A 1031 tax exchange leads this week’s roundup of suburban New York real estate news.
Tax shelter triggers $22M deal
Reynolds Asset Management sold a new five-story building in Bound Brook, New Jersey, for $22 million. The deal was made with an undisclosed buyer looking for a 1031 exchange.
Mosaic on Main includes 63 residential units and a 1,600-square-foot retail space. The Somerset County property’s amenities include a fitness center. The Kislak Company brokered the sale.
A 1031 exchange allows real estate investors to defer paying taxes on the capital gain from an asset sale by investing it in a similar property. Fears that the Biden administration would end the policy have vanished.
JV lands Englewood loan
A joint venture by Claremont Development, Cypress Equity Investments and Battery Global Advisors secured a $57.5 million financing package for its new multifamily luxury building in Englewood, New Jersey, according to Real Estate Weekly. The Guardian Life Insurance Group of America provided the eight-year loan.
EVO, a 220-unit property at 40 Bennett Road, includes a resident lounge, co-working lounges, a fitness center, a yoga studio and an outdoor swimming pool. A JLL Capital Markets team led by Michael Klein and Jon Mikula arranged the financing.
Transit company gets Real
In North Bergen, Realterm signed mobility services provider First Transit to a 72,000-square-foot lease at 5901 Tonnelle Avenue. The company provides transportation to people with disabilities who can’t use mass transit.
The industrial lease is for a van depot at a freestanding, single-tenant building on roughly four acres. Lee & Associates’ Scott Deutchman represented the tenant.
Catholicism to capitalism
The former headquarters of the Rockville Centre Roman Catholic Diocese is being converted into a 60,000-square-foot office building, Patch reported. Philips International Holding is receiving economic incentives from the Hempstead IDA for the project, at 50 North Park Avenue.
Philips plans to spend $19 million on the conversion after snapping up the five-story property for $9.8 million last month. The diocese sold the Nassau County building in March 2021 as part of bankruptcy proceedings. No tenants are lined up.