NEW YORK CITY—The former RKO Keith's Theater at 135-35 Northern Boulevard in Flushing, Queens, has received a $30 million financing loan from Madison Realty Capital. In July 2016, Xinyuan Real Estate acquired the property for $66.1 million from JK Equities, according the Real Capital Analytics. The online database notes the two-building, three-story structure totals 77,348 square feet and was originally built in 1928.

Xinyuan refinanced and cashed out equity on the unencumbered land to optimize its capital structure prior to beginning construction. The site is currently approved for an approximately 350,000-square-foot retail and condominium project. But the developer states it is currently weighing several options to further improve its business plan to meet the current demands of the Flushing market.

The property has received press attention as a rare, one-time, former lavish movie palace. On April 14, 2019, The New York Times had reported although it was closed in 1986 and deteriorating, 4,000 people signed a petition to restore and preserve the property. The paper also noted the Landmarks Preservation Commission had designated the ticket lobby and foyer as landmarks.

Xinyuan has now obtained approval for the redevelopment.

Gary Sefcik, loan originator at Marcus & Millichap

Marcus & Millichap Capital Corporation, a subsidiary of Marcus & Millichap, arranged the refinancing led by Gary Sefcik, Rick Lechtman and Dan Lisser.

“We utilized Madison Realty Capital in the private non-recourse market which offers much more flexible capital than bank financing,” says Sefcik.

He adds the transaction and future development of the site represents a significant evolution in the approach typically taken by Chinese developers which have historically entered joint ventures with local New York developers.

Xinyuan is a NYSE-listed real estate developer and property manager working primarily in China. It will execute on the RKO site with its own team from its headquarters, a local New York real estate team, and a third-party project manager, a Chinese firm, Kuafu Properties.

Instant Insights /

Former RKO Keith's Theater Receives $30M in Financing

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