Retail REIT Macerich has refinanced Queens Center in the borough’s Elmhurst neighborhood at highly favorable terms with a new $525-million loan bearing fixed interest of 5.37% and interest-only payments during the entire term. “5.37% is the lowest rate on a refinance that Macerich has achieved since 2019, and this loan represents Macerich’s largest outstanding loan,” said Jack Hsieh, president and CEO. The property he said, is “consistently one of the best-performing properties in our entire portfolio,”

Hsieh added, “This completed transaction demonstrates confidence from the capital markets in Macerich’s assets and in progress on our Path Forward Plan, launched earlier this year, which is sharply focused on three key areas: simplifying our business, improving operational performance and reducing leverage. Through advantageous refinancings like this, among other strategic initiatives, we are continuing to advance Macerich’s mission to add long-term value for our shareholders, partners and customers.”

For Queens Center, Macerich carried a more conservative refinance assumption in its spring 2024 five-year forecast. “This is a major reason we believe we have room to potentially outperform our five-year refinance plan and to possibly achieve even greater FFO growth,” said Hsieh.

Marcus & Millichap closed the sale of adjacent industrial and office properties in Long Island City, Queens, for $8.5 million. Jakub Nowak, investment specialist in Marcus & Millichap’s Manhattan office, exclusively marketed the property on behalf of the seller, Vernon Associates LLC, and procured the buyer, a local private investor.

“The $8.5-million sale of 37-11 Vernon Blvd. in Long Island City highlights both the strength of the local industrial market and the creative strategies we use to benefit our clients, especially in an environment with financing challenges,” said Nowak. “By structuring a triple net lease for the adjacent 814 37th Ave. property, with the buyer as the tenant, we enabled the buyer to take operational control of the entire asset without having to finance the full acquisition upfront. This approach benefited both parties and secured a well-capitalized deal in one of New York City’s most sought-after industrial hubs.”

The properties, located at 37-11 Vernon Blvd. and 814 37th Ave., total 18,440 square feet of building space and a 6,560-square-foot open lot for shipping and parking. 

CBRE closed the $5.2-million sale of a prime retail property located at 65-35 Woodhaven Blvd. in the Woodhaven neighborhood of Queens. Innovative Resources for Independence (IRI), a New York-based nonprofit that supports people with intellectual and developmental disabilities, acquired the 9,227-square-foot property previously housing a Rite-Aid/Walgreens. 

CBRE’s Andrew Jaworski acted as lead agent and worked in collaboration with colleagues Dean Rosensweig, Chris Betting and Jojo Lewis of the firm’s Manhattan office in spearheading the marketing campaign for the property and represented the seller in negotiations. Jaworski was assisted by Stuart Strougo, the property’s managing agent.

“We are thrilled with the competitive process, which resulted in a number of offers,” said Jaworski. “IRI is an incredible nonprofit that provides much needed services to adults with disabilities and the property will be ideally used by the organization to meet the needs of the local community.”

Simone Development Companies has leased nearly 16,000 square feet of medical space at 35-30 Francis Lewis Blvd in Queens, NY. ENT and Allergy Associates expanded their practice from 1,800 to 10,000 square feet, and Solaris Health signed a new 6,000-square-foot lease.  

“We are thankful to ENT and Allergy Associates for their continued trust in 35-30 Francis Lewis Blvd and we are thrilled to see their vision come to life in their new, expanded space,” said Joanna Simone, principal & president of leasing and property management operations for Simone Development Companies. “We would also like to welcome Solaris Health to the property, as they are a perfect fit to an already robust tenant roster of medical and service retail.” 

The property has three remaining spaces and features tenants like Gentle Dental World and Huntington Learning Center. 

Courtesy of CBRE

25-01 Queens Plaza North, where Grubb Properties plans to build a 317-unit building.

A new-to-New York developer just dropped $63M on a Long Island City property. 

Charlotte, North Carolina-based Grubb Properties, known for its workforce housing development, picked up its first property in the Big Apple: a 54K SF development site at 25-01 Queens Plaza North, according to CBRE, which brokered the deal. Grubb plans to build housing and take advantage of the opportunity zone program. 

The seller is Estia Realty LLC, an Astoria-based family real estate firm. The family has owned the property — located in an opportunity zone in Long Island City — since 1984, property records show. CBRE’s Dan Kaplan and Elli Klapper brokered the deal for Estia Realty. 

Grubb Properties, helmed by Clay Grubb, filed plans with the city for a 317-unit housing complex at the address last month, The Real Deal reported. In an interview with Multi-Housing News in June, Grubb said the coronavirus pandemic prompted the company to start building in New York. 

“We found that the pandemic opened the drawbridge to certain gateway markets, such as Los Angeles and New York,” he told MHN. “In fact, we recently opened an office in San Jose and continue to build our presence in New York to seize these opportunities.” 

New buyers — particularly ones that would have been priced out in New York before the pandemic — have become increasingly common in New York City’s investment markets as the city reckons with the pandemic fallout.