16A — January 17 - 30, 2020 — M id A tlantic
Real Estate Journal
www.marej.com
M id A tlantic R eal E state J ournal Concludes year with $250M loan to McSam Hotel Group S3 Capital Partners closes 85 loans for $915M In 2019
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David Oropeza , executive managing director and the firm’s urban-core market spe- cialist. “Collectively, these efforts are benefitting from private investment and, in turn, gentrification.” Similarly, this same town- center model has made its way to the suburbs to attract for- mer urban-dwelling millenni- als who now have school-aged children as well as affluent, downsizing empty nesters seeking to remain close to their friends and family. “The former remains loyal to their long-term choice of apartment- home living, while the latter is opting to retain their local ties without the burden of shoveling snow or costly home repairs,” said Uranowitz. The firm was especially ac- tive in New Jersey’s suburban village-center submarkets, where Gebroe-Hammer re- corded the largest portfolio sale in the state involving over 1,800 units. In total, the $300M transaction encom- passed six properties in west Essex and Bergen counties: FranklinManor (85 units) and Forest Hill (816 units), both in Bloomfield; Nutley Properties in Nutley (200 units); Essex Gardens in Maywood (120 units); and Hillside Village (412 units) and Ridgefield Gardens (198 units), both in Ridgefield. Gebroe-Hammer represented the seller, a pri- vate investor, and procured the buyer, a New York City- based real estate investment company. Other Northern and Cen- tral Jersey centers of sales activity included but were not limited to Bergen Coun- ty ( 1 , 131 uni t s / $179M) ; Among S3 Capital’s other notable 2019 loans were $65 million for the development of 190 residential units and 20 extended-stay units at 224 East 135th St. in The Bronx; $50 million for the renovation and development of 10 & 26 Quincy St. in Brooklyn’s Clin- ton Hill; $44 million for the de- velopment of 55 condominium the McSam Hotel Group for 150 West 48 St. The financ- ing, a $210 million first lien and a $40 million mezzanine loan, is for the acquisition and construction of a new hotel development in Manhattan’s Theatre District.
Mi dd l e s ex Coun t y ( 644 uni t s / $152M) ; Somer se t County (517 units/$112M); Central Union County (191 units/$46.3M); Morris County (166 units/$50.75M); Sussex County (302 units/$34.45M); and Monmouth County (78 units plus land/$17.93M). Regardless of market, in- come or age group, the renter- by-choice pipeline is expand- ing across all geographies and apartment asset-class platforms throughout New Jersey, New York State and Eastern Pennsylvania. These range from new construction class A+ developments to class B/C product, offering value- add upside potential. Greater Philadelphia Metro Leverages Center City as Focal Point In the Greater Philadelphia Metro, Gebroe-Hammer As- sociates orchestrated over $455M in sales involving more than 4,265 units in 2019. Cen- ters of transaction activity in- cluded Philadelphia proper as well as Pennsylvania’s Mont- gomery, Monroe, Chester and Bucks counties and SouthNew Jersey’s Atlantic, Burlington, Camden and Gloucester coun- ties. “Demand continues to ramp up throughout the Greater Philadelphia region – a metro on a meteoric rise in terms of the entry of new investors and capital,” said executive man- aging director Joseph Brech- er . “Value-add enhancements and redevelopment initiatives are transforming the metro’s apartment stock to create a lifestyle experience linking to nearby Center City, Phila- delphia as the vibrant focal point.” S3 Capital’s smaller-balance loans in 2019 included $8.1 million for the refinancing and development of a condomini- um project at 707 Willoughby Ave. in Bedford-Stuyvesant, Brooklyn; $9 million for the re- financing and development of a rental property at 1611-1617 units at 1300 Manhattan Ave. in Union City, NJ; $40 million as a land loan for a 600,000 s/f development of a hotel and two condo buildings at 131-02 40th Rd. in Queens, and $38.5 million for the development of 146 rental units and 20,000 s/f of retail at 176 Kinderkamack Rd. in Emerson, NJ.
Brooklyn Ave. in East Flat- bush, Brooklyn; and $14.75 million for the refinancing of a condominium property at 906 Prospect Place in Crown Heights, Brooklyn. “The past year has seen sig- nificant development momen- tum in the region, and we have been pleased to partner with developers in the New York metro region to advance many While architectural designs from Gensler are still at a conceptual level, developers are already laying out some of the critical details of their plans, including 60,000 s/f of public open space between Washington Place and Lo- gan Street that offers some of the most compelling views of Pittsburgh’s landmarks. These grand civic plazas will create a year-round destination that is programmed and vibrant on game days and non-game days alike. According to Penguins senior vice president and general counsel Kevin Acklin, the proj- ect will restore interconnectiv- ity in a number of ways: “By creating a vibrant, modern tower that is anchored by one of the signature financial services companies based here in Pittsburgh, the project will re-establish the visual and physical connection that was severed by the construction of the Crosstown Expressway several generations ago. The development team recognizes that our interests align signifi- cantly with the public interest and pledge that this critical de- velopment will spur significant investment in and commercial opportunities for adjacent underserved communities and their residents.” The iconic tower develop- ment will create over 1,000 con- struction jobs across a two-year building schedule – many of which will be filled by residents of communities surrounding the project site. Additional pub- lic benefits include economic stimulus in the form of an ex- panded full-time employment base; equitable sharing of tax abatements with adjacent com- munities; and the restoration of critical connections between the Central Business District and its vibrant Hill District and Uptown neighborhoods. The tower’s anchor tenant
market-leading projects,” said Joshua Crane , co-founder and principal of S3 Capital. “It seems that 2020 will be a year of continued activity, and we look forward to using our understanding of the construc- tion and development process to support new projects with varied loan products,” said Robert Schwartz , co-founder and principal of S3 Capital. plans additional investments in the adjacent communities such as their continued part- nership with the Hill District Federal Credit Union and financial literacy programs across the Hill District. As envisioned by Gensler, the signature tower anchors this vibrant development while establishing a new presence on the city’s skyline. Its glassy form is carefully sculpted to reflect the unique setting of this highly-visible, easily ac- cessible location. An expression of crisp verticality dominates the design, visually bridging to nearby skyscrapers and downtown landmarks, while shifts in massing recognize a relationship to the lower-scale character of the adjacent de- velopment and neighborhood. These steps in form create op- portunities for outdoor terraces and dramatic collaboration areas that are particularly popular with today’s creative workforce and connect com- mercial tenants to the activity of the park and retail space below. Design considerations sup- port the project’s emphasis on environmental sustainability and climate resilience. The site will incorporate sustainable features based off the district’s LEED-ND plan and develop- ment partners will work to ensure that the tower itself is LEED certified. “We are excited about how the planning effort has pro- gressed to date and, over the next few months, we will en- gage in a robust public discus- sion regarding this transfor- mational project that will soon grace Pittsburgh’s skyline,” said Boris Kaplan , BPG’s vice president of development. Developers expect final mu- nicipal approvals for the project in the next six to nine months, at which time they will break ground and commence tower construction.
EWYORK, NY — S3 Capital Partners , a New York City-based
private lend- i n g p l a t - form, closed 85 loans for a t o t a l o f $915 million in 2019. S3 Capital is the New Y o r k metropolitan
Robert Schwartz
The Buccini PollinGroup. . . continued from FC-A
area’s most active lender with 150 active loans in the five boroughs of New York City and New Jersey. S3 Capital closed the year with a $250 million loan to
Gebroe-Hammer Associates records . . . continued from FC-A
In so doing, asking-rent and property-value acceleration will reach the mid-to-high range, depending on local submarket and overall metro variables, according to Ura- nowitz. Specifically, one of these influencing factors is the widespread focus on revitaliza- tion and adaptive reuse efforts from the cities to the suburbs. Urban Phenomenon Hits the Suburbs “This phenomenon is be- ing fed by the live/work/play formula, which found initial success in 24/7 urban centers and now extends to outer- fringe ‘urbanesque’ boroughs, townships and villages. Each is walkable and convenient to commuter transit options, has a rental housing stock that is undergoing a renaissance, popular dining/retail centers and central employment hubs,” said Uranowitz. During 2019, Gebroe-Ham- mer Associates was extremely active in exclusively repre- senting sellers and procuring buyers in some of the North- east’s most in-demand urban regions. A high concentration of sales were recorded in New Jersey’s East Essex, Western and Southeastern Union and Passaic counties as well as every municipality in Hudson County. In total, the firm ar- ranged sales throughout these hotbeds involving 3,683 units with a sales value in excess of $606.8 million. “The progressive reposition- ing of cities in this region is directly linked to far-reaching downtown revitalization plans crafted to spur new construc- tion and value-add reposition- ing of existing properties,” said
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