NEW YORK CITY—Blackstone appears poised to cash in on the retail sector's success. The private equity giant has purchased the Shops at SkyView Center, a retail mall and parking garage at a large mixed-use complex in the Flushing section of Queens, for about $400 million, according to Crain's New York Business. The seller, Onex Corp.—also a real estate investment and private equity firm—co-developed the project.
The seller was represented by Eastdil Secured. Doug Harmon, senior managing director of the brokerage firm, could not be reached by GlobeSt.com for comment at press time. Blackstone did not respond to requests for comment; it was unclear if the firm handled the sale in-house or had outside advisors.
Blackstone reportedly is acquiring the space through Blackstone Property Partners, its fund that focuses on stable, leased assets and long-term appreciation rather than quick turnaround projects.
The purchase is the company's first acquisition in Flushing which, Crain's notes, is a fast-growing real estate market that has seen an increase in population and a big jump in real estate values and rents. The mall is nearly fully occupied by major retailers and spans roughly 560,000 square feet, making it one of Queens' largest such facilities. The project includes big-box value-themed stores, with outlet locations for Nike and Restoration Hardware, a Nordstrom Rack, Uniqlo and BJ's Wholesale Club. Target has a big outpost at the property too but it owns its retail condo at the mall and is not part of Blackstone's acquisition.
The sale marks a possible comeback for the Flushing project that stalled in the recession. Onex built the 14-acre complex—which includes three residential condo towers known as Sky View Parc —during the downturn and fell behind schedule and over budget. The company has since sold all of the condos in the existing apartment towers and recently broke ground on three high-rise condos at the property that received strong interest from buyers during a presale offering. Late last year, Onex bought out its original partner, Muss Development, on the project.
Blackstone is buying the complex's 2,500 parking garage as part of the acquisition. The space generates income by leasing spaces to the complex's residents but offers free parking to shoppers.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
