“Brooklyn’s Kingswood Center’s $66M loan hitting the market showcases the robust growth and investor confidence in the borough’s commercial real estate sector.”
A $65.5 million loan for Kingswood Center in Brooklyn’s Midwood neighborhood is now available for purchase as part of a distressed loan sale. Yanni Marmarou, managing partner with investment brokerage IPRG, has been appointed by the 2nd District Judicial Court as the receiver for the collateral of the mixed-use retail and office building located at 1630 East 15th Street. The loan sale is commencing four months after Wells Fargo, the loan trustee, filed a foreclosure notice on the loan and its sponsor, Urban Edge Properties.
Marmarou stated that the loan sale will be coming to the market in the next few weeks and is expected to attract attention from various investors and owner-users due to the unique characteristics of the property’s location and composition. The $65.5 million loan was originated by LoanCore Capital in January 2018 as part of a refinance for the property’s original borrowers, Nightingale Properties and Infinity Real Estate. Nightingale and Infinity sold the property to Urban Edge in February 2020 for $88.8 million, with the new owners assuming the previous debt.
The building, spanning 129,028 square feet and equipped with 252 parking spaces, is currently 73 percent leased. The largest tenant, TJ Maxx, has been in Kingswood Center since 2010 and considers it one of its most profitable locations. Other tenants include Visiting Nurse Service of New York, ElderServe Health, and Mount Sinai’s New York Eye and Ear Infirmary. The building also has 18,000 square feet of vacant retail space.
Previously, the building housed New York Sports Club, which vacated the property in November 2020, 12 and a half years ahead of its lease expiration, after filing for bankruptcy protection. VTA Management Services also vacated a second-floor office suite in December 2022.
Marmarou, a specialist in selling distressed notes, mentioned that no deadline has been set for bids as the foreclosure date has not been assigned yet. He highlighted that the building is one of the largest office property offerings south of Prospect Park, allowing up to 45,717 square feet of space on a single floor and opening doors to potential medical or educational uses.
Urban Edge Properties and Urban Edge REIT, a publicly traded real estate investment trust, were created in 2014 to take ownership of the majority of Vornado Realty Trust’s former shopping center business.
No immediate comments have been received from officials at Urban Edge and LoanCore.
Source: https://commercialobserver.com/2023/10/brooklyns-kingswood-centers-66m-loan-market/
