Blackstone lands $285M CMBS refi for Flushing’s Skyview mall

Morgan Stanley originated 2-year floating-rate loan for 510K-sf complex

New York /
Jun.June 04, 2021 01:52 PM
Blackstone’s Jon Gray and Skyview Mall at 40-24 College Point Blvd (Getty, Shops at Skyview)

Blackstone’s Jon Gray and Skyview Mall at 40-24 College Point Blvd (Getty, Shops at Skyview)

Blackstone Group has secured a big new loan for its 510,000-square-foot Flushing retail complex, as the sector looks to bounce back from the impact of the pandemic.

Morgan Stanley originated a $285 million loan for the Shops at Skyview, which will be securitized into a single-asset commercial-mortgage backed securities transaction, according to a provisional rating report from DBRS Morningstar.

The refinancing replaces $306 million in existing debt provided by Morgan Stanley in 2016, according to public records. Blackstone will contribute an additional $45 million in equity to the deal, which “demonstrates a reassuring level of commitment to the property,” DBRS analysts wrote.

“The property will likely continue to experience stress in the short and medium term until the pandemic abates and the economy recovers,” the report says.

The two-year mortgage comes with an interest rate of Libor plus 2.55 percent, and includes three one-year extension options. Blackstone could not be immediately reached for comment.

The two-building, three-story retail power center in the heart of downtown Flushing is part of the 13-acre Sky View Parc complex, which includes three luxury condo towers totaling 448 units.

Blackstone acquired the retail and garage portion of the development from Onex Real Estate Partners for $400 million in 2015, which represented the investment firm’s first deal in Flushing. A recent appraisal values the property at $520 million.

The property’s six-level, 2,256-space parking garage is a major draw for locals, according to the DBRS report.

The anchor tenants, Target and BJ’s, were considered essential and remained open during the lockdown. Rent collection at the complex fell to 79 percent at the height of the pandemic as several tenants went dark or declared bankruptcy, but has since recovered to 97 percent as of March. Target’s space is not part of the loan collateral.

Blackstone is planning a two-story, 36,000-square-foot food hall at the top of the complex. The development of the concept is being led by Colicchio Consulting, whose design will also accommodate performance spaces and programming for nightlife.





    Related Articles

    arrow_forward_ios
    With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
    Real estate stocks push up this week as U.S.-China trade tensions ease
    Real estate stocks push up this week as U.S.-China trade tensions ease
    416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
    Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
    Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
    Jamestown chairman Christoph Kahl and One Times Square (Jamestown LP, iStock)
    Jamestown lands $425M to bring the metaverse to One Times Square
    Jamestown lands $425M to bring the metaverse to One Times Square
    Ron Perelman with 35 East 62nd Street and 41 East 62nd Street (Getty, Google Maps)
    Ron Perelman’s former Lenox Hill offices hit market for $160M
    Ron Perelman’s former Lenox Hill offices hit market for $160M
    World Wide Group's James Stanton, Suchman Group's Jeffrey Suchman and rendering of 66 Nowedonah Avenue in Water Mill NY (World Wide Group, Getty Images, The Water Mill Crossing)
    JS Squared gets financing to build 38 Water Mill townhomes
    JS Squared gets financing to build 38 Water Mill townhomes
    Lev CEO Yaakov Zar (LinkedIn, iStock)
    CRE finance marketplace Lev raises $70M Series B, confirming TRD report
    CRE finance marketplace Lev raises $70M Series B, confirming TRD report
    Steve Witkoff and a rendering of 565-589 Fulton Street (Witkoff, Beyer Blinder Belle)
    Apollo, Witkoff eye $420M construction loan for downtown Brooklyn site
    Apollo, Witkoff eye $420M construction loan for downtown Brooklyn site
    Deerfield's James Flynn and 345 Park Avenue South (Deerfield, iStock)
    Deerfield nabs big refi at life sci property
    Deerfield nabs big refi at life sci property
    arrow_forward_ios

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

    Loading...