A joint venture, comprising Lincoln Property Company, Saber-Hightower, and Waterfall Asset Management, has acquired a portfolio of four National Resources properties in the greater New York area for $450 million. The transaction, which spans New York, New Jersey, and Connecticut, includes properties with a total area of over 4 million square feet.
The negotiation process, which took over a year and began the previous summer when Lynne Ward, CEO of National Resources, contacted Marty Berger, co-founder of Saber-Hightower, resulted in a successful conclusion. Jared Toothman, Executive Vice President and New York City Metro Market Leader at Lincoln Property, explained that the complexity of the acquisition, particularly its geographical spread across three states, contributed to the extended closing period. Zachary Liebmann, Partner and Head of Commercial Real Estate at Waterfall Asset Management, described the acquisition as his company's largest real estate transaction to date.
The portfolio is diverse and challenging. It is anchored by iPark 84, a 270-acre business park in East Fishkill, N.Y., which was once developed for IBM's semiconductor plant. This facility comprises 1.8 million square feet and houses a diverse tenant base, including IBM, eMagin (a Samsung subsidiary), and the agricultural company Cal-Maine. There is also potential for an additional 1.5 million square feet of development here.
The financing structure involved the assumption of two commercial mortgage-backed securities (CMBS) loans and two balance sheet loans from Affinius Capital for the multifamily components of the portfolio. Liebmann emphasised the need for a 'thoughtful' approach given the complexity.
In addition to iPark 84, the portfolio includes other prominent assets:
- —A 29-acre mixed-use centre at 761 Main Street in Norwalk, Conn., anchored by a Northwell Health outpatient medical complex. The approximately 400,000-square-foot property houses the headquarters of bicycle manufacturer Cannondale, a 70,000-square-foot gym, and space for approved multifamily developments.
- —Edgewater Harbor in Edgewater, N.J., a 262-unit waterfront multifamily residential complex with 60,000 square feet of retail space, including a Sprouts Farmers Market.
- —Trilogy Lofts, a 97-unit residential complex in Yonkers, N.Y., conveniently located next to the Tuckahoe Metro-North Station, where a further 50 residential units are planned.
Toothman underscored the advantageous location of iPark 84 near New York City and in close proximity to logistics centres for Amazon, PepsiCo, and Stellantis. He highlighted the historical significance of the site, which for over 30 years was the flagship of one of the world's most valuable companies. The infrastructure present there today cannot be replicated elsewhere in the country. The joint venture is already planning to entertain enquiries from a large manufacturing user who could lease up to 2 million square feet at the iPark 84 site.
Marty Berger of Saber-Hightower noted that National Resources preferred to maximise value through a single sale of the diverse portfolio rather than breaking it up. This allowed the joint venture a negotiating position for an attractive price.
