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.
NEW YORK CITY — Derby Copeland Capital, a locally based lending and investment firm, has provided a $9.8 million acquisition loan for 414-416 West Broadway, a 13,396-square-foot, mixed-use property in Manhattan’s SoHo district. The borrower was not disclosed. The four-story building consists of four newly renovated apartments, one unrenovated apartment, one office suite and a ground-floor retail space with a contiguous basement. Marcus & Millichap brokered the $13.2 million sale of the property on behalf on behalf of the seller, Valroge Corp.
ROCKY HILL, CONN. — Vessel Technologies, a New York City-based provider of modular and prefabricated housing, will develop a 96-unit rental project in Rocky Hill, a southern suburb of Hartford. The property will be developed at a vacant site at 125 Henkel Way. The majority of the units will have one-bedroom floor plans to accompany several residences with two-bedroom floor plans. Fabrication will commence in September, and the first move-ins are scheduled for late 2024.
WALTHAM, MASS. — Locally based construction management firm J. Calnan & Associates has delivered a 37,000-square-foot life sciences project in the western Boston suburb of Waltham. The space, which is a build-to-suit for Biocytogen Pharmaceuticals, is located at 300 Third Avenue, a 143,533-square-foot building that is owned by Dallas-based Lincoln Property Co. The facility features an open-floor design, climate-controlled vivarium and advanced cell culture and procedure suites.
NEW YORK CITY — Curtis + Ginsberg Architects has signed an 11-year, 12,602-square-foot office lease at One Battery Park Plaza in Lower Manhattan. The design firm is relocating its headquarters from 55 Broad St. to the 27th floor of the 35-story, 870,000-square-foot building. Ruth Colp-Haber of Wharton Property Advisors represented the tenant in the lease negotiations. Kevin Daly internally represented the landlord, Rudin, which originally developed the building in 1971.
JERICHO AND NEW YORK CITY, N.Y. — Kimco Realty (NYSE: KIM) has entered into a definitive merger agreement with RPT Realty (NYSE: RPT) under which Kimco will acquire RPT Realty in an all-stock transaction. Both REITs are based in New York — Kimco in Jericho and RPT in Manhattan — and own and operate open-air and grocery-anchored shopping centers, as well as mixed-use assets. Kimco valued the transaction at approximately $2 billion, including the assumption of debt and preferred stock. The merger will add 56 open-air shopping centers, including 43 wholly owned and 13 joint venture assets, to Kimco’s existing portfolio of 528 properties. The affected portfolio spans 13.3 million square feet of gross leasable area. GIC, a sovereign wealth fund based in Singapore, is RPT Realty’s largest joint venture partner and plans to continue its dual ownership with the combined company post-merger. Conor Flynn, CEO of Kimco, says that roughly 70 percent of RPT Realty’s portfolio aligns with Kimco’s strategic markets. This includes Mary Brickell Village, a mixed-use development in Miami that RPT Realty purchased last year for $216 million. Kimco plans to remerchandise and redevelop portions of the center, as well as add it to the company’s Signature Series …