9-figure price tags, 6-figure square footage: Westchester's top 5 commercial sales of 2023
Westchester’s commercial real estate market slowed down in 2023 as high interest rates made financing difficult.
Commercial buildings sales volume dropped 41% to $1.5 billion while the overall number of transactions were down 20% compared to 2022, according to RM Friedland. Sales volume refers to the total final value of completed sales.
David Raciti, vice president at RM Friedland, said high interest rates were a major factor in the slowdown.
Westchester’s five top commercial sales, including multifamily, retail, office and industrial properties, were in White Plains, Mamaroneck, Yonkers, Harrison and Rye.
Raciti said those deals relied heavily on leverage with multiple landlords and investors. Most were “trophy assets” with quality space and stable, long-term income from tenants.
The single most expensive sale in 2023 was The Source, a 262,000-square-foot retail shopping and office complex in White Plains that sold for $112 million.
Lower Hudson Valley real estate: 2023 saw high demand for industrial, warehouse properties
The largest deal in 2022 was Avalon Green, a three-story multi-family apartment complex in Elmsford, which sold for $306 million.
John Barrett, managing director of investment sales division at RM Friedland, said while the office market is shrinking, self-storage and assisted living facilities are desirable properties for developers.
He predicted office space will continue to decline in the next few years, and properties could even be repurposed or torn down.
Here are Westchester’s five largest commercial transactions in 2023.
The Source, 1 Maple Ave, White Plains: Sold for $112 million
Located at 1 Maple Ave., this majority retail shopping complex that spans 262,000 square feet was sold by UBS Realty to Hines, a privately owned global real estate firm. It was reported to be 99% occupied at the time of the March 2023 sale. The property features stable and long-term income from tenants, including anchor tenant Whole Foods. The property was purchased for $153 million in 2005, indicating a 27% decrease in value.
Avalon Mamaroneck, 746 Mamaroneck Ave., Mamaroneck: Sold for $103.7 million
A 343,502-square-foot multifamily property has 229 one- and two-bedroom units with rents ranging from $3,325 to $4,490. It was built in 1999 and renovated in 2018. The “trophy” asset was acquired by Cantor Fitzgerald and Harbor Group in October 2023.
Extra Space Storage, 300 Fullerton Ave., Yonkers: Sold for $60.3 million
Previously known as Clutter, the 190,000-square-foot self-storage facility was sold to Life Storage in April 2023, an established self-storage operator. The property will reportedly maintain its function as a self-storage facility.
500 Mamaroneck Ave., Harrison: Sold for $53 million
This 294,821-square-foot office building was acquired by a private investor. The sale price indicated a price per square foot of $180 and the capitalization rate reported in CoStar was 12.26%.
The Highlands at Rye, Rye: Sold for $50.2 million
Consisting of properties at Purchase Street and Wappanocca Avenue, this property was sold to Copperline Partners, a private family investment entity. This 104,771-square-foot “trophy” property has 115 apartment units.
This article originally appeared on Rockland/Westchester Journal News: Westchester NY's 5 largest commercial transactions of 2023
