CAPRE’s Commercial Real Estate Headlines for October 15, 2019

Check out the latest deals and developments in commercial real estate for October 15, 2019:

  • American Metro Center in Hamilton, NJ Sells for for $84,700,000 USD: CBRE has brokered the sale of the American Metro Center (AMC) shopping mall in Hamilton, NJ. The CBRE team included Steve Bardsley, Jeffrey Dunne, David Gavin, Travis Langer, Zach McHale, Jeremy Neuer, of the CBRE Institutional Properties team, who acted on behalf the seller as well as secured the buyer, The Birch Group. “From the first time I walked the building, I was intent on acquiring this unique asset. I look forward to building on AMC’s past success by enhancing the amenity offerings and driving future leasing,” commented Mark Meisner, Principal of The Birch Group. “This is our second deal with The Birch Group,” added CBRE’s Dunne, who will be a speaker at CAPRE’s upcoming New Jersey Apartment Summit December 4. “Mark also purchased 350-360 Mt. Kemble from our team in 2018 and we anticipate many more. Mark worked hard to get over the finish line and we are confident he will be successful at AMC.”
  • CBRE Makes Case for Light Industrial, Says “Bigger Not Always Better: A new CBRE report finds that demand for well-located, small light-industrial properties with less than 120,000 square feett continues to outpace demand for larger warehouses. According to CBRE, this trend has largely been driven by local economic activity, urban population growth and same-day delivery expectations of consumers. “Light-industrial properties account for more than half of total U.S. warehouse inventory. The availability rate for those of between 70,000 and 120,000 square feet has dropped by nearly 4 percentage points to 7.4% over the past five years. Consequently, their rents have climbed more than 30% to an average of $6.67 USD per sq. ft. By comparison, warehouses of more than 250,000 sq. ft. had rent growth of 16% over the same period,” reads the Executive Summary. “New development has been extremely limited, with completions accounting for just 1% of total light-industrial warehouse inventory since 1990. This dearth is attributable to challenges in developing smaller parcels in densely populated areas, including competition with other uses and high land values.”
  • Buligo Capital Completes Sale of Chicago-Area Apartments: JLL has closed the $25.7 Million USd sale and $20.56 Million USD financing of Central Park and Governor’s House Apartments, two apartment communities totaling 316 units in South Suburban Chicago, Illinoi. JLL marketed the properties on behalf of the seller, a joint venture between Buligo Capital Partners and Ferndale Realty Group. Bender Companies purchased Central Park Apartments for $17.4 Million USS and Governor’s House Apartments for $8.3 Million UAS. Additionally, JLL worked on behalf of the buyer to originate the 10-year, fixed-rate acquisition loans of $13.92 Million USD and $6.643 Million UAS respectively, through Fannie Mae. The loan will be serviced by Jones Lang LaSalle Multifamily, LLC, a Fannie Mae DUS lender. The portfolio comprises Central Park Apartments, which is located at 11 Fir Street in Park Forest and Governor’s House Apartments, which is located at 871 Burnham Drive in University Park.
  • JLL Arranges Financing for 2 Manhattan Apartment Properties for Atlantic Development Group: JLL announces has arranged financing totaling $119 Million USD for 33 West End Apartments and Port 10 Apartments, two mixed-income, high-rise residential properties in prime Manhattan locations. JLL worked on behalf of the borrower and original developer of the properties, Atlantic Development Group, to originate two fixed-rate, long-term Fannie Mae loans. The loan for 33 West End Apartments totaled $80 Million USD and the loan for Port 10 Apartments totaled $39 million. Both loans will be serviced by Jones Lang LaSalle Multifamily, LLC, a Fannie Mae DUS lender. 33 West End Apartments is a 25-story, 211-unit property on the Upper West Side steps from Lincoln Center and Central Park. The property consists of a mix of affordable and market-rate studio, one-bedroom and two-bedroom units ranging from 426 to 1,182 square feet along with 7,191 square feet of ground-floor retail. Port 10 Apartments is a 13-story, 89-unit property located on 10th Avenue between West 27th and West 28th Street in Chelsea. Completed in 2010, the building also includes 8,000 square feet of ground-floor retail. The nearly 98% leased building consists of 71 market-rate and 18 affordable units.
  • Brooklyn Poised for Positive Price Growth in Multifamily Ahead of 2020: CORE Real Estate has released a report on the Brooklyn Multifamily real estate market heading into 2020, and the forecast is a positive one for buyers. For the first time ever, over 50% of Brooklyn multifamily inventory is priced at $1 Million USD or higher. The end of the third quarter is also seeing an increase in contract activity for apartments, condos and townhouses — 16% year-over-year to be exact. The report highlights that activity is now expanding to South Brooklyn and East Brooklyn with unprecedented momentum.