What economic slowdown? Westchester County's top 5 commercial sales in 2022
Despite a likely economic slowdown, Westchester's commercial properties are in demand.
A 2022 commercial market report by Houlihan Lawrence shows third-quarter commercial real estate transaction volume increased 18% and price per square foot was 35% higher compared to the second quarter of 2022. The report predicts a persistence of strong investor interest in Westchester’s real estate market.
“Early next year, we see an opening of opportunities for investors as interest rate levels stabilize and the market can better assess asset valuations,” the report said. “Westchester’s employment and population trends have been healthy, and this is constructive for real estate assets, even in the face of a likely economic slowdown. For households, across the demographic spectrum, Westchester offers an array of services, infrastructure and opportunities that are hard to replicate.”
Among the largest transactions in 2022, Westchester’s five top commercial sales, including multi-family assets, office, and retail, were in Elmsford, Yonkers, New Rochelle and White Plains. The most expensive property was Avalon Green, a three-story multi-family apartment complex in Elmsford, which was sold for $306 million.
While the office market is shrinking due to a shift to hybrid work, the multi-family market remains an attractive option for investors as several major cities are embracing a boom of apartments.
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Howard Greenberg, a veteran broker and owner of Howard Properties, said commercial buildings were sold for a variety of reasons, in many cases to align with ownership's corporate philosophy and to boost income flow.
He highlighted one trend for 2023 is "transit oriented" development, which creates compact, mixed-use communities near transit where people have easy access to jobs and services.
“We need to take old, obsolete products off the market and bring in new uses,” Greenberg said. “This is probably the biggest construction development trend in Westchester in recent years.”
The top 5 commercial sales
Here are Westchester’s five largest commercial transactions in 2022, according to a list compiled by county-referred brokers.
Avalon Green, 500 Town Green Dr, Elmsford: Sold for $306 million
Comprised of 617 units, Avalon Green, at 500 Town Green Drive in Elmsford, features a mix of townhomes, apartments and stacked flats.
The property includes two swimming pools, a clubhouse, a fitness center, three playgrounds and picnic areas. Harbor Group International purchased the property from Avalon Communities and plans a $9.2 million capital improvement to upgrade amenities.
Ridge Hill shopping center, 1 Ridge Hill Road, Yonkers: Sold for $220 million
The Ridge Hill shopping center, a 74-acre property, is to be redeveloped after a $220 million acquisition. The new owner, Nuveen, will partner with Taconic Partners and North American Properties to transform it into an outdoor lifestyle center and upgrade the public spaces, street design and parking amenities, according to media reports.
Shearwood Station, 1 Shearwood Place, New Rochelle: Sold for $200 million
The 24-story, 408-unit luxury apartment building was built in 2001. Vinod Khosla’s Khosla Capital and Pacific Urban Investors purchased the property at $200 million. It includes a fitness center, lounge, training studio, swimming pool and a business center with private conference pods.
White Plains Plaza, 1 North Broadway, White Plains: Sold for $154.2 million
The $154.2 million purchase by Argent Ventures includes two office buildings that make up White Plains Plaza, at 1 North Broadway and 445 Hamilton Ave. It includes two office towers, retail space and a parking garage. The retail space has been vacant since a Walmart there closed in 2018.
William Cuddy, executive vice president of CBRE, a commercial real estate investment company, said the office buildings at White Plains Plaza are substantially leased. The vacant retail is being repositioned for a range of uses, including office, medical and retail. But he said “pretty expensive” work on planning, engineering, demolition and construction would be necessary to activate the former Walmart space.
“The two office buildings are classy, stabilized downtown White Plains properties," Cuddy said. "The intention is to continue to maintain and lease them as high-end quality office space."
The View on Nob Hill, 32 Nob Hill Drive, Elmsford: Sold for $143 million
A Japanese investment firm teamed up with a local partner to close this deal last year.
Tokyo Trust Capital and New York-based MC Real Estate Partners jointly acquired the View on Nob Hill Apartments, a 416-unit garden-style complex. It is situated on 24 acres overlooking the Saw Mill River Parkway.
The off-market deal marks the first multi-family acquisition in the country for Tokyo Trust Capital. The complex has 20% affordable units and the new owners plan to renovate more units, according to media reports.
This article originally appeared on Rockland/Westchester Journal News: Westchester County NY's 5 largest commercial transactions in 2022
