Long Island City, NY
Mixed-UseAUGUST 29, 2019
ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, announced that it originated a $35 million loan to complete the construction of 23-20 Jackson Avenue, a nine-story, 82,000-square-foot mixed-use property located in Long Island City, New York. The loan carries a term of 24 months and is sponsored by veteran local real estate developer, The VOREA Group, led by Peter Papamichael, and partner, Andru Coren.
“This loan was particularly alluring for ACRES due to the project’s location in the highly sought-after Court Square market of Long Island City, which has seen a significant amount of investment over the last decade,” said ACRES Chief Executive Officer and President Mark Fogel. “The sponsors were able to utilize their local expertise to recognize the need for the hospitality, retail and office aspects of 23-20 Jackson Avenue, which will be ideal accommodations for what has become one of the most active residential submarkets in New York City.”
23-20 Jackson Avenue will feature three different components: retail across the ground floor and basement; two floors of office space; and six floors of hospitality space. The hospitality space, which will feature 72 units, has been leased to hospitality firm Sonder, while high-tech real estate brokerage, Compass, has leased just over 11,000 square feet of office space on the second and third floors. The building will be located at the southwest corner of Jackson Avenue and Pearson Street, positioning the retail space to capture the attention of a significant amount of foot traffic.
Peter Papamichael, the principal of VOREA, stated, “The central location of the Court Square submarket and its proximity to Midtown Manhattan have attracted residents from across the five boroughs. We are proud to partner with ACRES, which provided the creative deal terms, swift execution and efficient process necessary to bring the property toward completion and provide new options for Long Island City businesses and inhabitants. With 80 percent of the building pre-leased and other prospective tenants already showing interest, 23-20 Jackson will surely continue to attract interest from a wide variety of tenants.”
Over the past few decades, Long Island City has seen a departure from its industrial and manufacturing roots, and has been transformed by several waves of development. Today, the market continues to attract new office tenants and a wealth of new residents looking to take advantage of the neighborhood’s amenities and convenient location. New residential developments are driving demand for retail and office space, with Jackson Avenue serving as one of the area’s main retail corridors. Additionally, Long Island City and the broader New York metro area continue to be among the nation’s premier destinations to visit, fueling the necessity for additional hospitality space.
The VOREA Construction Companies will serve as the construction manager for the project, and The VOREA Group will manage the property once complete. Vice President Marko J. Kazanjian of JLL brokered the transaction.