X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BROOKLYN, NY-CB Richard Ellis has been retained by Saltru Associates to sell the leasehold interest in Ceasar’s Bay Shopping Center, a 294,075-sf big-box asset located at 8973 Bay Pkwy., also locally known as 1640 Shore Pkwy. The 100%-occupied shopping center sits directly along Gravesend Bay at Exit 5 on the Belt Parkway midway between the Verrazano Narrows Bridge and Coney Island and contains 1,194 parking spaces.

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.”

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

Once you are an ALM digital member, you’ll receive:

  • 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

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.