Capital interests bring new life into Westchester.

The commercial real estate market in Westchester County is demonstrating sure signs of a recovering economy. The first six months of 1995 indicate important and essential changes in ownership that will strengthen the foundation of the area office property market in the months and years to come.

We have seen institutional ownership move into a dominant market position, as national and international limited partnerships, joint ventures and pension funds invest in some of the area's most prestigious buildings.

Key in this new an growing interest is an increase in the availability of significant properties. Institutions have largely come into control of a number of properties in Westchester County and have, at this point, completed assessments and have identified those properties they will support with additional marketing efforts, and those they will dispose of.

The Travelers, for instance, has placed on the market at 74,000 square-foot building at 7-11 South Broadway, White Plains. Similarly, 733 Yonkers Avenue in Yonkers is now for sale, a 46,000 square-foot building currently owned by Bankers Trust. Both properties have attracted significant interest from investment groups and are in contract, lending support to the prediction that such ownership will continue to increase.

Solid values are part of what serves to attract investors. Existing tenancy, representing a diversity of industries, is also important in Westchester's attractiveness to the investment market. A steady income stream enables investors to reinvest in their new properties, assuring a good rate of return now and into the future. The diverse representation of industries among tenants in Westchester assures institutional investors will not be impacted by changes in any specific industry.

These factors, combined with the long-standing features of the Westchester County marketplace, such as location, work-force and lifestyles, are serving as an attraction magnet that is drawing the attention of investors looking at opportunities to build a global portfolio. Westchester's appeal as an investment is further increased because tight local zoning laws and the scarcity of land here will keep building values higher than in other suburban areas, forecasting a solid long-term investment.

The sale, for instance, of the Christiania building, 120 White Plains Road, in Tarrytown, was a landmark transaction during the first half of 1995. The Virginia-based pension fund purchasing the building made a key investment in a property that many consider the finest piece of commercial architecture in Westchester county. The $18.55 million purchase concluded an extensive marketing effort that included more than a dozen serious bidders, many of which represented worldwide investment groups.

Most recently, Homart Development Co. placed onto the market two substantial portfolios of commercial office buildings and retail centers, among them, 10 Bank Street in white Plains. The 220,000 square-foot downtown office building was sold, 95 percent leased, to a limited partnership known as HMS Office, LP, closing July 31, 1995, as part of the office portfolio, valued in the range of $450 million. Ten Bank Street is among the premier properties in downtown white Plains, and its sale underscores the viability of the White Plains market.

In June, an Ohio limited partnership, the Cadle Company of Newton Falls, purchased a headquarters property in Peekskill. The same month, join venture partners from Virginia and Texas sold 303 South Broadway, Tarrytown, a 197,000 square-foot building.

We expect to see a continued influx of institutional investors during the remainder of the year and beyond, as real estate regains its position as a desirable investment vehicle, and Westchester County, with its proximity to New York City, continues its key position as a center of regional business.