Ned Midgley, a senior vice president at CBRE, who is leading themarketing team along with Tim Sheehan and Dan Kaplan, tellsGlobeSt.com that the property is owned by a partnership of multipleinvestors, which gained control of the property through anassignment of the ground lease in 1982. Bill Shanahan and JeffBabikian are assisting the sales effort as well.

|

Midgley explains that CBRE is targeting an institutional buyer"due to the size of the potential transaction and the large amountof equity required by today's market conditions." He notes that theproperty, which sits next to New York Harbor, is trulyone-of-a-kind. "It is essentially a suburban, big-box, power centerin the heart of Brooklyn with its own exit and entrance ramp to oneof Brooklyn's most traveled highways," he says. The Belt Parkway isthe main connection from Brooklyn and Long Island to the VerrazanoNarrows Bridge, Interstate 278--the Staten IslandExpressway--Staten Island and the state of New Jersey and itvarious the major highways--including Interstate 95 and the NewJersey Turnpike.

|

Equally as important as the center's performance, Midgley says,is that the property is 100% occupied, primarily by nationaltenants including Kohl's, Toys "R" Us, Babies "R" Us, Best Buy andModell's, which make up 93% of the shopping center. "In addition,the shopping center earns in excess of $8 million in annual netoperating income," he adds.

|

With regard to the leasehold, Midgley says "acquiring the rightsto the leasehold will allow an investor to control the site through2065." There is also the opportunity to develop additional retailspace on the site and "there is always the possibility that theland can eventually be purchased, unifying the fee, and creatingadditional value," he says. Engineering reports have indicated thatan additional 30,100 rental sf on two floors can be developed "asof right now" in the shopping center without any expansion of theparking area.

|

Midgley says that as far as reasons for selling, "partnershipshave a life cycle," noting that this one does as well. "Thepartners are interested in bringing to a close their successful27-year collaboration."

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Natalie Dolce

Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.