SOMERSET, N.J. — Lexicon Pharmaceuticals has signed a 20,000-square-foot office lease at Somerset Corporate Center I in Bridgewater, located in the northern part of the Garden State. Gregg Najarian and Slava Vaynberg of Savills represented Lexicon, which is relocating from Basking Ridge in the first quarter of 2023, in the lease negotiations. Other tenants at Somerset Corporate Center, which is owned by SJP Properties, include Qualcomm, Oracle and Merrill Lynch.
NEW YORK CITY — Lincoln Market will open a 10,621-square-foot grocery store at 501 Sixth Ave. in Greenwich Village, the grocer’s first location in Lower Manhattan and seventh overall. The opening is scheduled for the third quarter of 2023. Daniyel Cohen and Manu Wendum of Winick Realty Group represented the undisclosed landlord in the lease negotiations. Scott Sher of Katz & Associates represented the tenant.
READINGTON, N.J. — New Jersey-based developer Larken Associates is nearing completion of The Ridge at Readington, a 254-unit multifamily project located about 50 miles southwest of Manhattan. The Ridge at Readington will feature a mix of market-rate and affordable units in one- and two-bedroom formats across nine buildings. Residences will be furnished with stainless steel appliances and quartz countertops. Amenities will include a pool, fitness center, lounge and wet bar, outdoor pavilion, dog park and walking trails. The first move-ins are scheduled for the fourth quarter.
HOBOKEN, N.J. — Northmarq has arranged a $26.4 million acquisition loan for the Hudson Tea Parking Garage in Hoboken. Built in 2004 by multifamily developer Toll Brothers (NYSE: TOL), the eight-story structure spans 389,984 square feet and houses 1,250 parking spaces. Daniel Karp of Northmarq arranged the fixed-rate financing on behalf of the borrower, Boston-based LAZ Parking Realty Investors. The loan carried a 10-year term with five years of interest-only payments followed by a 30-year amortization schedule.
PHILADELPHIA — The Chatham Bay Group has acquired a former factory located at 2019-53 E. Boston St. in Philadelphia’s East Kensington neighborhood for $9.6 million. The Delaware-based investment firm plans to implement an adaptive reuse program that will convert the facility into a 178-unit apartment complex. Philadelphia-based architecture firm Designblendz is designing the project. Phil Sharrow and Craig Thom of Scope Commercial represented Chatham Bay and the seller, Viking Mill Associates LLC, in the transaction.
NEW YORK CITY — Locally based brokerage firm Rosewood Realty Group has negotiated the $8.7 million sale of a 56-unit apartment building in Harlem. The six-story building was originally constructed in 1909. Aaron Jungreis, Ben Khakshoor and Alex Fuchs of Rosewood Realty represented the buyer, a private investor, and the seller, an entity doing business as 610 Realty Associates LLC, in the transaction. The deal traded at a cap rate of 4.8 percent.
HACKENSACK, N.J. — Law firm Archer & Greiner PC has signed a 22,382-square-foot office lease renewal at Court Plaza, a 335,000-square-foot office complex located at 35 Main St. in Hackensack. Amenities at the three-building complex include a fitness center, cafeteria and a conference room, as well as an onsite bank, dry cleaning service and car detailing shop. Stephen Jennings internally represented the landlord, Alfred Sanzari Enterprises, in the lease negotiations. Jack Fatigati of Morford & Dodds Realty represented the tenant.
As the commercial real estate market adjusts to how much of an effect higher interest rates will have on investment sales and property values, the rental housing sector continues to witness robust resident demand and rent growth as home ownership has become even more difficult for first-time buyers. According to a recent report by the National Multifamily Council (NMHC) and the National Apartment Association (NAA), by 2035 the U.S. needs to build 4.3 million new residential rentals to meet housing needs amid shifting demographics, the existing shortage and the loss of 4.7 million affordable units with monthly rental rates of $1,000 or less, the organizations report. “We’re just not seeing enough new apartments being built, and as a result, we’re seeing significant demand in the rental housing market,” says Hugh Cobb, a principal of Asset Living, one of the nation’s largest property managers of multifamily, affordable, student, active adult, single-family rentals and build-to-rent housing. “Because we’re seeing a decrease in demand in the single-family sales market due to higher mortgage rates, people are staying in apartments longer. And as their families grow, they’re looking for alternative rental housing, such as the build-to-rent space,” says Hugh Cobb. “Through our proprietary data …
NEW YORK CITY — JLL has arranged a $142 million construction loan for Majestic, a 255-unit multifamily project located within a Qualified Opportunity Zone in Brooklyn’s Gowanus neighborhood. Designed by Handel Architects, the 12-story building will include 18,000 square feet of commercial space, and 25 percent of the units will be reserved as affordable housing. Christopher Peck, Nicco Lupo, Jeff Julien, Rob Hinckley and Jonathan Faxon of JLL arranged the loan through U.S. Bank on behalf of the borrower, a partnership led by Domain Cos.
PASSAIC, N.J. — Seven Hills Realty Trust (NASDAQ: SEVN), an affiliate of The RMR Group, has provided a $47 million acquisition loan for a 330,000-square-foot industrial property located at 153 Linden St. in the Northern New Jersey community of Passaic. JLL arranged the financing on behalf of the borrower, Thor Equities, which will use a portion of the proceeds to fund capital improvements.