Koeppel Rosen LLC, leasing and management agent for the Rosen family portfolio, secured five new office leases totaling 15,474 square feet at 1261 Broadway, an 11-story building in Manhattan’s Midtown South neighborhood. The leases included the following:

• Abell Eskew Landau LLP signed a new 7772-square-foot lease in a relocation from its previous space at 265 Fifth Ave. The law firm was represented by Nick Farmakis and Jordan Weiss of Savills.

• Law firm Hunter Cottingham PLLC signed a lease for 4,599 square feet. Robert Yaffa of RDY Advisors, LLC, and Claire Koeppel of Newmark represented Hunter Cottingham.

• Joseph J. Blake and Associates, Inc., a real estate appraisal and valuation firm, leased 1,467 square feet and was represented by Bradley Cohn of Adams & Company Real Estate.

• Nisso & Co Trading Corp., a wholesale jewelry distributor, leased 955 square feet.

• RSLT Capital Management LLC, an investment management firm, leased 681 square feet, represented by JD Cohen of Newmark & Company Real Estate, Inc.

“Tenants across a variety of industries are focused on securing efficient workspace in highly accessible Midtown locations,” said Max Koeppel, director of leasing at Koeppel Rosen, who represented ownership in-house for all five transactions. “Many tenants are finding that at 1261 Broadway, which offers flexibility, strong value relative to the market, and floor plates that work well for tenants in this size range.”

Alta West Partners, Glendon Capital Management and an affiliate of A2 Capital Management, have closed on the $21.4-million purchase of 3401 Del Amo in Torrance, an 83,000-square-foot flex research and development asset in the South Bay submarket of Los Angeles County. Originally purpose-built for Kubota Tractor Corporation, the property has never been publicly marketed for lease. 

A Cushman & Wakefield broker team led by Brett Racanelli, Nathan Piehl and Jeff Morgan represented the buyer as well as the seller in the all-cash trade. Cushman & Wakefield was also retained by the new owner to handle leasing efforts for the property going forward.

“This property aligns with Alta West’s investment strategy, and we were pleased to have supported them throughout a very smooth closing process,” said Racanelli. “Torrance continues to attract innovative companies in technology, aerospace, and advanced manufacturing, making this a prime location for R&D and flex users.”

JLL Capital Markets arranged $22.3 million in acquisition financing for industrial outdoor storage (IOS) properties located at 115 St. Nicholas Ave. and 115 Skyline Dr. in South Plainfield, Middlesex County, NJ. Senior managing directors Jon Mikula and Jim Cadranell, associate John Cumming and analyst Christian Badalamenti worked on behalf of Oliver Street Capital to secure the acquisition loan through Byline Bank.

The site includes three buildings totaling approximately 32,000 square feet, equipped with 34 docks and seven drive-ins, catering specifically to industrial tenants’ needs. It also features 8.75 usable acres dedicated to parking and outdoor storage. The property is currently occupied by TransAmerican, a national trucking and storage company.

“The property’s strategic location in South Plainfield, coupled with its robust infrastructure, makes it an ideal asset for any industrial tenant needing proximity to the New York-New Jersey transportation network,” said Cadranell. “This financing deal underscores the strong market fundamentals and high demand for well-placed IOS properties in New Jersey.”

DAZN, a global sports streaming service, has leased the entire 14th floor at SJP Properties’ 470 Park Ave. South for its U.S. corporate office. Terms of the long-term lease were not disclosed.

“DAZN is extremely excited to be relocating in New York City into the 470 Park Avenue property,” said Grant Sprigings, head of property & facilities at DAZN Group. “We visited many locations during our time exploring a new office location and felt 470 Park Ave. South provided the perfect blend of location, facilities, and amenities. The office space is high-end and modern with an external terrace that will allow DAZN to host partner events throughout the year.”

Nicholas Farmakis and John A. Johnson, Jr. of Savills represented DAZN, while SJP Properties was represented by the CBRE team of vice chairmen Paul J. Amrich and Neil V. King III, SVP James Ackerson and senior associate Josh Pernice.

An aerial view of 110 East

Welcome to 110 East, a 370K SF, Class-A office property in Charlotte. The tower was delivered in May by a partnership of real estate companies Stiles and Shorenstein Properties and designed by Hastings Architecture LLC. It features 12 floors of office space, each offering 29K SF. 

Convenience and top-of-the-line amenities allow tenants and residents to take breaks from the workday to access the neighborhood’s shopping and dining options from the lobby level. The sky-level amenity deck offers unobstructed views of Uptown Charlotte from the wraparound terrace, flex multipurpose spaces that allow for events and large meetings, and a state-of-the-art fitness center with spalike showers and locker rooms.  

The property has a direct stop at the East/West Station platform on the LYNX Light Rail as well as the Charlotte Rail Trail. Entertainment options in Charlotte’s South End district include more than 200 stores and restaurants. 

110 East is hosting Bisnow’s Charlotte State of the Market event on Oct. 2. Click here for details. 

The 23-story office building is designed for productivity and respite with natural lighting provided by 11-foot-tall Clearvision glass windows. 

The property seamlessly integrates innovative design, collaborative workspaces and lifestyle amenities to create a unique experience for tenants and visitors. Modern fixtures with a classic appeal were inspired by the neighborhood’s rich history. Both LEED Gold and WiredScore Platinum certified, it also provides tenants with a future-ready environment focused on technology, comfort and on-site wellness. In fact, it was just dubbed the nation’s most intelligent office building by national real estate tech company Realcomm.

Construction of the building’s prebuilt spec suites will be completed in October and include three fully built-out office suites ranging from 6,800 SF to 10K SF with modern, sophisticated finishes.

110 East is in the heart of Queen City’s bustling South End district, providing a vibrant talent pipeline in Charlotte’s fast-growing submarket. The neighborhood is filled with shops, breweries and restaurants like Sycamore Brewing Co., O-Ku Sushi and Barcelona Wine Bar, where colleagues can meet for lunch or enjoy the local nightlife. 

South End’s 3.5-mile Rail Trail connects neighborhoods like Southside Park, Brookhill and Dilworth, encouraging more connectivity in the district. 110 East sits adjacent to the LYNX Blue Light Rail line, providing convenient access to the University of North Carolina at Charlotte, and NoDa, Charlotte’s Arts and Entertainment District. Just 8 miles away is Charlotte Douglas International Airport, the seventh-busiest airport in the U.S. 

• Direct access to Rail Trail Fitness Path for biking and running
• 4K SF Sky Lobby on the 11th floor, featuring views of Uptown Charlotte and terraced outdoor seating for tenants and residents
• 100-seat community conference room with flexible space for better collaboration
• Contactless fixtures, entryways and hand-sanitizing stations throughout the property
• Electric vehicle charging stations and on-site bicycle storage
• Fully equipped 4K SF fitness center with locker rooms and showers for convenience 
• Parking garage with 925 spaces 
• LEED Gold certified
• WiredScore Platinum

Spec Suites

Suite 1200: 9,815 SF

Suite 1210: 12,651 SF

Suite 1220: 6,565 SF

Floors 14-24: 29,031 SF

Rhea Greene – rdg@trinity-partners.com – 704.928.5211

Jennifer Kurz –  jtk@trinity-partners.com – 704.576.2254

John Hannon – jhannon@trinity-partners.com – 704.813.7252

Don’t miss the opportunity to attend Bisnow’s Charlotte State of the Market at 110 East on Oct. 2. 

This article was produced in collaboration between Stiles and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.

CBRE has brokered the sale of Signal, a 285-unit mid-rise apartment complex in Hapeville, Georgia, approximately 8 miles south of Downtown Atlanta. 

Shea Campbell, Ashish Cholia, Kevin Geiger, Keith Geiger, Colleen Hendrix, Don Hoffman, Malcolm McComb, and Kurt McGarry of CBRE Southeast Multifamily arranged the sale on behalf of Atlanta-based apartment developer South City Partners. Penler, also based in Atlanta, purchased the property in a joint venture with global investment firm Carlyle (NASDAQ: CG).

Located at 397 N. Central Ave. in Hapeville, Signal was delivered in 2023 and features a mix of one- and two-bedroom units. At an average size of 861 square feet, units include washers and dryers and personal balconies/patios. Community amenities include a multimedia club room, sky lounge, multiple outdoor grilling areas, a pizza oven, a fireside lounge, a complimentary resident coffee bar, a fitness center, a saltwater pool, a dog park, private garages, rental storage units, and more.

Essex Realty Group, Inc., has negotiated the sales of five apartment buildings in two separate transactions. One sale was a four-building, 50-unit portfolio located at 6153 S May, 6348 S. Racine, 6459 S. Racine, and 6934 S. Princeton — all in Chicago’s Englewood neighborhood.

The other transaction was located in South Shore at 7106 S. Euclid, a 13-unit mixed-use property with nine apartment units and four commercial spaces. The Essex listing team of Robert Berman, Michael Anguiano, Daniel Shabsin, Jeremy DeMarco, and Joe Kalhammer facilitated both transactions on behalf of the private sellers.

“As interest rates stabilize, we’re seeing a lot of pent-up demand return to the market from both local and out-of-state investors,” said Berman. Essex Realty Group, Inc. specializes in the sale of investment real estate throughout the Chicago metropolitan area.

Join the leaders and dealmakers when they explore the most important topics and trends at Connect Midwest: Multifamily, Affordable, Student & Senior Housing Trends on June 4, 2024, at the W-Chicago, City Center Hotel, Chicago, IL. Register to attend to network with the best in the industry and sit in on discussions you won’t hear anywhere else. Early Bird Registration Ends April 19. 

Orlando-based Holidays Network Group paid $27M for a Miami Beach apartment building that is approved for conversion into a 107-room hotel, The Real Deal reports. The 88-unit apartment complex at 2618 Collins Ave. was sold by a joint venture of investors Eli Dadon, Avi Dishi and Richard Waserstein. 

Holidays Network Group paid $27M for an apartment building at 2618 Collins Ave. in Miami Beach.

The sellers had paid a combined $10M between 2014 and 2017 to acquire condos at the property before converting it to rentals. The Miami Beach Historic Preservation Board approved a plan in 2018 to renovate the half-acre property into a boutique hotel. 

Holidays Network Group secured a $35.3M loan from Phoenix-based Western Alliance Bank as part of the acquisition, signaling that it plans to move ahead with the renovation. The property was built in 1951 as an art deco hotel designed by Roy France and has historic designations that prohibit full demolition.

SALES

The 103-key Marriott West Palm Beach Airport traded for $20.5M, the South Florida Business Journal reported. MHG Hotels, which has headquarters in Boca Raton and Indianapolis, purchased the hotel at 1800 Centrepark Drive E from an entity managed by Jay Batra, the CEO of Ohio-based Regal Hospitality. 

The 63K SF hotel, which includes a pool, restaurant and fitness center, was built on a 2.5-acre parcel in 2001. MHG Hotels is planning a $4M renovation that will include updating guest rooms, modernizing common spaces and updating the exterior. 

***

An affiliate of Macklowe Properties closed on the $47.7M purchase of a 51-unit co-op called Biscayne Sea Club in North Bay Village, the SFBJ reported. The seller was Bay-Four and Biscayne Sea Club, the nonprofit that governed the co-op, located at 8000 East Drive.

The buyer, a firm led by New York developer Harry Macklowe, financed the purchase through a $32M mortgage from an affiliate of Hallandale Beach-based Kawa Capital called CRE TI LLC.

Macklowe had the property under contract since May, and Biscayne Sea Club terminated all the leases at the property and approved the sale earlier this year. Macklowe is also reportedly under contract to buy a nearby apartment building at 7941 East Drive for $10.6M, but property records indicate the sale hasn’t closed.  

CONSTRUCTION AND DEVELOPMENT

The company behind the South Florida-based restaurant chain Moon Thai & Japanese filed plans to build a three-story restaurant in Wynwood, Commercial Observer reported.

Moon Thai Group is planning the restaurant on a quarter-acre site at 82 Northwest 28th St. that it acquired for $6M in 2021. The proposal for a 350-seat restaurant is a pared-down version of an earlier plan in September to build a five-story restaurant on the site.  

Moon Thai, founded by chef Jack Punma, first opened 23 years ago in Coral Gables. It has since grown to include eight South Florida locations and one in Charlotte.

Eight tenants signed or renewed leases at Citigroup Center in Downtown Miami.

LEASES

More than 38K SF of leases have recently been signed at the 34-story Citigroup Center office tower in Downtown Miami, according to a release. The six new tenants and two lease renewals at the 810K SF tower at 201 South Biscayne Blvd. are:

• The Miami Downtown Development Authority, an independent agency of the city of Miami, which is relocating from another Downtown building into 9,295 SF. Blanca’s Danet Linares represented the tenant.
• Trion Properties, a California-based multifamily real estate investment sponsor, which will take a 3,700 SF spec suite for its first Miami space. CBRE broker Alina Plasencia represented the tenant.
• Marex Solutions, a London-based subsidiary of Marex that creates and distributes currency and commodity derivatives, which signed on for a 3,200 SF spec suite that will be its first Miami office. It was represented by Damla Barrett at Colliers. 
• Kili Topco Ltd. and its subsidiary K2 Human Capital Solutions, which leased a 2,500 SF spec suite. The recruiting firm is relocating from Brickell and was represented in the transaction by RE/MAX’s Alex Ferran. 
• Lithium Capital Management, a Chilean investment advisory firm, which inked a deal for a 2,400 SF spec suite. It was represented by NAI’s Jeremy Larkin. 
• Pisec Group, a steel trading company, which will relocate from Brickell into a 2K SF spec suite.  
• A Brazilian investment advisory firm called Galapago Advisory that renewed its lease and expanded its footprint to 4,600 SF. 
• An unnamed law firm that renewed its 11K SF lease. 

Citigroup Center is owned by New York-based Monarch Alternative Capital and an affiliate of CP Group, a Boca Raton-based real estate investment firm. The CP Group entity purchased the property in February 2000 for $115M, according to property records, and Monarch purchased a majority stake in the property in 2021 for an undisclosed price.  

The landlord was represented in the leases by Steven Hurwitz, Doug Okun and Madeline Fine at JLL.

***

Hephaestus Pharmaceuticals signed a five-year lease at Prologis Beacon Industrial Park, located at 10913 Northwest 30th St. in Doral. The 13K SF space has a 24-foot clear height and includes nearly 3K SF of office space. 

Hephaestus plans to build a sterile compounding facility in the warehouse where it will manufacture and pack prescriptions. The tenant was represented by Michael Avendano, vice president at Lee & Associates.  

While the national industrial vacancy rate sits at 3.9%, unstable economic conditions continue to worry lenders, investors and developers alike, causing a chain reaction of skepticism to spread throughout the sector. Because of this, demand has somewhat softened. However, it continues to be strong on a relative basis.

One market that is still on the upswing is South Florida.

This year, the South Florida industrial market closed Q1 with a 3.7% vacancy rate, below the national average. The market also has 13.3M SF currently under construction, a significant uptick from last year’s 10.4M SF.

The market is showing signs of growth and resilience, and BBX Logistics Properties, a South Florida-based infill logistics development company, is focusing on finding opportunities where others have not. Backed by BBX Capital Real Estate, BBX Logistics Properties understands the importance of quickly meeting the evolving needs of its clients and the industry at large, said the firm’s president, Mark Levy.

“Given the team’s tenure in industrial real estate, we use a very specific set of analytics to seek out and analyze development opportunities,” Levy said. “While we remain bullish on the Florida market, we are in a period of transition where markets are normalizing and values are resetting. Given the sophistication of data intelligence, more attention will be given to investment fundamentals and sustaining long-term value.” 

Levy will be speaking at Bisnow’s South Florida Industrial and Logistics Summit, along with other local leaders in the South Florida industrial market, including Malcolm Butters, principal at Butters Group, and Erin Byers, executive vice president of industrial at Colliers, on June 15. Register here.

Bisnow spoke with Levy about what inspired him to speak at this event, the challenges the market is facing this year and the new trends that investors and developers should be aware of in South Florida.

Bisnow: What inspired you to speak at Bisnow’s South Florida Industrial and Logistics Summit? What topics will you cover? 

Levy: Bisnow does a great job of reaching a broad audience, so it is an opportunity to talk not only about all the work that BBX Logistics Properties is doing in the market, but to discuss more broadly the market opportunities and challenges that we’re observing. The logistics sector is an important component of the South Florida real estate landscape, and we appreciate the opportunity to add to the overall conversation.

At the event, it is important we focus not only on opportunities, but also how to effectively navigate challenges brought on by the current market uncertainty. We also will touch on how we are underwriting differently today and offer a forecast on rental rate growth, land values and how demand is evolving.

Bisnow: Can you tell us about the business plan you put in place at the launch of the business and what projects the firm has been working on?

Levy: We started the company with no pipeline, and have opted to build our deal flow by taking on challenges where others may not. The entitlement process takes time and has great inherent risk, and we’re fortunate to have an experienced team to lead us through this complex process.

We are in the midst of entitlements on a number of projects in Broward and Palm Beach counties, as well as in the early stages in the Tampa and Orlando markets. We just received final approvals on an approximately 700K SF, three-phase project in Delray Beach, at U.S. 441 and Atlantic Avenue, which we plan to commence later this year. This project symbolizes our thesis of delivering best-in-quality logistics space in severely constrained, high-barrier locations. I’ve been very fortunate to have worked in multiple eastern U.S. markets, and as such, we also have a steady pipeline of interesting opportunities outside of Florida.

The firm is focused on properties that meet our defined criterion, and as I stated previously, we exercise tremendous discipline in our location analytics. It’s not just infill, per se, it’s a confluence of a series of factors that drive our decisions.    

We’re also focused on helping our customers create a better employee experience. The war for talent isn’t easing. This involves focusing on amenities and quality-of-life elements. We also strongly believe in community benefits, and are laser-focused on ensuring we are integrated into the communities in which we build.

Bisnow: What are the long-term goals for BBX Logistics?

Levy: Our goal is to build an enterprise that delivers maximum value to our investment partners, customers and the community.

From a geographic standpoint, Florida presents opportunities few other markets do. We’ll focus on key markets throughout the state and will be opportunistic in other key growth markets such as Charlotte, North Carolina, and Texas. We’d be remiss not to enter the New York and New Jersey markets, as we are also convinced of the permanent drivers that exist there. What we won’t do is speculate on markets or build projects based on the theory of ‘build it and they will come.’ We will leave the market-making to others. 

Bisnow: What challenges are industrial investors and developers facing in South Florida? 

Levy: The basic challenge is land availability. We need to think about how we build projects in the future with respect to verticality and mixed-use orientation. This may also be exacerbated by Florida Senate Bill 102, which will reflect the ability for affordable housing to be constructed by-right on sites with an underlying commercial or industrial zoning.

We are also dealing with a paradigm shift — money has a cost, construction labor shortages are real, and supply chains will take years to correct. Due diligence is ‘en vogue’ again, and scrutiny and more comprehensive deal level analysis is back.   

Bisnow: What trends should investors and developers be aware of in the South Florida industrial market?

Levy: Redevelopment is the major trend across the board in South Florida. We are beginning to see some opportunities to repurpose obsolete office and retail assets. We will also see opportunities in redeveloping older industrial assets. Mixed-use is a growing component of this equation.

We’re also focused on developmental impacts in the communities in which we live and work — both socially and environmentally. In South Florida, we need to become role models for how companies give back to their communities, as well as partnering together to build a better future. Environmental considerations are especially important, including how well a property is positioned to handle climate-related risks like rising ocean levels and extreme weather. We’re conscious about seeking specific building certifications to limit our environmental footprint and operate at the highest standards to increase overall efficiency.

For more information on BBX Logistics Properties, please click here.

This article was produced in collaboration between BBX Logistics Properties and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.