Northeast

1301-market-st.-philly

By Tom Weitzel, managing director, JLL The Philadelphia office market at the moment is running in place, which is to say that there is certainly energy being expended, but it is going nowhere fast. Tenants and landlords alike are partnering with real estate experts to navigate this challenging time. However, while office users evaluate businesses and study workforces, the benefit of making a decision has not yet outweighed the downside of making a wrong decision, so most users are adopting a “wait-and-see” approach. Tenant Perspective Tenants are finding it challenging to make long-term decisions about their office spaces given the lack of clarity in the future. Business leaders and executives are tasked with considering factors such as health and safety, productivity, profitability and overall employee morale on a daily basis as they evaluate their physical office space usage during COVID-19. Throughout the region, executives continue to balance health and safety concerns with operational needs as they advance office re-entry plans. They are also assessing the current productivity of their employees compared to that at the beginning of the pandemic. Many companies that we have spoken with have cited declining productivity and creativity from their employees. At the same time, these …

FacebookTwitterLinkedinEmail

NEW YORK CITY — New York City-based investment firm RFR has purchased 522 Fifth Avenue, a 23-story office tower in Midtown Manhattan. Morgan Stanley, which currently occupies the building, sold the property for $350 million. The office building neighbors Bryant Park and is situated near Grand Central Terminal and Rockefeller Center. RFR is hoping to find a single tenant to fully occupy the 575,000-square-foot property when Morgan Stanley moves out in 2024. Morgan Stanley’s CEO James Gorman told Bloomberg TV that the firm will need much less real estate going forward and that 90 percent of the company’s workforce is working from home during the COVID-19 pandemic. Aby Rosen, co-founder and CEO of RFR, and A.J. Camhi, executive vice president and head of RFR’s internal leasing team, are leading the leasing efforts for 522 Fifth Avenue. “We acquired 522 Fifth Avenue with the vision of working with a single user to create a custom, marquee headquarters in the premier midtown location,” says Rosen. “The vacancy is a remarkable blank canvas, well-positioned to respond to the requirements of a forward-thinking company looking for the prestige and exclusivity of a full building and New York City presence.” In 2014, Morgan Stanley sold …

FacebookTwitterLinkedinEmail
194-Wood-Avenue-Iselin-New-Jersey

ISELIN, N.J. — Cushman & Wakefield has brokered the $140 million sale of a 470,692-square-foot office building located at 194 Wood Ave S. in Iselin, located west of Staten Island. The sales price equates to $297 per square foot. Anchored by IBM, the property is located within the Metropark corporate office campus and was fully leased to seven tenants at the time of sale. Andy Merin, David Bernhaut, Gary Gabriel, Kevin Donner, Frank DiTommaso, Kevin Carton and Todd Elfand of Cushman & Wakefield represented the seller, AIG, in the transaction. The buyer was New York City-based investment firm Opal Holdings.

FacebookTwitterLinkedinEmail

TETERBORO, N.J. — Madison Marquette has added Teterboro Landing, a 383,000-square-foot retail power center in Teterboro, about 20 miles northwest of New York City, to its leasing portfolio. The property was built in 2015 and was fully leased at the time of sale to tenants such as Panera Bread, BJ’s Brewhouse, Chick-fil-A, Habit Burger, European Wax and T-Mobile. BIT Teterboro Landing Shops Urban Renewal LLC owns the center.

FacebookTwitterLinkedinEmail

ROCHESTER, N.Y. — Developer WinnCos. has completed Liberty Lofts at Sibley Square, a $23.6 million workforce housing project in Rochester. The property, which is a redevelopment of a historic 1.1 million-square-foot building, adds 104 units to the local supply. Fifty-three units are available at rents of up to 60 percent of the area median income (AMI); three units are available at rents up to 100 percent of AMI; and 48 units are available at rents of up to 110 percent of AMI. The Architectural Team of Chelsea, Mass. designed the project, and DiMarco Constructors served as the general contractor.

FacebookTwitterLinkedinEmail
60-Winter-Street-Malden-Massachusetts

MALDEN, MASS. — JLL has negotiated the $7.3 million sale of a 50,000-square-foot industrial property in the northern Boston suburb of Malden. The property is located on 1.8 acres at 60 Winter St. in a Qualified Opportunity Zone and was fully leased at the time of sale of sale to aerospace and defense contractor Enjet Aero. Michael Restivo and Matthew Sherry of JLL represented the seller, a private family, in the transaction. Eastern Real Estate acquired the asset in an off-market transaction.

FacebookTwitterLinkedinEmail

ALBANY, N.Y. — Berkadia has arranged a $5.2 million bridge loan for Albany Apartments. The undisclosed borrower will use the proceeds to acquire and convert the building, which was originally constructed as a townhouse-style hotel, into a 112-unit multifamily community with studio, one- and two-bedroom floor plans. John Sigeti of Berkadia arranged the nonrecourse, interest-only loan, which was structured with a 24-month term and a 75 percent loan-to-value ratio.

FacebookTwitterLinkedinEmail
Avondale-Arizona-Industrial

MADISON, N.J. — New Jersey-based PGIM Real Estate has acquired a portfolio of 15 industrial buildings totaling 4.7 million square feet for $425 million. Four of the buildings are located in the Atlanta metros of Lithia Springs, Buford and Union City. Six of the buildings are located in the Dallas-Fort Worth (DFW) metroplex, and two are located in the Phoenix suburb of Avondale. The remaining three buildings are located in the Denver area, but the addresses and submarkets of those assets were not disclosed. All of these developments are newly constructed projects or are nearing completion. In addition, the properties all feature 32- to 36-foot clear heights and ample dock doors, which the new ownership cites as key features in marketing to e-commerce users. “COVID-19 has not only supported the continued rise of e-commerce and distribution demand across the United States, but it has also significantly accelerated the existing trend,” says Cathy Marcus, global chief operating officer and head of U.S. equity for PGIM Real Estate. “As many more retailers and international corporations enter the U.S. industrial market or expand their presence in the sector, these state-of-the-art properties will be an attractive component of our broader industrial portfolio.” “This transaction …

FacebookTwitterLinkedinEmail

NEW YORK CITY — A syndicate of investors led by Blackstone Real Estate Income Trust (BREIT) has acquired a $300 million stake in Tricon Residential, Toronto-based investment and development firm with a portfolio of approximately 30,000 single- and multifamily units in the United States and Canada. BREIT acquired the stake at an exchange price of $8.50 per share, which represents a 16 percent premium over Tricon’s 30-day weighted average trading price as of Aug. 26. Tricon will use the proceeds to pay off its corporate debt.

FacebookTwitterLinkedinEmail
Mercer-Industrial-Park-Hamilton-New-Jersey

HAMILTON, N.J. — PCCP has provided a $98 million senior loan for the construction of Mercer Industrial Park, a 1.2 million-square-foot industrial development in Hamilton Township, located just outside of Trenton. The borrower is a joint venture between Hilco Redevelopment Partners and Edge Principal Advisors, which acquired the 132-acre former power plant in late 2018 and embarked on intensive demolition and site work. Mercer Industrial Park will consist of an 846,078-square-foot cross-dock building as well as a 384,895-square-foot partial cross-dock building with a combined 358 trailer parking spaces and 1,248 car surface parking spaces. Both buildings will feature 40-foot clear heights. Completion is scheduled for early 2021.

FacebookTwitterLinkedinEmail