A joint venture between World Wide Group and Rabina secured a sizable loan to refinance a Long Island City rental tower.
KKR provided a $160.2 million loan to ownership at 41-42 24th Street in the Queens neighborhood, the Commercial Observer reported. The loan goes toward the 421-unit QLIC, which opened its doors to residents more than a decade ago.
“QLIC exemplifies the type of high-quality, stabilized asset we look to support, with durable cash flow, high occupancy, and a prime, transit-oriented location in Long Island City,” KKR managing director Adam Simon said in a statement.
A JLL team led by Christopher Peck, Lauren Kaufman and Michael Shmuely negotiated the refinancing.
The building features 55 studio apartments, 297 one-bedroom apartments, 53 two-bedroom units and 16 three-bedroom units, as well as 8,000 square feet of ground-floor retail space. Amenities include a fitness center, a rooftop pool with cabanas, a media lounge, a communal workspace and on-site parking.
The magic number at QLIC is 421. In addition to that being the number of units in the building, the developers also benefited from a tax abatement secured under the city’s former 421a program (which has since been replaced by 485x).
Elsewhere in Long Island City, M & T Realty Capital Corporation recently provided a $347 million loan to refinance TF Cornerstone’s luxury waterfront tower. The loan for the 575-unit building at 2-20 Malt Drive is backed by Fannie Mae’s Near Stabilization program.
Late last year, Rabina locked down a refinancing package for its Fifth Avenue supertall. Carlyle Group provided a $640 million condo inventory loan for 520 Fifth Avenue, replacing a $540 million construction loan from Bank OZK and Carlyle’s Global Credit business as the mixed-use tower moves towards leasing and sales.
In June, KKR’s private commercial real estate financing pipeline reached a record $42 billion, driven by dislocations in the traditional lending market.
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