Middle Market Digest – The Northeast

Here is a roundup of the latest leases, sales and other transactions in the Northeast middle markets.

Deal Tracker Daily

NEW YORK, NY—The Kaufman Organization signed Quovo, a data platform providing connectivity to consumer financial accounts, to a 13,075-square-foot lease for the entire second floor of 54 West 21st Street in Manhattan’s Flatiron District. The New York-based company is relocating its headquarters from 29 West 30th Street in NoMad due to significant growth in its business. Built in 1910, 54 West 21^st Street is a 12-story, 120,052-square-foot building located in the Flatiron District. The property features a fully renovated lobby, high-speed elevators and 24/7 access. The building is situated within a short walking distance to major transportation lines including the 1, F, M, R, W and PATH trains.

LONG BRANCH, NJ—The Kislak Company has been named exclusive sales agent for Ocean Gate, a five-acre development at Cooper Avenue and Witmer Place in Long Branch, NJ, one block from the Atlantic Ocean just north of Pier Village. The development includes land approved for 169 luxury rental units, abundant on-site parking, a pool, clubhouse and a staff unit. Senior vice president Joni Sweetwood is handling the assignment on behalf of the property owner. The listing price is $16 million and the development does not include a COAH requirement.

STATEN ISLAND, NY—Brooks Brothers will open a location at Empire Outlets, New York City’s first and only retail outlet center. The new Brooks Brothers outlet scheduled to open in Fall 2018 will be the company’s first Staten Island location, situated alongside 100 other designer retailers and dozens of food and beverage options. Steps from the Staten Island Ferry, Empire Outlets is expected to draw millions of New York City residents and tourists each year. Located adjacent to the St. George Ferry Terminal, Empire Outlets will feature over 100 designer outlet retailers and a 1,250-space parking garage. Major retailers at the center include H&M, Banana Republic, Nordstrom Rack, Gap Factory and Columbia Sporting Goods, among others. Eateries are also flocking to Empire Outlets’ 40,000-square-foot food and beverage deck, which will provide unique views of Manhattan and an unmatched experience for visitors. Restaurants at the center include Shake Shack, Artichoke Basille’s Pizza and MRKTPL, Staten Island’s first-ever artisanal food hall.

ELIZABETH, NJ—Elberon Development Group (Elberon), a 100-year-old family owned commercial real estate firm based in Elizabeth, NJ, has signed two tenants at its 115,000-square-foot, single-story warehouse located at 919 Fairmount Ave., bringing the facility to 100% leased. Having outgrown its 40,000-square-foot multi-story property in Brooklyn, and with rents rapidly escalating in the borough, ProFoot has leased 64,500 square feet—a 61% increase in space in Elizabeth. The makers of quality foot care received a Grow NJ Assistance Tax Credit from the New Jersey Economic Development Authority and will bring 55 jobs to town—filling many of the positions with local hires. ProFoot, which cites heavy power, along with access to a talented labor pool as reasons for the relocation, will make the move when the lease commences later this year. Lee & Associates Rick Marchisio, Crista Bartolomeo and Drew Maffey represented ProFoot in the transaction. In addition, McGinley Transportation Systems, a full service provider of logistics and furniture installation services, signed a lease for 40,500 square feet and will relocate from 1000 Jefferson Ave. in late 2018. Building attributes such as high ceiling height and proximity to New York City, where its core customer base is located, were the main drivers for the move across town. Bussel Realty’s Jordan Metz represented McGinley in the transaction. The remaining 10,000 square feet of the building is leased to the building’s former owner. Elberon will immediately launch an extensive capital improvement program which will include the following: new LED lighting, the removal of interior demising walls, a new HVAC system and new landscaping, fencing and offices.

BARRYTOWN, NY—Marcus & Millichap has been selected to exclusively represent the Unification Theological Seminary in the sale of its 260 acres campus, located at 30 Seminary Drive in the hamlet of Barrytown, Town of Red Hook, NY. Used as a religious seminary for more than 80 years, this extraordinary parcel includes a 120,000 square-foot main building, and several ancillary buildings with more than 150,000 square feet. The property has a colorful and rich history dating back to the 1700s. In 1929 it was purchased by John D. Rockefeller; the main building was built by him in 1930 for use by the Christian Brothers. In 1974 it was sold to its present owner.

LITTLE FALLS, NJ—Howard Applebaum, president of Corporate America Realty & Advisors represented H.C. International, a manufacturer and importer of curtains and draperies, in the signing of a new lease at 37 Montclair Avenue, Little Falls, NJ. The tenant occupies approximately 37,000 square feet and is using this facility for warehousing and administrative office purposes. This property was previously owned by Prologis, the world’s largest owner of industrial properties. It was part of a recent portfolio sale to The Hampshire Real Estate Companies.

Money Moves

EGG HARBOR, NJ—D2 Capital Advisors arranged $34.7 million in construction financing on behalf of Peter Gebert, president of Franklin Realty Development, to begin the ground-up construction of the Harbor Landing Apartments in Egg Harbor Township, NJ. The financing was provided by a regional bank and an unnamed equity source. The class-A multifamily development will consist of 204 luxury units across eight garden style apartment buildings and include a 3,500 square foot clubhouse. The amenity-rich community will include a salt water resort style pool, a fitness center, tennis and volleyball courts, and two fenced dog runs. Ground breaking is expected to begin within 60 days. Egg Harbor Township is the fastest growing township in southern New Jersey. D2 used its market acumen to highlight to positive trends in Egg Harbor and create a financing structure satisfying requirements of both the debt and equity providers.

BEDMINSTER, NJ—Advance Realty says that Executive Quarters at Bedminster—one of the company’s strategically located office property in Somerset County, NJ—has received the prestigious Outstanding Building of the Year award from the New Jersey chapter of the Building Owners and Managers Association. The award honored Executive Quarters in the “Under 100,000 Square Feet” category. The property, located at 1545 Route 206, was recognized for all facets of its best-in-class operations and management, which is overseen by Chris Galvin, Daniela Nastasi and Rory Halpin). Executive Quarters was also named The Outstanding Building of the Year in the same category in 2016.

Executive Moves

RUTHERFORD, NJ—Newmark Knight Frank named Bradford C. Fenlon an executive managing director. Currently focused on tenant representation, Fenlon specializes in helping large global clients find the right spaces to optimize their businesses within the New York metropolitan area. Fenlon has transacted a total of 13 million square feet of commercial and industrial space in deals valued over $1 billion, primarily in New Jersey and New York, but also across the US and Europe. Leveraging a personalized service approach, he has identified spaces for Fortune 500 firms in the technology, consulting, healthcare, telecommunications, consumer products and legal service industries.