The partnership between Tolles Development and Marmot Properties made big news just 10 months ago when they purchased the Carter and Johnson parcels in Midtown for $16.5M. Several of the Carter parcels have returned to the market:
– 701 S Virginia aka Saint Lawrence Commons – Purchased for $1,551,327 and listed at $2,550.000 with a 5.51% CAP rate.
– 677 S Virginia / 25 Saint Lawrence – Purchased for $1,121,230 and listed for $1,600,000 with a 5.59 CAP rate.
– 737 S Virginia – Purchased for $395,690 and listed for $750,000, no CAP rate listed.
No pro forma information was listed to support the CAP rates (existing or projected?), so I take them with a grain of salt – they are pretty slim as quoted. Retail rents in Midtown are in the $18-21/SF range and the existing tenants are faltering.
S Virginia is about to be disrupted for 2 years for a reconstruction project, and these properties are at ground zero.
Bernie Carer is a pretty smart guy, so I doubt he got taken to the cleaners when he sold. Or are these list prices just motion in place of action right now? Are you ready for a Sephora outlet to pay the rent to make these deals pencil? Local businesses won’t be able to pay the freight.