Urban Edge Properties Acquires Pair of Brooklyn Mixed-Use Buildings
Urban Edge Properties, a real estate investment trust focused on urban retail real estate, has acquired two mixed-use buildings in the Midwood submarket of Brooklyn for $165 million.
NEW YORK CITY- Urban Edge Properties, a real estate investment trust focused on urban retail real estate, has acquired two mixed-use buildings in the Midwood submarket of Brooklyn for $165 million.
Urban Edge scooped the properties as a part of their strategy of acquiring well-located, infill, transit-oriented assets with redevelopment potential and high foot traffic. The Company will increase the value of the assets through a lease-up to fill vacancies, remerchandising where appropriate and maximizing the value of unused development rights. The acquisitions serve as 1031 exchanges for the firm’s recent disposition of non-core assets and allow for the deferral of capital gains from those sales.
The off-market transaction for the Kingswood buildings comprises more than 335,000 square feet, including 106,000 square feet of retail space. Anchors include TJ Maxx, Target, Marshalls and NY Sports Clubs. In addition, Visiting Nurse Services and other medical tenants occupy 134,000 square feet of Class A office space.
“We are excited about the acquisition of these high-quality, mixed-use assets in a prime Brooklyn location,” said Herb Eilberg, chief investment officer for Urban Edge. “This transaction highlights our desire to grow in established submarkets with attractive demographics, and we look forward to pursuing similar opportunities as we continue to transform our portfolio.”
The properties have an estimated 250 parking spaces, across 98,000 square feet, and the potential to add up to 60,000 square feet of office or residential development.