A retail property in Huntington Station that’s anchored by a Barnes & Noble store has sold for $14.2 million.
Seven Hearts Realty LLC, an affiliate of a family-owned commercial real estate investment group, purchased the 19,530-square-foot building on 1.2 acres at 301 Walt Whitman Road. The acquisition was completed to satisfy the buyer’s 1031 exchange requirement.
The Huntington Station property is fully occupied by Barnes & Noble, which leases 14,330 square feet and a T-Mobile store that leases 5,200 square feet. There is parking for 16 vehicles in front and another 50 parking spaces behind the building.
The property is located across from the Whole Foods Market-anchored Huntington Shopping Center, which recently underwent a $75 million redevelopment.
The sale price equates to $727 a square foot and a 6.45 percent cap rate.
The Barnes & Noble Huntington Station store serves as the chain’s replacement for the East Northport location that closed in Jan. 2024. That space in the Huntington Square shopping center at 4000 Jericho Turnpike is now home to a 21,000-square-foot Aldi supermarket that opened in Dec. 2024.
Manhattan-based Wharton Properties had purchased the Huntington Station property in early 2024 for $6.3 million, as previously reported by LIBN. Wharton renovated and repositioned the property and added the two current tenants.
Daniel Abbondandolo, Joegy Raju, Victor Little and Chris Sheldon of Cushman & Wakefield secured the buyer and represented the seller, 301 Route 110 LLC, in the sales transaction.
“Having Whole Foods directly across the street in one of the most desirable retail corridors in Suffolk County continues its growth and adds even more value to that area,” Abbondandalo told LIBN. “This sale is a testament to Long Island’s retail strength and how repositioning continues to be a major trend and driver of capital.”
CHICAGO – NOVEMBER 05: Partial view of the Chicago skyline, photographed from outside the Adler … [+] Planetarium in Chicago, Illinois. (Photo By Raymond Boyd/Getty Images)
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When it comes to real estate investing, taking a long-term approach has key benefits. The most successful investors I’ve dealt with in my career have built their portfolios over time. While there could be challenges to acquiring and refinancing assets in today’s market, there are still opportunities to be had. If you’re an investor who has already closed on transactions, you could leverage your existing portfolio. If you’re new to the game, you might opt to focus on the first deal, after which you’ll gain some credibility and can begin to build your track record.
Once you’ve held a piece of property for some time, there could be several options to pursue, depending on your business model and pool of investors. You might decide to hold the place, refinance it, or sell. As you make transactions, you’ll want to let others know. Spreading the word about your real estate investment activity can lead to more connections.
Building a Portfolio
Most likely when you acquire a property, you’ll have a plan in place which will dictate the long-term objectives. Your partner and other investors may be interested in holding the property, or they might be looking to move on after several years. If others take their return and shift funds elsewhere, you’ll have to decide whether you can maintain the place on your own and still get the return you want.
Refinancing could be brought into the discussion, although in today’s market, this step may not enable investors to get the same return on equity that they could take out in the past. In the past, refinancing could have brought a lower interest rate and enabled investors to take cash out from the equity. However, as debt service coverage ratios have become more conservative, along with the proceeds, in some cases a refinance to take out cash may not be possible. It could be a time to think about selling to get a return on equity.
If holding the property or refinancing won’t provide your desired return, you might consider selling the place. If you do, you’ll want to work with a knowledgeable investment sales broker. Look for someone with a laid-out marketing strategy who will share your opportunity with a broad audience. Check that the broker has a strong track record and a reasonable timeline in place based on the market conditions.
As you think about selling, you’ll want to talk to your accountant about the tax implications. They can help you understand what your potential capital gains could be. They’ll also look at taxes from a federal and local level. Knowing what your after-tax scenario will be may make it easier to determine what you want to do with the asset.
Section 1031 of the IRS tax code allows you to exchange one property for another of like-kind without having to pay capital gains tax. Often called a 1031 exchange, there are rules you’ll have to follow for this process, including acquiring another property (or properties) as an investment and using a qualified intermediary to hold your funds in escrow. You’ll typically have 45 days after closing on the first property to identify the next acquisition (or acquisitions), and you’ll need to close on them within 180 days of closing on the first place.
Spread the Word
As you acquire real estate assets, you’ll want to let others know of your activity. Some real estate professionals who have been guests on my podcast “The Insider’s Edge to Real Estate Investing” do an incredible job of promoting the properties they are closing. These include Steve Kachanian from Klosed, and Jeffrey Znaty and George Giannopoulos from Kings Capital.
Spreading the word about your track record brings several benefits. Primarily, this strategy can help you stay top of mind for investment sales brokers. These professionals are often very busy with listings that they’re trying to sell. If you’re demonstrating that you’re active, brokers will be more in tune with what type of asset you’re interested in. The adage that “deals lead to more deals” is certainly true.
Certainly, acquiring an initial property takes time and effort. After crossing that hurdle, you can think about building your real estate portfolio. As you move forward, you’ll want to develop a strategy around cultivating your brand and reaching your target audience. Let others know what you’re doing and what you’re interested in, and you’ll likely find an increasing number of opportunities for your next investments.
Inspired Healthcare Capital, a private equity firm specializing in senior housing investments, has fully subscribed Inspired Senior Living of Hamilton DST.
Press Release –
Jul 7, 2022
SCOTTSDALE, Ariz., July 7, 2022 (Newswire.com)
– Inspired Healthcare Capital, a private equity firm specializing in senior housing investments, has fully subscribed Inspired Senior Living of Hamilton DST, a Delaware statutory trust offering that owns a 195-unit Class A senior housing property in Hamilton, New Jersey.
The DST offering launched in early May 2022 and raised more than $56 million in equity from accredited investors through a network of independent broker-dealers and registered investment advisors. Proceeds from the offering, with leverage, were deployed to purchase the senior housing property for $115.3 million.
Located approximately one hour from Philadelphia and New York City, the four-story property was built in 2017 and encompasses independent living, assisted living, and memory care. Situated on 23 acres of land, it consists of studio, companion, and one- and two-bedroom units with a total of 204 beds. The company noted that the property is the only full-continuum community within 15 miles and the only provider of independent living in the greater Hamilton region.
“We are very pleased to continue to offer highly sought-after senior housing real estate opportunities to financial advisors and their investors. This will be our fifth fully subscribed DST offering this year with another eight DSTs coming out in the next 45 days,” said Patrick Lam, President of Capital Markets.
Inspired Senior Living of Hamilton DST offering was structured to generate investor distributions at an annualized rate of 6.25%, the company said.
Inspired Healthcare Capital LLC is an alternative investment sponsor based in Scottsdale, Arizona, that focuses on senior housing real estate with more than $800 million in assets under management. IHC raised approximately $60 million in May 2022 and is on target to raise approximately $600 million in 2022. IHC currently has 50 active selling agreements and relationships with over 28 broker dealers.
COVID-19 Despite the difficult lending environment created by COVID-19, Inspired Healthcare Capital was able to secure financing on multiple Senior Housing acquisitions as well as honor and maintain all distributions to investors in 2021, whereas other sponsor firms reduced or suspended distributions. During this time, IHC closed on nine properties worth $163,350,000 and was able to secure financing of $42,730,000.
For any questions please contact Investor Services at 855-298-2988 or visit our website at IHCFunds.com
