.” Evergreen Realty’s main activity has been its purchase and upcoming redevelopment of Hampston Walk Apartments, a 370-unit community located in New Castle. The company purchased the blighted property in mid-2008 and is repositioning it with renovations to unit …
Northeast
TREVOSE, PA. — The grand opening has been held for the first building at Horizon Corporate Center in Trevose. Horizon II is a Class A office building located at 3800 Horizon Blvd. It is one of five buildings that will ultimately be built at the park, which will contain more than 1 million square feet of development. The building is also LEED-certified, as will be the rest of Horizon Corporate Center. Upon full build-out, it will be the largest LEED-certified corporate campus in the greater Philadelphia area. The project is being developed by King of Prussia, Pa.-based O’Neill Properties. The LEED architect is Cubellis.
NEW YORK CITY — Marcus & Millichap Capital Corp. has arranged a $5 million loan for the refinancing of a 44-unit apartment building located in the Union Square neighborhood of Manhattan, New York City. In addition to the multifamily units, the building also contains four retail spaces. Sean Mooney of Marcus & Millichap’s Brooklyn office arranged the loan, which includes a 5.75 percent interest rate, non-recourse. The loan carries a 10-year term with a 30-year amortization schedule and a 65 percent loan-to-value ratio. The borrower and lender were not disclosed.
ISELIN, N.J. — The New Jersey office of FirstService Williams (FSW) has completed four major leases at Woodbridge Corporate Plaza, a six-building office campus located in Iselin. Drew Persson of FSW represented the landlord, KBS Realty Advisors, in each transaction. EPCOS signed a 10-year lease for 18,500 square feet. Ed Duenas and Lauren Rufino of Cushman & Wakefield represented the tenant. H&M Transportation signed a 7-year lease for 15,000 square feet. Grubb & Ellis’ Frank Loprioni and John Donnelly represented the tenant. Concentra Health signed a 5-year lease for 15,000 square feet. Matt Saker of CB Richard Ellis represented the tenant. Bank of Tokyo signed a 10-year lease for 10,500 square feet. In addition, Persson signed 11 additional leases totaling 75,000 square feet within the office campus, bringing the total square footage of space leased to 135,000 square feet.
NEW JERSEY — The Goldstein Group has completed nine leases in New Jersey on behalf of convenience store chain 7-Eleven. The leased locations range in size from 2,400 to 3,200 square feet. The addresses of the new stores are 11-13 Tenafly Rd. in Englewood, Route 17 and Essex Street in Lodi, 150 Main St. in Lodi, 114 Bloomfield Ave. in Montclair, 287 Bloomfield Ave. in Verona, 533 Sayre Ave. in Perth Amboy, 6004 Bergenline Ave. in West New York, 17 Franklin Turnpike in Mahwah, and 158 Woodbury Rd. in Hicksville. The leases are part of an aggressive expansion campaign 7-Eleven has launched in New Jersey.
MT. KISCO, N.Y. — Scarsdale, N.Y.-based Goldschmidt & Associates has brokered several sale and lease transactions in Mt. Kisco. First, the company completed the sale of 19 East Main Street, which contains 12 apartments and two retail stores. The property was fully occupied at the time of closing. It was purchased by a local investor for $3.2 million. In addition, a local operator acquired 117 Smith Avenue, a 3,000-square-foot, commercially zoned house, for $500,000. The property had formerly been used as a pediatrician’s office and will be converted to a non-medical use by the new owner. Community Mutual Savings Bank also leased 3,000 square feet at 16 S. Bedford Ave. Finally, Q Restaurant and Mt. Kisco Liquor & Wine leased a total of 5,300 square feet at 487 Main St. Eric Goldschmidt of Goldschmidt & Associates was the sole broker in the first three transactions. Joshua Jacobs, also of Goldschmidt & Associates, represented the landlord in Q Restaurant and Mt. Kisco Liquor & Wine’s leases.
KING OF PRUSSIA AND EXTON, PA. — Philadelphia-based BPG Properties has leased 89,817 square feet of office space at Executive Terrace, the company’s Class A office building located in King Of Prussia, to Fiserv Automotive Services. The long-term lease almost doubles the amount of space Fiserv occupies within the four-story, 131,057-square-foot building. The occupancy rate for Executive Terrace is now 91 percent. Phil McCarthy and Kevin McShea of Transwestern represented the tenant. The landlord was represented by John Perkins of Grubb & Ellis. As part of the transaction, an affiliate of BPG will acquire 1250 Drummers Lane, a three-story, 58,000-square-foot office building located in Exton. The Class A building is currently owned and occupied by USERS, a division of Fiserv. USERS plans to relocate to Executive Terrace in the fourth quarter of this year. Perkins will handle leasing for this property as well.
NEW YORK CITY — One Brooklyn Bridge Park, a 438-unit residential building located in Brooklyn, New York City, that was completed in March, has received a 2-year loan extension. In a statement, R.A.L. Companies & Affiliates, the developer of the project, said the extension will allow the company to meet its obligations to its residents, and to fund common charges and real estate taxes on unsold units within the project. R.A.L. has also announced a new pricing structure for the residences. The listing price has been lowered as much as 20 percent, with studio loft units now starting at $545,000. In addition, up to 25 percent of the project’s residences will be marketed as rental units, and some of them will be marketed as rent-to-own. Monthly rents will start at $1,875 for studios and $2,800 per month for one-bedroom units. One Brooklyn Bridge Park is located at 360 Furman St. It comprises the redevelopment of the former Brooklyn Heights distribution center into a residential community. The project is located within the 85-acre Brooklyn Bridge Park, a waterfront public park that is currently under construction along the East River.
MAHWAH, N.J. — NAI James E. Hanson has negotiated a major land lease for the construction of a 111-room Hampton Hilton Hotel in Mahwah. Anthony Cassano of NAI James E. Hanson represented both the landlord, Barn Village Music, and the lessee, OTO Development / Palmetto Hospitality of Mahwah in the negotiations. The leased space is located at 280 D Route 17 South and sits on a 123,816-square-foot lot. NAI Hanson's Peter Cohen also assisted in the deal. Construction has already begun on the hotel.
RHAWNHURST, ORANGE, RAHWAY AND UNION CITY, N.J. — Gebroe-Hammer has closed multiple multifamily sales in New Jersey totaling $6.4 million. In Rhawnhurst, Eli Rosen of Gebroe-Hammer represented both the buyer and seller in the sale of Loretta Arms Apartments. Sold for $1.43 million, the two-and-a-half-story apartment complex features 30 units comprised of a mix of studio and one-bedroom units. David Oropeza, David Jarvis and Greg Pine of Gebroe-Hammer closed the $1.18 million sale of 245 Reynolds Terr. in Orange. Situated in close proximity to the Garden State Parkway, the 17-unit facility features 11 two-bedroom units and six one-bedroom units. In Rahway, Avi Oren and Steven Tenenbaum, also of Gebroe-Hammer, brokered the $600,000 sale of 1300 Fulton St. in Rahway. The new owner plans to upgrade the kitchens and bathrooms throughout the property. In addition, the firm closed three sales totaling $3.2 million in Union City. The sale comprised a combined total of 47 units.