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B & C BOOM; THE DEAL SHEET

New York
B & C BOOM; THE DEAL SHEET
Looking to invest in New York apartments? The price tag is rising, says Reis analyst Brad Doremus.
B & C BOOM; THE DEAL SHEET
The New York multifamily market recorded its third straight quarter of increase in average sales price per unit, up 14.9% in Q3 '10 relative to one year ago. The pace of growth has declined over the past two quarters, however, dropping from 44.9% in Q1 '10 and 21.7% in Q2 '10. And these results aren't even only for high-quality buildings.Transactions are taking place almost exclusively for lower quality class B/C buildings; the last time New York had double digit transactions for Class A properties was in Q2 '08. Still, per-unit sales price increases have been rising at a slower clip than nationwide observations. While national percentage increases were less in Q2 '10, year-over-year growth of 73.8% in Q1 and 37.8% in Q3 was well above New York's numbers in both quarters.
Sales Transactions Stellar Management acquired The Windermere, a 23-story, 374-unit pre-war apartment building at 666 West End Ave., from the Zarucki family for $68M. The firm will invest $10M in renovations for the building, maintaining it as a Class A rental. The renovations will be a JV between N-Plus Architecture and RSVP Architecture Studio. ***

Hartz Mountain Industries purchased Morris Crossing, a 123-unit, six-building apartment community at 12-18 Max Dr. in Morristown, NJ. CBRE's Jeffrey Dunne, Christopher Leonard, and Brian Schulz repped the buyer in the $31M purchase, while CBRE Debt & Equity Finance's James Gunning and Donna Falzarano repped the buyer in arranging the $22M acquisition financing.

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Massey Knakal completed its 200th deal of the year, selling 2200 Netherland Ave. and 560-74 W. 235th St. in Riverdale, Bronx for $16.2M cash. The buildings comprise a blockfront mixed-use offering, with the former a six-story elevatored, 66-unit apartment building and the latter a one-story commercial building. The firm's Karl Brumback exclusively handled the transaction.

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481 Washington Street LLC purchased the seven-story, 47,600 SF mixed-use loft building at 481-487 Washington St. in TriBeCa from 481 Washington Street Realty Corp. for $13M. Eastern Consolidated's (not 481 Washington Consolidated, if you were beginning to see a pattern) Eric Anton and Ronald Solarz repped the seller and procured the buyer.

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Krowne Metal Corp. purchased a 39k SF office and warehouse building at 400 Newark Pompton Tpk. in Wayne, NJ from United Yarn Products Co. for an undisclosed price. NAI James E. Hanson's Joshua Levering and Gregory Reid repped the seller, while Barry Cohorsky repped the buyer.

Lease Transactions

What sweet and moving deals! Godiva Chocolatier inked a 15-year,42,290 SF lease and the MTA expanded its lease by 17,503 SF (to 130k SF) at 333 W. 34th St., bringing the building's occupancy to 100%. Grubb & Ellis' Howard Grufferman and Joel Wechsler repped Godiva, while Cushman & Wakefield's Josh Kuriloff, Rob Lowe, and Maureen Kelly repped the MTA. C&W's Tara Stacom,Paul Glickman, Mitti Lieberson, Alexander Chudnoff, and Diana Biasotti repped owner SL Green in both transactions.

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The Godiva and MTA leases were only part of the 142k SF of leases SL Green has recently signed, which include United Nations Development Programme's 10-year, 42,931 SF lease at 220 E. 42nd St. (tenant rep: Colliers International's Andy Roos; landlord rep: SL Green's Larry Swiger); Lockton Cos.' 15-year, 21,843 SF lease at 1185 Avenue of the Americas (tenant reps: Cushman & Wakefield's Don Preate and Jaime Katcher; landlord reps: SL Green's Howard Tenenbaum and Gary Rosen); and Delcath Systems' doubling to 17,320 SF at 810 Seventh Ave. (tenant rep: Cassidy Turley's Jonathan Schindler and Aron Schreier; landlord rep: SL Green's Christopher Gulden).

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Wilton River Park in Wilton, Conn. saw over 55k SF of transactions, including Toluna's 21,400 SF lease at 21 River Rd., Blue Buffalo Co.'s 16,900 SF HQ at 11 River Rd., and Alterna Capital Partners' 6,900 SF office at 15 River Rd. (all repped by CBRE's Tom Pajolek and Barbara Segalini-Stilley). These included eight retail transactions that included tenants Halstead Property, Starbucks, Fairfield Stationer, Campus Jeweler, Sweet Pierre's, The Athlete's Foot, Toppings Frozen Yogurt, and Verizon.

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SS & C Technologies inked a 10-year renewal and expansion for 51k SF at 675 Third Ave. A team led by Colliers International's Michael Cohen and Leon Manoff repped the tenant, while Tom Bow and John Grotto repped owner The Durst Org. in-house.

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Jaylyn Corp. sewed up a 45k SF warehouse lease at 100 Marcus Blvd. in Hauppauge, Long Island. The company leased it from Hawkeye Electric, which also occupies space in the 150k SF building. Ashlind Properties' Richard Cohen and Ashley Cohen repped the tenant, while Newmark Knight Frank's Jack O'Connor repped the landlord.

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Marc Fisher Footwear stepped into a long-term, 44k SF HQ relocation at 777 West Putnam Ave. in Greenwich, Conn. Cushman & Wakefield's Jay Hruska and Kevin Foley repped the tenant, while Newmark Knight Frank's Stephen Banker, Paul Gojkovich, and James Ritman repped owner Gateway Park Associates.

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BroadAcres Office Park in Bloomfield, NJ saw 37k SF of transactions, including NCC Media's 10,400 SF renewal (tenant reps: Studley's Gregg Najarian, Erik Schmall, and Joseph Messina);Alliance Advisors' 8,900 SF HQ relocation (tenant rep: The Acclaim Group's Michael Maroon); and a new lease for Comcast (tenant rep: Binswanger's Frank Truesdell). Owner Prism Capital Partners was repped in-house by Edwin Cohen and Eugene Diaz.

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1330 Avenue of the Americas saw two deals: Silverpeak Real Estate Partners' 13,172 SF lease, and Harry Winston's five-year, 20,800 SF renewal and expansion. Studley's Stephen Berliner and Edward Kang, while Cassidy Pinkard's Mark Boisi and Michael Hoffman repped Harry Winston. JLL's Frank Doyle, Cynthia Wasserberger, David Kleiner, and Alexis Tener repped owner Otéra Capital in both deals.

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Arhaus Furniture is now seated in a 32k SF space at 15 Little West 12. The furniture retailer will be taking the 8.7k SF ground-floor retail space, as well as the second floor and cellar space. Robert K. Futterman & Associates' Robert Cohen and Peter Whitenack, along with Mason Retail Group's Jeff Mason, repped the tenant, while RKF's Robert Futterman, Karen Bellantoni, and Brandon Singer repped the owners, Taconic Investment Partners and Square Mile Capital Management. The new shop will open Q2 '11.

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Quinlan Financial Group signed a 13-year, 30,466 SF lease at 400 Broadhollow Rd. in Melville, Long Island. JLL's Jim Wenk repped the tenant, while The Giamo Group's Kathleen Giamo repped owner Broadhollow Associaties.

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EB Brands signed a three-year extension for 28,430 SF of space at Four Executive Plaza in Yonkers. Cassidy Turley's Peter Buckey and Mike Norris repped the tenant, while Carol McGuire repped owner Mack-Cali in-house.

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OfficeLink s opened its fourth Manhattan location at 1140 Avenue of the Americas, taking 24k SF on the ninth and tenth floors. The executive office suite includes 68 offices, a video-conference studio, meeting rooms, and collaboration spaces.

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NAI Global New York City is doubling the size of its footprint at 415 Madison Ave., and will occupy 14k SF upon completion of the buildout. The firm's Andy Simon negotiated the renewal and expansion with landlord Rudin Management.

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Savitt Partners completed two deals: Light Inc.'s five-year, 6,500 SF renewal at 530 Seventh Ave. (tenant reps: Marc Schoen and Michael Schoen; landlord rep: Bob Savitt); and Ram Imports' new 4k SF lease at 525 Seventh Ave. (tenant rep: Marc Schoen; landlord reps: Bob Savitt and Brian Neugeboren, with Olmstead Properties'Steven Marvin).

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Teltronics signed a 10k SF lease at 1979 Marcus Ave. in Lake Success, Long Island, where it will relocate its eastern regional operations from its current Whitestone location. CBRE's Michael Poch repped the tenant, while Dan Ackerman repped owner Lincoln Equities in-house.

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The Flatiron District saw three deals: Mashable's three-year, 5,186 SF lease at 121 E. 24th St. (tenant rep: Newmark Knight Frank's Robin Fisher; landlord rep: Adams & Co.'s James Buslik and Jeffrey Schwartz); and Noreen Seabrook Marketing's three-year,1,295 SF and Long Island Closet Design's three-year, 1,123 SF lease at 11 E. 26th St. (brokers: Buslik and Schwartz).

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World Software Corp. inked a 6,808 SF lease at 266 Harristown Rd. in Glen Rock, NJ, bringing the 63k SF Class A office facility to full occupancy. MRH Real Estate's Glenn Dulmage repped both the tenant and owner, Onyx Equities.

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Häfele signed a 5,100 SF renewal at 60 Madison Ave. The Moinian Group's Kimia Shadrokh repped both the tenant and the owner in-house.

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Schwartz Goldstone & Campisi renewed its 4,932 SF lease for another decade at 90 Broad St. CBC Hunter Phoenix's Richard Gottlieb and Wayne Siegel repped the tenant, while Todd Korren repped owner Swig Equities in-house.

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Green Olive Bistro cooked up a long-term 4,678 SF lease at Philips Plaza, 693 Sunrise Hwy. in Lynbrook, Long Island. The shopping center's owner is Philips International.

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Laura Divine Attorneys signed a five-year, 3,472 SF lease at 477 Madison Ave. The Kaufman Org's Loren Biller and Slater Traaen repped the tenant, while Cassidy Turley's Wendy Miller and David Hoffman repped the owner.

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Are you keeping up with the Kardashians? The reality-show sisters are opening up their DASH clothing boutique in a 3k SF space at 119 Spring St. Northwest Atlantic's Vince Sweeney repped the tenant, while Robert K. Futterman & Associates' Karen Bellantoni and Caleb Petersen repped the owner, 119 Spring Street Co.

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MER Inc. inked a 3k SF lease at 19-03 Maple Ave. in Fair Lawn, NJ. NAI James E. Hanson's Darren Lizzack repped the tenant and the owner, Oren Enterprises.

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Sioni & Partners signed a six-year, 2,397 SF lease at 475 Park Ave. South. Winoker Realty's Bill Berkis repped the tenant, while Steven Lambert repped owner Cohen Brothers Realty in-house.

Financing

Meridian Capital arranged $82M in new mortgage financing, including: $30M for a 308-unit, 28-story multifamily building on Broadway (arranged by Shamir Seidman and Rael Gervis); $10.8M for two six-story multifamily buildings on Ocean Ave. in Brooklyn (arranged by Avi Weinstock and Josh Rhine); $9.5M for a 117-unit multifamily building on Argyle Rd. in Brooklyn (arranged by Weinstock and Chaim Tessler); $8.5M for a 261-unit co-op building on E. 21st St. (arranged by Steve Geller and Nicoletta Pagnotta); and $6.3M for a 94-unit multifamily building on Montgomery St. in Brooklyn (arranged by Morris Diamant).

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Additionally, Meridian Capital Group secured $50M to refinance a seven-property multifamily portfolio for The Parkoff Org, which totals 558 apartments and is comprised of two Manhattan properties, three in the Bronx, and one each in Queens and Brooklyn. The seven-year loan, provided by a local community bank, carries a rate of 4.2% and is IO for the first two years. The transaction was negotiated by Avi Weinstock and Josh Rhine.

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The NJ office of Holliday Fenoglio Fowler arranged two financings: a $31.5M refinancing for Court Plaza North & South, a 325k SF office complex in Hackensack (arranged by Thomas Didio and Michael Lachs on behalf of Alfred Sanzari Enterprises through John Hancock Real Estate Finance); and a $20.4M construction loan for Centra at Metropark, a to-be-built 150k SF Class A office building in Woodbridge (arranged by Jon Mikula and Michael Klein on behalf of The Hampshire Cos. through US Bank).

Construction & Development

The NYC School Construction Authority is building a 172k SF intermediate and high school in Long Island City. The five-story building will house teaching facilities for 1,000 students and include 26 classrooms, laboratories, a music suite, gym, kitchen, cafeteria, and a 4,700 SF roof terrace. It will be designed to meet LEED Silver certification. Skanska USA Building, which has been contracted for $61M, will be responsible for the work, which started this month and will be completed October '13.

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Hudson Square's getting a facelift. The Hudson Square Connection has selected a team, led by Mathews Nielsen Landscape Architects, to design streetscape improvements and transform the districts public realm into a socially, economically, and environmentally sustainable space. The team members also include Rogers Marvel Architects, Billings Jackson Design, ARUP, Open graphic design, Mercator Land Surveying, and VJ Associates. The estimated completion for the design framework is summer '11.

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Weill Cornell Medical College finished construction on its new 7,100 SF sleep center, located at 425 E. 61st St. The center includes 12 testing rooms, seven offices, a lounge, storage rooms, and reception and waiting areas. The team was led by IBEX Construction and Perkins Eastman.

Business

Massey Knakal is expanding its services by entering into the commercial mortgage business with the launch of Massey Knakal Capital Services. With the assistance of Rhodes Associates, it's recruiting a managing director to spearhead the new venture, and the position will be responsible for developing relationships with banks, borrowers, and lenders, recruiting mortgage brokers and underwriters, and managing and leading the division.

Executive Moves

Mort Schrader joined JLL as managing director, responsible for new business development, tenant representation, and agent representation services. Previously, he was principal and founding partner of PBS Real Estate, and held positions at Newmark & Co. and SL Green. He's a Long Island University grad.

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Gilbert Ohls also joined JLL as managing director, responsible for strengthening client relationships and new business development throughout the NYC metro area. He was previously with Newmark Knight Frank's Connecticut office. He's a Villanova grad.

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Audrey Coe joined JLL as VP, providing advisory and tenant rep services both domestically and internationally. She was previously with Cushman & Wakefield, and has held positions with Rose Associates, Solow Management Corp., Douglas Elliman Real Estate, and Grenadier Realty. She's an NYU and University of Houston grad.

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Marc Packman joined Trinity Real Estate as SVP and director of leasing, succeeding Jason Pizer, who became president of the firm in October. Marc joins from Cushman & Wakefield, where he served as agent for 1 Hudson Square, one of Trinity's flagship properties. He also held a position at Tishman Speyer.

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Val Steinberg joined AKAM Living Services as CFO, and will be working from the NYC HQ and southern Florida locations. She was previously with The Kenmark Group and The Mariposa Cos., and held a position at Market Development Corp. She's an American University grad.

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Anuj Kale joined Eastern Consolidated as associate director, working closely on new business initiatives and financial services with Eric Anton and Ronald Solarz. He was previously with Tern Landing Development, and held positions at Tricone Consortium,Monroe Center Management, and Vijay Kale Architects. He's a Drexel and NYU grad.

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Demetri Ganiaris joined Sierra Realty Corp. as SVP of acquisition and development. He was previously founding member and managing principal of Alder Real Estate Partners, and held positions at Vornado and NYC Economic Development Corp. He's a University of Colorado grad and is current pursuing his master's at Columbia.

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Jonathan Rose Cos. named Gregory Dwornikowski as director of asset management and Virginia Plithides as director of finance, with the moves coming as JRCo expands its investment management business. Gregory comes from Pitcairn Properties, and is a Wharton grad. Virginia comes from Red Stone Partners, and also held positions with Centerline Capital Group and two accounting firms. She's a University of Rhode Island grad.

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Michael Hedden joined FTI Schonbraun McCann Group as managing director, responsible for valuation, litigation support, and expert testimony services out of the group's NYC office. He was previously with American Appraisal Associates, and held positions at CBIZ Valuation Group and Realty Economics Group. He's a Rutgers and University of Bridgeport grad.

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Zoë Davidson joined John E. Osborn PC as a construction, commercial, and real estate litigator, with experience in both the public and private sectors and a previous career in investigative journalism. She's a Boston University School of Law grad.

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Studley promoted Ken Ruderman to EVP and co-branch manager at the firm's NYC office. He joined Studley in '96, and has amassed deals like URS's 100k SF lease at One Penn Plaza and Wieden & Kennedy's 60k SF lease at 150 Varick St. He started his career at the Edward S. Gordon Co., and was one of the top performers at the pre-CBRE CB Commercial. He's a GWU grad.

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Time Equities promoted Brandon Medeiros to associate director of office leasing and sales, working with Scott MacWhinnie to market Midtown office condos for purchase, as well as office leasing for TEI's rental buildings. He started at TEI as an intern, and is a Drexel grad.

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