Metropolitan Realty Associates LLC (MRA) and equity partner Angelo Gordon & Co. LP have secured a $23 million acquisition and construction loan for the repositioning of a former Macy’s department store located at the Shops at Nanuet, a Simon Property Group-operated outdoor shopping center in the Hudson Valley hamlet of Nanuet, N.Y.
Amherst Capital provided a three-year loan to the venture hailed by local Clarkstown officials for its contribution to the local economy.
In December 2018, MRA founder and CEO Joe Farkas simultaneously announced the purchase and sale leaseback of the 218,000 s/f store — slated to close on March 24 following Macy’s liquidation sale. The company signed a 10-year, 101,488 s/ft lease with décor superstore, At Home, with occupancy scheduled for the first quarter of 2020.
A veteran in adaptive reuse, Farkas said the redevelopment will modernize and reconfigure the access points to the building in an effort to create a more vibrant offering that will appeal to single or multiple retail users. It will include a new two-story grand lobby with entry and exit upgrades, improved elevator and escalator arteries, tenant controlled mechanical systems, dog-friendly outdoor park, and wireless technology to enhance the overall shopping experience. Also, contemporary exterior signage will be designed to accommodate new tenants.
Farkas—who has been recognized for his work reinventing several properties, including the former Stella D’oro factory in the Bronx—has been working in step with the Town of Clarkstown Supervisor, George Hoehmann, and local authorities, as part of a larger effort to rezone Nanuet as a Transit Oriented Development and create new jobs within the retail sector of the community. He also is assisting the Supervisor’s newly announced Business & Economic Development Advisory Committee.
“Our success in securing a high-quality tenant such as At Home for the space so quickly underscores our confidence in the area’s ability to thrive as a destination shopping center,” said Farkas. “The high-traffic location has an expanded trade area that attracts shoppers with the highest median income in the state. Our redevelopment capitalizes on these attributes by modernizing the space for collaborative new concepts operating at the forefront of next generation retail. Along with our new anchor tenant, we believe the location will flourish as the wider redevelopment progresses.
“Obtaining such favorable terms from our lender is testament to the viability of this venture to contribute to the ongoing growth of a town already ranked among the best places to live in the state and we thank Amherst Capital for its confidence in the project,” he added.
“Amherst is pleased to provide debt capital for a well-conceived repositioning of a viable retail asset in a dynamic and growing Rockland County market,” stated Amherst Capital Management Managing Director and Head of Real Estate Christopher Kelly. “We are excited to participate in this innovative retail strategy developed by Mr. Farkas and his team at MRA, and look forward to supporting their future investment activities.”
Supervisor Hoehmann said, “We are delighted that MRA has a vision for this property that will allow for it to continue to be a vibrant retail space, serving as an engine of economic activity and job creation for the Town of Clarkstown.”
The Shops at Nanuet retail tenancy currently includes Fairway Market, Regal Cinemas, 24-Hour Fitness and specialty retailers Apple, Coach, Lululemon, J. Crew, Michael Kors, Sephora, Starbucks, BJ’s Restaurant and Brewhouse, Zinburger Wine & Burger Bar and P.F. Chang’s.
NKF’s Dustin Stolly, Jordan Roeschlaub and Chris Kramer arranged the financing for MRA. Joe Galvano of Duval & Stachenfeld was the borrower’s counsel, and Lewis Goss II of Arent Fox represented the lender.
David Landes and Jeanine Kemm of Royal Properties will act as leasing agent for MRA.