Ned Midgley, a senior vice president at CBRE, who is leading the marketing team along with Tim Sheehan and Dan Kaplan, tells GlobeSt.com that the property is owned by a partnership of multiple investors, which gained control of the property through an assignment of the ground lease in 1982. Bill Shanahan and Jeff Babikian 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 amount of equity required by today's market conditions." He notes that the property, which sits next to New York Harbor, is truly one-of-a-kind. "It is essentially a suburban, big-box, power center in the heart of Brooklyn with its own exit and entrance ramp to one of Brooklyn's most traveled highways," he says. The Belt Parkway is the main connection from Brooklyn and Long Island to the Verrazano Narrows Bridge, Interstate 278--the Staten Island Expressway--Staten Island and the state of New Jersey and it various the major highways--including Interstate 95 and the New Jersey Turnpike.
Equally as important as the center's performance, Midgley says, is that the property is 100% occupied, primarily by national tenants including Kohl's, Toys "R" Us, Babies "R" Us, Best Buy and Modell's, which make up 93% of the shopping center. "In addition, the shopping center earns in excess of $8 million in annual net operating income," he adds.
With regard to the leasehold, Midgley says "acquiring the rights to the leasehold will allow an investor to control the site through 2065." There is also the opportunity to develop additional retail space on the site and "there is always the possibility that the land can eventually be purchased, unifying the fee, and creating additional value," he says. Engineering reports have indicated that an additional 30,100 rental sf on two floors can be developed "as of right now" in the shopping center without any expansion of the parking area.
Midgley says that as far as reasons for selling, "partnerships have a life cycle," noting that this one does as well. "The partners are interested in bringing to a close their successful 27-year collaboration."
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, 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.
