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A blog for breaking sales, leasing and neighborhood real estate news.

In 2014, retail properties were a driving force of investment sales dynamics.  Through 3Q14, the retail dollar volume for Manhattan was $2.5 billion, almost three times as much as 2013’s annual total of $915 million. With more large-scale retail deals pending, for example the St. Regis retail condo for $700 million and the 432 Park Avenue retail condo for $450 million, 2014 will likely set an all-time record. The strong demand for retail assets is reflected by the recent surge in value as the average price per square foot for retail properties was $3,113 in 2014 – an increase of 68% over 2013.

A main reason why retail properties are doing so well in 2014 is rental growth. In prime and emerging prime corridors, retail rents have increased considerably over the last two years.

This is based on a number of factors:
-Certain retailers have to be in certain locations of certain cities - prime Manhattan is one of those locations
-Having a store in these locations is not only important for sales purposes but those stores are used as a brand building and/or marketing tool
-Record high tourism numbers are strongly supporting retailers in the city

Elevated rents in prime corridors force retailers to rent space in the next best locations: the 'edge-of-prime' locations.  Rents in those prime and edge-of-prime locations have begun to experience increased rental growth elevating property values.  As a result, the trend of retail driving up sales is spreading.

Massey Knakal Is Hiring

10/21/2014 9:04:47 AM/ Massey Knakal/ Massey Knakal News

Massey Knakal's sophisticated training programs and rigorous certification board are peerless among realty services firms, ensuring that our agents are the most disciplined, skilled and talented in the industry. Creating the best work environment is something we strive for on a daily basis, and intelligence, integrity, professionalism and passion are the keys to maintaining it. Talented individuals are valued at Massey Knakal.

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Skyway Development Group has retained Massey Knakal Realty Services to sell a single-family development opportunity at 34 West 21st Street. The property is located between Fifth and Sixth Avenues in Manhattan’s Flatiron District. The asking price is $5,750,000.

The property is an approximately 16.08’ x 92’ lot with what can be fully approved dramatic plans for a seven-story, elevatored single-family mansion containing approximately 7,974 square feet and rare curb cut allowing for private indoor parking. Designed by Andres Escobar and Karl Fisher, plans call for six bedrooms, six full baths, four powder rooms and private indoor parking. In addition, the house would have custom glass elevator, spa, oversized windows and 25 foot high ceilings overlooking the garden. Current ownership has meticulously designed what could be one of the most luxurious new construction single-family townhouses in the entire market. “We spent months optimizing and perfecting the plans for this site. Every last detail was considered for the exclusive buyer who wants to drive into their dream home,” said Steven Mashaal of Skyway Development Group.

“This is a rare opportunity for an end user to build a magnificent single-family mansion and end up at a basis well below market value,” said Massey Knakal’s James Nelson, who is exclusively marketing this property along with John Ciraulo, Matthew Nickerson and Craig Waggner.

Click here for listing details

Neighborhoods: Flatiron/ Agents: James Nelson, John Ciraulo

Massey Knakal Capital Services is pleased to announce the closing of a $13,500,000 million cash-out refinancing, collateralized by a 201-unit garden style apartment complex in southern New Jersey.  The loan featured a 7-year term with a fixed-rate at 3.50%, and one year I/O.

"Close management of the financing process enabled us to deliver a seamless transaction, with substantial cash-out, and a material reduction in debt service. The borrowers were very happy,” said Massey Knakal’s Preston Flammang, who exclusively handled this transaction.

Click here for press release

Neighborhoods: New Jersey/ Agents: Preston Flammang

Massey Knakal Realty Services has been retained on an exclusive basis to sell a single-family home with adjacent garden at 313-317 Vanderbilt Avenue. The properties are located between Dekalb and Lafayette Avenues in Brooklyn’s Clinton Hill neighborhood.  The asking price is $6,000,000.

The two-story building contains approximately 5,475 square feet and sits on a 37.5’ x 73’ lot.  Built in 1920 as the original home to the Candy and Confections Workers Union, it is currently occupied as an artist’s studio and residence.  The interiors feature a mix of industrial and modern styling with double height ceilings on both levels, concrete floors, two large, open living spaces and two master suites.  The property includes a private elevator and dedicated parking spots for two cars.  Adjacent to the building is a development site that is currently used as a beautifully landscaped garden with seating.  It contains approximately 1,891 square feet on a 22.25’ x 85’ lot.  In total, the property holds approximately 5,032 square feet of unused air rights.

The offering presents the opportunity for an owner-user to occupy the existing space or for an investor to add value through developing the unused air rights.  The property is ideally located just a few blocks from scenic Fort Greene Park.  It is also in close proximity to the G and C subway lines, offering convenient transportation through Brooklyn and Manhattan.
This property is being marketed exclusively by Massey Knakal’s Stephen P. Palmese, Aaron Warkov and Joana Filgueiras.

Click here for listing details

Neighborhoods: Clinton Hill/ Agents: Aaron Warkov, Joana Filgueiras, Stephen Palmese

Massey Knakal has completed its third quarter 2014 extensive analysis of the New York City real estate market.  This study includes an in-depth look at the retail, capital markets, and hospitality landscapes as well as the New York City investment sales market overall and its submarkets.

The New York City investment sales market continues on pace to set an all-time record for the number of properties sold in a given year. The city is expected to see more than 5,100 properties sold, breaking the previous high set in 2007. The on-going rise in transactional volume can be attributed to the resurgence of the outer markets (Brooklyn, Queens, Northern Manhattan, the Bronx) where 83% of all activity has taken place. This is due in large part to the “Manhattanization” of the outer markets, where increased investor interest and confidence has begun to blur the lines in institutional investor consciousness between Manhattan and certain submarkets within the outer markets.

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Corporates: Adrian Mercado

Recently, Massey Knakal’s New Jersey division participated in an event with Habitat for Humanity.  The team worked with the organization to build the foundation for a home in Perth Amboy, New Jersey. Tasks included stacking insulated concrete forms, placing reinforcing steel, attaching bracing and preparing for the sewer and water lines.  The team was happy to lend a helping hand to a family in the New Jersey community.

Check out photos from the event below

A prime development site at 163-05/25 Archer Avenue, located on the northeast corner of Guy R. Brewer Boulevard and Archer Avenue in the heart of Jamaica, Queens, was sold in an all-cash transaction valued at $22,000,000.

The subject property consists of two contiguous lots which combine for approximately 719,736 buildable square feet.  It features substantial frontage on Archer Avenue and Guy R. Brewer Boulevard and a total footprint of approximately 89,967 square feet.  The site currently holds a single-story, approximately 32,471 square foot retail building and a seven-story, approximately 280,000 square foot parking garage.  The sale price equates to approximately $31 per buildable square foot.

The site is located directly across from York College and in close proximity to St. John’s University.  Major commercial tenants in the immediate area include Home Depot, Marshalls, Old Navy, Verizon, AT&T, Chase Bank, Capital One Bank, UPS, Foot Locker, Duane Reade, Walgreens, Bally Total Fitness, Jamaica Multiplex Cinemas, and Applebee’s.  The property is in close proximity to numerous MTA bus lines and just three blocks from the E, J and Z subway lines.

“This sale signifies the return of the residential development market in Downtown Jamaica.  It is the largest site to trade since the downturn and will be a catalyst for the Jamaica development market moving forward,” said Massey Knakal’s Brian J. Sarath, who exclusively handled this transaction.  “We received numerous bids in a short period of time from developers that were priced out of other areas in the city and see tremendous value in the Downtown Jamaica market,” he continued.

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Neighborhoods: Jamaica/ Agents: Brian Sarath

As of 3Q14, New York City's dollar volume was $39.1 billion, already surpassing 2013's annual total by over $500 million.  Annualized, the number of properties sold is on track to exceed the pre-recession high of 5,018 in 2007 and we expect sales activity to pick up pace in 4Q14.

The four-quarter running total of the number of properties sold in the outer markets was at a new all-time high in 2Q14.  Beginning in the second half of 2012, the outer markets bounced back strongly and are largely responsible for 2014's record sales volume.  Despite the fact that the outer markets have been so dominant in 2014, the average price per property increased by 4.5% from 2013.

Across the city, the average price per square foot was $439 in 2014 YTD, up 13% from 2013.  Northern Manhattan (23%) and Manhattan (24%) experienced the most pronounced rise in value.

Two multifamily buildings at 193 and 197 Chestnut Street, located between Fulton Street and Ridgewood Avenue in Brooklyn’s Cypress Hills neighborhood, were sold in an all-cash transaction valued at $1,150,000.

The property consists of two identical three-story walk-up buildings that combine for approximately 9,450 square feet on a 50’ x 150’ lot. They total 12 residential units, each containing six railroad-style two-bedroom apartments.  The buildings are located one block away from the J subway line at the Crescent Street station, and the sale price equates to approximately $122 per square foot.

“The properties combine for 12 rent stabilized units that boast tremendous upside due to their location in the emerging neighborhood of Cypress Hills,” said Massey Knakal’s Edward Gevinski, who exclusively handled this transaction.

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Neighborhoods: Cypress Hills/ Agents: Edward Gevinski

Massey Knakal Realty Services has been retained on an exclusive basis to sell a multifamily complex at 208-212 Shrewsbury Avenue and a mixed-use building at 40-42 Broad Street in Red Bank, New Jersey.

40-42 Broad Street, located at the intersection of Broad and White Streets in downtown Red Bank, is a three-story mixed-use building.  It contains approximately 8,800 square feet and sits on a 33’ x 94’ lot.  Formerly the Register Building, it is a landmark building.  Fully-occupied, it consists of a retail space on the ground floor, two offices on the second floor, and three New York loft-style residential units on the third floor.  The property features a long history of stabilized tenants, a regional/corporate retail tenant, and a prime Broad Street location next to Starbucks.  The asking price is $3,000,000.

208-212 Shrewsbury Avenue, located between Catherine and River Streets, is an eight-unit fully-occupied multifamily property that contains approximately 6,000 square feet on a 10,800-square foot lot.  It consists of two one-bedroom, four two-bedroom, and two three-bedroom units, all individually metered for electric, gas, and water.  Two units have separate entrances and there is ample on-site parking in the rear lot.  Located in Red Bank’s trendy west side, this property is in walking distance to restaurants and shopping and it is just blocks from the Red Bank train station.  The asking price is $1,300,000.

The properties are conveniently located in close proximity to Route 35, CR-520, Garden State Parkway, public transportation options to New York City as well as miles of New Jersey beaches.  They are being marketed exclusively by Massey Knakal’s Kim Kretowicz.

Click here for listing details for 40-42 Broad Street
Click here for listing details for 208-212 Shrewsbury Avenue

Neighborhoods: New Jersey/ Agents: Kim Kretowicz

The Massey Knakal Multifamily Summit & Operations Academy, which brings together owners, operators, investors, and multifamily experts, will be held on November 12th and 13th at the McGraw-Hill Conference Center.  Day 1, which is an “invite only” event for property and asset managers of multifamily units, will offer a boardroom style setting with an in-depth discussion of the key issues.  Day 2 features over 40 titans of multifamily real estate as they discuss where and how to create value.  Over 850 attendees are expected, making it the largest day-long multifamily event in New York.

In the morning Keynote Interview, Paul J. Massey, Jr., CEO of Massey Knakal, will speak with Aby Rosen, Co-Founder & Principal of RFR, about his career, love of art and the New York City residential market.  In the afternoon Fireside Chat, Paul Massey will sit down with Ofer Yardeni, Co-Chairman & CEO of Stonehenge, to discuss how he has shaped the city, the challenges he has overcome, and his expectations for 2015.

Click here for event information

Corporates: Paul Massey Jr.

Massey Knakal Retail Leasing Services has been retained on an exclusive basis to secure a retail tenant for 35 Union Square West, located between East 16th and 17th Streets in Manhattan’s Union Square.

The space contains approximately 4,312 square feet on the ground floor, a 2,394-square foot open mezzanine level with 16-foot dramatic ceiling heights and 4,200 square feet of basement space. It features approximately 30 feet of frontage and benefits from amazing visibility with excellent street presence overlooking Union Square Park. All uses will be considered.

The space is ideally located by the 14th Street Union Square station, one of Manhattan’s busiest subway stations, with over 35 million riders annually. Neighboring tenants include Reebok FitHub, Lululemon, Starbucks, American Eagle Outfitters, Whole Foods, DSW, Nordstrom Rack, HSBC, Citibank, and Capital One.

“Union Square continues to flourish with contributing factors like this summer’s opening of The Pavilion, The Feil Organization’s retail repositioning of 853 Broadway, and the growth of diverse attractions for all ages,” said Massey Knakal’s Michael A. Azarian, who is exclusively marketing this space.

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Neighborhoods: Union Square/ Agents: Michael Azarian

On October 29th, Bob Knakal will be speaking at Bisnow's 6th Annual NY State of the Market event.  The lively and informative discussion will review the state of the market and the key trends ahead for the next 12 months.

Click here for event information

Agents: Robert Knakal

A development site at 450-482 Union Street, located on the corner of Union and Bond Streets with block-through exposure to the Gowanus Canal in Brooklyn’s Gowanus neighborhood, was sold in an all-cash transaction valued at $12,300,000.

The site contains approximately 28,500 square feet on a 100’ x 300’ lot. It benefits from approximately 80 feet of frontage along Bond Street, 100 feet along the Gowanus Canal and 300 feet along Union Street. The site, currently improved by an approximately 9,880-square foot warehouse, is zoned M2-1 and benefits from approximately 57,000 square feet of as-of-right development. The sale price equates to approximately $216 per buildable square foot.

“South of Atlantic Avenue, Union Street is the only corridor that provides access to Prospect Park from the Columbia Waterfront.  It is poised to become a destination for major retail tenants,” said Massey Knakal’s Stephen P. Palmese, who exclusively handled this transaction with Winfield Clifford.  “Land pricing in Gowanus continues to improve for sellers as the market gets comfortable with the strength in commercial rents and the anticipation for the potential rezoning of the surrounding area continues,” said Clifford.

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Neighborhoods: Gowanus/ Agents: Stephen Palmese, Winfield Clifford

Massey Knakal Realty Services has been retained on an exclusive basis to arrange for the sale of an approximately 40,139 square foot retail condominium at the base of One Hanson Place along with an adjacent potential development site at 130 Saint Felix Street. The properties are available for sale both individually and together.

The retail condominium serves as the anchor to One Hanson Place which features beautiful décor, expansive ceiling heights and elegant architecture. The retail component contains approximately 15,161 square feet of ground floor space, 9,662 square feet of mezzanine space and 15,316 square feet of both usable and storage cellar space. Upon closing, the retail condo will be delivered vacant, and allow investors to immediately reposition the asset to cater to the transforming demographics of the surrounding area.

The potential block-through development site located at 130 Saint Felix Street currently benefits from 49 permitted parking spaces that allow for immediate cash flow to investors. The property will be delivered vacant upon closing and may potentially be developed to residential apartments.
The BAM Cultural District is at the forefront of Brooklyn’s recent transformation into an employment and entertainment epicenter as well as a top destination for millions of young city residents.  With convenient transportation options, residents and visitors have access to all sections of New York City through the 2, 3, 4, 5, B, Q, D, N, and R trains that are located adjacent to the subject properties at the Barclays Center Atlantic Terminal.  Additionally, billions of dollars are being invested in the borough on projects such as The Atlantic Yards located directly across the street from the offerings, which calls for the development of nearly 1.3 million square feet of new office, retail, and hotel space along with approximately 6,430 residential units.  These properties are truly remarkable investment opportunities that will thrive for decades to come in one of New York City’s hottest submarkets. 

“Each of these properties are among the most premiere opportunities for their respective asset classes in the heart of one of Brooklyn’s driving forces, the BAM Cultural District,” said Massey Knakal’s Stephen P. Palmese, who is exclusively marketing these properties with Chairman Bob Knakal.

Click here for listing details for One Hanson Place
Click here for listing details for 130 Saint Felix Street

Neighborhoods: Fort Greene/ Agents: Robert Knakal, Stephen Palmese

The Investment Sales team continues to complete bigger transactions as the average size transactions thus far in 2014 is up 23% from 2013, 78% from 2012, and 141% from 2007.  Some notable transactions include: The Hudson Spire, a development site in Hudson Yards sold in a transaction valued at $238 million, and 511 West 35th Street, a development site in Hudson Yards that was sold in a transaction valued at $88,000,000.

The Capital Services team has strung together its best two quarters in terms of dollar volume since its inception in 2011.  Some notable transactions include the closing of an $80,000,000 bridge financing, secured by the Cassa Hotel, a 165-key hotel located in the Times Square and a $26.6 million loan collateralized by eight mixed-use properties in Manhattan’s Midtown and Upper East Side neighborhoods. 

Massey Knakal Capital Services is pleased to announce the closing of a $4,000,000 unsecured line-of-credit arranged by Garrett Thelander and Bruce Whipple, on behalf of HPH. This line-of-credit will be used to construct the tenant improvements for an exciting new French-themed, 30,000-square-foot, boutique food market known as “Le District”.  The market will serve as the anchor food venue and focal point at Brookfield Place in downtown Manhattan immediately adjacent to the Winter Garden and North Cove Marina.  The all-in rate for the financing was below 3.0% for an initial term of approximately three years and provided by a private wealth lending institution.   

Le District will also include 6,800 square feet of outdoor dining space facing the Hudson Riverfront and is modeled after a French food marketplace.  The landlord, Brookfield Office Properties, LLC, is nearing completion of a $250 million renovation to rebrand and upgrade all of the retail space in the 8.5 million-square-foot office complex.  In addition, Le District will take advantage of all the completed transit, tourist, and office projects around the new One World Trade Center.

HPH is an exceptional operator of 28 other successful food and beverage ventures that include Harry’s Café and Steak, Harry’s Italian, Financier, Ulysses, Stone Street Coffee, Dead Rabbit, Adriennes, City Rib, Vintry Wine, Bacchanal, Bathtub Gin, Grace and other venues.   HPH views this new establishment as the crown jewel of their operations.

“The loan was facilitated by the character and liquidity of the partners that comprise Le District.   The company has a successful track record of operations and great restaurant concepts that have been a terrific success throughout Manhattan,” said Bruce Whipple.  

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Agents/Corporates: Bruce Whipple, Garrett Thelander

Seth Pinsky Speaks to Massey Knakal

10/3/2014 3:12:56 PM/ Massey Knakal/ Massey Knakal News

As part of the firm's Continuing Success Speaking Engagement series, Seth Pinsky spoke to Massey Knakal this week at Baruch College.

Mr. Pinsky is the former President of the New York City Economic Development Corporation and current Executive Vice President at RXR Realty. He spoke to the firm about his career path, his experiences at the EDC and his views on the current market. 

By, David Simon, Massey Knakal Realty Services

Solid fundamentals in New Jersey continue to attract commercial real estate investors from New York. We have been experiencing tremendous interest from our database of New York buyers who are diligently pursing investment opportunities in the Garden State. Many institutional and entrepreneurial investors are finding well-located, quality properties that meet their investment criteria.

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Neighborhoods: New Jersey/ Corporates: David Simon