Sales
A five-story, 6,810 s/f building at 125 Madison Street in the Lower East Side of Manhattan was sold in a transaction valued at $2,265,000. The sale price equates to approximately $333 per square foot. The corner building has 15 residential apartments and 1 commercial space.
Alan Shmaruk and Michael Sherman of the Manhattes Group represented the seller 125 Madison Street Realty Corp and the purchaser 125 Madison Street LLC. The purchaser is a local investor. “The Lower East Side of Manhattan is quickly becoming one of downtown’s hottest neighborhoods. We were able to identify a local investor who understood the long term value of this property.” said Shmaruk, the principal of the Manhattes Group.
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Michael Lombardi, a senior associate, along with associate Julienne Pape from Marcus & Millichap’s New Jersey office have successfully completed two transactions according to Michael J. Fasano, regional manager of the firm’s New Jersey office. The total sales price for both assets was $2,180,925.
The first transaction was the sale of a freestanding United States Post Office, a 4,125 s/f net leased property located at 237 Philadelphia Avenue in Egg Harbor City, New Jersey. Lombardi and Pape represented the seller in this transaction.
In addition Pape and Lombardi recently closed a multi-tenant retail investment tenanted by Dunkin Donuts & US Post Office, a 7,100 s/f retail property located in Hopatcong, New Jersey which commanded a sale price of $1,850,000.
This highly visible and well maintained building provides a solid return with little management responsibilities and appreciation potential. Seven offers were presented on this deal from investors throughout NJ and NY.
Lombardi and Pape represented the seller in this transaction and the buyer, a local private investor was represented by Lombardi, Pape as well as Nat Gambuzza, a vice president in investments and Lauren Federgreen, an associate from Marcus & Millichap New Jersey office.
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Rosewood Realty Group announced it closed a $28.75 million dollar deal on five buildings in the East Village.
The buildings are: 329-335 East 9th Street and 325 East 10th Street. Aaron Jungreis of Rosewood Realty Group represented both the buyer and seller. 329-335 East 9th Street is four, four-story walkup apartment buildings consisting of 35 apartments and five stores. 325 East 10th Street is a five-story, walk-up apartment building consisting of 18 apartments. The total square footage of the five buildings is 33,330 Sq. ft. All the buildings were built circa 1900.
Rosewood Realty Group also closed a $11 million sale of 1834 Caton Avenue (between St. Paul’s Place and Ocean Avenue) in Prospect Park South, Brooklyn. Jungreis represented both the seller, 1834 Realty LLC and the buyer, 1834 Caton LLC. The six-story 1926 elevator building features 83 apartments. It is 93,378 s/f and sold for 11.1 times the current rent roll.
Jungreis also represented both the buyer and seller in the $4.35 million sale of 1104 Manor Avenue in the Soundview section of the Bronx. The six-story elevator apartment building features 44 apartments and five commercial units. The 50,000 s/f building was built in 1929.
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Bussel Realty Corp. today announced that it has represented the Boy Scouts of America (BSA) in the acquisition of One Saddle Road, Cedar Knolls, New Jersey, a 14,000 s/f industrial flex building. The property will serve as BSA’s new corporate headquarters in New Jersey for its Patriots Path Council. The property was purchased for an undisclosed price from owner, Olof & Elaine Erikson. Steven Bussel, SIOR, president of BRC, represented BSA, and Newmark Realty represented the seller.
“The Boys Scouts required quality office space at a strategic location with easy access for employees and visitors,” noted Bussel. “One Saddle Road met all of these requirements and is near to Routes 287, 202 and 24 as well as downtown Morristown. The property will enable the Boy Scouts to grow and service their various boy scout troops under the Patriots Path Council.”
One Saddle Road is a one-story industrial flex property totaling 14,000 sf, and will be completely renovated into BSA’s corporate headquarters. The property is surrounded by several prestigious corporate neighbors and is just minutes from major highways such as Route 287, 202, 10 and 24.
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Diamond Chemical, represented by the East Rutherford-based Cushman & Wakefield team of Stephen Elman and Jeffrey Prezant, has acquired the 40,000 s/f 29 Park Way in Upper Saddle River from Campmor Inc.
“Rather than leasing a facility for its expansion, Diamond Chemical wanted to take advantage of the current low interest rates and acquire a facility,” said Elman. “Although the market is tight for purchase opportunities, we were able to locate a free-standing facility for sale that featured the 22-foot clear ceiling height Diamond required, and then facilitated the acquisition.”
“Diamond Chemical required excess storage space, and we are pleased to have been able to assist them in meeting that requirement as well,” said Prezant.
Diamond Chemical, with its headquarters, laboratory and manufacturing operations situated near MetLife Stadium in East Rutherford, is a national manufacturer of soaps and detergents, housekeeping, sanitizing and other industrial products for the commercial laundry, foodservice, janitorial, sanitary maintenance and healthcare industries.
With more than 80 years of experience, it is one of the largest privately owned cleaning and sanitizing product companies in the U.S.
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A corner retail building at 156-164 Delancey Street, located on the northwest corner of Delancey Street and Clinton Street on Manhattan’s Lower East Side, was sold in an all-cash transaction valued at $6 million.
The single story building boasts 109 feet of frontage in a high traffic location, directly adjacent to the Manhattan entrance of the Williamsburg Bridge. The building currently consists of six commercial units of ideal size, five of which are occupied with most of the leases expiring in the next few years. The building receives additional income from billboard advertising on the roof.
This future development site was sold to Ben Ashkenazy of Ashkenazy Investments and can be built to nearly 20,000 bsf including inclusionary bonus, and given its proximity to the Seward Park Urban Renewal Area, presents a strong future development opportunity.
“Retail properties like this are in extraordinarily high demand today. With some repositioning, this asset can produce much more cash flow than it does today,” said Bob Knakal of Massey Knakal, who exclusively handled this transaction with Michael DeCheser, first vice president of sales.
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Thomas McConnell and Kevin McCrann of Marcus & Millichap Real Estate Investment Services have arranged the sale of two apartment buildings in New Jersey totaling 126 units, according to Michael J. Fasano, vice president and regional manager of the firm’s New Jersey office. The total sales price for both properties is $9,725,000. The properties are:
• Whalepond Village, 400 Stacey Drive, Ocean Township
• Broadway Apartments, 205 66th St., West New York
The 96-unit Whalepond Village sold for $7,125,000, or approximately a 5.9 percent capitalization rate. The seller is the developer of the property, homebuilder K. Hovnanian. The buyer is Ocean Township.
“Ocean Township plans to continue to operate the complex as an age- and income-restricted property,” says McConnell. “Even with stronger offers on the table K. Hovnanian decided to work with the town in the disposition of the property.”
Built in 1994, Whalepond Village features all one-bedroom/one-bath apartments that range in size from 676 square feet to 713 square feet. Community amenities include an outdoor pool and a tennis court.
Broadway Apartments brought $2.6 million, or approximately a 7 percent capitalization rate.
“The seller, Roje Realty Co. LLC, divested its interest in Broadway Apartments into a development project,” says McCrann. “The buyer, Sela Properties LLC of Fort Lee, N.J., pursued the property as an investment vehicle for a multifamily investment fund.”
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Admiral Real Estate Services Corp. has sold a total of nine non-performing notes collaterized by eight multi-family investment properties located in Yonkers, Mount Vernon and Pelham. The portfolio contains eight notes in the first lien position, in addition to one subordinate note.
At the time of the sale, the par value for the collaterized notes was $5,027,766. The notes were sold by an affiliate of Situs in an all-cash, non-contingent transaction to various affiliates of Gontar Management, an owner of multi-family assets in Westchester. The collateral assets consisted of 50 residential units over seven walkup apartment buildings and a vacant multi-family shell. Six of the buildings were located in the southwest Yonkers sub-market, and one each in Mount Vernon and Pelham.
John Barrett, head of investment sales at Admiral, exclusively represented the seller and found the buyer. “There was significant interest from buyers for the entire portfolio, as well as on individual properties, particularly the properties in Pelham and Mount Vernon” according to Barrett.
“The higher level of interest in those two properties was due to their strong location near the Metro-North rail stations”. He added that “the properties have suffered from poor management and deferred maintenance issues for several years but have significant upside from the acquisition cost.”
The portfolio traded at a 29 percent discount to current asset value.
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Stan Johnson Company has completed the sale of an under construction retail property 100 percent leased to Bank Of America, located on 18th Avenue in Brooklyn for $8,455,882. The property is expected to be completed mid-2013.
Jason Maier, director of Stan Johnson Company represented the seller, a private corporation, and the 1031 exchange buyer, an individual investor. The property featured a new 20-year lease term with five, five-year renewal options.
The property is strategically located at the signalized intersection of 18th Avenue and 66th Street, on one of the busiest retail corridors in Brooklyn. Nearby Tenants include Walgreens Pharmacy, CVS Pharmacy, TD Bank, Chase Bank, McDonalds, Starbucks and others.
