Chappaqua, NY In one of the largest ground-up development projects in its 40-year commercial real estate history, The Grossman Companies, Inc., based in Quincy, Mass., has partnered with Summit Development of Southport, CT, to develop a high-end 120,000 s/f, $68 million retail development, according to Grossman Cos.’ co-president Jake Grossman and Felix Charney, principal of Summit. The development is located on 19 acres at 480 Bedford Rd., part of the long-time, former Readers Digest world headquarters. The entire site consists of 114 acres. The sale was consummated on April 14th.
Chappaqua Crossing will be ready for its anchor tenants, Whole Foods and Life Time Fitness, each 40,000 s/f, in mid-2018. Other tenants that have already signed leases include Pet Valu, Chase Bank, AT&T and Go Health Urgent Care. The remainder of the Readers Digest property will ultimately include: 91 high-end town homes; 500,000 s/f of medical and office space anchored by Northern Westchester Hospital; 66 affordable housing units; and various public amenities including a walking trail and performance center.
Jeffrey Dunne, Kyle Juszczyszyn and David Gavin of CBRE’s National Retail Partners represented Grossman and Summit, and arranged both the debt and equity capital that includes the construction loan of $44 million from M & T Bank and a 90% institutional joint venture equity partner for the $24 million equity requirement. The grocery-anchored shopping center in tony, high-barriers-to- entry Westchester County was hotly pursued by both equity and debt capital.
Grossman and Charney of Summit said, “Everyone involved in reaching this milestone has been schooled in the true meaning of the word ‘perseverance.’ The permitting process was complex, starting in 2005. The Town of Chappaqua has been a fantastic partner in bringing this dream to a reality. We are excited to break ground and look forward to deliver a shopping center with a top-notch tenant roster that will enliven the community.”
Chappaqua ranks in the top 100 highest income communities in the U. S. with average household income of $178,000. That figure jumps to $240,000 within one mile of the site. Located on the east bank of the Hudson River, Chappaqua is situated 30 miles from New York City – a 56-minute train ride to Manhattan. The center is accessible via several main highways and will be a benefit to and benefit from nearby towns.
In the last four years, The Grossman Companies and Summit Development have partnered in the acquisition of 9 commercial properties in Connecticut, consisting of some 600,000 s/f including retail, office and industrial properties as well as land. The duo is in the process of completing a small shopping center in Danbury, CT on the busy thoroughfare of Newtown Road. In all, across southern New England, Grossman owns a commercial real estate portfolio in excess of three million s/f. Summit Development has completed some 95 deals encompassing 5.5 million s/f in three states.