CAMBRIDGE, MASS. — Nauset Construction is underway on a 38-unit multifamily project in Cambridge. The project is a three-story vertical addition to the Crimson Galeria building in Harvard Square. The owner of the building, Crimson Galeria LP, originally planned to construct office space atop the existing structure but pivoted to residential during the pandemic, receiving a special permit from the city in the process. NELSON Worldwide is the architect for the project, which will feature studio, one- and two-bedroom apartments, with roughly 20 percent of the residences designated as affordable. Ownership recently added two new tenants to the roster of retailers, which includes Shake Shack, Maharaja, Veggie Grill, Menya Jiro and Core Power Yoga. Delivery is slated for late 2025.
KENILWORTH, N.J. — Sporting equipment retailer Pure Hockey has signed a retail lease to open an 11,340-square-foot store in the Central New Jersey community of Kenilworth. The tenant, which operates about 60 stores nationwide, has backfilled and converted a space formerly occupied by a laundromat/dry cleaner. Marc Palestina and Chuck Lanyard of The Goldstein Group represented the landlord, an entity doing business as Kenilworth 2480 Route 22 LLC, in the lease negotiations. Dean Tselepis of Newmark represented the tenant.
FRANKLIN, N.J. — NAI James E. Hanson has brokered the sale of a 4,232-square-foot office building in the Central New Jersey community of Franklin. The building at 195 N. Church Road houses four suites, basement storage space and onsite parking. Joseph Vindigni of NAI Hanson represented both the seller, LSC Properties LLC, and the buyer, an entity doing business as 195 N Church LLC, in the transaction.
DENVER AND PHILADELPHIA — Hersha Hospitality Trust (NYSE: HT) and KSL Capital Partners LLC have entered a definitive merger agreement under which affiliates of KSL will acquire all the outstanding common shares of Hersha for $10 per share in an all-cash transaction valued at approximately $1.4 billion. Philadelphia-based Hersha is a self-advised real estate investment trust in the hospitality sector, owning and operating luxury and lifestyle hotels in coastal gateway and resort markets. The company’s 25 hotels total 3,811 rooms and are located in New York, Washington, D.C., Boston, Philadelphia, South Florida and California. KSL is a private equity firm specializing in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate and travel services. In addition to its Denver headquarters, the firm also maintains offices in New York City, Stamford, Conn., and London. The purchase price represents a premium of approximately 60 percent over Hersha’s closing share price on Friday, Aug. 25, the last full trading day prior to the announcement. Upon completion, Hersha will no longer be publicly traded. “Hersha and its team have built an impressive, curated portfolio of experiential luxury and lifestyle hotels and resorts in strategic markets,” says Marty Newburger, partner at …
UPPER MOUNT BETHEL, PA. — Developer River Pointe Logistics has provided updated plans for River Pointe Commerce Park, an industrial project located in the Lehigh Valley city of Upper Mount Bethel. The development team has received conditional preliminary approval for subdivision, infrastructure improvements and land development plans for three lots within the 800-acre site. River Pointe now expects to break ground on the initial phase of construction, which will center around a 375,000-square-foot building, in the fourth quarter. To date, River Pointe has invested over $8 million in design, engineering, geotechnical, and impact analysis, including traffic, environmental and economic analysis.
NEW YORK CITY — An affiliate of New Jersey-based intermediary Cronheim Mortgage has arranged a $22 million loan for the refinancing of the 92-room Fairfield Inn & Suiteshotel located at 21 W. 37th St. in Manhattan. Beau Williams and Michael McGuire of Cronheim Mortgage arranged the debt on behalf of the locally based borrower, LAM Management. The direct lender was not disclosed.
ELIZABETH, N.J. — Locally based brokerage firm The Kislak Co. Inc. has negotiated the $4.1 million sale of two multifamily properties totaling 20 units in the Northern New Jersey community of Elizabeth. Both buildings rise three stories, and one of the buildings includes two commercial spaces. Don Baxter and Michael Salomon of Kislak represented the seller in the transaction, and Joni Sweetwood of Kislak procured the buyer. Both parties requested anonymity.
NEW YORK CITY — BlueCrest Capital Management, a British-American hedge fund, has signed a 21,640-square-foot office lease at 450 Park Avenue in Midtown Manhattan. The lease term is 15 years, and the space encompasses the entire 30th and 31st floors of the 33-story building. Daniel Posy and Joe Messina of JLL represented the tenant in the lease negotiations. Paul Amrich, Neil King, Alexander D’Amario and Maxwell Tarter of CBRE represented the landlord, SL Green.
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Single-Family Rental, Built-to-Rent Investment Sales Outlook Remains Positive Despite Economic Challenges
The multifamily sector is under general disruption from a variety of factors, such as falling valuations, financing difficulties, questions about forward net operating income, shifts in regulations and more. Chris Town, who works in commercial sales and leasing at NAI Latter & Blum in Baton Rouge, La., is an expert in single-family rental (SFR) and built-to-rent (BTR) investment sales. Town says that there are challenges, but a solid future ahead for the sector. The overarching challenges take the form of the Federal Reserve interest rate hikes. “It’s the major factor behind the immediate slowdown of home construction and home buying,” Town explains. “Another factor, of course, is land. These are true whether you’re talking true multifamily or the submarkets of BTR and SFR.” A combination of factors has created a tug-of-war among incentives. High interest rates, with home prices at or near historical highs, mean millions of people need places to live. Many of these potential homeowners have families and want the ameliorations and amenities of a detached single-family housing. “Depending on the metric and organization’s research used, you could say the country is five to six million units short on single-family homes,” Town says. The Larger Economy’s Impact on …
NEW ROCHELLE, N.Y. — Locally based developer LCOR is underway on construction of a 307-unit apartment building at 247 North Ave. in New Rochelle, located north of New York City. The 28-story development will include 18,000 square feet of commercial space and offer studio, one- and two-bedroom apartments. Roughly 10 percent (31) of the units will be reserved as affordable housing for renters earning 80 percent or less of the area median income. Bob Tonnessen and Steven Klein of JLL arranged $94 million in construction financing through Pacific Life for the project. Completion is slated for mid-2025.