HFF closes $84.5 million sale of 450,000 s/f and secures $18.5m acquisition financing

HFF has closed the sale of The Center Building, a 450,000 s/f, multi-tenant office building in Long Island City. HFF marketed the property on behalf of the seller, Hampshire Properties. A venture formed by affiliates of Madison Marquette and certain funds within the Perella Weinberg Partners' Asset-Based Value strategy purchased The Center Building for $84.5 million. The purchaser plans to build upon the asset's existing strong tenancy and cash flow, and to add value to both the office and retail components. The HFF investment sales team representing the seller was led by senior managing directors Andrew Scandalios and Jose Cruz, and managing directors Jeffrey Julien and Kevin O'Hearn. "The Center Building's location in Long Island City is highly accessible from Midtown Manhattan, making it a popular destination for tenants that want access to the Manhattan market and want to be in a growing, vibrant area that is easily accessible by employees and residents," said Scandalios. Julien said, "33-00 Northern Blvd. is known as The Center Building because it is located at the geographic center of the five New York City boroughs. We are seeing strong institutional investor demand for these fortress-location Long Island City assets, and this was a highly sought-after asset." The Center Building is located at 33-00 Northern Blvd., above the 36th St. subway station, which gives the building access to the M and R lines of the subway system. The property is also close to the Queens Midtown Tunnel, 59th Street Bridge and the 7 train. Originally built in 1915, the property has a 62-space underground parking garage and a ground-floor restaurant. The Center Building is 88 percent leased to New York City Agencies including the Human Resources Administration, New York City Transit Authority, Department of Cultural Affairs, Office of Court Administration, and Taxi and Limousine Commission. HFF has also arranged $18.5 million in acquisition financing for the Chelsea Muse, a 28-unit, class A multi-housing rental building with retail in Manhattan's West Chelsea submarket. HFF worked on behalf of the borrower, Tavros Capital Partners USA, LP, to secure the five-year, fixed-rate loan. The loan proceeds were used to acquire the property. The HFF team representing Tavros Capital Partners was led by managing director Steven Klein. The Chelsea Muse is located at 537 West 27th St. adjacent to the High Line Elevated Park in West Chelsea. Tavros plans to re-brand the building. The 18,000 s/f retail component of the property is 100% occupied and consists of Pinch Food Design and a large below-grade event space leased upon closing to Skylight Group. "Tavros Capital Partners had the vision and the foresight to purchase the property with the retail component vacant and was immediately able to add value to the property by signing a lease with the property's largest retail tenant. Through this acquisition, Tavros increases their footprint in Manhattan and in the West Chelsea submarket," said Klein. Tavros Capital Partners is a privately-owned real estate investment management firm with offices in the U.S. and Europe. Tavros owns or is developing five assets in New York City, totaling 340,000 s/f, including: 560 West 24th St., 180 Ave. of the Americas, and 448-452 Broome St. Hampshire Properties was founded in 1988 as a real estate investment firm focused on the acquisition and management of properties for long-term profit. The Brooklyn-based firm's portfolio includes office, industrial and flex properties as well as multi-housing complexes throughout the United States and Canada. Madison Marquette is a Washington, D.C.-based investor, operator and owner of retail, office, and mixed-use real estate throughout the United States. With investment offices in New York City, Washington D.C., San Francisco, and Los Angeles, Madison Marquette is actively seeking investment opportunities in dense, urban markets. The company maintains sophisticated in-house operating capabilities, and it owns and/or manages over 20 million square feet of commercial real estate. Perella Weinberg Partners' Asset Based Value strategy is a leading post-financial crisis provider of U.S. specialty finance solutions. Since inception in 2008, the strategy has grown to manage in excess of $2.0 billion in equity capital through a number of different investment vehicles. Perella Weinberg Partners' Asset Based Value strategy can deliver significant capital, technical expertise and infrastructure in a wide range of asset classes and structures, including both real and financial assets. Capital for the strategy is contributed by, among others, a diversified group of institutional investors who seek to invest in compelling opportunities at favorable valuations. HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, advisory services, equity placement, loan sales, and commercial loan servicing.