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 William Kaufman Organization has signed six leases totaling approximately 14,948 square feet at 747 Third Avenue. The leases included private investment firm Long Point Capital, which signed a 3,929 square-foot renewal on a portion of the 22^nd floor; beverage company Russian Standard Vodka, which signed a 3,850 square-foot lease on a portion of the 30^th floor; independent global alternatives investment manager Tri Span USA, which signed a new, 2,105 square-foot lease on a portion of the 22^nd floor; Isomer Partners, an existing subtenant that signed a new, direct 1,837 square-foot lease on a portion of the 26^th floor; accountant Joseph Moshkovsky, who renewed 1,740 square feet on a portion of the 4^th floor; and accountant Melvin Ginsberg, who renewed 1,487 square feet on a portion of the third floor. Michael Lenchner, Vice President & Director of Leasing of Sage Realty Corporation, the leasing and management division of WKO, along with a Jones Lang LaSalle leasing team of Frank Doyle, Cynthia Wasserberger, David Kleiner, Harlan Webster and Hayley Shoener represented ownership in-house in all six transactions. Bill Levitsky and Daniel Madison of Newmark Knight Frank represented Isomer Partners, and Kirill Azovtsev of Jones Lang LaSalle represented Russian Standard Vodka. Robert Baraf of Cushman & Wakefield represented Melvin Ginsberg. Michael Lenchner dealt directly with Tri Span USA, Long Point Capital, and Joseph Moshkovsky.

PHILADELPHIA, PA—Dalzell Capital Partners acquired Waverly Court, a recently expanded mixed-use property prominently located on the southwest corner of 13^th Street and Waverly Court in Center City, Philadelphia, PA for $21 million. Originally built in the early 1900s, Waverly Court features 61 loft-style apartments and a 2,800-square-foot commercial space leased to Urban Outfitters-owned Amis Trattoria, one of Philadelphia’s premier restaurants. Of the property’s residences, 34 units were delivered in July 2017, and the original 27 units have been fully renovated over the past few years.

CAMBRIDGE, MA—Construction is now underway for a mixed-use project that will add 18,000 square feet of class A office space to supply-constrained Harvard Square while revitalizing the existing retail space within the Crimson Galeria. Located at 57 JFK Street in the heart of one of Greater Boston’s most iconic settings, the redevelopment is being undertaken by Needham-based Nauset Construction for owner Crimson Galeria. The Harvard Square submarket of Cambridge is experiencing historic lows in terms of office vacancy (under two percent) in one of the region’s most prized retail districts, and the transit-oriented location has earned both walk and bike scores of 98 from walkscore.com.

FLORHAM PARK, NJ—Serving as the exclusive leasing agent at 25 Hanover Road Corporate Center in Florham Park, New Jersey, CBRE Vice President Peter Shikar arranged three new transactions totaling more than 20,000 square feet. Owned by The Silverman Group, 25 Hanover Road is a two-building complex totaling 134,458 square feet. The largest transaction arranged at the complex was a 12,494-square-foot lease for Concordia Care, a specialty risk transfer, care-coordination company servicing insurers, government entities, self-insured plan sponsors and other managed care organizations. In addition, Mortgage Network, one of the largest independent mortgage bankers in the eastern US, signed a 5,598-square-foot lease, while Ameriprise Financial completed a 2,123-square-foot lease.

CAMBRIDGE, MA—Urban Spaces, an innovative real estate company that develops unique mid-sized projects in growing neighborhoods that are near public transportation, universities, and employment hubs, has leased 100% of the office component of 121 First in East Cambridge/Kendall Square to CarGurus, a global online automotive marketplace. 121 First is a mixed-use development comprised of 50,000 square feet of office space, 10,000 square feet of retail, and 50 parking spaces. The building is currently under construction and is expected to be completed in summer of 2018. Designed by global architectural firm, Perkins Eastman, and built by Nauset Construction, 121 First is an integral component of the First Street Corridor and will add vitality to the burgeoning neighborhood. 121 First is a key component of a $200 million development by Urban Spaces which will include approximately 250 apartments, 50,000 square feet of office space, 50,000 square feet of retail, and 250 parking spaces, as well as a half-acre open-air green space.

Money Moves

NEPTUNE CITY, NJ—Marquis Health Services, Coral Harbor Rehabilitation & Healthcare Center staff, healthcare colleagues and dignitaries celebrated the completion of a $2.5 million renovation at the 110-bed Neptune City skilled nursing facility during a professional open house event in June. Coral Harbor provides post-hospital care, short-term rehab and long-term residential care. Marquis Health Services launched the renovation immediately following its acquisition of the Monmouth County property in 2016. Highlighting the physical improvements, the firm completed a complete overhaul of the long-term care floor and created dedicated sub-acute rehabilitation suites. The work also included the construction of a new therapy gym with state-of-the-art equipment and other enhancements. Coral Harbor’s programming has been expanded as well, with new specialty cardiac and pulmonary rehabilitation programs operating seven days per week. Piped-in oxygen in the sub-acute rehabilitation suites enhances the facility’s pulmonary care services. Additionally, Coral Harbor has introduced a chronic kidney disease management program.

NEW YORK, NY—Landsea Homes and Leyton Properties closed on a $40 million senior construction loan for their condominium development at 212 West 93^rd Street on a prime Upper West Side site. The senior loan was provided by BofI Federal Bank with construction financing arranged by Ackman-Ziff Real Estate Group. The luxury residential building is Landsea Homes’ first ground-up new development project in Manhattan as the company looks to expand into gateway cities across the country.

Executive Moves

SADDLE BROOK, NJ—CBRE named Thomas Monahan a vice chairman. It’s the first time that a CBRE sales professional in New Jersey has achieved this title. Highly respected among owners and occupiers throughout New Jersey and the greater New York metro area, Monahan was the top industrial producer throughout the Americas in 2017, completing more than 50 transactions with an aggregate value of more than a half-billion dollars. Monahan has been at the forefront of several market-changing transactions, including the $820 million portfolio sale between Morris Companies and Prologis in 2015, which included eight industrial properties and 13 retail centers. More recently, Monahan and his team handled a 923,000-square-foot lease to an e-commerce company in Edison on behalf of Seagis Property Group, and a 695,000-square-foot. lease to a Fortune 100 Company on behalf of Prologis, also in Edison. Monahan and his partners also advised Bridge Development/Duke Realty on the highly successful e-Port project, including site acquisition, development advisory, marketing and lease-up, and portfolio disposition for this three-building project totaling over 1.2 million square feet.

PHILADELPHIA, PA—David Fahey, Principal and Managing Director of the company’s Philadelphia office, announced the additions of Katie Emery and Anekka Scott-Gray to the Avison Young team in Philadelphia. Emery (left) joins as Research Coordinator and will support the office’s senior research staff. Before Avison Young, Emery gained invaluable experience working with CEPS as a financial analyst and DLP Capital Advisors as a real estate professional, collaborating with the capital advisors team. A graduate of Lehigh University, Emery earned dual degrees in finance and economics with a double minor in real estate and global studies. As a new addition to the marketing team for Avison Young, Scott-Gray will be driving marketing strategies as the Marketing Coordinator. Scott-Gray joined the firm after having worked in marketing and public relations at Women in Business and Pulmonary Rehabilitation Associates.

NEEDHAM, MA—NAIOP Massachusetts says Related Beal has been selected to receive the group’s 2018 Distinguished Real Estate Award for achievements in real estate, charitable activities and community betterment. The award will be presented at NAIOP’s Annual Awards Gala on Thursday, November 15, 2018, at the Westin Copley Place Hotel in Boston.