Lincoln venture pays $450M for Tri-State portfolio anchored by IBM-era campus

Lincoln Property Company, Saber-Hightower and Waterfall Asset Management have paid $450 million for a mixed-use portfolio spanning New York, New Jersey and Connecticut. Connect CRE reported the deal. The portfolio covers about four million square feet. It spans roughly 300 acres, pairing operating properties with development land.

The centerpiece is iPark 84 in East Fishkill, New York, a 270-acre business park. The park holds roughly 1.8 million square feet built for IBM's flagship semiconductor plant. It can take more than 1.5 million square feet of additional development and, according to the report, arrives with existing infrastructure and immediately available power capacity.

The rest of the portfolio leans toward housing and neighborhood retail. Edgewater Harbor, on the Hudson River in Edgewater, New Jersey, is a 262-unit waterfront mixed-use community. In Norwalk, Connecticut, the portfolio includes a center at 761 Main Avenue. That property spans roughly 400,000 square feet. The anchor is a Northwell Health outpatient complex, with Cannondale's headquarters and a 70,000-square-foot Club Studio gym on site. Entitled pads sit ready for multifamily development. Trilogy Lofts in Yonkers, New York, is a newly built transit-oriented multifamily property next to the Tuckahoe Metro-North station.

Jared Toothman, Lincoln's EVP and market leader, called the acquisition a milestone in the firm's rapid Tri-State growth. He cited the deal's fit with Lincoln's national industrial, healthcare and retail platforms, and with a multifamily development pipeline of more than 5,000 units in the New York metro area. Connect CRE's report does not name the seller or break out capital allocations among the three partners.

The power capacity matters most. Building uses change; electrical infrastructure is harder to replicate. A campus with an existing high-capacity feed and room to expand points toward a data center or advanced manufacturing tenant, though Connect CRE's report does not say so. What happens with the 1.5 million square feet of additional development remains unspecified.

The deal comes in a busy week for private real estate capital. A portfolio has been split into five pieces. The breakup is valued at $4.8 billion. A $70 billion apartment REIT has launched. PWD has covered those moves. The Lincoln venture has a different shape: properties in three states, office, retail, multifamily and development land mixed into one portfolio. Its underwriting leans on waterfront apartments, a medical-anchored retail center and a transit-adjacent multifamily building.

The mix gives the venture income-producing assets to hold while the bigger decision plays out at iPark 84. It also puts Lincoln's operating platform to work across industrial, healthcare, retail and multifamily at once, the strategy Toothman credits for the firm's regional growth.

For Saber-Hightower and Waterfall Asset Management, the purchase adds a landmark campus with an unusual attribute: spare power. Whether that capacity goes to a data center user, a manufacturer or a next-phase developer remains the open question in the underwriting.

The first leasing or development announcement from iPark 84 will name the use the partnership sees for that power.