22A — September 14 - 27, 2018 — M id A tlantic
Real Estate Journal
www.marejournal.com
M id A tlantic R eal E state J ournal
RONX&BROOKLYN, NY — $51 million, in two separate loans, was Maddd Equities plans mixed-use res. developments Progress Capital’s Domenico negotiates $51M in financing B
DiversifyingwithDonuts: Redwood Realty facilitates 1031 Exchange
BROOKLYN, NY — Red- wood Realty Advisors has assisted its client in success-
Constantina Drogaris, Esq. Drogaris led the transaction team on behalf of the buyer. The Dunkin’ Donuts was built in 2012 and earned a Gold Level LEED certification – one of a few select Dunkin’ Donuts in the U.S. to be awarded this recognition. Other tenants at the center include a Little Greek Restaurant, Flippers Pizzeria and Salon Lofts. “Successfully completing a 1031 Exchange can be a criti- cal part of executing sales on behalf of our clients, and this is the second 1031 deal that Constantina has closed this year,” said Thomas McCon- nell, CCIM , managing partner at Redwood Realty. “These transactions really show her aptitude for not only closing multifamily sales, but also her ability to find solutions that meet the strategic objectives of our clients.”
fully complet- ing a 1031 E x c h a n g e f o l l o w i n g the sal e o f a multifam- ily property in Brooklyn. Th e c l i e n t r e i n v e s t e d proceeds in
partner. The 2.73 acre site has been the manufacturing facility for the colourants business of El- ementis for over 70 years. “The location of this site at the West Side Avenue Station of the Light Rail is ideal for our planned redevelopment into a residential rental build- ing with parking and retail. Our proposed plans will focus on the key elements driving rentals today which are a safe, trendy building with an over- abundance of amenities. Our goal is to create a community,” said Art Johnson, Managing Member of 400 Claremont Ur- ban Renewal. After completing 265 units at 25 Senate Place, also in Jersey City, this is the partnership’s next venture. The financing allows the partnership to purchase the property, demolish the existing building, remediate the site and provides funds for predevelop- ment costs such as architec- tural, engineering and carry costs. Anderson will continue to represent the owners as they source construction financing options for the project. “Having worked with Art and his team for the past 15 years, I look forward to another exciting project at 400 Claremont,” said Anderson. 400 Claremont Urban Re- newal was represented by Leo Leyva and his team at Cole Schotz while Gibbons Law represented the lender in the transaction.
arranged by B r a d Do - m e n i c o , pa r t ne r a t P r o g r e s s C a p i t a l , f o r J o r g e Madruga of Maddd Eq- ui t ies and
Constantina Drogaris
existing building and site improvements could not be feasibly positioned for use by the private market, due to age, and, thus do not contribute to the site’s value. However, the site has excellent features for redevelopment, which is what Rittenhouse views as the most attractive and best use. Of the 35.82 acres, there are 31.82 acres that could be immediately available for de- velopment. The other 4 acres is currently contaminated and cannot be developed until the remediation process is com- pleted in five years. Using the Sales Comparison Approach, which reflects an estimate of value is based upon sales activity of competing properties from the market- place, Rittenhouse evaluated activity in Gloucester and New Castle counties. Gloucester is outperforming Salem, but will soon be fully developed. Mean- while, New Castle is mostly fully developed with buildings that do not meet the current a multi-tenant retail center which includes a ground lease on a Dunkin’ Donuts in St. Petersburg, Florida. The in- vestor acquired the property for $3.625 million and a 6.4% capitalization rate. “The property boasts a prime downtown St. Petersburg loca- tion in the 4th St. North Cor- ridor, which has the highest retail traffic count in the city,” said Redwood Realty director ENGLEWOOD CLIFFS, NJ — Kennedy Funding , a direct private lender based in Englewood Cliffs announced a $2.75 million loan closing in Colombia, the newest country to be added to the direct private lender’s robust international portfolio. Proceeds from the $2.75 mil- lion loan to Bienes y Servicios International SAS will be used toward the purchase of 16.864 acres of land in Sincelejo, Co-
Brad Domenico
ership will continue to operate the Tillary site as self-storage until they finalize their plans to convert it into a 235,000 s/f residential building. The proj- ect will operate under the city’s mandatory inclusionary hous- ing policy with 25% of its units to be permanently affordable. Both loans are interest only bridge loans to provide time for ownership to execute their development plans. Domenico negotiated the amount and terms of the loans with Jar- ed Zimmel of Natixis . Neal Sroka of Douglas Elliman brokered both sides of the sale transaction. In addition, Progress Capi- tal has announced that the former site of Elementis Spe- cialties, Inc. located at 400 Claremont Ave., Jersey City was purchased by 400 Clare- mont Urban Renewal, LLC for $17 Million. Kathy Anderson of Progress Capital closed the $11,875,000 acquisition and pre-development financing and also arranged for a JV equity Rendering of proposed buildings at 202 Tillary Street in Brooklyn
Eli Weiss of Joy Construc- tion to complete two borough acquisitions. The acquisitions include 77,675 s/f of paved parking along River Rd. at the intersection of McClellan St. in the Bronx and the 115,000 s/f American Self Storage Building located at 202-208 Tillary St. in Brooklyn. “Parking lots and self-storage facilities are an often-misun- derstood asset class, and as such securing a mortgage when acquiring such properties can be challenging with the dif- ficulty in forecasting future projections and potential uses while navigating zoning and height restrictions for future development. Working with Domenico we were able to not only secure financing quickly, but also increase the leverage of both borrowings with flex- ible prepayment terms,” said Madruga. The River Ave. parcel will be the eventual site of two afford- able housing towers which will include 172,000 s/f of residen- tial space, ground level retail and sub-grade parking. Own- ISELIN, NJ — Provident Bank welcomed three new team members to the Bank’s North Central Region. Lina Chalet of Bloomfield and Diamond Navarro of Perth Amboy join Provident Bank as vice president, busi- ness development officers, where they will be responsible for developing a formal pros- pecting plan, identifying and generating new business, and will work closely with business- es to meet their financial needs. They will also be responsible for building a referral network of accountants, lawyers and centers of influence to source new business. Chalet most recently served as Senior Business Banking Specialist at Wells Fargo and has more than twenty years of financial services experience. Navarro has more than 17
continued from page 11A Carlo L. Batts, MAI, Rittenhouse . . . Kennedy Funding closes $2.75MLoan lombia. The vacant land is slot- ted for residential development. “We are one of the only direct private lenders in the United States to offer loans abroad, especially loans on raw land,” said Kevin Wolfer , CEO of Kennedy Funding. “We under- stand the local laws and know how to navigate through any legal challenges in order to get the loan closed. That is what differentiates Kennedy Fund- ing from other lenders.”
market demands. In our es- timation, this means Salem and the Sievers-Sandberg site could capture more of market demand as tenants seek new facilities to locate. We expect the continued expansion of the economy to help drive this demand. Valuation Determination Rittenhouse does not publish its valuation findings, howev- er, our analysis factored in the costs associated with demoli- tion and preparing the site for redevelopment, and the impact of the portion that needs envi- ronmental remediation. At that price and given its lo- cation, this could be a tremen- dous investment opportunity, one that could draw the atten- tion of several suitors looking for value. The assumption is that the region’s economy will continue to expand and the lack of inventory in Gloucester and New Castle will make Sa- lem an affordable alternative. Carlo L. Batts, MAI is the principal of Rittenhouse Appraisals.
Provident Bank welcomes three new team members to NJ
Syreeta Watkins
Lina Chalet
Diamond Navarro
years of experience in banking and business development and most recently served as vice president, business develop- ment officer at Wells Fargo. “Both Lina and Diamond bring solid experience and knowledge of the market to our team. Their experience in the industry will greatly enhance our efforts to grow in the region,” said Robert Vivo , senior vice president, regional manager. “They understand the important role Provident plays in serving the needs of busi-
nesses and consumers. We’re excited to expand our teamwith these local, dedicated banking experts,” added Vivo. Syreeta Watkins of Secau- cus joins Provident Bank as banking center manager of the Teachers Village Branch in Newark. In her new role, she will be responsible for growing the branch, developing sales strategies, providing superior customer experience, as well as overseeing the staff and the operational integrity of the branch.
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