Stamford, Connecticut--(Newsfile Corp. - October 4, 2021) - Josh Schuster's Silverback Development announces an office complex on the edge of the downtown has sold for $8.5 million, although the seller will retain a long-term presence at the property.
Josh Schuster Silverback Development
Josh Schuster's Manhattan-based Silverback Development has sold the two-building site at 1111-1177 Summer St., after acquiring it for $12.4 million acquisition in 2018, according to property-transfer records in the Stamford Town Clerk's Office. The two six-story towers cumulatively cover about 137,000 square feet and have an appraised value of about $21 million.
The sale's terms entail Silverback leasing back 1111-1177 Summer for the next 98 years. A $12 million note on the leasehold interest is facilitating the transaction.
After acquiring the property, Silverback Development officials said their firm carried out a $4 million improvement plan that "stabilized" the asset and increased occupancy from 50 percent to 92 percent. They also cited the support of Plaza Realty Management, the property's manager and leasing agent.
"Silverback is excited to have effectuated this structure, as it allowed us to accomplish two principal objectives of the company: monetize our investment, while retaining a presence in Stamford and participating in the continued maturation of the market," said Silverback Development Vice President Alan Glick.
AGW Summer LLC, which lists a Queens, N.Y. business address, was the buyer, according to the property-transfer records. Officials at AGW Summer could not be reached for comment.
At the same time, Josh Schuster's Silverback Development is redeveloping a neighboring property.
In 2016, Silverback Development acquired for $12.5 million three downtown office buildings across 733-777 Summer St., and 612 Bedford St. About two years ago, Silverback gained approval from the city to demolish the two office buildings that then stood at 733-777 Summer to make way for apartments.
Today, the lot at 733-777 Summer is empty. But construction of the apartment complex is scheduled to start later this year, with a 376-unit building planned there, according to Stamford's economic development director Thomas Madden.
The sale generated $41,000 in local conveyance taxes. It was exempt from state conveyance taxes.
Stamford has seen a number of other major commercial property sales in the past few weeks.
In the city's largest real estate deal of 2020, telecommunications giant Charter Communications bought for $100 million the downtown office building at 400 Atlantic St., which has served as its headquarters since 2012. The company still plans to open a new headquarters this year a few blocks away, at 406 Washington Blvd., in a new 500,000-square-foot building next to the downtown Metro-North Railroad station.
A few blocks from 400 Atlantic, the downtown office tower at 1055 Washington Blvd., sold for $24 million in a "leasehold" deal. The approximately 183,000-square-foot property stands next to the Trump Parc condominium building and across the street from Mill River Park.
The acquisition added the first Connecticut property to the Rye Brook, N.Y.-based RPW Group's portfolio, which also includes nine buildings in Westchester County, N.Y., as well as 275 Madison Ave., in midtown Manhattan.
"In the past three years, we've been focused on expanding our real estate footprint throughout the tri-state area, and Stamford was a focus for us," RPW Executive Vice President Andrew Weisz said in a recent interview. "1055 presented a great opportunity for us to enter the Stamford market. It's a terrific building, it's got curb appeal and a terrific location. The infrastructure is excellent. and the tenant roster is very strong. It checked a lot of the boxes."
Also last month, the site of the former Stamford Sheraton hotel, which closed last October, sold for $6 million. The property appears to have been considered for uses including military veterans' housing, but the buyers have not publicly disclosed their plans.
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