JDS sells Far Rockaway beachfront complex for $33M

Treetop Development picked up Michael Stern's Saltmeadow project in Queens

TRD New York /
Apr.April 11, 2019 03:35 PM
Treetop Development's Adam Mermelstein and JDS Development's Michael Stern with Far Rockaway (Credit: WXY)

Treetop Development’s Adam Mermelstein and JDS Development’s Michael Stern with Far Rockaway (Credit: WXY)

UPDATE, April 11, 4:15 p.m.: Michael Stern is cashing out on a sprawling complex of luxury properties in Far Rockaway, and he found a buyer with ambitious plans for the seaside community.

For a price tag of $33 million, Teaneck, New Jersey-based Treetop Development acquired JDS Development Group’s newly built Saltmeadow development, which is comprised of 30 town homes with 60 luxury rental apartments along Beach 5th and Beach 6th Streets, property records show. Signature Bank provided $24.5 million in financing.

The Saltmeadow development at  at 711 Seagirt Avenue and Steven Vegh

The Saltmeadow development and Steven Vegh

The move comes about a year-and-a-half after Treetop, headed by Azi Mandel and Adam Mermelstein, bought a property that sits the next block over from Saltmeadow — the 916-unit complex at 711 Seagirt Avenue. Treetop is renovating the complex, renamed Ocean Point, for north of $20 million, Mermelstein said.

And in December, Treetop snapped up 10 vacant parcels across the street for $2.5 million, property records show. The site holds 90,000 buildable square feet, and Mermelstein said the firm plans to develop into a residential property with a retail component.

The broker in both of those deals, Westwood Realty Associates’ Steven Vegh, represented both parties in the latest transaction as well. He declined to comment.

JDS, better known for developing luxury towers like 111 West 57th Street, the American Copper Buildings and Walker Tower, did not return a request for comment. Stern in 2015 bought eight parcels at the site for $4 million from controversial developer Shaya Boymelgreen. An entity owned by Howard Lorber’s family also was a partner in the development of Saltmeadow, Lorber’s firm, the Vector Group, confirmed.

Treetop has been drawn to the far-flung Queens neighborhood in part because of the city’s efforts to revitalize the area, Mermelstein said. For example, the city enacted ferry service between Far Rockaway and Lower Manhattan. It also received a $300 million rezoning in September 2017.

“In Far Rockaway, we think that there’s very good value both for rentals as well as landlords alike. … We in turn have allocated a good amount of resources to the neighborhood because we too believe in it and want to piggy back off [the City Council and mayor’s] efforts,” Mermelstein said.

Built within Far Rockaway’s flood zone that was hit hard by Superstorm Sandy in 2012, Saltmeadow, which has rents ranging from $2,300 to $5,500, was constructed to withstand flooding. For example, the complex features flood vents, and the living areas and electrical closets sit above the base flood elevation.

Rich Bockmann contributed reporting.

Update: This article was updated to add a partner in the development of Saltmeadow.


Related Articles

arrow_forward_ios
Nightingale's Elie Schwartz and Madison's Brian Shatz (Whale Square)

Nightingale buys Whale Square in Sunset Park for $84M

Nightingale buys Whale Square in Sunset Park for $84M
Investors worry that New York City’s battered commercial real estate sector is indicative of larger issues nationwide with hotels, restaurants and retail. (iStock)

New York’s CRE woes could spread nationwide: investors

New York’s CRE woes could spread nationwide: investors
Subversive CEO Richard Acosta (Photos via ICSC; iStock)

Riding high: Inception, Subversive to launch publicly traded cannabis REIT

Riding high: Inception, Subversive to launch publicly traded cannabis REIT
Gov. Andrew Cuomo announced that movie theaters in some New York counties can reopen, but NYC’s theaters are excluded for now. (Getty; iStock)

Cuomo: Movie theaters can reopen — but not in NYC

Cuomo: Movie theaters can reopen — but not in NYC
Blackstone’s Stephen Schwarzman, Roku CEO Anthony Wood and Coleman Highline in San Jose (Blackstone; Wikipedia Commons; Coleman Highline)

Blackstone buys Roku’s Silicon Valley office buildings

Blackstone buys Roku’s Silicon Valley office buildings
IKEA Chief Sustainability Officer Pia Heidenmark Cook (IKEA, iStock)

Ikea will buy back your old furniture on Black Friday

Ikea will buy back your old furniture on Black Friday
107 Chambers Street and Allison and Frederick Thompson (Google Maps, Tribeca Health & Fitness) 

Another fitness studio in Manhattan goes belly-up

Another fitness studio in Manhattan goes belly-up
Blackstone’s Kathleen McCarthy with 440 Saw Mill River Road, Ardsley, New York and 1000 Gateway Boulevard in San Francisco, California (left) (Blackstone; BioMed Realty)

Blackstone bets big on life-science buildings with $14.6B deal

Blackstone bets big on life-science buildings with $14.6B deal
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...