20C — March 2024 — Best of 2023 — M id A tlantic Real Estate Journal
www.marej.com
The LARGEST OFFICE SALE of 2023
Cushman & Wakefield Harborside 1, 2 and 3 Jersey City, NJ
Lee & Associates New Jersey 1081 US Hwy 22 Bridgewater, NJ
Forged Real Estate Commonwealth of PA Department of Revenue
Brokers: Cushman & Wakefield’s Andy Merin, David Bernhaut, Frank DiTommaso and Max Helfman with CBRE’s Jeff Dunne, Travis Langer and Wil - liam Shanahan Size: 2,110,201 s/f Cushman & Wakefield and CBRE co-brokered the sale of Harborside 1, 2 and 3, which consists of three interconnected office buildings on the Hudson River Waterfront, along with 100,000 s/f of ground-level retail. At the time of the transaction, the average occupancy across the three buildings was at 62%, with a Weighted Average Lease Term (WALT) of over seven years. Despite the challenging market, the sale not only aligned with the client’s overall business plan, but also marked one of the largest office transactions in the U.S. in 2023. In a Lee & Associates New Jersey-orchestrated transaction, Kings Row Medical Properties acquired this medical office/ surgery center set on nearly 2.5 acres from a private-entity seller. Located in a market with strong demographics, this well-maintained asset with long-term triple-net leases drew numerous offers and commanded a premium price. Anchored by a leading Somerset and Hunterdon County orthopedic practice that recently extended its lease, the building also features a prominent physical therapy practice, as well as two state-of-the-art surgery centers. Ultimately, the buyer is an experienced local operator, and their hands-on approach will benefit the property and its tenants moving forward. This transaction was of a ~100,000 s/f single tenant office/ flex asset leased to the Commonwealth of Pennsylvania’s Department of Revenue (Aa3: Moody’s) in the state capi- tal of Harrisburg, PA. The Pennsylvania Department of Revenue has operated at this mission critical location for 30+ years. At the time of the sale, there were seven years of lease term remaining. Despite existing headwinds in today’s market, Forged Real Estate sourced 10+ offers and procured a local private investor new to net lease Government assets while achieving 95% of the recommended list price. The BEST OUT OF STATE PROJECT/DEAL of 2023 Broker: Erica Davidson Size: 23,610 s/f Brokers: Marc Mandel, Steve Schrenk, Marco Di- Prinzio, Greg Zimmerman Size: 96,581 s/f
Binswanger 1150 Clipper Road Sumter, SC
Levin Management Corp. Mayfair Shopping Center Commack, NY
Forged Real Estate Single Tenant Tesla Rochester, NY
Size: 30,000 s/f The newly constructed single tenant Tesla Gallery and Service Center situated in Monroe County, in upstate NY recently transacted in June 2023 at a 6.60% Cap Rate. Forged Real Estate represented the Seller, Rochester Mo- tors NY, LLC. Marc Mandel and the Forged team procured Realty Income Properties to complete the transaction in expedited time at 93% of the asking price. The deal closed five weeks after the purchase and sale agreement was fully executed. The property recently received a comprehensive interior and exterior renovation which included a new roof, concrete slab, elevation, storefront and façade. The interior was fully reconstructed, including new electrical, plumbing and HVAC units. Additionally, the parking lot is brand new. The new Tesla center includes an education center, a service department with 14 vehicle lifts, a parts and storage section, a wash bay, a fully renovated service department, a customer lounge, and a limited showroom. The additional 20,000 s/f of the property is being utilized for electric vehicles, employee vehicles, and customer cars being serviced at the electric vehicle facility.
Size: 341,891 s/f Binswanger secured two solar panel and wafer manu- facturing tenants for a 15-year lease of this former metal fabrication facility on behalf of the owner, Lucky Property Management. SEM Wafertech Inc. and Solar4America Technology Inc. will share the new facility which will help meet an increasing need for locally sourced solar wafers as the demand for solar power continues to grow in the U.S. The South Carolina Coordinating Council for Economic Development provided tax credits for the 300 new jobs and $65.9M capital investment the project expects to create for residents in addition to a $1.5M Rural Infrastructure Fund grant to Sumter County.
Size: 40,000 s/f PGA TOUR Superstore continued its regional expansion with a new, 40,000 s/f location at Mayfair Shopping Center. Levin secured the anchor commitment as the property’s exclusive leasing/managing agent, continu- ing a period of robust leasing activity at the 222,000 s/f Jericho Turnpike center. Mayfair Shopping Center’s new tenants over the past 36 months – Lidl, Planet Fitness, Sephora, Champions Martial Arts and a host of dining and specialty retailers – are driving significant, repeat traffic to the property, enhancing its overall “destination” atmosphere. Mayfair Shopping Center drew 2.1 million visitors in 2023, according to Placer.ai data – an all-time high and a 19% year-over-year increase.
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