Ashkenazy picks up Sheepshead Bay shopping center for $38M

81K sf property is anchored by Aldi grocery store

TRD New York /
Jan.January 07, 2019 04:45 PM

Ben Ashkenazy and shopping center at 3779 Nostrand Avenue in Brooklyn (Credit: Google Maps)

Ashkenazy Acquisition Corp. picked up a shopping center in Sheepshead Bay from the LeFrak Organization for more than $38 million.

Ben Ashkenazy and Michael Alpert’s investment firm paid $38.25 million to buy the block-sized property that runs along Nostrand Avenue between avenues Y and Z, The Real Deal has learned.

The LeFrak Organization has owned the property, which has an address of 3779-3861 Nostrand Avenue, since at least the 1970s, according to property records.

Tenants at the 81,000-square-foot center include the German grocery chain Aldi and Blink Fitness.

Thomas Donovan, Eugene Kim, Tommy Lin and Robert Rappa of B6 Real Estate Advisors negotiated the deal on behalf of the seller.

The shopping center was the subject of some neighborhood hand-wringing when, in 2011, the Pathmark grocery store that anchored the property shut down. Pathmark’s parent company, A&P, said at the time that it was one of the company’s worst-performing stores.

The loss of one of the neighborhood’s affordable grocery options put community members up in arms.

Working with then-Brooklyn Borough President Marty Markowitz, LeFrak brought in ALDI two years later in 2013 with a 10-year lease. The store reportedly spans shy of 20,000 square feet.

Sheepshead Bay is currently in the midst of a condominium development-boom, though its retail offerings haven’t necessarily kept pace with the kinds of trendy residential developments that are going up.

Much of the neighborhood is dominated by older, outdated retail, and there’s demand for new amenities and destinations, area players told TRD last year.

Ashkenazy, meanwhile, is one of the large retail investors trying to figure out the changing market. The company owns the Douglaston Plaza Shopping Center in Queens where hardware chain Lowe’s Home Improvement had planned to open a massive, 110,000-square-foot store last year. Lowe’s announced in November that it will be closing 51 stores, though Ashkenazy may have dodged a bullet as the Douglaston location didn’t appear on the list of locations to get the axe.

The landlord also spent the better part of 2018 grappling with Barneys over the rent at its flagship store at 660 Madison Avenue. In August, a city arbitrator gave the landlord the thumbs up to double the store’s annual rent to $30 million.

Ashkenazy, along with partners the Sahara Group and Kingdom Holding, sold the Plaza Hotel to the Qatar-owned Katara Hospitality last year for $600 million.


Related Articles

arrow_forward_ios
445 Fifth Avenue and Harbor Group's Jordan Slone (Google Maps)

Harbor Group sued after defaulting on $40M loan at Midtown retail space

Harbor Group sued after defaulting on $40M loan at Midtown retail space
Governor Andrew Cuomo (Getty; Pixabay)

Landlords, tenants react to Cuomo’s latest eviction ban

Landlords, tenants react to Cuomo’s latest eviction ban
Retail bankruptcies are on pace to surpass those filed in 2010, while store closings have already passed those from 2019, according to a report (Getty)

Retail bankruptcies on pace to rival 2010: report

Retail bankruptcies on pace to rival 2010: report
175 Water Street and Nathan Berman of Metro Loft Management (Berman via CityRealty)

Inside Metro Loft’s new design for 175 Water Street

Inside Metro Loft’s new design for 175 Water Street
A rendering of 121 Morgan Avenue in Bushwick and Benefit Street Partners’ managing director Micah Goodman (Photos via EXR; Benefit Street Partners)

Brooklyn developer duo hit with foreclosure lawsuit

Brooklyn developer duo hit with foreclosure lawsuit
Corey Johnson, Andrew Rigie and Mayor Bill de Blasio (Getty)

Commercial tenant protections get extension from de Blasio

Commercial tenant protections get extension from de Blasio
(iStock)

New York’s law firm leasing volume down by 45%: report

New York’s law firm leasing volume down by 45%: report
A federal judge issued an injunction allowing TikTok to remain in app stores. The company recently signed a major office lease at One Five One in New York (Getty; iStock; Google Maps)

TikTok, savior of NYC’s office market, not yet banned in US

TikTok, savior of NYC’s office market, not yet banned in US
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...