A group of real estate partners has secured $198.5 million in financing for their Yonkers, New York, open-air lifestyle shopping center, in proximity to Manhattan.
The joint venture consists of Nuveen Real Estate, Taconic Partners, Jamestown, and an unnamed public pension plan. They will use the proceeds to eliminate the existing loan and cover costs for future leasing activity. The financing was provided by Blackstone Real Estate Debt Strategies and arranged by JLL.
The JV first acquired the 1.2 million square foot property in May 2022 and has since secured 679,000 square feet of leases at the property known as Ridge Hill. This includes Dick's Sports Goods expanding by 26,000 square feet to 76,000 square feet. Also, Ridge Hill hosts some other large national retailers, including Apple, Lowe's, Whole Foods Market and T.J. Maxx. Plus, the property offers entertainment options like indoor skydiving, LA Fitness, a LEGOLAND Discovery Center, a theater with full bars, and full-service restaurants. Additionally, Wayfair is set to open a 114,369 square foot store in early 2027, with the JV estimating that this will boost annual visits by a million customers per year.
“The refinancing with Blackstone underscores the Sponsor’s vision and enduring appeal of Ridge Hill,” Aaron Niedermayer, senior managing director of JLL, who represented the JV, said in a statement.
“The property’s high-quality tenancy, prime location and established reputation as Westchester’s leading open-air retail destination made this a compelling transaction.”
Ridge Hill, first developed in 2011, sits less than 20 miles from Midtown Manhattan.
The financing comes on the heels of Nuveen announcing in May that it raised $320 million through a retail fund. The investment pool targets neighborhood properties that are anchored by grocery stores and those that provide everyday essentials.
Retail has been a strong driver of investment volume in the NYC tri-state commercial sector, which overall surged by 11 percent year-over-year in the second quarter to $8.8 billion. Retail saw the strongest gains by sector, with its 50.9 percent surge in volume to $1.59 billion.
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