The Real Deal New York

Zara Realty snags $173M to refi Queens portfolio

M&T provided the financing
By Kathryn Brenzel | November 27, 2018 05:19PM

144-06 88th Avenue in Queens

Zara Realty just landed a $173 million refinancing package for 15 of its buildings in Queens.

M&T Bank provided the loan, which included a $48.2 million gap mortgage, according to documents filed with the city Department of Finance on Tuesday. Zara representatives noted that the company is making a series of long-term investments in its Queens buildings, which include upgrades to the buildings’ heating and cooling systems, new elevators, as well as new kitchens, floors and bathrooms for individual units.

“We have never sold a building we have purchased in Queens; rather, we put resources into creating long-term, high-quality affordable housing in the communities where we live and work,” the company said in a statement.

Over the last few years, Zara has bulked up its already sizable Queens portfolio. In 2016, the company bought six buildings in Jamaica for $21.5 million from Gowanus-based Lagadakia Realty Corp. A year later, Zara picked up two six-story elevator apartment buildings at 88-22 Parsons Boulevard and 89-21 153rd Street for just under $20 million.

Zara, which is based in Jamaica, was founded in the early 1980s and owns more than 2,000 rental apartments, most of which are in Queens.