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THE DEAL SHEET

New York

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BIG DEAL!
Volkswagen Group of America purchased the 265k-SF Potamkin General Motors building and dealership at 798-804 Eleventh Ave. for $84M. The company will also invest another $41M in renovations to become the flagship NYC dealership for Audi and Volkswagen. The buyer was represented by CB Richard Ellis’ Jedd Nero, Michael Kadosh, Lauren Scarpace, Paul Beitz, Tim Luke, and Allen Dresselhouse. Potamkin’s Allen Potamkin, Robert Potamkin, and Peter Paris represented the seller in-house.
Sales Transactions Jamestown Properties purchased the mortgage on be@Schermerhorn, a 246-unit condo developed and constructed by SDS Procida at 189 Schermerhorn in Downtown Brooklyn. Construction and pre-sales ceased in June due to financial restructuring, and now is scheduled for an early ’10 completion after Jamestown purchased the mortgage from the lenders to restart the project and see it through completion.***Icon Partners sold three of its Manhattan garages—550 W. 174th St., 528 W. 162nd St., and 284 Audubon Ave.—to ABS Partners for $10.5M. ABS’ Steve Hornstock, Gregg Schenker, and Earle Altman represented the buyer in-house, while Ace Capital Ventures’Howard Greenberg and DeMarzo Realty’s Anne DeMarzo represented the seller.

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Massey Knakal sold a 14.5k-SF, five-story walk-up apartment building at 15 Lawrence St. in South Yonkers for $770k. The firm’s John Barrett and Jonathan Berman exclusively handled the transaction.

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The Riese Org. closed on its contract to buy the 10k-SF, two-story 34 Union Square East retail building. The property includes 26 feet of frontage on Union Square East.

Lease Transactions

Noble Group Ltd. inked an 11-year, 33.6k-SF deal at Four Stamford Plaza, 107 Elm St. in Stamford, Conn. This more than doubles the firm’s space upon its March ’10 relocation. Angel Commercial Real Estate’s Brett Sherman represented the tenant, while Margaret Carlson and Joseph Artusa represented owner RFR Realty in-house.

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ICC Industries inked a 15.7k-SF renewal at 460 Park Ave. for its global HQ. NAI Global New York City’s Stephen Grill represented the tenant, while Jones Lang LaSalle represented the owner.

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24 W. 57th St.’s New York Gallery Building saw three deals, bringing occupancy to 98%: Physique 57’s 863-SF expansion to 4.9k-SF in a seven-year lease; Gallerie St. Etienne’s renewal and expansion for a total of 5.3k SF; and SportsCare Institute’s 3.7k-SF renewal. Promenade Real Estate Corp.’s Steve Pressler represented owner APF Properties in all three transactions.

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Express extended its 9.9k-SF lease at 477 Madison Ave. for another 10 years. The deal was brokered by Colliers ABR’s David Hoffman and Wendy Miller on behalf of the owner.

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The Lipstick Building at 885 Third Ave. saw two restaurant deals:Wolfgang’s Steakhouse’s 15-year, 5k-SF lease, and Sprig’s long-term, 2.5k-SF lease. The owner is Metropolitan Real Estate Investors, and Wolfgang’s space is being built out by ACC Construction’s James Galvin.

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Hanover Gourmet Deli inked a 15-year, 7k-SF lease at 648 Broadway. Goldschmidt and Associates’ Fern Wagner represented the tenant, while The Lansco Corp.’s Christine Emery, Yair Staav, and Peter Weisman represented owner Franmar.

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125 Maiden Lane saw four leases totaling 5.4k SF. Time Equities’Michael Rudder and Michael Heller represented the owner in-house for all deals:

  • Top Guard Security’s five-year, 1.6k-SF lease (tenant broker: NYC Connections’ John Kourtis);
  • Gotham Digital Science’s 10-year, 1.4k-SF lease (tenant broker: VB Porter & Co.’s Vlad Porter);
  • PI Electronics East Coast’s two-year, 1.2k-SF lease (tenant broker: Redstone NYC’s Leo Likas);
  • Trevcon Construction Co.’s one-year, 1.2k-SF lease (tenant broker: Sunburst Advisors’ Michelle Alexis).

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110 W. 40th St. saw four leases. Adams & Co.’s David Levy and Michael Greenberg represented the tenant and landlord in each deal: Woods, Witt, Dealy and Sons’ five-year, 2.6k-SF renewal;Splash Limited Design Studios’ five-year, 1.6k-SF lease; Rosekei and Co.’s three-year, 1.1k-SF lease, and G-Lish Fashion’s three-year, 532-SF lease.

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Eaton Vance Corp. expanded by another 5.1k SF, increasing its footprint at 100 Park Ave. to 11k SF over a term of 10 years. Cushman & Wakefield’s Mark Mandell represented the tenant, while Lawrence Swiger represented owner SL Green in-house.

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Liberty Mutual Insurance Co. signed a lease at 629 Springfield Ave. in Berkeley Heights, NJ. The property is a single-story, 4.6k-SF building. Newmark Associates’ Debbie Myers represented the tenant, while Weichert Commercial Brokerage represented landlord Berkeley Heights Plaza LLC.

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530 Seventh Ave. saw two fashion deals: Connected International Showroom’s 2.4k-SF lease, and SRP Apparel Group’s 1.7k-SF lease. Savitt Partners’ Marc Schoen and Michael Schoen negotiated both transactions on behalf of the tenant and landlord.

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NAI Friedland Realty’s Rick Stassa brokered two deals in the Bronx:Mi Gente Nail Salon’s 2k-SF lease at 2356 University Ave., and 99 Cent Discount King’s 1.9k-SF lease at 2364 University Ave.

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White House/Black Market signed a 2.5k-SF lease at 508 Broadway, the second location for the store. In-line Realty’s Michael Friedman represented the tenant, while Newmark Knight Frank’s Jason Pruger and Ross Kaplan represented the owner, Premier Equities.

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Mauzac inked a 10-year, 650-SF deal at $2.8k per month at 136 DeKalb Ave. in Fort Greene, Brooklyn, for a new wine bar and café that’s expected to open in early ‘10. CPEX Real Estate’s Eric Altschul, Ryan Condren, and Timothy King repped the landlord.

Financing

NCB arranged over $14M in new lending for 11 properties, including: a $3M first mortgage for a 72-unit co-op at 2156 Cruger Ave. in the Bronx, arranged by Edward Howe III; a $2M first mortgage and $400k line of credit for a 99-unit co-op at 601 Kappock St. in Riverdale, arranged by Sheldon Gartenstein; and a $600k first mortgage and $50k line of credit for Greenpoint Apartment Corp., an 18-unit co-op at 48-11 to 48-23 39th Pl. and 39-51 to 39-55 Greenpoint Ave. in Sunnyside, Queens, arranged by Mindy Goldstein.

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The NYC Capital Resource Corp. and the NYC Industrial Development Corp. gave preliminary approvals for financial assistance for two industrial companies to help them remain and grow in NYC. The projects proposed by Stellar Service and Jetro Cash & Carry Enterprises will create and retain 250 jobs and spur private investment of more than $50M in the Bronx and Manhattan. Stellar will receive up to $4.4M in NIMBLE bonds for the acquisition and renovation of two commercial condos on W. 36th St., while a tax incentive package will help Jetro acquire a 523k-S F property at Oak Point Ave. in the Bronx, where it will construct and equip a 193k-SF warehouse.

Construction & Development

Palisades Financial, through its Palisades Regional Investment Fund II, and Fort Lee Redevelopment Associates (a JV of SJP Residential Properties and attorney James Demetrakis) will redevelop the former Centuria property, a 7-acre parcel adjacent to the George Washington Bridge in Fort Lee, NJ. FRLA has submitted a proposal to the Borough of Fort Lee to redevelop the parcel into The Center at Fort Lee, a mixed-use town center designed by Elkus Manfredi Architects. The center will include retail, restaurants, office space, a gourmet food market, a 4-star hotel, and luxury residential in two towers. In the center will be a museum, donated by the development team to Fort Lee, and a multi-use theater has also been suggested.

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CNY Builders topped out on construction of ABI and AL-Stone’s$72M 8 Stone Street, a 43-story, 148k-SF Doubletree Hotel. Construction began in December ’07, and it’s slated to open in 4Q10. The team includes architect Gene Kaufman and structural engineer Axis Design Group.

Business

CB Richard Ellis and EWB LLC announced a non-exclusive alliance to deliver acquisition, leasing, marketing and disposition services catering to investor clients focusing on value retail and the outlet sector. CBRE’s Richard Frolik and Derrick Almassy will assist in services from CBRE Retail Services, while EWB’s Lisa Quier Wagner, Peter Edelmann and Andrew Boyle will coordinate the alliance's activities.

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Grubb & Ellis formed a LLC with Real Property Tax Advisors, forming a tax advisory service. The new entity, Grubb & Ellis-Real Property Tax Advisors, will serve clients nationally.

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L.F. Driscoll is merging with Structure Tone as part of a strategic growth initiative, enhancing geographic expansion for L.F. Driscoll and market penetration for Structure Tone. No organizational or personnel changes are planned for either firm as part of the merger and L.F. Driscoll’s current management team will continue to run day-to-day L.F. Driscoll operations.

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Environmental and engineering management firm Whitman, based in East Brunswick, NJ, acquired LJS Construction, an environmental remediation and construction company based in Warren, NJ.

Exec Moves

CBRE named Maureen Ehrenberg as head of global facilities management for its global corporate services group. She recently joined CBRE as senior managing director in its strategic consulting division. Previously, she led Grubb & Ellis’ global client services business, and is a graduate of the City University in London.

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Thomas Monahan joined CBRE’s industrial services group as SVP, where he will be engaged in business development, strategic account management, owner and tenant representation, supply chain distribution services, market evaluation and analysis, and logistics and occupancy planning. He was previously with Colliers Houston & Co. and is a graduate of Seton Hall and NYU.

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CNY Builders appointed Leonard Jacob as director of technical services, responsible for the preparation of conceptual budgeting, estimating, procurement, bids, scheduling, cost control reporting, and support of operations for commercial, residential and institutional projects. He was previously with York Hunter and is a graduate of City College.