News

August 25, 2015 | The Real Deal | Mark Maurer

Winnie Law’s Sun Wansam Realty Corp. picked up a Carroll Gardens condo-to-rental conversion for $21.1 million, in a rare multifamily sale of an elevator building in the Brooklyn neighborhood, The Real Deal has learned.

The 11-story property at 100 Luquer Street, between the Gowanus Expressway and Clinton Street, has sold for the second time since it was constructed in 2011...

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Neighborhoods: Carroll Gardens/ Agents: Robert Shapiro, Stephen Palmese, Winfield Clifford

A mixed-use building at 1260 Broadway, located between Greene and Lexington Avenues in Brooklyn’s Bedford-Stuyvesant neighborhood, was sold in an all-cash transaction valued at $2,200,000.

The four-story, walk-up building contains approximately 7,000 square feet and sits on a 25’ x 100’ lot. The unit mix consists of seven residential units, including three, two-bedroom and three, one-bedroom apartments, and one retail unit. Gut renovated in 2000, the building is fully free-market with preferential rents. The sale price equates to approximately $314 per square foot.

This transaction was handled exclusively by Cushman & Wakefield’s Michael Amirkhanian.

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Neighborhoods: Bedford Stuyvesant

A warehouse building at 521 Bergen Avenue, located between East 148th and East 149th Streets in “The Hub” section of the South Bronx, was sold in an all-cash transaction valued at $6,000,000.

The six-story warehouse contains approximately 44,070 square feet on a 75.25’ x 99’ lot. It features a freight elevator and full basement. C4-4 zoning allows for both commercial and residential uses. Located in the heart of “The Hub,” the premier shopping district of the South Bronx, the property benefits from tremendous foot and vehicular traffic. It is in close proximity to multiple bus lines and the 2 and 5 trains, providing access to Midtown Manhattan in 20 minutes. The sale price equates to approximately $136 per square foot.

“Investors and users were attracted to this property because of its prime location in the HUB section of the Bronx, located near successful developments such as The Opera House Hotel, Via Verde, Triangle Plaza, and the upcoming La Central,” said Cushman & Wakefield’s Nick Burns, who exclusively handled this transaction along with David Simone. “We’re getting interest every week from Manhattan and Brooklyn based investors who see value in the Bronx and want to get in before the area really takes off,” added Simone.

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Neighborhoods: The Hub

An office building at 1713 8th Avenue, located between 17th and 18th Streets in Brooklyn’s Greenwood Heights neighborhood, was sold in an all-cash transaction valued at $5,350,000.
 
The four-story building contains approximately 12,800 square feet and sits on a 50.08’ x 100.17’ lot.  It consists of 47 small units, set up as creative artist and office space.  The sale price equates to approximately $418 per square foot.

“There was very high demand for this property, and we were able to secure a buyer above the asking price within three weeks of marketing,” said Cushman & Wakefield’s Aaron Warkov, who exclusively handled this transaction with Richard Velotta.

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A mixed-use portfolio, consisting of two buildings located at 667 East 187th and 1704 Van Buren Streets in the Little Italy and Van Nest neighborhoods of the North Bronx, was sold in an all-cash transaction valued at $7,350,000.

The five-story, walk-up buildings combine for approximately 36,750 square feet with 45 units, of which 39 are apartments and six are ground floor commercial units. The residential unit mix consists of 17 one-bedroom, 21 two-bedroom, and one, three-bedroom apartment.  The sale price equates to approximately $200 per square foot and $163,000 per unit.

“We had multiple offers and were able to place the property in contract in under four weeks,” said Cushman & Wakefield’s Karl Brumback, who exclusively handled this transaction with Nick Burns.

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Agents: Karl Brumback

An elevator-serviced multifamily building at 100 Luquer Street, located between Hamilton Avenue and Clinton Streets in Brooklyn’s Carroll Gardens neighborhood, was sold in an all-cash transaction valued at $21,100,000.  The sellers of the property were Aaron Drazin and Bruno Caruso of Montreal based Crest Realties.  

Newly constructed in 2011 and originally built as a condominium, 100 Luquer Street features high-end finishes including floor-to-ceiling windows, direct elevator access into the units’ living rooms, private outdoor spaces, on-premise parking, storage locker space, fully equipped gym, and a private and shared roof deck providing breathtaking unobstructed views of Downtown Manhattan.  The building encompasses approximately 22,280 net square feet over 20 residential units. The sale price equates to approximately $947 per square foot or $1,055,000 per unit. The building benefits from a 421-a tax exemption which begins to phase out in four years. The property was fully leased at the time of sale and sold at approximately 4% capitalization rate on the unabated taxes.  

“This purchase is indicative of investors’ strong appetite for Brooklyn multifamily product in solidified residential communities,” said Cushman & Wakefield’s Stephen P. Palmese, who exclusively handled this transaction with Robert M. Shapiro and Winfield Clifford.

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Neighborhoods: Carroll Gardens/ Agents: Robert Shapiro, Stephen Palmese, Winfield Clifford

Cushman & Wakefield is pleased to announce the closing of a $4.35 million cash-out refinance, collateralized by a 16-unit multifamily apartment building located on the Upper West Side of Manhattan.  The loan features a 65% LTV, 5-year term with a fixed-rate at 2.875%.

"We were able to deliver a very competitive interest rate and structure due to our deep market data and strong relationships,” said Cushman & Wakefield’s Preston Flammang, who exclusively handled this transaction.

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Neighborhoods: Upper West Side/ Agents: Preston Flammang

In 2Q15, 161 properties sold in the Bronx, down 5% from 1Q15. Aggregate sales consideration in 2Q15 was $635M, an increase of 31% from 1Q15.

Cap rates compressed a further 121 bps from 2014, to 5.8%.

Cushman & Wakefield has been retained on an exclusive basis to sell a residential development site at 88 Schermerhorn Street, located between Court Street and Boerum Place in Brooklyn Heights.

Currently, the site holds a four-story building with approximately 10,570 square feet. The property will be delivered vacant and is positioned as a turnkey development, as current ownership has already acquired over 6,620 square feet of IAR, filed development plans, and secured demolition approval. Per the filed plans, the C5-4 zoned site is permitted to mass a 26-story tower totaling approximately 45,218 square feet and 23 residential units. The unit mix consists of 22 floor-through units and one duplex penthouse. Luxurious residences, tree-lined streets, and a rich history characterize this coveted residential enclave.

“With significant due diligence already performed and demo approvals secured, this offering is truly a turnkey opportunity for a developer to construct luxury product in a marketplace that is experiencing rapid absorption of new-construction residences,” said Cushman & Wakefield’s Stephen P. Palmese, who is exclusively marketing this property.

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Rendering Credit: SDS-HEIGHTS

Neighborhoods: Brooklyn Heights/ Agents: Stephen Palmese

Cushman & Wakefield is pleased to announce the closing of a $22.0 million refinance, collateralized by a property at 154-157 Avenue E, in Bayonne, New Jersey.  The loan from Investors Bank featured a 7-year term at a fixed rate of 3.375%, with a 5-year extension option.  

The newly finished SilkLofts property was originally the site of the century-old Maidenform Brassiere factory, which at its height, employed 1,300 people daily.  The factory gave birth to the modern bra and even served during World War II as a manufacturer of military parachutes and carrier pigeon vests using primarily silk.  From the start, Douglas Stern, President of SilkLofts, strived to protect the former factory's unique character by salvaging the original brick work and repurposing the longleaf yellow pine for columns.  This is highlighted by the community brick pizza oven which feeds directly into the original industrial smokestack. The five story Brooklyn-esque lofts feature hardwood floors, high ceilings and include five studio units, 26 two-bedroom units, 48 one-unit bedrooms and six private artist's lofts.  “We utilized the finest materials and craftsman to honor Maidenforms’ past while at the same time bringing modern features to residents who wanted a luxury loft experience,” says Stern.

“Our challenge in this financing was securing full loan proceeds despite the fact that when we went to market, the property was not fully stabilized,” said George Gnad, the Cushman & Wakefield broker who exclusively handled this transaction.  “Working on this amazing, successful, adaptive reuse of a factory to a luxury loft was a thrill, and Doug Stern did a world-class job,” said George Gnad.

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Neighborhoods: Hudson County

A townhouse at 441 West 22nd Street, located between Ninth and Tenth Avenues in Manhattan’s Chelsea Historic District, was sold in an all-cash transaction valued at $8,750,000.
 
The five-story, nine-unit building contains approximately 5,520 square feet and sits on a 20’ x 99’ lot.  It is currently split into a garden level two-bedroom apartment with access to the rear yard, and seven one-bedroom and one studio above.  All units are fair market and feature working fireplaces.  Additionally, many were recently renovated with updated appliances.  The building features approximately 11’ ceilings on the parlor floor, original detail throughout, and top floor units featuring skylights.  The sale price equates to approximately $1,585 per square foot.

“At approximately $1,585 per square foot, this sale represents the highest price per square foot ever paid by an investor for a multifamily property in the neighborhood,” said Cushman & Wakefield’s Brock Emmetsberger, who exclusively represented the seller in this transaction.  The buyer was represented by Matthew Lesser of Leslie J. Garfield.

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Neighborhoods: Chelsea

August 20, 2015 | Bloomberg | Sarah Mulholland

Manhattan property owners are cashing out ahead of schedule.

With New York real estate values and rents surging, owners of commercial properties acquired as recently as a year ago are already seeking buyers. In the case of one Midtown site, the developer scrapped construction plans to sell an empty plot of land.

There’s so much buyer demand that in some situations it’s more opportune for landlords to sell rather than follow through on plans for redevelopment or filling buildings with new tenants. A record $29.4 billion of Manhattan property deals were completed in the first half of 2015, according to brokerage Jones Lang LaSalle Inc., part of a five-year real estate rally that’s pushed prices to new highs in big U.S. cities...

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In 2Q15, 90 properties sold in Northern Manhattan, up from 71 properties sold in 1Q15.  Aggregate sales consideration in 2Q15 was $560M, an increase of 47% from 1Q15 and the second-highest quarterly total since 3Q13.  Northern Manhattan's cap rates compressed a further 56 bps from 2014, to 4.5%.

Cushman & Wakefield has been retained on an exclusive basis to sell The Octagon Building, an office building at 17-20 Whitestone Expressway. The property is located between 14th and 20th Avenues in the Whitestone neighborhood of Queens. The asking price is $26,500,000.

The five-story, elevator-serviced building contains approximately 63,110 square feet and features 235’ of frontage, offering substantial visibility from the Whitestone Expressway. The property benefits from on-site parking, which allows for up to 200 parking spaces. The building, which will be delivered at 97% occupancy, currently consists of 15 tenants and 20 office suites. Additional income is available from two roof antennas, Fed-Ex/UPS pickup boxes, and an electronic billboard.

The property is ideally located in close proximity to the Long Island Expressway, Cross Island Parkway, Grand Central Parkway, LaGuardia Airport, and numerous bus lines. Additionally, it is near the Throgs Neck and Whitestone Bridges. The favorable size and location of this property make this an ideal investment or 1031 exchange opportunity.

“This is a trophy asset in the Queens office building market with extremely high visibility on the Whitestone Expressway.  It is the location where Vitaminwater and Smartwater were created and offers a potential corporate headquarter location along with a substantial signage opportunity,” said Cushman & Wakefield’s Thomas A. Donovan, who is exclusively marketing this property with Stephen R. Preuss.

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Neighborhoods: Whitestone/ Agents: Stephen Preuss

The Broad and Boerum Building at 525 Broadway, located on the northeast corner of Boerum Street and Broadway in Brooklyn’s Williamsburg neighborhood, was sold in an all-cash transaction valued at $32,800,000.

Formerly a branch of Lincoln Savings Bank, the property consists of an approximately 60,300 square foot office building with an additional 13,000 square feet of parking.  The property holds approximately 189,150 buildable square feet and the sale price equates to approximately $173 per buildable square foot.
 
The property is located one block from the Broadway Avenue G train station and is on the same block as the Lorimer Street J and M train station.

“This site offers exciting scale and density of office, retail and residential potential, with the ability to truly transform the block,” said Cushman & Wakefield’s Michael Amirkhanian, who exclusively represented the seller in this transaction with Brendan Maddigan.  “This area is becoming a new hub for development in Williamsburg,” added Maddigan.

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Neighborhoods: Williamsburg/ Agents: Brendan Maddigan

Cushman & Wakefield has been retained on an exclusive basis to sell a new construction apartment building at 316-318 East 3rd Street, located between Avenues C and D in Manhattan’s East Village neighborhood. The asking price is $26,325,000.

The eight-story, 33-unit luxury elevator building contains approximately 23,482 square feet on a 48.67’ x 105.96’ irregular lot. The building, known as “The Robyn,” was completed in 2013, using high quality, energy-efficient materials. It features a virtual doorman, video security, and a common deck area. Each unit features stainless steel and granite kitchens, marble baths, and in-unit washer/dryers. Additionally, the property benefits from a 421a tax abatement, with seven years remaining.

The property is centrally located in the East Village and within steps from the Lower East Side, providing a tremendous variety of the city’s best restaurants and nightlife. It is within close proximity to public transportation, including the F train stop at Second Avenue. This offering presents an excellent opportunity for an investor to purchase a high cash flowing, low maintenance asset in the heart of the East Village.

“The Robyn provides an entirely turn-key, cash-flowing, newly constructed elevator building in one of the tightest sub-markets in Manhattan,” said Cushman & Wakefield’s James Nelson, who is exclusively marketing this property along with Michael DeCheser and Matt Nickerson.

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Neighborhoods: East Village/ Agents: Michael DeCheser

In 2Q15, 230 properties sold in Queens, down 7% from 1Q15.  The aggregate sales consideration in 2Q15 was $835M, an increase of 8% from 1Q15.  Additionally, cap rates compressed a further 85 bps from 2014, to 5.3%.

Bob Knakal was recently a panelist on The Stoler Report in the episode entitled "What's Happening on the West Side of Manhattan?"  The group discussed Manhattan's shifting landscape, transportation, and demographic on the West Side.

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Neighborhoods: Upper West Side

In 2Q15, 516 properties sold in Brooklyn, a decrease of 6% from 1Q15.

August 12, 2015 | Real Estate Weekly | Christian Bautista

Investment sales transactions in New York City reached $16.8 billion in the second quarter of this year, the fourth highest quarterly figure on record.

According to Cushman & Wakefield’s second quarter property sales report, dollar volume is on pace to reach $75.6 billion this year, which would represent a 22 percent increase from the previous record set in 2007...

Agents: Brendan Maddigan