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