BILLERICA, MASS. — Boston-based Berkeley Investments will develop Billerica Crossing, a 200,000-square-foot life sciences facility that will be located north of the state capital. Brian Morrissey, Michael Restivo, Martha Nay, Lenny Pierce and David Coffman of JLL represented Boston-based Cabot Corp. in its sale of the 18-acre tract to Berkeley Investments. Cabot owns and operates a research and development facility on the adjacent parcel. A construction timeline was not disclosed.
SOUTH AMBOY, N.J. — A partnership between Woodmont Industrial Partners and Joseph Jingoli & Son Inc. has broken ground on a 152,100-square-foot warehouse in South Amboy, located in the eastern part of the Garden State. The site spans 22 acres. Building features will include a clear height of 36 feet, 22 dock doors, ample trailer and car parking and the capacity to add 22 knock-out doors if desired by a tenant. Completion is slated for summer 2023.
NEWARK, N.J. — Los Angeles-based Parkview Financial has provided a $21.5 million loan for the acquisition and conversion of a 13-story vacant hotel located at 810 Broad St. in Newark. The borrower, a subsidiary of Winchester Equities LLC, plans to transform the property, which was originally constructed in 1912 as the headquarters of First National State Bank, into a multifamily complex. Upon completion, which is slated for late 2022, the property will house 106 apartments in studio and one-bedroom formats and a 7,500-square-foot restaurant.
PLEASANT HILLS, PA. — Colliers has negotiated the $14 million sale of a 33,172-square-foot medical office building in Pleasant Hills, a southern suburb of Pittsburgh. Gregg Broujos and Kim Kretowicz of Colliers represented the undisclosed seller and the buyer, Tampa-based Sila Realty Trust, in the transaction. At the time of sale, the building was fully leased to tenants such as Jefferson Hospital / Allegheny Health Network, Kids Plus Pediatrics, Miracle Dental Associates and Vision Care Associates-Eye Care Specialties of Pennsylvania.
NEW YORK CITY — Avanath Capital Management, a private real estate investment management firm, has purchased two multifamily communities in Brooklyn. The Irvine, Calif.-based company purchased the two properties, which total 601 apartments and 42,643 square feet of ground-floor retail space, for $315 million. The properties also include 82,681 square feet of parking. The seller was not disclosed, but multiple outlets report the seller as Greenland USA, a residential and commercial real estate developer based in China. Located at 38 6th Ave. and 535 Carlton Ave., the two communities are situated adjacent to Barclays Center, the home arena of the Brooklyn Nets NBA franchise. A little over one-third of the units are reserved for residents with incomes between 40 percent and 100 percent of area median income (AMI). The buildings were constructed in 2017 as part of the ongoing Pacific Park New York Development initiative, which Avanath Capital says is Brooklyn’s largest development project to date. In addition to the two multifamily properties, at full completion the site will host eight acres of public open space, a new public middle school, 13 other residential buildings and more than 7.3 million square feet of residential, commercial and retail space. Amenities at …
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Rising Interest Rates and Inflation to Fuel Change in Property Markets
Beginning in the fourth quarter of 2020, commercial real estate buyers and sellers moved off the sidelines and began fueling an impressive investment sales rebound as many pandemic-related lockdowns and restrictions eased or ended. The rush to purchase hard assets hit its apex a year later when commercial property sales surged to a record $362 billion in the fourth quarter of 2021 alone, according to Real Capital Analytics, a part of MSCI Real Assets that tracks property transactions of $2.5 million or more. The strong market is continuing this year: Deals of $170.8 billion closed in the first quarter, a year-over-year increase of 56 percent, Real Capital reports. Buyers in the first quarter also pushed up prices 17.4 percent over the prior year, according to Real Capital’s Commercial Property Price Indices (CPPI). But given rising interest rates and other recent headwinds, will investors continue to drive robust investment activity and bid up prices? The 10-Year Treasury yield has spiked some 150 basis points to around 3 percent since the beginning of 2022, and fixed 10-year mortgage rates of between 3 percent and 4 percent are up about 100 basis points. For short-term variable loans, the benchmark secured overnight financing rate …
BOSTON — MassHousing has provided $205 million in financing for 10 affordable seniors housing communities totaling 931 units that are located in various parts of Massachusetts. The borrower, Providence Realty Investment LLC, will use the proceeds to refinance existing debt and preserve affordability. Providence Realty Investment previously utilized $125 million from MassHousing to purchase the communities in 2011. At that time, nearly a third of the 931 apartments involved were at risk of being converted to market rents and being lost from the state’s inventory of affordable housing. That transaction ensured that rents at the 10 properties would remain affordable for lower-income renters for at least 60 years. Rockport Mortgage worked on behalf of Provident Realty to place the loan with MassHousing.
CAMBRIDGE, MASS. — A partnership between Boston-based developer Anchor Line Partners and international asset management firm Northwood Investors has topped out 60 First Street, a 215,000-square-foot life sciences project located across the Charles River from Boston in Cambridge. The five-story property, which is a redevelopment of the former Sears building, includes ground-floor retail space and has been fully preleased. Biotech startup Prime Medicine has committed to 148,000 square feet across three floors, and RNA editing company Korro Bio has leased 50,000 square feet across two floors. Full completion of the project is slated for early 2023.
BROOKHAVEN, N.Y. — CBRE has brokered the $28.5 million sale of 5000 Corporate Court, a 264,482-square-foot office building in Brookhaven, located on Long Island. Tenants include the Internal Revenue Service and U.S. Citizenship & Immigration Service. Jeffrey Dunne, Steven Bardsley, Jeremy Neuer, Stuart MacKenzie, Travis Langer and Philip Heilpern of CBRE represented the seller, Office Properties Income Trust, in the transaction. CBRE also procured the buyer, Northpath Investments.
BURLINGTON, MASS. — Developer Nordblom Co., in partnership with Life Time Living, has broken ground on a 167-unit multifamily project in Burlington, a northern suburb of Boston. Residents will have access to memberships at the adjacent athletic resort, concierge services and work-from home amenities. The property is situated within the 150-acre Northwest Park mixed-use development and will include an affordable housing component. Completion is slated for summer 2023.