Former RKO Keith's Theater at 135-35 Northern Boulevard in Flushing, Queens
NEW YORK CITY—The former RKO Keith's Theater at 135-35 Northern Boulevard in Flushing, Queens, has received a $30 million financing loan from Madison Realty Capital. In July 2016, Xinyuan Real Estate acquired the property for $66.1 million from JK Equities, according the Real Capital Analytics. The online database notes the two-building, three-story structure totals 77,348 square feet and was originally built in 1928.
Xinyuan refinanced and cashed out equity on the unencumbered land to optimize its capital structure prior to beginning construction. The site is currently approved for an approximately 350,000-square-foot retail and condominium project. But the developer states it is currently weighing several options to further improve its business plan to meet the current demands of the Flushing market.
The property has received press attention as a rare, one-time, former lavish movie palace. On April 14, 2019, The New York Times had reported although it was closed in 1986 and deteriorating, 4,000 people signed a petition to restore and preserve the property. The paper also noted the Landmarks Preservation Commission had designated the ticket lobby and foyer as landmarks.
Xinyuan has now obtained approval for the redevelopment.
Gary Sefcik, loan originator at Marcus & Millichap
Marcus & Millichap Capital Corporation, a subsidiary of Marcus & Millichap, arranged the refinancing led by Gary Sefcik, Rick Lechtman and Dan Lisser.
“We utilized Madison Realty Capital in the private non-recourse market which offers much more flexible capital than bank financing,” says Sefcik.
He adds the transaction and future development of the site represents a significant evolution in the approach typically taken by Chinese developers which have historically entered joint ventures with local New York developers.
Xinyuan is a NYSE-listed real estate developer and property manager working primarily in China. It will execute on the RKO site with its own team from its headquarters, a local New York real estate team, and a third-party project manager, a Chinese firm, Kuafu Properties.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
