Repositioning of Queens Asset Lands $81M in Financing
- Feb 14, 2018
Normandy Real Estate Partners has secured $81 million for its acquisition and repositioning of 25-11 49th Ave. in Long Island City, Queens, N.Y. NKF Capital Markets arranged the loan in partnership with Keystone Equities and Drake Street Partners through Deutsche Bank.
Long Island City has been booming with activity in both residential and commercial development, with nearly 11,500 new residential units completed since 2006 and another 22,450 in the current pipeline.
“Long Island City is experiencing a renaissance and Normandy and their partners have been a big part of that,” Dustin Stolly, vice chairman & co-head of NKF Capital Markets’ Debt & Structured Finance, told Commercial Property Executive. “This project is an exciting time for Queens, as development has brought in residents, jobs and has contributed to the vitality of the neighborhood.”
The property is currently a vacant, two-story building comprising 135,000 square feet. The loft-style asset will be converted and expanded into an 11-story, 238,000-square-foot structure. The nine stories that will be built atop the existing property are all fully pre-leased. The financing will be used for a capital plan that will entail new office entrances, elevators, a new HVAC system, a spacious rooftop deck with an outdoor amenity space, new lobby and common areas, larger windows and new safety and electrical systems. Ownership plans on re-leasing the newly renovated space to a variety of tenants, but primarily those in the creative and TAMI sectors. The project is scheduled for completion by the summer of 2019.
“This property is ideally located near main transportation hubs, which represent part of the growing appeal of this neighborhood,” noted Stolly, in a prepared statement. “This is an excellent opportunity for tenants, and it will allow them to recruit and retain quality talent.”
Stolly, along with Vice Chairman & Co-Head Jordan Roeschlaub, brokered the loan. The pair also recently arranged the transaction of a $72.8 million loan provided by MetLife Investment Management for the refinancing of 240-246 West 35th St., an office building in Manhattan.
Image courtesy of NKF Capital Markets