Murray Hill Properties is negotiating to buy a Midtown development site and plans a mixed-use office building. That's on top of five pending trades we wrote about yesterday, including a mystery buy from Tribeca Associates. This morning, Tribeca Associates ID'd the building and gave details on its plans. More on that below.
Industry fortune tellers
have told us all year that sales would pick up
in the second half of the year, and that's playing out. MHP's David Greene
tells us hard assets
will be the best investment opp for a good while, and he expects prices to continue to rise modestly. Meanwhile, investors have become more patient
, reducing their expectations for returns (it used to be 12% to 15%) in favor of the latest mantra, "preserve capital."
In David's words, NYC is both the safest big city
on the planet ("Look around the world at the political atmosphere. Where do you think your money is safest right now?") and the center of the world
("Of course big capital is coming here").
MHP has been based in and investing in NY for more than 40 years and doing third-party brokerage for 24. Now, it has 40 brokers and owns, leases, and manages more than 6.5M SF. It's why we asked David to speak at Bisnow's 5th Annual NY State of the Market with other active NYC investors—World-Wide Group's David Lowenfeld, Himmel & Meringoff's Leslie Himmel, and L&L Holding president and chief investment officer Robert Lapidus—and big-time brokers—Avison Young's Art Mirante, Massey Knakal CEO Paul Massey, Colliers' Bob Freedman, and C&W's Bruce Mosler. Join us!
, we braved Times Square during rush hour just to snap this for you of Tribeca Associates' new property, the Bush Tower
on Broadway between Sixth and Broadway. The investor teamed with Meadow Partners to buy the leasehold interest
in the 30-story tower—one of Midtown's first skyscrapers
, built in 1918—from American Properties, using financing from Mesa West Capital. Their planned repositioning, including a two-story glass facade and a new lobby and elevators, will offer full-floor prebuilts
to boutique office tenants, and it'll be rebranded as 130 W 42nd St.
, the country's largest vacant building
began its reinvention. Somerset Development bought the 2M SF Bell Labs Building and 470 acres at 101 Crawfords Corner Rd in Holmdel, NJ
, late last month and just kicked off a $100M redevelopment
into a mixed-use town center.
The World-Wide Group, Rabina Properties, and Cammeby's International Group broke ground on a $157M luxury apartment building at 24th Street and Queens Plaza North in LIC. Leasing will launch in 18 months. Helaba provided financing.
Verizon, repped by C&W's Josh Kuriloff, has agreed to sell 22 floors and one of five basement floors at 140 West St to a Magnum Real Estate Group affiliate for $274M and will move its HQ to its 1095 Ave of the Americas. 600 employees will remain at 140 West. Magnum will convert its space to residential.
The Orbach Group acquired 33 buildings totaling 1,031 units in Columbia South for $250M from Heritage Real Estate Partners and Dune Capital. Orbach then sold 11 (499 units) to a pair of private buyers for $100M.
Exeter Property Trust—repped by C&W's Andrew Merin, Gary Gabriel, David Bernhaut, and Grace Braverman—sold an 887k SF Exit 8A warehouse at 258 Prospect Plains Rd in Cranbury, NJ, to Bentall Kennedy for $98M. That's $18M more than Exeter paid for it two years ago. In the interim, Pearson extended its lease for 10 years. The facility includes 51k SF of office.
Matrix Investment Group and The Crest Group acquired the 400k SF Crossroads Corporate Center in Islandia and Hauppauge and renamed the 13-building office complex Matrix Corporate Park.
Forsgate Industrial Partners, repped by JLL's David Knee and Blake Chroman, acquired the 158k SF light industrial building at 125 North St in Teterboro, NJ, from Global Experience Specialists Inc in an off-market deal.
Massey Knakal's Stephen Palmese, Mark Lively, and Brendan Maddigan arranged the $13.3M sale of 54-66 Livingston St between Clinton and Court streets in Brooklyn Heights. The five buildings total 49 units, 33 of them rent stabilized.
Tucker Development Corp, Ares Management, and Kushner Real Estate Group secured $218M for the 517k SF Phase I of the 1M SF Hudson Lights mixed-use redevelopment in Fort Lee. Savills arranged the debt and equity, including a $117M construction loan from Sovereign Santander Bank.
RFR landed $100M from Citibank for its 107k SF 160 Fifth Ave and will retire $65M of existing debt.
Denholtz Associates and The Zaro Group—repped by CBRE's James Gunning, Donna Falzarano, and Evan Kleppe—financed New Jersey's seven-building, 336k SF industrial/flex Fairfield Business Center with an $18M loan from Redwood Trust. They also arranged Goodrich Executives' refi of its 170k SF office building at 560 Sylvan Ave in Englewood Cliffs, NJ, with a $15M, 10-year loan.
GCP Capital Group's Paul Greenbaum arranged a $12M loan for three Washington Heights totaling 104 apartments.
H&M leased 63k SF for its largest store ever—in JEMB Realty's Herald Center at 34th and Broadway—for 25 years. It'll open in fall 2014. CBRE's Susan Kurland repped the landlord, and C&W's Robert Gibson repped H&M.
Verizon renewed 60k SF in the Rudins' 32 Ave of the Americas in TriBeCa. The 10-year lease is a renewal of the 50k SF it's leased for 13 years and a 10k expansion. Rudin Management's Robert Steinman repped the owner, and C&W's Joseph Harkins repped the tenant.
The NYPD's Manhattan South Traffic Enforcement division is relocating to 67k SF, including a private ground-floor entrance, in 469 Seventh Ave at 36th Street for 15 years starting in January. Colliers' Eric Meyer and Marty Meyer repped the owners (themselves and Foremost Real Estate's Dan Shavolian). CBRE's Keith Cody, John Morrill, and Doug Holowink repped the City of New York.
AMC Theatres leased Clearview Cinemas' 40k SF movie theater in The Olnick Org and Fisher Development Associates' Headquarters Plaza in Morristown, NJ, for a 10-screen theater. AMC was the original operator there. It'll remain open during a nine-month renovation that includes power recliners, digital projectors, and a new concession area, screens, and speakers. Olnick's Seth Schochet repped the landlord.
Golden Ocean, repped by Kalmon Dolgin Affiliates' Linda Wong, leased 50k SF in a warehouse at 58-51 Maspeth Ave in Queens. DY Realty repped the landlord, EE Maspeth LLC.
The NY DMV leased more than 27k SF in The Feil Org and Savanna's 21 Penn Plaza for 10 years. That's 1,400 SF of ground-floor retail for a private entrance for 26k SF of customer-service space on the second floor. Feil's David Turino repped the landlord, and NGKF's Jeffrey Rosenblatt repped the State.
CompStak's Noam Shahar tells us Target leased 23k SF of office at 521 W 25th St, starting in the mid-$50s/SF, for 10 years. Compstak also reports that Rialto Capital Management, repped by NGKF, is relocating from 850 Third Ave to 18k SF in 600 Madison Ave. The Lennar subsidiary's rent will start in the high $60s/PSF. Bookspan subleased 27k SF at Two Park Ave, relocating from Garden City. Bonnier currently pays in the high-$40s. And Eurotech subleased 14k SF at 135 W 50th St from AllianceBernstein, starting in the low-$30s/SF, for more than six years.
Law firm Tarter Krinsky & Drogin, repped by CBRE's Paul Amrich and Neil King, expanded by 13k SF to 38k in W&H Properties' 1350 Broadway. NGKF's William Cohen, Ryan Kass, Neil Rubin, and Andrew Weisz repped the landlord.
Exponential Interactive leased 11k SF of pre-built office in Herald Square Properties' 292 Madison Ave. NGKF's William Cohen and Ryan Kass repped the landlord, which will begin a nine-month restoration of 7,000 SF of ground-level retail this month. Cassidy Turley's Nicky Heryet and Stephen Bellwood repped the tenant.
William F. Connors Agency arranged C. H. News' 35k SF warehouse lease at North Bergen, NJ's 7001 Anpesil Dr and Cavelli Cabinets' 22k SF lease at 1531 S Washington Ave in Piscataway.
In other news, Miss New York has been named Miss America. Email firstname.lastname@example.org.