NEW YORK CITY — Ready Capital has closed a $24.6 million loan for the acquisition, renovation and stabilization of a 52-unit, Class B multifamily property located in the Greenpoint neighborhood of Brooklyn. Upon acquisition, the sponsor will convert the existing multifamily building into a co-living property. Additionally, the sponsor will implement a capital expenditure to prepare the co-living units for occupancy, which includes fully furnishing each unit. Ready Capital closed the nonrecourse, floating-rate loan, which features a 48-month term, one extension option, flexible prepayment and a facility to provide future funding for capital expenditures.
BRANCHBURG, N.J. — Cushman & Wakefield has brokered the $6.4 million sale of Fox Hollow Industrial Science Center, a 42,653-square-foot industrial property in Branchburg, a southwestern suburb of New York City. Situated at 3434 Route 22, the property features 22-foot ceiling heights and convenient access to Interstates 28 and 78. Andrew Schwartz, Andrew Merin and David Bernhaut led a Cushman & Wakefield team that represented the seller, DLP Real Estate Capital, in the transaction. The team also procured the buyer, a private investor.
WALLINGFORD, CONN. — O,R&L Integrated Services has negotiated a 20,079-square-foot industrial lease for Consolidated Electrical Distributors Inc. (CED) in Wallingford, a northern suburb of New Haven. The space is located at 34 Barnes Industrial Road S. in a warehouse building that features 22-foot clear heights and one 7.5-ton bridge crane. CED will utilize the space for additional storage, supporting its primary Wallingford manufacturing and distribution facility. Red Bull Distribution Co. is the other tenant of the building, with 31,141 square feet. Frank Hird of O,R&L represented CED in the lease negotiations. Hird also represented the landlord, a partnership between ADM Wallingford LLC and Tremblant Enterprises LLC.
Recently, New York City passed the Climate Mobilization Act bill as a way to counter climate change. If passed into law, the bill’s foundation would require buildings that are larger than 25,000 square feet to cut climate emissions by 40 percent by 2030 and by more than 80 percent by 2050. The legislation also requires certain buildings to cover roofs with plants, solar panels, small wind turbines or a combination of those elements. Rent-regulated housing, as well as structures of worship, won’t be subject to the emissions cap. However, building owners whose properties are subject to the new law will be fined $268 for every ton of emission beyond an individual building’s limit. To make the necessary changes to avoid these massive penalties — such as replacing outdated heating, cooling and lighting systems — owners will need to retrofit older buildings with updated energy-efficient technology. The legislation demonstrates what a metropolitan version of the Green New Deal, the national movement for a multi-trillion dollar, climate-friendly plan, might look like. The legislation is expected to create thousands of blue collar jobs and make it easier for the city to take advantage of future state and federal funding for clean energy projects …
Content PartnerDevelopmentFeaturesMassachusettsMultifamilyNortheastNortheast Feature ArchiveWalker & Dunlop
Can Boston Keep Up with Multifamily Demand?
Think Boston multifamily is overbuilt or overheated? Think again. Due to superb fundamentals and a slowing development pipeline, Boston is now regarded as the number one metro area for multifamily investment. From 2019–2030, Boston will need to add 51,007 units to accommodate population growth, an average of 4,637 units per year. Recent development (2014–2017) averaged 3,334 units per year. Population and job growth are expected to remain strong, fueling continued demand for multifamily housing and countering arguments that the Boston market is overbuilt. Many developers nationally are interested in the market. The construction pipeline for multifamily properties features organizations with headquarters as far away as Portland, Phoenix, and Dallas. The Houston-based Hanover Company, for example, has four properties totaling over a thousand units in the Boston development pipeline. Boston is a seller’s market as well, with deals typically attracting multiple bids, and it is easy to see why. For investors, Boston is a market with an average cap rate of roughly 4.5 percent. This is the same cap rate as Raleigh or Central Florida — two markets generally considered to be more volatile than Boston in the case of a recession. A Reliable Hub Becomes a Vibrant City “Historically, people …
NEW YORK CITY — A joint venture between Pebb Capital and TriArch Real Estate Group has sold The Alabama, a 175-bed student housing community in the Greenwich Village neighborhood of Manhattan, for $104 million. The buyer in the transaction was undisclosed. Situated at 15 E. 11th St., the property serves students attending Cardozo Law School, The New School and New York University. The community offers fully furnished units with shared amenities including an attended lobby, fitness center, 24-hour business center, study and conference rooms, a 24-hour coffee bar, resident lounge and Hub by Amazon package lockers. Pebb Capital and TriArch acquired The Alabama in October 2016 for $58 million.
GLEN RIDGE, N.J. — The Avison Young New Jersey project management group has completed the ground-up construction of a 45,000-square-foot, Class A medical office building in Glen Ridge, an eastern suburb of New York City. The facility features adaptable medical office units for physicians and specialists and is situated adjacent to Mountainside Medical Center. Existing buildings on the site were demolished as part of the project. NK Architects designed the facility. One Bay Urban Renewal LLC, an affiliate of The Hampshire Cos. LLC., owns the property.
FRAMINGHAM, MASS. — JLL has secured a $43.1 million acquisition loan for a two-property office portfolio totaling 292,014 square feet in Framingham, a western suburb of Boston. The properties, a 166,101-square-foot building situated at 492 Old Connecticut Path and a 125,913-square-foot building situated 161 Worcester Road, were 90 percent leased to 32 tenants at the time of the loan closing. Cambridge Savings Bank provided the fixed rate, nonrecourse loan to the borrower, a partnership between Campanelli and TriGate Capital. The borrower plans to invest $2.4 million into capital improvements to the portfolio. Greg LaBine and Martha Nay of JLL arranged the loan.
RAHWAY, N.J. — Ready Capital has closed a $15.8 million loan for the acquisition, renovation and stabilization of an approximately 270,000-square-foot, Class C, industrial warehouse property in Rahway, a southwestern suburb of New York City. The property is situated in the Linden submarket. Upon acquisition, the sponsor intends to implement capital expenditures for roof repairs, façade work and deferred maintenance. The, nonrecourse loan carries a hybrid interest rate, or part-fixed- and part-floating rate. The loan features a 60-month term, flexible prepayment and is inclusive of a facility to provide future funding for capital expenditures and tenant leasing costs.
WALLINGFORD, CONN. — Red Bull Distribution Co. has signed a 31,141-square-foot industrial lease in Wallingford, a northern suburb of New Haven. The space is located at 34 Barnes Industrial Road S. in a warehouse building that features 22-foot clear heights and one 7.5-ton bridge crane. James Panczykowski of JLL represented Red Bull in the lease negotiations. Frank Hird of O,R&L Integrated Services represented the landlord, ADM Wallingford LLC.