JERSEY CITY, N.J. — Concord Hospitality Enterprises has started construction on Hyatt House hotel located within the Exchange Place district of Jersey City. Located at One Exchange Place, the 13-story, 258-room extended-stay hotel will feature 10,000 square feet of street-level retail space, a rooftop, outdoor lounge and upper-level lobby. The hotel is part of a public/private revitalization effort that will bring 350 construction jobs and 80 permanent and 60 part-time hotel jobs to the area. The development will involve the renovation and expansion of an existing building and the demolition of other abandoned structures to allow for the 10,000-square-foot addition. The project is an adaptive re-use of a 92-year-old bank building and represents an investment of more than $90 million in Jersey City that will produce more than $1.6 million in annual revenue to the city. The hotel is expected to open as early as December 2015.
Property Type
NEW YORK CITY — Madison Realty Capital (MRC) has provided $19 million in debtor-in-possession (DIP) funding for a residential conversion project in Midtown South. The DIP funding prevented a forced sale through the Chapter 11 Bankruptcy process and will enable the borrower to retain control of the property. Located at 11 East 36th St. and built in 1912, the 14-story, 68,727-square-foot property was originally an office building. The borrower is redeveloping the asset as a 66-unit residential condominium building with two ground-floor retail condominium units and 5,320 square feet of second-floor office space. MRC completed the DIP funding within a short timeframe to avoid the property being sold at bankruptcy auction. Proceeds of the first mortgage loan from MRC will be used to retire previous debt, simplifying the capital stack and permitting the borrower to proceed with the sellout of residential condominium units through the bankruptcy process.
NEW YORK CITY — Eastern Consolidated has arranged the sale of 15-17 West 116th Street, a mixed-used property in Central Harlem. Malcolm Shabazz Court LLC sold the property to 15 West 116 LLC for $13.8 million in an off-market transaction. Constructed in 2005, the nine-story building features 38 apartment units and ground-floor retail space. The property is under a 20-year 421A tax abatement program with 12 years remaining, which does not prohibit the owner from acquiring new financing from any institutional lender. The transaction was subject to the purchaser being approved by two city agencies (The NYC Department of Housing Preservation and Development and Housing Development Corp.), along with the assumption of subsidized financing. Peter Carillo and Andrew Sasson of Eastern Consolidated represented the seller; Carillo also procured the buyer in the transaction. Gregory Reid of Reid Rodriguez & Rouse provided legal counsel for the seller, while Ira Nesenoff of Nesenoff & Miltemberg was the attorney for the buyer.
NEWARK, N.J. — Teaneck, N.J.-based The Aspen Companies has acquired a HUD-supported apartment building in downtown Newark for $3 million. Located at 75 Lock St., the three-story property features 50 units with a mix one-, two- and three-bedroom layouts. The buyer plans to implement an aggressive capital improvement program to the property, including upgrading common areas, hallways and the exterior, improving building systems and renovating apartments. The property is located adjacent to the New Jersey Institute of Technology and near the New Jersey Performing Arts Center. The apartment building was 100 percent occupied at the time of sale.
MOUNT PLEASANT, WIS. — Land and Lakes Development Co. has selected Meridian Design Build to construct a 132,002-square-foot speculative industrial facility in Mount Pleasant, approximately 25 miles south of Milwaukee. The building will be the first in the new 60-acre Mount Pleasant Business Park, which has the potential to accommodate approximately 800,000 square feet of new development. Construction is underway at the site and the building will be available for occupancy by the end of this year. Harris Architects is providing architectural services. Pinnacle Engineering Group is completing civil engineering work.
FRIDLEY, MINN. — Marcus & Millichap has brokered the $19.8 million sale of Fridley Medical Center, a 60,476-square-foot on-campus medical office property in Fridley, approximately nine miles north of Minneapolis. Fridley Medical Center, located at 480 Osborne Road NE, is connected via a walkway to the Allina Health-owned Unity Hospital. The building is anchored by Multicare Associates, a provider owned and operated clinic with multiple locations in the Minneapolis market. Additional tenants occupying the facility include Fridley Medical Pharmacy, Virginia Piper Cancer Institute, Minnesota Oncology, MAPS Medical Pain Clinic and NovaCare Physical Therapy. Scott Niedergang and Gino Lollio of Marcus & Millichap’s Healthcare Real Estate Group in Chicago represented the seller, a partnership between a local physician group and developer, and the buyer, a healthcare real estate investment trust.
MOUNT PROSPECT, ILL. — Cushman & Wakefield has brokered the $16.2 million sale of Timberlake Apartments, a 222-unit property located at 1450 Busse Road in Mount Prospect, approximately 24 miles northwest of Chicago. The value-add property consists of 16 buildings on a 12.8-acre campus with a rentable area of 169,538 square feet. Timberlake was 97 percent occupied at the time of sale and consists of a unit mix of one- and two-bedroom apartments. Bill Montana and Chris Sackley of Cushman & Wakefield represented the seller, a private partnership. An out-of-state investor seeking to increase its presence in suburban Chicago purchased the property.
BERWYN, ILL. — Summit Design + Build LLC has been selected as general contractor for the reconstruction of a 6,500-square-foot microbrewery building in Berwyn, a suburb 10 miles west of Chicago. Big Hurt Brewhouse will be located at 6801 W. Cermak Road. The project involves the redevelopment of an existing two-story limestone building, which was originally occupied by American State Bank and most recently Berwyn National Bank, into the flagship brewhouse for Chicago White Sox legend Frank Thomas. The baseball Hall of Famer launched his line of specialty brew — Big Hurt Beer — in the fall of 2011. Construction plans call for a complete gutting of the existing building, plus an interior renovation. The new microbrewery, sports bar and grill will feature an outdoor beer garden and include 2,200 square feet of second-floor offices and a private suite. Kisarau Architect Ltd. is providing architectural services for the project, which is slated for completion this fall.
CANTON, MICH. — Nelson Properties Inc. has arranged the lease of a 12,000-square-foot retail building at Coventry Commons Shopping Center in Canton, 10 miles southwest of Livonia. Locally owned franchises Aqua-Tots Swim Schools will occupy 8,400 square feet and Funtastic Play Center Inc. will occupy the remaining 3,600 square feet at the building. Brian Tomina is the real estate developer for Aqua Tots. Terry Bixler of ROC Real Estate represented Funtastic Play Center. Matthew Schoch of Nelson Properties represented the landlord in both transactions.
SAN DIEGO – A 22,000-square-foot property in San Diego that is triple-net leased to Rite Aid Pharmacy has sold to an unnamed buyer for $7.1 million. The building is located at 13167 Black Mountain Road in the Rancho Penasquitos neighborhood. It sits adjacent to a Vons-anchored shopping center. The private seller was represented by CBRE’s Ian Schroeder and Maurice Nieman.