Prestige Refinances 517 KSF Bronx Retail Center for $210M
- Sep 19, 2012
Prestige Properties & Development wraps up an eventful summer with the $210 million refinancing of Bay Plaza Community Center, a 517,000-square-foot retail property within the real estate company’s 1.3 million-square-foot Shopping at Bay Plaza complex in Bronx, N.Y.
Prestige was hardly under the gun to refinance the asset. “[It was a] purely strategic business decision; Prestige wanted to take advantage of current attractive interest rates,” Sam Shalem, chairman and CEO of Prestige, told Commercial Property Executive. MetLife’s Real Estate Investments Division supplied the financing in the form of a five-year, fixed-rate loan bearing an interest rate of sub 4 percent.
Bay Plaza Community Center, which also features an office component, is a premier property in a premier market and holds the distinction of being New York City’s largest retail center. Its success is evident in the numbers; the retail segment is 96 percent occupied and net operating income exceeds $22 million. MetLife took note of what Shalem describes as a “terrific, well-located property that continues to be successful, in an area that is still lacking in quality retail.”
The capital markets continue to warm up, and while retail may not be the darling of the commercial real estate lending community–multifamily still holds the title–the sector is hardly being ignored.
“For quality product, there are ample opportunities for financing,” Shalem said.
News of the Bay Plaza Community Center refinancing deal comes on the heels of Prestige’s groundbreaking for the Mall at Bay Plaza, a $300 million enclosed fashion mall that will add 780,000 square feet to the sprawling Shopping at Bay Plaza complex.