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PERFECT STORM; THE DEAL SHEET

New York

Want to get a jump start on upcoming deals? Meet the major New York City players at one of our upcoming events!

PERFECT STORM; THE DEAL SHEET
Homeownership is down, millennials have a higher propensity to rent, and older children are finally unbundling from mom and dad (again) and moving into their own digs. So being a multifamily rental developer is an enviable position, says AvalonBay VP of development Ron Ladell. By the by, he'll be speaking at Bisnow’s inaugural “The Future of New Jersey’s Urban Centers” event at Hoboken’s Waterfront Corporate Center on April 27.
AvalonBay VP of development Ron Ladell
Ron says New Jersey’s particularly seeing an increase in demand for rental projects, and supply is constrained. AvalonBay has also benefited from significant pressure on the for-sale market in which potential owners are finding it hard to commit to buying until employment shows growth again. AvalonBay’s certainly bullish: it recently delivered 180 apartment homes in West Long Branch, and has 266 under construction at Wesmont Station in Wood-Ridge and 164 in North Bergen. It’s also ready to break ground on another 226 units in Hackensack, with additional development starts in the state by year’s end. To hear more, join Ron and our all-star panel: SJP Properties founder Steve Pozycki, Mack-Cali president and CEOMitchell Hersh, and HFF senior managing director Jose Cruz. Cole Schotz real estate co-chair Michael Leighton and FTI Consulting’sGlenn Brill will be moderating. Great schmoozing too! Register here.
Sales Transactions
d The International Corporate Center at Rye at 555 Theodore Fremd Ave in Rye, NY
Faros Properties and Gould & Co purchased The International Corporate Center at Rye at 555 Theodore Fremd Ave in Rye, NY from The Gateside Corp for more than $30M, assuming existing debt on the property. HFF’s Andrew Scandalios, Jose Cruz, Jeffrey Julien, and Kevin O’Hearn repped the seller.***

Massey Knakal sold four properties: a three-story commercial building at 1032-1034 Lexington Ave for $10.2M (broker: Guthrie Garvin); a mixed-use building at 171-173 West Broadway for $4.2M cash (broker: Nick Petkoff); a warehouse and office building at 112-20 14th Ave in College Point, Queens for $4.8M; and a commercial loft building at 167 W 21st St for $1.9M (broker: Brock Emmetsberger).

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A local real estate investor group purchased Gravesend, Brooklyn’s909 Avenue T and 2530 Ocean Ave from Skyline NYC for $8.5M. Rosewood Realty Group’s Jake Blatter and Aaron Jungreis repped both sides in the transaction.

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Mahwah Realty purchased a 50k SF retail/warehouse building at270 Route 17 South in Mahwah, NJ from MJ Mahwah Propertiesfor $3.8M. NAI James E. Hanson’s Kenneth Lundberg repped the buyer, while Newmark Associates’ Nancy Glick repped the seller.

Lease Transactions

Gagosian Gallery signed a 10-year, 50k SF renewal at 980 Madison Ave. JLL’s Scott Panzer, Steven Rotter, and Jeff Fischer repped the tenant, while Aby Rosen repped owner RFR Realty in-house.

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Murray Hill Properties brokered over 43k SF in leases, including:Israel, Israel & Purdy’s 16k SF lease at 11 Grace Ave in Great Neck, Long Island (brokers: Jesse Rubens and Bret Varricchio; landlord: United Capital Corp); Rabin Partners’ five-year, 7,500 SF lease at 110 W 57th St (tenant reps: Mark Toubin, Rick Doolittle, and Wes Rudes; sublessor rep: JLL’s John Moxley on behalf of The Rockport Co); the Law Offices of Mark Seitelman’s 10-year, 7,000 SF lease at 111 Broadway (tenant rep: Doolittle; landlord: Trinity Centre); and Hanweck Associates’ 10-year, 5,300 SF lease at 30 Broad St (brokers: Doolittle and Rudes).

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RHI Entertainment inked a 24k SF lease at 423 W 55th St, where it will move next month. Norman Bobrow & Co’s Eric Kahn repped the tenant, while Newmark Knight Frank’s Stephen Schofel, Joshua Gosin, and Daniel Hassett repped owner The Winter Org.

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The Federal Reserve System’s Office of Employee Benefits signed a 24k SF lease at One Riverfront Center in Newark. Cushman & Wakefield’s Robert Lowe and Ed Duenas, along with CBRE’s Eric Deutsch, repped the tenant, while Newmark Knight Frank’s Timothy Greiner and Hope Brodsky repped owner Matrix Development Group.

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Design Kitchen & Stone inked a 18k SF lease at the Bay Boiler Building, 111 58th St in Brooklyn. Kalmon Dolgin Affiliates’ Bob Kleinand Linda Wong repped the owner and tenant respectively.

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Key Food Fresh & Save Marketplace rang up a 14k SF lease atManor Road Shopping Center in Castle Corners, Staten Island.Muss Development is the owner.

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Solix added an additional 10k SF to its 56k SF at 30 Lanidex Plaza West in Whippany, NJ. Cushman & Wakefield’s Peter Hamburger,Walter Schoenberg, Harlan Hollander, Robert Rudin, Jan Randall, and Nate Brzozowski repped the tenant.

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Gotham Technology Group expanded into 10k SF at 1 Paragon Drin Montvale, NJ. Colliers International’s Doug Rowe and Leslie Meril repped the tenant, while Newmark Knight Frank’s Frank Recine and Blake Goodman repped owner Samson Paragon.

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Philosophy IB extended and expanded its lease at 25A Vreeland Rdin Florham Park, NJ to 7,000 SF. Colliers’ Bryn Cinque and Jim Bailey repped the tenant, while John Osborne repped owner Bergman Realty in-house.

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SHINDO USA signed a 10-year, 5,400 SF lease at 469 Seventh Avefor an expanded retail showroom. Cassidy Turley’s Junji Miyakerepped the tenant, while Colliers International’s Eric Meyer repped the owner.

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Taproom No. 307 tapped 5,000 SF at 307 Third Ave for a new craft beer bar and restaurant. Sierra Realty Corp’s Brad Schwarz repped the tenant, while Picken Real Estate’s Bill Zorzy repped ownerBradford Sweat Co.

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AIDS Service Center NYC signed a 4,500 SF lease at 2036 Amsterdam Ave. Prudential Douglas Elliman’s Faith Hope Consolo,Joseph Aquino, and Arthur Maglio repped the landlord.

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Gregory’s Coffee brewed a 2,300 SF lease at 12 E 46th St. Blair Partners’ Shelton Franklin repped the tenant, while Sierra Realty Corp’s Peter Braus repped the owner.

Financing

Meridian Capital Group arranged nearly $75M in financing including:$48.7M for a new package of four multifamily buildings in Brooklyn and the Bronx (arranged by Michael Kesselman); $10.1M for a five-story multifamily building on 31st Ave in Astoria, Queens (arranged by Scott Assouline); $7.2M for a 36-unit, five-story mixed-use building on W 42nd St (arranged by Jeff Weinberg and Jack Adler); and $3.5M each for a 58-unit mixed-use building on Montague St(arranged by Joseph Taub) and a 38-unit multifamily building onCarroll Street (arranged by David Hayum), both in Brooklyn.

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NCB FSB arranged $70M in new financing for co-ops including: a$13.5M first mortgage and $1M line of credit for Regency Gardens Apartment Corp, a 543-unit co-op at 141-14 Union Tpke in Flushing (arranged by Edward Howe III); a $6.2M first mortgage and $500kline of credit for Lafayette Gardens Tenants Corp, a 192-unit co-op at 330-340 Haven Ave (arranged by Sheldon Gartenstein); and a$4M second mortgage and $500k line of credit for a 375-unit co-op at165 W 66th St (arranged by Mindy Goldstein).

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GCP Capital Group arranged over $35M in mortgage financing including: $12M for multifamily buildings containing 299 units throughout northern NJ (arranged by Paul Greenbaum); $6.3M for a five-story walk-up apartment building containing 87 units onVermilyea Ave (arranged by Adam Brostovski); $4M for a six-story apartment elevator building containing 130 units on Turner Pl in Brooklyn (arranged by Greenbam); and $3.6M for a six-story elevator apartment building containing 48 units on Sheridan Ave in the Bronx (arranged by Brostovski).

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Grubb & Ellis closed on an $18M credit facility with Colony Capital. The company has drawn the initial $9M tranche under the facility and anticipates that the second $9M tranche will fund subsequent to May 15. Colony was granted an exclusive 60-day period, commenced on March 30, to evaluate a potential larger strategic transaction with Grubb & Ellis. JMP Securities served as financial advisor to Grubb & Ellis.

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HFF secured $15.5M in financing for the completion of Summit Executive Center, a 66k SF office building in Summit, NJ. The firm’sJon Mikula and Michael Lachs arranged the deal on behalf of the owner, a JV between Mark Yeager and Normandy Real Estate Partners, and secured the 36-month acquisition, rehab, and construction loan through The Provident Bank. The new owners are converting the site into a state-of-the-art Class-A office building and 200-car parking structure, including a renovation and redesign of the 40k SF office building and a 25k SF addition to the building. Construction commences this month and will be completed next year.

Investment Funds

Savanna Investment Management closed its second real estate private equity fund, Savanna Real Estate Fund II, with $550M of total equity commitments. The fund exceeded its $400M target, andPark Hill Real Estate Group was the firm’s placement agent. Savanna has been active in NYC lately, completing six transactions in ’10, including the purchase of 386 Park Ave South, 104 W 40th St, and 5 Hanover Square.

Construction & Development

Today, the Children’s Museum of the Arts is breaking ground on a10k SF museum facility at 103 Charlton St in Hudson Square. The new facility will triple the museum’s size and enable it to dramatically expand its instructional offerings, and will feature a 2,000 SF gallery.

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25 Broad at The Exchange, a 305-unit luxury rental apartment building, has opened with occupancy slated for June. LCOR is the developer of the 20-story building, which offers one- and two-bedroom apartments. The Clinton & Russell-designed building was previously known as the Broad Exchange Building and was the largest office building in the country at its 1902 completion. Rose Associates is the marketing and leasing agent.

Business

Savills US and Silverpeak Real Estate Partners joined forces to create Savills Liberty Street Asset Management, an asset management company that will serve a global client base of investors holding CRE assets throughout North America. Its services will include planning advice, counsel, and daily oversight and execution of investment strategies.

Executive Moves

Jay Olshonsky joined NAI Global New York City as EVP and COO. He was previously COO at NAI Friedland and held positions withCBRE, Manekin Corp, Charles E. Smith/Vornado, and Helmsley Spear.

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Deborah Levinson joined Berdon as partner and COO. She was previously with Forest City Ratner, where she served as EVP and CFO, overseeing the accounting and IT teams and the New Jersey Nets franchise. She also held positions at Ernst & Young and Kenneth Leventhal & Co. She’s a Northwestern and Baruch grad.

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Thomas Ashforth joined Transwestern as principal of its Northeast region’s agency leasing and tenant advisory service groups. He was previously with The Ashforth Co, and also held a position at Hines. He’s an Ohio Wesleyan and NYU grad.

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Scott Vinett joined JLL as SVP, responsible for tenant rep and agency leasing services in the NY metro. He’s had a decade of experience in the industry, and is a UMASS grad.

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Garett Varricchio joined Murray Hill Properties as executive managing director and exclusive leasing agent of 1180 Avenue of the Americas. He was previously with RFR Realty and Trinity Real Estate. He’s a SUNY Albany grad.

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Catherina Dannenbring joined Skanska USA’s commercial development unit as development manager, responsible for supporting the expansion of the firm’s commercial development unit into new markets. She was previously with Twining Properties, and held positions at Hamlin Ventures and DEGW. She’s a Harvard andPrinceton grad.

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JLL promoted Thomas Reilly to managing director in the firm’sParsippany, NJ office. He joined the firm in ’04 and was instrumental in launching JLL in NJ in ’05. He’s been in the NJ office market since ’82, and is a Manhattan College grad.

Related Topics: Forest City Ratner, Skanska, The Exchange, Normandy Real Estate Partners , Meridian Capital Group, Peter Braus, Rose Associates, Rosewood Realty Group, Colony Capital, Aaron Jungreis, Twining Properties, Jose Cruz, Staten Island, Muss Development, Cole Schotz, Kalmon Dolgin Affiliates, FINANCINGMeridian Capital Group, Trinity Real Estate, NAI Global, Joseph Aquino, RFR Realty, SJP Properties, Andrew Scandalios, FTI Consulting, Mindy Goldstein, Sheldon Gartenstein, Edward Howe III, Sierra Realty Corp, Scott Assouline, Hanover Square, Jeffrey Julien, David Hayum, Jon Mikula, Steve Pozycki, Brock Emmetsberger, Ron Ladell, Glenn Brill, Norman Bobrow, Guthrie Garvin, Michael Leighton, Great Neck, 5 Hanover Square, Michael Kesselman, Scott Panzer, Matrix Development Group, Arthur Maglio, Helmsley Spear, JMP Securities, Nick Petkoff, North Bergen, Bryn Cinque, The Winter Org, Jesse Rubens, Robert Rudin, Eric Deutsch, Eric Meyer, Faros Properties, SUNY Albany, Leslie Meril, Joseph Taub, Bret Varricchio, Ed Duenas, Peter Hamburger, Walter Schoenberg, Waterfront Corporate Center, Urban Centers, Jack Adler, Hope Brodsky, Brad Schwarz, Doug Rowe, Michael Lachs, Jake Blatter, Kenneth Lundberg, Aby Rosen, Jeff Fischer, Frank Recine, One Riverfront Center, College Point, Scott Vinett, Jim Bailey, 25 Broad, Robert Lowe, West Long Branch, John Osborne, Wesmont Station, Jeff Weinberg, Blake Goodman, Timothy Greiner, Steven Rotter, Thomas Reilly, The Clinton, Daniel Hassett, Newmark Associates, Wes Rudes, Rick Doolittle, Mark Toubin, Manhattan College, Mark Yeager, Trinity Centre, Silverpeak Real Estate Partners, Kenneth Leventhal, Savanna Real Estate Fund II, Broad Exchange Building, The International Corporate Center, John Moxley, Eric Kahn, Stephen Schofel, Jan Randall, Nate Brzozowski, Picken Real Estate, Deborah Levinson, United Capital Corp