Meridian to Market The Urban, a New Mixed-Use Apartment Building With NY Tax Exemption

Meridian Capital Group announced Sept. 12 that its Institutional Investment Sales Group, led by Helen Hwang, has been appointed to sell the leasehold interest in The Urban, a newly developed, 103-unit, 165,000-square-foot mixed-use building at 144-74 Northern Boulevard in the heart of Flushing, Queens.

Completed in September 2020, The Urban is subject to a favorable ground lease with 91 years remaining in its term. Rent payments are made based on an entirely fixed rent schedule, without any future FMV resets and payments increasing at an average compounded rate of only 2 percent over the remaining term. The property, which leased up in only 12 months during the heart of the COVID-19 pandemic and is now fully occupied, also benefits from long-term tax exemptions through both the Affordable New York and ICAP programs, helping to sustain higher profit margins and a durable cash flow stream that will produce premium yields.

“The Urban presents a unique opportunity to acquire the only newly constructed market-rate rental building in one of the City’s most densely populated, eclectic and fun neighborhoods,” said Hwang, head of Meridian Capital Group’s institutional investment sales team. “The investment profile is also perfectly suited for today’s economic environment, providing an asset whose largest expenses are entirely cost-controlled, preserving strong cash returns for years to come.”

The Urban features 103 modern, residential apartments finished with high-end stainless-steel appliances, quartz countertops, loft-like oversized windows, in-unit washers and dryers, smart home features including Latch keyless entry, and private outdoor space in half of its units. Community-wide amenities include a rooftop lounge with grills, outdoor dining areas, a dog run, a state-of-the-art fitness center, and a resident lounge with a game room and workspaces.

In addition to its well-apportioned apartment offerings, The Urban also includes 35,000 square feet of commercial space anchored by international Korean grocery chain H Mart and a 177-space third-party-managed parking garage. The property’s commercial space is 100 percent leased – 65 percent of which was preleased prior to construction start – with a combined weighted average lease term of more than 13 years. Other retail and community facility tenants include Bank of America, Burger King, Evergreen Adult Day Care and a dermatology office.

The Urban is the brainchild of Skyview Companies, the visionary team behind Sky View Parc, the transformative 1,200-unit residential condo and 700,000-square-foot retail mall that houses Target, BJ’s Wholesale Club and Best Buy. Developed in partnership with institutional investors advised by J.P. Morgan Asset Management, The Urban represents the first predominantly market-rate residential rental development in Flushing over the last 15 years and was specifically designed to fill the market void for high-quality rental apartments in the neighborhood.

As the most populous neighborhood in Queens, Flushing has benefited from a notable increase in new construction over the last two decades primarily geared toward residential condo and commercial development. Located just 30 minutes from Manhattan, Flushing has in recent years started to attract a wave a young people drawn to the neighborhood’s unmatched food and beverage scene and its 24/7 vibrancy, diverse lifestyle amenities and central transportation infrastructure, which includes the 7 train, the Long Island Rail Road and multiple major highways, such as the Grand Central Parkway, Brooklyn-Queens Expressway and the Van Wyck Expressway. With nearly all local developments skewed toward residential condo, as well as higher barriers to entry for developing new residential rental product – including the elimination of the 421a tax program – The Urban is poised to become the market leader for rental housing in an area of New York City that can provide an unbeatable value proposition for its renters.

Helen Hwang, Senior Executive Managing Director of Meridian’s Institutional Investment Sales group can be reached at (212) 468-5930 or hhwang@meridiancapital.com.