NGKF Completes $30M Sale of Flushing Redevelopment Site
- Dec 19, 2013
Flushing, N.Y.—Newmark Grubb Knight Frank’s Capital Markets team has paved the way for a mixed-use redevelopment in the Queens neighborhood of Flushing, N.Y., with the $30 million sale of the 85-year-old RKO Keith’s Theater. The site was acquired by Flushing Square LLC and will be transformed into a mixed-use residential project at 135-35 Northern Blvd. The seller was Northern RKO LLC.
In 2011, the property was approved by the Board of Standards and Appeals for the development of a 407,173-square-foot, 17-story community with as many as 357 units, 385 parking spaces, 17,000 square feet of retail and a community facility dedicated to seniors. The theater’s landmark lobby will be preserved as part of the plan.
“The opportunity to redevelop the property into a mixed-use luxury residential development is now in the hands of an experienced and well-capitalized team that has the expertise and experience to redevelop this historic structure into a new centerpiece of Flushing as a luxury residential and retail complex that will serve as the lynchpin for the development of the northern section of Flushing,” says Kenneth Zakin, senior managing director of NGKF Capital Markets.
Flushing Square LLC is headed by Jerry Karlik, the principal of JK Equities. Karlik has been in the real estate business for over 30 years and has most recently been active in residential development in Chicago, where he has completed nearly 1,200 residential units.
Spirit Bascom Ventures acquires second N.Y. apartment
Pomona, N.Y.—Spirit Bascom Ventures, a joint venture between Spirit Investment Partners and The Bascom Group, has acquired Avalon Crystal Hill in Pomona, N.Y., for $33.1 million. The Class A asset is located 45 minutes north of Midtown Manhattan and features 169 units. AvalonBay Communities was the seller.
The 2001-built property has units that average 1,275 square feet in size. Amenities include a clubhouse, swimming pool with sundeck, basketball court, playground and fitness center. Spirit Bascom has a value-add plan in the works that will improve all unit interiors with steel appliances, stone countertops and hardwood floors.
“The asset has been well maintained and has great modern layouts, but the finishes and amenities are tired and in need of a major redesign to keep the property at the cutting edge of design and functionality that renters expect today,” says David Nachman, principal of Spirit Bascom Ventures.
Centerline closes $28.3M in Fannie Mae financing for multi-property deal in the Southeast
New York—Centerline Capital Group announced it has closed five deals in the southeast including three acquisitions and two assumptions. Centerline provided a total investment of $28.3 million in the form of a Fannie Mae DUS MBS mortgage to facilitate the multi-property deal.
The properties are all located in Alabama and Mississippi, and the borrower is a single-asset LLC. The acquisitions include:
- Crestview Apartments—Crestview Apartments, located in Birmingham, Ala., is comprised of three, three-story residential buildings, and a single-story office/laundry building. The property houses 150 garden-style units, was built in 1978 and consists of three one- and two-bedroom floor plans. Centerline’s investment in Crestview Apartments was $4 million. The new loan terms include a 10-year term, 30-year amortization period and a 9.5 year yield maintenance period.
- North Gate Apartments—Located in Meridian, Miss., North Gate Apartments is improved with 13, two-story residential buildings and a single-story clubhouse/leasing office building. The property houses 104 units, was built in 1973, and consists of seven, one-, two-, and three-bedroom floor plans. Centerline provided a $3.175 loan to facilitate the acquisition of North Gate Apartments. Loan terms include a 10-year term, 25-year amortization period and a 9.5-year yield maintenance period.
- East Gate Apartments—Centerline provided $3,125,000 for the acquisition of East Gate Apartments. Located in Meridian, Miss., the property is improved with 10, two-story garden style apartment buildings and one single-story clubhouse/leasing office building. The apartment buildings contain 96 units that were constructed in 1982. The property includes three one- and two-bedroom floor plans. The new loan terms include a 10-year term, 25-year amortization period and a 9.5 year yield maintenance period.
The assumptions include Brookstone Apartments and Highpointe Apartments, both located in Birmingham, Ala.
“The assets are located in southeastern markets with strong fundamentals including economic development and employment growth that has increased demand for rental housing,” Josh Messier, vice president Mortgage Banking at Centerline Capital Group, says. “The borrower is an experienced multifamily property owner and an existing Fannie Mae client. These factors made these transactions ideal candidates for a Fannie Mae execution and enabled us to close all five acquisitions within 60 days.”
“Centerline effectively structured this unique multi-property deal in a seamless and timely fashion,” Matthew Shane with Q10|Lutz Financial Services, the broker on the deal, says. “We hope to partner again with Centerline in the near future.”