AIG Lends $51M to Refinance Long Island City Industrial Building

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A joint venture between North River Company (NRC) and North Colony Asset Management landed a $51 million loan for a refinancing of a Queens industrial building, Commercial Observer has learned.

AIG supplied the fixed-rate financing for the Matsil Building in Long Island City. The deal was arranged by a Cushman & Wakefield team consisting of Steve Kohn, Alexander Hernandez, Emily Johansen and Josh King. They worked directly with NRC’s Chris Flagg, Chris Pachios and Forrest Mas.

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“Since acquiring the property in December 2018, ownership has had tremendous success implementing its repositioning plan,” Hernandez said in a statement. “We were able to capitalize on recent leasing successes at the property, coupled with upside potential from existing below-market leases, to arrange a long-term refinancing of the property at very attractive terms.”

New York City-based NRC, in conjunction with Cambridge, Mass.-based North Colony, bought the Matsil Building for $72 million in 2018 from Metropolitan Realty Associates and TH Real Estate. The building was previously home to clothing manufacturer, the Matsil Bros

Located at 48-49 35th Street, one block from the Long Island Expressway, the Matsil building is a 312,513-square foot industrial property. The three-story building is 100 percent leased to Maquette Fine Art Services, Ralph Lauren Corporation and Motorola Solutions. It also features an adjacent half-acre parking lot and direct interior loading docks.

Maquette brought the property to full occupancy when it inked a 10-year lease earlier this year to expand its footprint in the building by an additional 56,200 square feet. The company first signed a lease for warehouse space at the site in 2019. 

“Our ability to reposition the asset and lease the building to 100 percent occupancy during a global pandemic is proof that industrial and Long Island City are resilient and will continue to outperform in a challenging real estate market,” Pachios said in a statement.

AIG and North Colony did not immediately respond to requests for comment on the refinancing. 

NRC and North Colony also own The Anable Building, a 140,000 square foot industrial asset at nearby 33-02 48th Avenue, Long Island City.