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Real Estate Bisnow (NY)

B of A Sells More Merrill Lynch Props

American Real Estate Partners and Independencia Asset Management bought 380k SF of office at 1100, 1150, and 1200 Merrill Lynch Dr in Hopewell, NJ, from Fortress Investment. A source tells us it's a $90M deal.

Yesterday, AREP CEO Doug Fleit told us his firm had its eye on the three buildings last year when Bank of America Merrill Lynch's 1.8M SF, 12-building campus was up for sale, but Fortress took the whole kit and caboodle in December in a 12-year sale-leaseback.

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Since then, Fortress has sliced the campus into quarters, selling three buildings to Cole Credit, selling these properties to AREP, potentially selling another three, and keeping three for itself. Doug says AREP likes the long-term stability of the Princeton office market and its educated workforce.

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Kips Bay Benefactors

Silverstone Property, repped by GFI Realty Services' Yosef Katz (snapped yesterday), paid $71.5M to a local investment group for seven contiguous buildings (146 apartments and eight stores) on Third Avenue and 33rd Street and will renovate them completely. Silverstone also gained 50k SF of additional air rights. Yosef tells us the sellers have owned the building for 50 years. And GFI's Barak Jacobov (speaking to us while traveling in Israel), who repped the the sellers, adds that they signed a ground lease in '01 but the leaseholders defaulted in '09. Yosef says the buyer will capture higher rents via renovation. Proof: Silverstone paid $53M for the nearby 247 E 28th and put in another $20M, and those units now rent for about $80/SF. Barak tells us the renovated retail will attract credit retail tenants to the traditionally mom-and-pop neighborhood.

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Newark's Big Day

Phase 1 of the $150M, six-building Teachers Village that's supposed to reinvent Newark celebrated its opening last week. No wonder Super Mayor Cory Booker (speaking, with Ron Beit, CEO of developer RBH Group) came for the party. Just opened are 230-240 Halsey St with Spark Academy and Discovery Charter School, plus eight stores opening in the coming months, and 24 Maiden Ln with Great Oaks Charter School and Chen Daycare, plus three stores coming soon. The residential starts delivering next year: 35 Maiden Ln with 21 apartments for teachers and three stores, 42 William St with 40 apartments and three stores, and 243 Halsey St with 62 apartments and seven stores. In 2015: 90 apartments and four stores.

It's never too early to start. Richard Meier & Partners Architects' Remy Bertin, KSS Architects' Katherine Weaver and Kyle Rendall, Phelps Construction Group's Jeffrey Rainforth, and KSS's Matthew McChesney lend their expertise to Teachers Village students, who are building schools with Legos. Eight retail tenants have leased 13k SF: Mad Cool Fitness, Kids in Business, Krauszer's, Provident Bank, Tonnie's Minis, Sudsy Water, and Chicken Jones from restaurateur Michael Vann. Term sheets or leases are out for 19k SF more, which would bring the entire development's retail to half leased.

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The Deal Sheet

LEASING

Capital One Financial signed a direct lease for 250k SF at 299 Park Ave, managed by Fisher Brothers and which we snapped last night, to consolidate 550 commercial and retail banking, human resources, and corporate finance employees (of 4,000 in the metro) from several Manhattan offices and to allow room for growth. It'll take the eight floors in a phased occupancy starting in Q3 '14. It also leases the retail space at 49th and in 2018 will take the retail space at 48th.

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Beth Israel Medical Center, repped by JLL's Robert Martin and Barbara Winter, extended its 99k SF lease for its Beth Israel Comprehensive Cancer Center West Campus in Google's 111 Eighth Ave for 15 years. Taconic Investment Partners' Matthew Weir and CBRE's Kenneth Rapp, David Hollander, and Doug Lehman repped Google.

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Sumitomo Corp of America (repped by Studley's Marc Shapses, Michael Goldman, Kunihiko "Key" Otomo, and Joe Messina) leased 98k SF for 11 years at 300 Madison Ave and will relocate from 74k SF at 600 Third in November. Brookfield's Sarah Pontius repped the sublandlord, CIBC Delaware Holdings/Brookfield Office Properties.

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According to CompStak, Pixafy leased 17k SF at 810 Seventh Ave for 10 years, starting in the mid-$60s/SF with half a year of free rent. It'll relocate from 475 Park Ave S.

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ECLC of New Jersey, repped by C&W's Robert Donnelly Jr. and Jason Tenenbaum, extended and expanded into 20k SF for six years at 100 Passaic Ave in Florham Park, NJ. CBRE's Geoff Schubert repped the landlord, Jefferson-Pilot Investments.

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Shulsky Properties, repped by Adams & Co's Alan Bonett, leased 14k SF to each Brightoll (for 10 years) and Nicosia Creative Expresso (11 years) at 330 Fifth Ave. JLL's Paul Ferraro repped Brightroll, and Studley's Craig Lemle and Nick Zarnin repped NiCE.

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Callen-Lorde, repped by Cassidy Turley's David Lebenstein, leased 11k SF for 11 years at 230 W 17th St, near its West 18th HQ. Savitt Partners' Michael Dublin and Hector Rodriguez repped the landlords, affiliates of Kamran Hakim and EK Properties.

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Z&Z Supply expanded to 19k SF of industrial at 1 Apollo Dr in New Jersey's Whippany Business Center. NAI James E. Hanson's Steven Leitner repped the tenant, and Cassidy Turley's Howard Weinberg repped the landlord, IndCor Properties.

SALES

American Realty Capital New York Recovery REIT agreed to acquire the new, 240-key Viceroy Hotel on West 57th between Sixth and Seventh and take a preferred equity interest in FiDi's 513k SF office building at 123 William St for a total of $188.5M. Viceroy will manage the 29-story hotel, NYRR's first hotel.

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Massey Knakal's Bob Knakal arranged the $37.8M sale of a new, 51-unit apartment building at 202 8th St between Third and Fourth avenues in Park Slope.

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A national corporate investor sold its shares in the $17M, 72-year leasehold interest in the retail and medical suites in a co-op at 2012-2018 Broadway to Madison Realty's Isaac Shalom. Eastern Consolidated's Adelaide Polsinelli repped the seller and procured the buyer in the sale of the corporation's shares.

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SL Green (repped by HFF's Jose Cruz, Andrew Scandalios, Kevin O'Hearn, Jeffrey Julien, and Steve Simonelli) sold Stamford's 81k SF 300 Main St, the former First Union National Bank building, to Seaboard Properties. Jose, Kevin, and colleagues Michael Nachamkin and Marc Duval also repped the sellers of the 234k SF light industrial property at 700 Blair Rd in Carteret, NJ, to Hampshire Cos.

FINANCING

Iron Hound Management structured the $106M payoff of a defaulted securitized loan and the placement of new debt from Starwood Capital for Joe Stavrach and Faraj Srour's 167k SF 2 W 46th St, which we snapped this morning, and 128k 369 Lexington Ave. The company also restructured a $300M securitized loan with LNR for Ruby Schron's 6.1M SF Bush Terminal industrial complex in in Brooklyn's Greenwood Heights.

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Meridian Capital Group's Aaron Birnbaum and Tal Savariego negotiated $45M in construction financing for a 133k SF Whole Foods at Williamsburg's 240-242 Bedford Ave on 4th Street from Bedford to Berry Street. Meridian's Jeffrey Weinberg and David Ostrov placed $26M in new mortgages on two office-and-retail buildings on Broadway. Elliot Treitel and Mark Bakst negotiated a $13.5M refi for Morristown, NJ's 132k SF 1 N Park Place retail property. And Tal Bar-Or and Jonathan Wintner arranged $11.5M for a 113-unit apartment building on Elmhurst's 94th Street.

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The AFL-CIO Housing Investment Trust will provide $40M for construction of the $896M Weill Cornell Ambulatory Care Center, part of New York-Presbyterian Hospital, on the UES next to Weill Cornell Medical Center. The 15-story, 450k SF building will consolidate services now spread throughout the multi-site campus and provide space for growth in patient care. It will include 12 operating rooms, 12 endoscopy rooms, radiology and MRI services, primary care, and a maternity section with private rooms.

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Massey Knakal's Preston Flammang closed a $32.1M construction loan for 33 Lincoln Rd in Brooklyn's Prospect Lefferts Gardens. The 133-unit residential building will have 108 parking spaces.

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PCCP loaned Arc Real Estate Group $31M for the 65-condo Solaria Riverdale at 640 W 237th St in the Bronx. The 20-story building went up in '07, and the loan will allow the developer to finish the remaining units.

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Commercial Mortgage Capital closed a $23.M first mortgage for a 178k SF office and industrial building in the Yonkers Waterfront District's iPark Hudson Business Park.

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Madison Realty Capital provided a $21M loan for the previously announced acquisition of the 215k SF 29 Ryerson St in Brooklyn's Wallabout neighborhood and has issued a conditional commitment for $10M in construction financing.

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HKS Capital's Chad Johnson negotiated a $20.5M refi for a single-story, 509k SF warehouse in South Brunswick, NJ.

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Investors Bank arranged $38.6M to refi the 132-unit 40 Market St apartments in Morristown, NJ, $16.1M for the acquisition of the 67-unit 3660 Broadway, $13M to refi a 109k SF office in Coney Island, $11.4M for the acquisition of a 122k SF commercial building on LIC's 21st St, $10.7M in acquisition financing for a 93k SF office building on Brooklyn's 7th Street, and $10M to refi a 91-unit apartment building at 644-670 and 672-700 Otlowski Ct in Perth Amboy, NJ.

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GCP Capital Group's Paul Greenbaum arranged $15.8M for three Bronx elevator buildings (184 apartments).

DEVELOPMENT

Triangle Equities broke ground on the Triangle Plaza Hub in the Bronx's Melrose neighborhood. The underutilized municipal parking lot will become an 88k SF commercial and community facility, including a Metropolitan College of New York campus and a Fine Fare supermarket.

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Today, Woodmont Properties and Metrovation Terranomics broke ground on the mixed-use West Side Lofts at Red Bank in New Jersey. It'll have 10 townhomes, 79 loft-style apartments, three live/work units, a parking garage, and street-level retail anchored by a brew pub.


It's hard to take work seriously when Sir Mix-A-Lot shows up on your streaming radio. Email amanda.metcalf@bisnow.com.

 
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