Sun Equity, Heskel Group Nab $73M Recap for Queens Retail Property
Sun Equity Partners and The Heskel Group have nabbed $73 million in construction takeout financing and preferred equity for The Shoppes at 82nd Street, a retail property in the Jackson Heights neighborhood of Queens, Commercial Observer can first report.
New York Community Bank (NYCB) provided $59 million in debt, sources said, while a real estate investment trust (REIT) provided the remaining $14 million in preferred equity. The REIT could not be identified by press time.
The Shoppes at 82nd Street, located at 40-31 82nd Street, is a two-story asset that comprises 88,000 square feet. Sun Equity and Herskel Group acquired the property’s site in 2016, paying $27 million.
Today, the property includes five retail stores, a medical office suite, and a 138-car underground parking garage. Its tenants include Target, Starbucks, Chipotle, Chick-fil-A, and EmblemHealth.
Meridian Capital Group’s Morris Betesh, Justin Boruchov and Alex Bailkin arranged the recap.
“Closing a complex retail financing with COVID-19 as a backdrop would be nearly impossible for most firms, but through the pandemic, we have remained focused on delivering for our clients regardless of market conditions,” Betesh told CO. “In this case, Meridian was able to source a $59 million senior loan and arrange for an additional $14 million in preferred equity from a national REIT. This is a testament to the tenacity of our team, the depth of our relationships and, most importantly, the quality of the asset.”
Conveniently located at the border of Jackson Heights and Elmhurst — the two most densely populated neighborhoods in Queens — the property is easily accessible via five subway lines, four bus routes, the Grand Central Parkway, Brooklyn Queens Expressway and the Long Island Expressway.
“The property is 100 percent leased primarily to credit tenants in a very dense, high-traffic area. We are confident that this will be a well-performing investment for all involved,” Betesh added.
Only last week, NYCB financed Cardone Capital’s purchase of luxury rental development Altis Boca Raton with a $105 million acquisition loan, as reported by CO. A Meridian team arranged the debt in that instance, too.