Slate Property Group JV Lands $97M for Queens Community

Loan proceeds will be used to retire existing debt.

Slate Property Group and Grobman Gross Properties have received a $97 million loan for the refinancing of The Yellowstone, a 166-unit mixed-use luxury community in New York City’s Queens borough.

Apollo Global Real Estate Management L.P. provided the 5-year, fixed-rate note. Proceeds will retire existing debt, cover closing costs and fund an interest reserve on the recently completed building. Newmark Senior Managing Director Daniel Fromm worked on behalf of the borrower.

The developers broke ground on The Yellowstone in 2021, after years of project planning and several setbacks. Back then, Slate received $90 million in construction financing, with Pacific Western Bank providing the senior debt and Heitman the mezzanine financing.

Designed by Aufgang Architects, the community comprises studio, one- and two-bedroom floorplans. Amenities include a fitness center, a community lounge, coworking spaces, an outdoor terrace, a game area, a sundeck, grilling stations, bike storage, controlled access and approximately 185 parking spaces. Unit features include washers and dryers, stainless steel appliances, black granite kitchen countertops, oak flooring and oversized windows.

The Yellowstone incorporates a total of 50 affordable units. The mixed-use development also features 48,964 square feet ground-floor retail space, which is anchored by a Trader Joe’s supermarket.

Queens, a borough on the rise

The Yellowstone rises 11 stories at 69-65 Yellowstone Blvd. in an Opportunity Zone in the Forest Hills neighborhood. The property is close to interstates 678 and 495, which provide easy access to the New York City metropolitan area, and within walking distance of several bus stops and subway stations. Flushing Meadows Corona Park, Forest Park, Queens Zoo and Queens College are within a 2.5-mile radius.

The Queens multifamily rental market has recently outperformed a good number of U.S. averages. As of November of last year, the rents in the borough were up 0.2 percent on a trailing three-month basis, according to a recent Yardi Matrix report. The occupancy rate remained unchanged at a very tight 98.9 percent over 12 months. Meanwhile, the borough had around 11,077 units under construction as of November 2023.

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