Massey’s Guthrie Garvin, Trump Palace
[Updated 2:24 p.m., Sept. 28, 2019] North Miami-based Equity One, which owns or invests in 185 properties nationwide, has purchased a retail condominium at Trump Palace in New York City for $21 million, the company announced yesterday.
The 27,700-square-foot retail condo at the base of 1175 Third Avenue, between 68th and 69th streets, is occupied by a Food Emporium, on a triple net-lease to Great Atlantic & Pacific Tea.
The deal marks North Miami-based Equity One’s first acquisition in Manhattan, and the second acquisition in New York State since the firm acquired Westbury Plaza for $103.7 million in October 2009.
The lease term on the space goes out for another 50 years, according to Massey Knakal Chairman Bob Knakal, who led the team that marketed the space for more than four months. The supermarket is not expected to leave any time soon, however current rents being paid are only 20 percent of current market rents.
” It will be a long time before an owner will be able to get at the upside potential, but there is a significant amount of upside potential created by the very low rent is being paid,” Knakal told The Real Deal.
Equity One either owns or invests in 185 properties around the country, including 171 shopping centers.
Equity One also said it increased its revolving credit line to $400 million from $272 million by exercising its so-called accordion feature. The firm said four new banks joined the existing credit facility with no modification to terms. Several other banks added to their existing credit lines.
“This is another example of our focus on acquiring retail assets with rents that are significantly below market in trade areas with high barriers to entry,” said Jeff Olson, CEO of the firm, in a statement.
Equity One officials were not immediately available for comment.