New owners lease up improved Woodbury office property

After acquiring a major office property in Woodbury last year, the new owners have brought it to nearly full occupancy.

ARJI Woodbury LLC, a joint venture between Manhattan-based development and investment firms Krown Point Capital and KRW Realty Advisors, purchased the four-story, 141,405-square-foot office building on 8.4 acres at 100 Crossways Park Drive West from RXR for $22.125 million.

The building was about 86 percent occupied when the new owners took over in April 2023. Since then, Krown Point and KRW have invested more than $1 million in capital improvements and leasing efforts that have brought the property to 97.5 percent occupancy, which is quite a feat, considering the overall vacancy rate for Long Island office properties climbed to nearly 16 percent in the second quarter.

New leases, extensions and renewals have been completed with 11 tenants representing over 35,000 square feet of leasing activity at the building, which now has more than 40 tenants.

“After rolling out an aggressive leasing and marketing campaign, we’re excited to have brought this unique office asset close to full occupancy,” said Reggie Kronstadt, principal of Krown Point Capital. “We will continue to prioritize ongoing operational and capital initiatives to keep 100 Crossways well tenanted.”

The improvements to the property included replacement of systems, upgrade of fire alarm system and common-area renovations. Still to come are renovations to the cafe, improvements to the parking lot and installation of electric vehicle charging stations.

“Having been immersed in the acquisition, redevelopment, leasing and management of office assets for over 40 years, we’re excited to now be the fiduciaries of 100 Crossways and operate this high-quality property over the long term,” said Kevin Wang, principal of KRW Realty Advisors.

Kronstadt, who grew up in Jericho, founded Krown Point in June 2020 and formed a management team experienced in entitlement, design, construction and management of residential and commercial projects. The company

currently has a pipeline of over $500 million of residential and commercial projects across the Northeast and select markets in the Southeast. Besides100 Crossways Park Drive West, Krown Point’sother Long Island asset is the 40,544-square-foot office building on 4.3 acres at 101 Crossways Park Drive West, which it acquired for $11.3 million with joint venture partner Jonis Realty Co. in Oct. 2023.

Wang was a former partner at The Mendik Company, where he was involved with the acquisition and leasing of some of New York’s largest portfolio of Class A office buildings. He became a partner at Vornado after Mendik was acquired and subsequently formed KRW Realty Advisors in 1999, acquiring real estate assets with investment partners such as Oaktree Capital, Prudential and Westport Capital.

Broker John LaRuffa of Cushman & Wakefield, the leasing agent for 100 Crossways Park Drive West, has been instrumental in the property’s lease up.

“We appreciate being brought on to lead the leasing efforts at 100 Crossways,” LaRuffa said. “Our leasing initiatives with the new ownership team continue to drive significant activity and position the asset to remain competitive.”

Despite the uncertainty surrounding the office real estate market, Kronstadt takes an individual approach to investing in it and in other sectors as well.

“We think you can’t look at the market with a broad brush,” he said. “There are still some solid opportunities to acquire high-quality assets at value pricing.”

Kronstadt added that Krown Point and KRW are currently looking for those types of opportunities in the office, retail and multifamily sectors throughout the Northeast.

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