The strength of the New Jersey industrial market continues to evidence itself through consistent demand, rising rental rates and record low vacancy rates across the region. Much of the recent success has been the result of e-commerce growth and expansion among distribution and light manufacturing businesses looking to tap into the market’s port, air cargo, and major transportation networks. While developers have been working to bring new inventory to the market, the new space is being absorbed quickly, leaving tenants with limited options for space. The New Jersey industrial market has seen significant demand for the past 20 quarters and a steady, often rapid, rate of absorption. The market saw 13.6 million square feet of absorption in 2018, according to research from Avison Young. The epitome of this market expansion trend and the most obvious to investors is the activity along the New Jersey Turnpike, from Exit 8A where the market was at a staggering 1 percent vacancy rate at the end of 2018 up to the Exit 10 Edison Market, where rents may soon reach $9 per square foot net. Notable Deals A little farther north into the Carteret /Avenel and Linden/Elizabeth markets much of the activity is focused …
NEW YORK CITY — Bank OZK has provided a $95 million construction loan for an 85,000-square-foot, 15-story mixed-use condominium development on the Upper East Side of Manhattan. Located at 150 E. 78th St., the project will include 25 condominium units as well as several thousand square feet of ground-floor retail space. Bank OZK provided the financing to Midwood Investment & Development and EJS Real Estate. Terms of the financing were not disclosed. The developer plans to break ground on the project this summer.
WOODBURY, N.J. — Starkman Realty Group has negotiated the $6 million sale of Woodbury Manor Apartments, an 80-unit apartment community in Woodbury. Located at 546 Lafayette Ave., the property consists of all two-bedroom townhouse-style units. Jason Starkman of Starkman Realty represented the buyer, Olive Tree Management, in the transaction. The seller was a New York City-based investment group that had owned the property for 35 years.
BOSTON — Cornerstone Realty Capital has arranged a $3 million loan for the refinancing of a multifamily portfolio in Boston. The nine-unit portfolio includes a six one-bedroom, one two-bedroom, one three-bedroom and one five-bedroom unit. All units feature open floor plans, hardwood floors, stainless steel appliances and onsite laundry. Andrew Saccone of Cornerstone secured the financing on behalf of the undisclosed borrower. The lender was not disclosed. Terms of the financing included a fixed interest rate with a 30-year amortization schedule.
NEW YORK CITY — Cushman & Wakefield has arranged the $2 million sale of a retail property in Astoria, Queens. Located at 31-79 Steinway St., the 2,250-square-foot property is a single-story retail building with a full basement. The property offers an additional 4,500 square feet of air rights for future development. Stephen Preuss and Andreas Efthymiouof Cushman & Wakefield represented the seller, Steinway Sports & Recreation Center Inc., in the transaction. The buyer was ABS Partners Real Estate, a locally based investment firm.
PITTSBURGH, PA. — CBRE has arranged an office lease for Kennametal Inc. at an office tower in Pittsburgh’s central business district. Located at 525 William Penn Place, the 900,000-square-foot, 41-story office property is owned by investment group FAC 525. The tower is Pittsburgh’s fourth-largest office building in the CBD. Major capital improvements are nearing completion as part of a rebranding and redevelopment initiative at the property, including a complete lobby renovation, fitness center and reserved tenant parking.CBRE represented FAC 525 in the deal. Avison Young represented Kennametal in the lease transaction, the size of which was not disclosed.
GARDEN CITY, N.Y. — Brooklyn-based real estate investment firm JFR Global Investments has acquired two office buildings in Garden City for a total of $91 million. Atria East, which is located at 900 Stewart Ave. sold for $50 million while Atria West, which is located at 990 Stewart Ave., sold for $41 million. JFR plans to spend $4.2 million on upgrades and repairs to the 252,730-square-foot Atria East and $3.5 million on repairs and upgrades to the 297,339-square-foot Atria West. The seller was Onyx Equities and its partner, The Davis Cos.
NEW YORK CITY — HFF has secured a $32 million loan to refinance a 12-story office tower in the Garment District of Manhattan. Located at 35 W. 36th St., the 77,880-square-foot office building was built in 1911. The building’s renovated lobby includes two high-speed elevators as well as building amenities such as a doorman, 24/7 key card access, an onsite café and a kickboxing gym. Steven Klein, Scott Findlay and Jackie Ferrer of HFF secured financing on behalf of the borrower, Hidrock Properties. The lender was Ladder Capital Finance. Terms of the financing included a three-year, floating-rate loan.
LEOMINSTER, MASS. — KeyBank Real Estate Capital has originated a $12.2 million Fannie Mae, first mortgage loan for Sunrise of Leominster in Leominster, approximately 40 miles west of Boston. Built in 1996, the three-story property features 70 units on a five-acre plot. The property originally comprised 48 assisted living units, with 23 memory care units added in 1999. In 2013, 10 existing assisted living units were converted into nine memory care units. During that renovation, a new common room and dining room were added. Carolyn Nazdin of KeyBank’s Commercial Mortgage Group arranged the non-recourse, fixed-rate loan with a 10-year interest-only term. The loan was used to refinance existing debt.
NEW YORK CITY — Cushman & Wakefield has arranged the $1 million sale of a mixed-use building in Long Island City. Located at 5105 34th St., the three-story, 2,360-square-foot property is fully renovated and consists of one commercial unit on the ground floor and two residential units on the upper floors. Stephen Preuss of Cushman & Wakefieldrepresented the undisclosed seller in the transaction. The buyer was Latino 2000 USA Inc.