Acadia nears completion of $3.7 million capital improvement campaign

Acadia Realty Trust, a fully integrated equity real estate investment trust, is nearing completion of a $3.7 million capital improvements campaign at five properties the firm acquired in Sheepshead Bay in 2012 for $18.5 million. The properties—located at 3780-3858 Nostrand Ave.—total 70,500 s/f and feature both office and retail space. Across the portfolio, and because of the firm's belief in the Nostrand Ave. retail corridor, Acadia renovated the façade, storefronts, vacant office suites, lobbies, elevators and bathrooms, and installed new signage. Additional improvements are underway to reopen the below grade garage to better service tenants and customers. "The Sheepshead Bay retail and office market—especially in the Nostrand Ave. area—has been under the radar for some time, but has recently piqued the interest of potential tenants thanks to responsible redevelopment and better management. The Nostrand Ave. portfolio presented us with an opportunity to bring a unique product to the Brooklyn market, one not comparable to any properties in the region," said Chris Conlon, executive VP and COO of Acadia Realty Trust. "Upon the acquisition of the portfolio and launch of the capital improvements campaign, we were able to attract a number of quality tenants to the available spaces. This is a community that was significantly affected by Hurricane Sandy, but has been resilient in bouncing back in such a way that Nostrand Ave. is becoming one of the premier retail corridors, generating interest from local companies and national retailers." The Nostrand Ave. portfolio currently has 11 office and retail spaces available, ranging from 724 s/f to 5,670 s/f. Potential tenants have the opportunity to lease at: * Building 3858, offering one available office space (suite 202 offering 1,104 s/f.) * Building 3848, offering the entire second floor with 5,670 s/f. * Building 3820, offering five available spaces (suite 103 with 1,610 s/f; suite 106 with 1523 s/f; suite 107 with 2,400 s/f; suite 108 with 1,493 s/f and suite 102 with 724 s/f) * Building 3830, offering one available ground floor retail space with 3,617 s/f * Building 3808, offering one available ground floor retail space with 2,627 s/f * Building 3828, offering one available ground floor retail space with 2,091 s/f * Building 3850B, offering one available ground floor retail space with 1,530 s/f Acadia Realty Trust's Brian Bacharach is the project manager overseeing the capital improvements campaign at the Nostrand Ave. portfolio and Trent Dickey, also in-house at Acadia, is overseeing the leasing and marketing efforts for the portfolio's retail spaces. Current retail asking rents are approximately $40 per s/f. Recent leases include a local dance studio and two lease renewals - a nail salon and physical therapist. Additionally, the Acadia team has three leases out to national tenants. CPEX Real Estate Services (CPEX) has exclusively been tapped to oversee the leasing and marketing efforts for the Nostrand Ave. portfolio's office spaces. Current asking price for office space is approximately $35 per s/f.CPEX has already received interest from prospective tenants ranging from medical and dental facilities, renowned trade schools and billing companies. Richard Novak, associate director of office leasing and sales for CPEX, is pleased with the progress and growing interest in the Nostrand Avenue portfolio, and echoed Conlon's sentiment. "Here, we have a heavily trafficked retail corridor in proximity to the Q and B train lines at the Sheepshead Bay station, access to three bus lines and the Belt Parkway - there is an opportunity to serve not only this area, but surrounding neighborhoods like Marine Park, Brighton Beach, Coney Island, Gravesend and Midwood," continued Novak. "The Nostrand Avenue Portfolio offers prospective tenants with the opportunity to relocate to renovated state-of-the-art offices with excellent light and access to parking. In terms of comparison, these structures do stand-out on their own, separating themselves from other commercial spaces in the area - there is really nothing like this in Sheepshead Bay and based on the initial interest we've received, the market is responding positively." Located on the southern tip of Brooklyn, Sheepshead Bay is one of the fastest rising neighborhoods in the borough. In recent years, Sheepshead Bay has experienced a real estate boom as new developments are making up for the low inventory of homes for sale, attracting young families, professionals and retirees in the process. Notable Sheepshead Bay destinations include Jordan's Lobster Dock, Brennan and Carr, Randazzo's Clam Bar and a host of family owned businesses. For more information, or to learn about leasing opportunities across Acadia's Nostrand Avenue Portfolio, please contact Richard Novak (office leasing) at 718-687-4217 or by e-mailing [email protected] or Trent Dickey (retail leasing) at 212-324-2999 or by [email protected]