Grossman Cos. & Summit Development Move Ahead with $68 Million Chappaqua Crossing (NY)
$68 Million Chappaqua Crossing: A Joint Venture of The Grossman Companies and Summit Development in New York’s Westchester County
High-end, 19-Acre Retail Center Is Located on Former Readers Digest World HQ
Quincy, MA / Southport, CT / Chappaqua, NY — In one of the largest ground-up development projects in its 40-year commercial real estate history, The Grossman Companies, Inc., based in Quincy, Mass., has partnered with Summit Development of Southport, CT, to develop a high-end 120,000 square-foot, $68 million retail development on 19 acres at 480 Bedford Road, part of the long-time, former Readers Digest world headquarters. The entire site consists of 114 acres. The sale was consummated on April 14, 2017. The announcement was made by Grossman Companies’ Co-President Jake Grossman and Felix Charney, Principal of Summit .
Chappaqua Crossing will be ready for its anchor tenants, Whole Foods and Life Time Fitness, each 40,000 SF, in mid- 2018. Other tenants that have already signed leases include Pet Valu, Chase Bank, AT&T and Go Health Urgent Care. The remainder of the Readers Digest property will ultimately include: 91 high-end town homes; approximately 500,000 SF of medical and office space anchored by Northern Westchester Hospital; 66 affordable housing units; and various public amenities including a walking trail and performance center.
CBRE’s National Retail Partners represented Grossman and Summit, and arranged both the debt and equity capital that includes the construction loan of $44 million from M & T Bank and a 90% institutional joint venture equity partner for the $24 million equity requirement. The grocery-anchored shopping center in tony, high-barriers-to- entry Westchester County was hotly pursued by both equity and debt capital.
Jake Grossman and Felix Charney of Summit said, “Everyone involved in reaching this milestone has been schooled in the true meaning of the word ‘perseverance.’ The permitting process was complex, starting in 2005. The Town of Chappaqua has been a fantastic partner in bringing this dream to a reality. We are excited to break ground and look forward to deliver a shopping center with a top-notch tenant roster that will enliven the community.”
Chappaqua ranks in the top 100 highest income communities in the U. S. with average household income of $178,000. That figure jumps to $240,000 within one mile of the site. Located on the east bank of the Hudson River, Chappaqua is situated 30 miles from New York City – a 56-minute train ride to Manhattan. The center is accessible via several main highways and will be a benefit to and benefit from nearby towns.
In the last four years, The Grossman Companies and Summit Development have partnered in the acquisition of 9 commercial properties in Connecticut, consisting of some 600,000 square feet including retail, office and industrial properties as well as land. The duo is in the process of completing a small shopping center in Danbury, CT on the busy thoroughfare of Newtown Road. In all, across southern New England, Grossman owns a commercial real estate portfolio in excess of three million square feet. Summit Development has completed some 95 deals encompassing 5.5 million square feet in three states.