Prudential Mortgage Capital Company provided an $85 million, 15-year fixed rate loan to MD Carlisle and JD Carlisle for Kips Bay Plaza, a 171,325 square-foot grocery-anchored retail center in the Kips Bay section of Manhattan. Prudential Mortgage Capital Company is the commercial mortgage lending business of Prudential Financial, Inc. (NYSE:PRU). Chris Lama of NY Urban Real Estate Services arranged the financing for the borrower.
The property was originally developed by the borrower in 1998. Jules Demchick of JD Carlisle and Evan Stein of MD Carlisle, are industry veterans who have invested in several deals together. Located on Second Avenue between 30 th and 32 nd streets, the property has become a grocery-anchored center with the signing of its new tenant Fairway Supermarkets. Other tenants include an AMC movie theater, Rite Aid pharmacy, Petco, Staples and TD Bank. The neighborhood is primarily residential with the NYU Hospital Center and affiliated medical school parallel to the Property on First Avenue.
“With retail at such a premium in New York City, we expect this property to perform well. The addition of Fairway Supermarkets as an anchor tenant should bring substantially more foot traffic in this centrally located neighborhood, making this an all-around extremely attractive transaction,” said Justin Levitt, a director with Prudential Mortgage Capital Company’s New York office, who led the transaction. “We look forward to providing excellent service to our borrower during the loan term.”
“We are thrilled to have successfully closed this transaction with Prudential and locked in long term debt at very favorable terms. Prudential did an excellent job in working with us and closed the loan in a timely manner. Their knowledge of the market and efforts to understand our needs made this a truly successful transaction. The financing was a culmination of a three year effort on our part to reposition this property into one of the best retail destinations in NYC” added Evan Stein of MD Carlisle.