BOSTON — Boston Properties has opened a 272-room hotel at The Hub on Causeway, a 2 million-square-foot mixed use development in Boston. Dutch brand citizenM will operate the hotel. The Hub houses direct connections to several entertainment and retail destinations in Boston, including the North Station transit line and TD Garden sports arena. California-based architecture firm Gensler designed the hotel, citizenM’s first property in the United States outside of New York.
NEW YORK CITY — A partnership between two New York-based developers, Delshah Capital and OTL Enterprises, has broken ground on a 166,976-square-foot mixed-use project in Brooklyn. The property will offer 180 units of multifamily housing, 25 percent of which will be affordable housing. Healthcare and drug treatment provider START Treatment & Recovery Centers will occupy 15,000 square feet of office space within the tower, which will also house 2,000 square feet of retail space. Construction is slated for completion in 2021.
ROCHESTER, N.Y. — Money360, a California-based direct lender, has provided a $13.2 million bridge loan to refinance a multifamily property in Rochester, a city located about 70 miles east of Buffalo. The property includes ground-floor retail space. The non-recourse, three-year loan features a fixed interest rate with an interest-only amortization schedule. Ken Wood of Money360 originated the loan.
NEWARK, N.J. — NorthMarq has arranged $8 million in financing for 31 Clinton Street, a 12-story office building in Newark. The public defender’s office of the State of New Jersey occupies the property. The non-recourse loan carries a 15-year term and a fixed interest rate of 3.72 percent. The loan proceeds will be used for renovations including a new elevator, new roof, new HVAC control system and facade repairs. Charles Cotsalas of NorthMarq arranged the loan. The lender and borrower were undisclosed.
NEW YORK CITY — WeWork’s parent company, The We Co., has filed for its initial public offering. The coworking giant has not yet provided details on the number of shares it will offer or the expected pricing. We’s public filing would enable the company to debut as early as September. We has been valued as high as $47 billion in the private markets, according to The Wall Street Journal. We’s total revenue increased $771.6 million in the first six months of 2019 to $1.5 billion, primarily driven by an increase in membership and service revenue, according to the company’s filing with the Securities and Exchange Commission. On the flip side, We posted a net loss of $689.7 million for the first six months of the year. Total revenue in 2018 was $1.8 billion, but total losses were $1.6 billion. In the filing, We stated that average revenue per WeWork membership has experienced a decline, citing continued expansion into new global markets with different pricing structures and discounts to encourage longer contract terms. In 2010, WeWork opened its first location at 154 Grand St. in New York City. In the early years, WeWork members consisted of mostly freelancers, start-ups and small …
On June 14th, the New York State legislature passed a series of stringent rent regulation reforms. The laws damaged property owners’ means of making money by strengthening tenant protections, capping rent increases and keeping units permanently stabilized. A quick Google search will explain the specifics regarding IAIs, J51s, eviction, buyouts, vacancy bonus and decontrol. In short, landlords will face rising taxes, higher water and sewer bills and elevated construction costs with no mechanism to raise rents to outpace or even match these expenses. Gloom was in the air until an auspicious turn of events occurred on June 21st, just one week after the new rent laws passed. A Pennsylvania woman won a momentous victory in the U.S. Supreme Court that opened the doors for property owners to go directly to federal court without going to state court first. The timing was nothing short of incredible. Essentially, the decision paves the way for New York City landlords to get a fast-track hearing by the Supreme Court, which may view the these new rent laws as going too far and violating owners’ constitutional rights. In weeks to follow, property owners spoke with each other and with major law firms to get a …
PHILADELPHIA — Liberty Property Trust, a publicly-traded real estate investment trust (NYSE: LPT), has opened Four Seasons Philadelphia, a 219-room hotel located within the Comcast Technology Center in Philadelphia. The hotel rises 1,121 feet, making it the tallest building in the city. Amenities at the hotel include a spa and wellness center with a 30,000-gallon swimming pool, restaurant concept Jean-Georges Philadelphia, oyster and cocktail bar Vernick Fish, a 42-seat café called Vernick Coffee Bar and 15,000 square feet of flexible meeting and event space. Foster + Partners designed the property.
NEW JERSEY — Dallas-based Colony Industrial has acquired a 33-property industrial portfolio totaling more than 1.3 million square feet in New Jersey. The portfolio comprises assets located in several cities in northern New Jersey that are currently 99 percent occupied. The sale included three development sites located in Carteret and West Caldwell. Brian Fiumara, Michael Hines, Brad Ruppel, Lauren Dawicki and Thomas Monahan of CBRE represented the seller, New Jersey-based developer Hampshire Real Estate Cos., in the transaction. The sales price was undisclosed.
MOONACHIE, N.J. — CBRE has negotiated a 105,000-square-foot industrial lease in Moonachie, located in metro New York City. Online fashion accessory company Fashionphile will base its Northeast operations from the property. Denver-based EverWest Real Estate investors purchased the building in August 2017 and is currently redeveloping it. Larry Schiffenhaus, Thomas Monahan, Stephen D’Amato, Anastasia Lazarides, Gerard Monahan and Lauren Griffith of CBRE represented Fashionphile in the lease negotiations.
WARREN, N.J. — Lee & Associates has arranged a 35,000-square-foot office lease in Warren, about 30 miles west of New York City. The tenant, energy supplier Matheson Tri-Gas, will occupy the entire top floor at 3 Mountainview Road. Brian Lynch and Peter Rasmusson of Lee & Associates represented Matheson Tri-Gas in the lease negotiations. Jamie Drummond, Andrew Perrotti and Dan Reider of Newmark Knight Frank represented the landlord, KRE Group.