ClearRock, Gottesman Real Estate and Mountain Development buy commercial portfolio

Stamford, CT ClearRock Properties, Gottesman Real Estate Partners and Mountain Development Corp. have purchased 700, 850 and 860 Canal St. Global financial services firm Guggenheim Partners, sharing the owners’ long-term view of the market, provided an 11-year fixed rate loan. Under the new ownership, ClearRock will serve as asset manager while Mountain Development Corp. will take over as property manager. The CBRE team of Brian Carcaterra, Michael McCall and Morgan Collins will remain as leasing agents. According to ClearRock managing principal Doug Winshall, the acquisition puts the 250,000 s/f portfolio in the hands of long-term owners who will add stability and enhance the quality of services and operations. “The portfolio will be managed to the highest level with both tenants and partners in mind. This will ensure that we continue to actively identify, address and manage improvement opportunities that will add value to the asset while also improving conditions for current and future tenants,” said Winshall. ClearRock and Contrarian Capital Management in 2012 purchased a non-performing loan on the site, then a four-building commercial portfolio including 880 Canal Street, which was sold in 2013 to Cornell University Veterinary Specialists. A major redevelopment and leasing program at 700 Canal Street modernized the historic loft building and increased occupancy to 80%. 850 Canal Street is 85% leased with 7,000 square feet of premier retail frontage available along Canal Street. 860 Canal Street is vacant and in the early stages of redevelopment. “The portfolio is an attractive long-term, value-add opportunity,” said Gottesman Real Estate Partners CEO Andy Gottesman. “In addition, the acquisition expanded our reach to Fairfield County with a set of buildings that we believe provide exceptional leasing values for tenants seeking unique spaces.” “The Canal Street properties offer one of the most sought after business locations in the South End,” added Mountain Development Corp. President Michael Allen Seeve. “We will continue to strengthen their position and to grow the value of the assets by ensuring proactive management and stable tenancy.” The new Ownership team recently secured a long-term lease renewal for 6,681 square feet at 700 Canal with one of its major tenants, United States Beverage (USB). Other corporate tenants include Sustainable America, Red Thread, Unger Publishing, Monjasa, Arccos Golf, KSL Capital Partners, Hildene Capital Management, Harbor Square Capital Management and Peninsula Petroleum. 700, 850 and 860 Canal are a mix of pre-war, post-war and recent construction. The properties are located near Fairway Market and the LockWorks at Yale & Towne apartment complex in the heart of the master planned 80-acre Harbor Point redevelopment.