BOSTON — Craft brewing companies, liquor distilleries and wineries that also serve food have been included in Phase II of the Massachusetts reopening plan, according to a statement by Gov. Charlie Baker on Monday, June 1. The ruling clarified initial confusion as to whether craft beverage producers would be treated as restaurants, which will reopen in Phase II, or bars, which will reopen in Phase III. The state, particularly the metro Boston area, is known for a robust community of craft breweries, including Boston Beer Co., owner of Samuel Adams Boston Brewery. However, beverage producers that do not also serve food will be treated as bars. Massachusetts began Phase I of its reopening plan, which included the gradual reopening of outdoor services, construction, personal services, curbside retail and office space, on May 18. Gov. Baker is expected to decide if the state will proceed to Phase II, which includes in-store retail, restaurants, lodging and additional personal services, on Monday, June 8. As of June 2, the Centers for Disease Control and Prevention reported more than 100,800 cases of COVID-19 in Massachusetts and more than 7,000 deaths.
WAKEFIELD, MASS. — Franklin Street Properties Corp. (NYSE: FSP), a Wakefield, Mass.-based REIT, has reported that it collected 95 percent of rent payments due for May at its office properties despite revenue concerns amid the COVID-19 outbreak. When the outbreak began in the United States, office users across the country were forced to lay off employees while others were restricted to working from home. Even as states begin to reopen and some employees are returning to their offices, many companies are reconsidering lease signings and expansions. In addition, Franklin reported that none of its properties has sustained significant damage as a result of the ongoing nationwide protests. Franklin owns and operates 35 office properties totaling approximately 9.5 million square feet, primarily located in infill and central business districts in 10 Southeastern and Midwestern states. Some tenants have requested rent relief in the form of deferrals for varying lengths of time, which Franklin has granted in particular instances while seeking extended lease terms. The REIT’s stock price closed at $5.15 per share on June 2, down from $7.52 per share at the same time last year.
PHILADELPHIA — CBRE has negotiated a 32,500-square-foot office and lab prelease for biotechnology company Century Therapeutics in Philadelphia’s University City district. The space is located at One uCity Square, a 400,000-square-foot mixed-use development currently under construction and that will feature Class A office, lab and retail space. The project is slated for completion in early 2022. Bob Zwengler, Matthew Knowles and Anthony Pell led a CBRE team that represented Century Therapeutics in the lease negotiations. A joint venture between University City Science Center, Wexford Science & Technology LLC and Ventas Inc. owns the property.
NEW YORK CITY — Urban Edge Properties, a New York City-based management company, has launched dedicated grab-and-go shopping services at select retail properties in New York and New Jersey. Urban Edge will offer short-term parking spaces located near stores that allow shoppers to pick up items ordered online or briefly enter the store. The spaces are designed to limit the amount of time customers physically spend in stores and to emphasize social distancing as retailers gradually begin to reopen their stores amid the COVID-19 outbreak. Urban Edge has launched the new service at 16 properties, including Bergen Town Center and Hudson Mall in Jersey City and Burnside Commons in New York. Additional properties will launch the program throughout June and July. Restaurant and other essential retailers are already using the parking spots.
ALBANY, N.Y. — Two regions in the state of New York are expected to begin Phase II of the state’s reopening plan this week following improved conditions amid the COVID-19 health and economic crisis, according to a statement issued by New York Gov. Andrew Cuomo on Monday. The regions in question are Western New York and the Capital Region, which includes the state capital of Albany. Phase II includes the reopening of office-based jobs, real estate construction and services, barbershops, salons and expanded retail services. Five regions in Upstate New York — the Finger Lakes, North Country, Mohawk Valley, Central New York and Southern Tier regions — were permitted to begin Phase II on Friday. New York City is expected to enter Phase 1 on June 8. The requirements to reopen a region include a 14-day decline in hospitalizations and hospitalized deaths, fewer than two new hospitalizations per 100,000 residents, as well as several other requirements related to hospital capacity and testing availability. As of June 1, the Center for Disease Control and Prevention reported more than 370,000 cases of the COVID-19 in New York and nearly 29,000 deaths.
SOUTH AMBOY, N.J. — Cronheim Mortgage has arranged a $32 acquisition loan for Bayside Cove Apartments, a 127-unit Class A multifamily complex in South Amboy, a southwestern suburb of New York City. The borrower was an undisclosed private investor. A local bank provided the seven-year loan, which carries two years of interest-only payments and a fixed interest rate of 3.3 percent. Located at 100 Celecki Drive, the complex was constructed in 2018 and features one- and two-bedroom floor plans.
NEW YORK CITY — Hospital for Special Surgery (HSS) has opened a new 15,000-square-foot outpatient medical center at the Hudson Yards mixed-use development in Manhattan. The space is located within 31 Hudson Yards, a 72-story building that also houses the Equinox Hotel and an Equinox fitness club. The facility will be staffed by physicians and surgeons specializing in hand and upper extremity, spine, joint replacement and pain management. Related Cos. is the developer and owner of Hudson Yards.
NEW YORK CITY — Cushman & Wakefield has negotiated a 7,400-square-foot office lease for Australian pension fund AustralianSuper in the Plaza District of Manhattan. AustralianSuper leased the entire 20th floor of 527 Madison Avenue, an approximately 240,000-square-foot office building that was constructed in 1986. Jim Frederick and Gordon Hough of Cushman & Wakefield represented the landlord, Mitsui Fudosan America Inc., in the lease negotiations. Paul Amrich, Neil King and Georgina Cook of CBRE represented AustralianSuper.
NEW YORK CITY — Avison Young has brokered the $4.5 million sale of a four-unit multifamily property in the SoHo neighborhood of Manhattan. Located at 198 Prince St., the 5,000-square-foot property was constructed in 1900 and includes ground-floor space for retail or office uses. Brandon Polakoff of Avison Young represented the seller, a private owner, in the transaction. The buyer was undisclosed.
The impact of COVID-19 has forced retailers, restaurants and service providers in the Northeast to improve their digital channels and adapt social distancing policies to continue serving customers. With retailers struggling to pay rent, landlords could find mutual benefit in reaching a compromise with existing tenants before temporary closures become permanent. Unfortunately, for many small businesses the virus has activated a Darwinian battle of the fittest among retailers with primarily physical channels. Meanwhile, e-commerce giants like Amazon are thriving in market conditions tailored to their already digital-focused business plans. Grocery stores and pharmacies have also found themselves to be arguably the most essential of services during the outbreak, as many have struggled to keep fresh food, toilet paper and other supplies on their shelves. But even after medical professionals and politicians give the “all clear” to reopen the economy completely, it is still unclear when consumers will feel comfortable returning to their favorite stores and restaurants. Northeast Real Estate Business recently caught up with three real estate professionals to gain their insights into how the virus has impacted their local markets. Below are edited responses from Ronald Dickerman, president and founder of Madison International Realty, which provides equity capital to …