ALBUQUERQUE, N.M. — Sapir Real Estate Development has broken ground on the first phase of Snow Heights Promenade, a retail and entertainment project in Albuquerque. The $45 million phase will include a skyline live entertainment stage that will feature live DJ’s, concerts, comics, family movies, magic and puppet shows. In addition, Snow Heights Promenade will feature a children’s play area, dog park, restaurants, pubs, entertainment venues and retailers. Signed tenants at the development include Altitude Trampoline Park, Alamo Theaters, Fatburger, Outback Steakhouse, Juice It Up, Joe’s Pizzeria, U Choose Tacos, Divalish Desserts and Albuquerque Fitness Center, among others. The second phase of the project will include a $100 million office building with a rooftop dining experience. Sapir Real Estate Development expects to deliver the first phase of the project in January 2019.
LOS ANGELES — Charles Dunn Co. has arranged the sale of a development site located at 729 S. Park View St. in Los Angeles. Salem Missionary Baptist Church sold the asset to Safeco LLC for $2.8 million. The 18,000-square-foot site features a 4,100-square-foot building, which the seller formerly occupied. The buyer, which owns an adjacent parcel, plans to develop 150 residential units and potentially ground-floor retail at the site. Chris Giordano, Chris Steck and John Anthony of Charles Dunn Co. represented the seller and buyer in the deal.
NEW YORK CITY — Lexington Realty Trust (NYSE: LXP) has sold a 21-office asset portfolio for $726 million to a joint venture between affiliates of Davidson Kempner Capital Management LP and Lexington. The office properties are spread across the U.S., with properties in the eastern and western regions, the South and the Midwest. The 3.8 million-square-foot portfolio is currently 98.6 percent leased to a tenant roster that includes Amazon, Experian Holdings, Motel 6 and Nissan. “This transaction marks a major step forward as we execute on our strategy to efficiently recycle capital out of suburban office properties and concentrate our portfolio on single-tenant, net leased industrial properties,” says T. Wilson Eglin, CEO of New York City-based Lexington Realty Trust. We intend to use transaction proceeds to continue to acquire high-quality industrial properties and repay our revolving credit facility and other debt, which we believe is the best path to create meaningful long-term shareholder value.” Following the transaction, Lexington’s percentage of industrial assets based on consolidated revenue is expected to increase to 60 percent from 44 percent at year-end 2017. Lexington received net cash proceeds of approximately $565 million at closing. The joint venture is expected to assume approximately $57 million …
After a sluggish start to the year, the Manhattan office market has experienced a strong rebound. In the second quarter, more than 10 million square feet of space was leased, the highest quarterly total since 2014, pushing year-to-date leasing activity to just over 17 million square feet. At mid-year 2018, there were 17 new leases exceeding 100,000 square feet and 35 new leases of more than 50,000 square feet. Although the economy has been at a peak for an unusually long time, the Manhattan office market has reached new highs. This presents an interesting exception to the norm, where real estate typically lags the economy, and it is good news for the market. Market Drivers While demand has come from a variety of sectors, the most recent top occupiers have come from the FIRE (financial services, insurance, and real estate), TAMI (technology, advertising, media and information), law firm and coworking sectors. Early in the year, the FIRE sector dominated large-block transactions. Examples include JPMorgan Chase’s 420,000-square-foot lease at the newly renovated 390 Madison Ave., and Bank of America Corp.’s 343,000-square-foot lease at 1100 Avenue of the Americas and 127,000-square-foot lease at 1114 Avenue of the Americas. This level of expansion …
NEW YORK CITY — TD Bank has arranged an $18 million construction loan for Phoenix Estates, an eight-story, mixed-use building in the Hunts Point neighborhood of the Bronx. The 111,000-square-foot property is located at 700 Manida St. and will consist of 180 residential units for low-income seniors and moderate-income families. The first floor of the building will be a dedicated community facility used to host classes for residents of the building. TD Bank provided financing for borrowers MHANY Management Inc. and We Stay/Nos Quedamos Inc. The housing development will also benefit from a $14 million investment from the City of New York. The project is scheduled for completion by 2020.
LYNN, MASS. — Cornerstone Realty Capital has secured the $6.4 million refinancing of a 55-unit apartment building in Lynn. Located at 16 Newhall St., the fully occupied building is approximately 11 miles north of Boston. Cornerstone secured a loan through a correspondent lender with an initial fixed-rate period followed by a floating rate. The first 12 months will feature interest-only payments, followed by 30-year amortization. The borrower was undisclosed.
RENSSELAER, N.Y. — Red Stone Tax-Exempt Funding LLC has provided $20.2 million in tax-exempt bonds for the rehabilitation of two affordable seniors housing communities in Rensselaer, located just across the Hudson River from downtown Albany. The Section 8 properties, Van Rensselaer Heights and Renwyck Place, were originally constructed in 1980. Millennia Housing Development will perform the renovations on a budget exceeding $45,000 per unit. An affiliate of Red Stone is the borrower, and will also use the funding to acquire the properties. Boston Capital Corp. purchased approximately $9.5 million in Low-Income Housing Tax-Credits (LIHTCs) in association with the properties.
PISCATAWAY, N.J.— Cushman & Wakefield has brokered the sale of an 88,000-square-foot industrial building in Piscataway. The sales price was undisclosed. Jason Barton, Chuck Fern, Tom Tucci and Stephen Shoemaker of Cushman & Wakefield represented the seller, S.S. White Technologies Inc., a manufacturer of aerospace parts, in the transaction. The buyer was N.J. CRR LLC. The property is located at 151 Old New Brunswick Road.
PHILADELPHIA — Marcus & Millichap has arranged the $1.2 million sale of the Frederick Douglass Apartments in Philadelphia. The mixed-use property consists of 16 residential units and four retail spaces and is located at 5600 Germantown Ave. in the Germantown neighborhood. Fred Paisley of Marcus & Millichap represented the seller, a limited liability company, in the transaction. A New York-based buyer purchased the property.
THE WOODLANDS, TEXAS — The Howard Hughes Corp. (NYSE: HHC) has broken ground on Two Lakes Edge, a 386-unit multifamily community in The Woodlands, about 30 miles north of Houston. Situated on the 200-acre Lake Woodlands, the property features a pool and outdoor entertainment area, sky lounge, fitness center and kayaks and bikes for complimentary use by residents. Two Lakes Edge will also include ground-floor retail and restaurant space. Completion is slated for spring 2020.