Done Deals: May 14, 2022

Saturday, May 14, 2022

Two-building mixed-use portfolio in New York’s East Midtown fetches $41.5 million in one of world’s highest-profile business districts

246 East 46th Street, East Midtown, New York City

NEW YORK, NY – JLL Capital Markets has announced the $41.5 million sale of 959-961 Second Avenue and 246 East 46th Street, a 105-unit, two-building portfolio in the East Midtown neighborhood of New York City.

959-961 Second Avenue, East Midtown, New York City

JLL arranged the sale on behalf of the seller, nonprofit JT Tai & Company Foundation. The buyer was Oak B. Management, a local private investor who plans to renovate and reposition the existing buildings with a focus on retail lease up.

Bob Knakal

The property at 959-961 Second Ave. is a four-story residential asset with 10 apartments and two commercial units situated at the corner of Second Avenue and East 51st Street.

The six-story elevator building at 246 East 46th St. comprises 81 apartments with a mix of 56 studios, five one-bedrooms, 19 two-bedrooms and a single duplex residence, as well as 12 commercial spaces.

One of the highest-profile business districts in the world, East Midtown is in the midst of a rezoning focused on 78 blocks between the east side of Third Avenue and the west side of Madison Avenue, from East 39th Street to East 57th Street.

Clint Olsen

The rezoning should cement the neighborhood’s status as a premiere commercial business district with incentives for sustainable Class A office development, transit upgrades, enhanced pedestrian access, open space and active retail corridors.

The JLL Capital Markets team that completed the transaction comprised Chairman Bob Knakal, Managing Directors Clint Olsen and Jonathan Hageman, Executive Vice President Eddie Shuai and Analysts Stephen Godnick and Jacob Russell.

“With nearly 7 million square feet of new commercial office space expected to come online over the next 20 years, East Midtown is primed for a remarkable revival and these assets sit at the heart of it all,” said Olsen.

Jonathan Hageman

“The buyer intends to renovate and reposition the properties with a focus on retail lease up, positioning the investor to capitalize on the record-breaking apartment rental market and the assets’ proximity to prominent attractions as tourism stages its comeback.”

“This was an incredible investment opportunity that provides the buyer with a runway to future upside through 32,336 square feet of development potential at 959-961 Second Ave. while doubling down on a location that affords tenants of both properties the convenience of walking to working, tremendous restaurant and retail offerings and multiple transportation options,” Knakal added.

Eddie Shuai

The two properties were part of a four-building portfolio offered for sale by the JT Tai & Company Foundation. A remaining property at 17 East 70th St. is still available for sale.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales advisory, debt advisory, equity advisory or a recapitalization.

The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos, and research resources on JLL, please visit our newsroom.

Stephen Godnick

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management.

JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities.

JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 98,000 as of December 31, 2021.

Jacob Russell.

JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

CONTACTS:

Jenna Sharp

JLL

M +1 214 394 3356

JLL.com

George Shea, Linda O’Flanagan

Company: Shea Communications

Phone: +1 212 627 5766

Email: linda@sheacommunications.com

Hudson Regional Hospitals acquires Hell’s Kitchen commercial building for $15 million

456 West 55^th Street, a three-story
commercial building located in the
Hell’s Kitchen neighborhood
of New York City

NEW YORK, NY – JLL Capital Markets team has arranged the $15 million sale of 456 West 55^th St., a three-story commercial building located in the Hell’s Kitchen neighborhood of New York City.

JLL marketed the property on behalf of the seller, a private family partnership, and represented the buyer, Hudson Regional Hospitals, a premier hospital providing comprehensive care in the Tri State area.

Ethan Stanton

Located on the south side of West 55^th Street between 9^th and 10^th avenues, the property’s three floors each span 7,200 square feet and are connected by a pair of internal staircases along with a manually operated freight elevator.

The property contains approximately 21,600 gross square feet above grade, with roughly 10,030 square feet of additional air rights.

The building possesses a curb cut and a loading dock with direct access to the elevator and lies within a C6-2 zoning district, allowing for residential, commercial and community facility uses.

Hall Oster

Situated with walking distance of major attractions such as Central Park, Columbus Circle, Lincoln Center and the Hudson River Greenway, 456 West 55^th St. is located near the A, C, B, D and 1 subway lines, providing accessibility to all areas of the city.

The JLL Capital Markets team representing the seller and the buyer was led by Managing Directors Ethan Stanton, Hall Oster and Paul Smadbeck, Vice Presidents Conrad Martin and Teddy Galligan and Associate Braedon Gait.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

Paul Smadbeck

The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management.

Conrad Martin

JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022.

JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

CONTACTS:

Cierra Lacasse

PR, Hotels & Hospitality, Capital Markets

JLL

T +1 602 648 8701

M +1 408 318 8021

JLL.com

George Shea, Linda O’Flanagan

Company: Shea Communications

Phone: +1 212 627 5766

Email: linda@sheacommunications.com

JLL Capital Markets leads sales and financing efforts for Westview, a LEED-Gold, Class A creative office building in downtown Austin, TX

Kelsey Shebay

DALLAS, TX – JLL Capital Markets has closed the sale and arranged financing for the acquisition of Westview, a LEED-Gold, Class A creative office building totaling 100,166 square feet in downtown Austin, Texas.

JLL procured the buyer, Arc Capital Partners, and represented the seller, Prescott Group. Additionally, JLL helped facilitate the acquisition loan.

Financial details of the transaction were not disclosed.

Westview office building, 316 West 12^th Street,
downtown Austin, TX

Westview is located at the intersection of Guadalupe and 12^th Street in downtown Austin.

The property has a live-work-play location with more than 2.9 million square feet of retail nearby and more than 3,000 multi-housing units in addition to being just blocks from the University of Texas at Austin and the Capitol.

Jeff Sause

Additionally, the property is well-served by public transportation with a MetroRapid service stop in front of the building.

Recently renovated into a LEED Gold, boutique creative office building, Westview features floor-to-ceiling windows, flexible floorplates, and a new HVAC system with MERV-rated air filtration.

Westview is 93% leased and offers market-leading amenities including an on-site café, conference room, fitness center with showers, bike lockers, and a rooftop terrace with panoramic views of Austin.

Casey Wenzel

Prescott Group acquired Westview in 2016, with the vision to renovate and transform the asset into a unique property befitting its Austin surroundings.

Partnered with a local Austin contractor, The Burt Group, and Andersson Wise as the Architect the team was able to accomplish their goals.

The JLL Capital Markets debt team representing Arc Capital Partners was led by Senior Managing Director Jeff Sause, Managing Director Casey Wenzel and Analyst Matthew Ctvrtlik.

“Westview is an incredible boutique property that adds to our Austin portfolio in an increasingly vibrant and walkable location.

"With its Class A amenities and dramatic roof deck, Westview is exactly the kind of creative space that pulls employees back to the office,” said Neville Rhone, Jr Managing Partner of Arc Capital Partners.

Matthew Ctvrtlik

“We were very happy to source a fixed-rate bridge lender to lock rate before the recent increase in rates allowing Arc to avoid hedging costs and giving them more room to execute their business plan,” Sause said.

“Westview was an interesting career project for the team at Prescott, selecting the appropriate modernization to in turn attract Austin tenants is not your cookie-cutter office renovation”, said Brian Leslie, Senior Managing Director, Acquisitions for Prescott Group. Leslie continued

“Throughout the leasing and sale process we valued our relationship with our JLL Partners.”

Neville Rhone, Jr

The JLL Capital Markets sales team representing Prescott Group was led by Senior Managing Directors Andrew Levy and Todd Savage and Managing Directors Kelsey Shebay and Jeff Coddington.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers.

The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization.

Brian Leslie

The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

For more news, videos and research resources on JLL, please visit our newsroom.

About Arc Capital Partners

Founded in 2013, Arc Capital Partners is a minority-owned, real estate owner-investor dedicated to redefining urban mixed-use environments.

Through the lens of diversity and inclusion, Arc invests in mixed-use commercial properties with creative office, experiential retail, and multifamily components in major urban areas.

Andrew Levy

In partnership with large institutional investors, Arc is currently pursuing more than $1 billion of urban real estate located primarily in the Western U.S.

About Prescott Group

Prescott Group was founded 25 years ago and is headquartered in Dallas, TX.

Prescott is a diversified real estate investment management platform with capabilities in asset management, acquisitions, development and debt resolution.

Todd Savage

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management.

JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022.

JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated.

CONTACT:

Kristen Murphy

Director,

Public Relations, Americas

JLL

One Post Office Square, Suite 3500

Boston, MA 02109

T +1 617 848 1572

M +1 617 543 4873

Kristen.Murphy@am.jll.com

jll.com