- BTF Whitestone LLC secured a $75 million loan from Acadia Realty Trust, arranged by Northmarq, to acquire and redevelop Whitestone Shopping Center in Queens.
- The 119,584-square-foot, Key Food-anchored center was acquired for $56 million earlier this month and includes tenants like JPMorgan Chase and Webster Bank.
- The deal reflects strong lender appetite for grocery-anchored retail even as broader financing conditions tighten across other property types.
An entity called BTF Whitestone LLC has secured a $75 million loan to fund both the purchase and redevelopment of a Queens shopping center, according to GlobeSt.
Acadia Realty Trust issued the loan for Whitestone Shopping Center, with Northmarq arranging the financing for principals Aaron Malinsky and Kenneth Schuckman.
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A Fast-Moving Queens Shopping Center Deal
The financing came just weeks after the underlying sale. Long Island Business News reported earlier this month that Whitestone Shopping Center traded for $56 million. The new owners then secured redevelopment financing within weeks of closing the acquisition.
The quick follow-on financing suggests the new owners had redevelopment plans in place before closing. Rather than pursuing a simple buy-and-hold strategy, they appear focused on repositioning the property. That approach is becoming more common in outer-borough retail as investors race to upgrade aging centers.
The Details
The 119,584-square-foot property at 153-17 Cross Island Parkway was built in 1955. Key Food Supermarket anchors the center, while JPMorgan Chase and Webster Bank are among its other tenants.
Northmarq’s Keith Braddish led the financing. He said the plan is to reposition the property into a “vibrant” neighborhood shopping center. Specific redevelopment details have not been disclosed. Robert Delitsky also helped lead the acquisition and redevelopment loan.
Northmarq’s New York Debt + Equity team arranged the deal. The financing covers both the acquisition price and redevelopment costs in one package. This structure allows sponsors to avoid arranging separate acquisition and construction loans.
The center also benefits from a defensive tenant mix. A national grocery anchor and bank branches provide stable, necessity-based income. That profile has helped grocery-anchored retail remain resilient as e-commerce reshapes other retail categories.
Zooming Out
Grocery-anchored retail remains one of the most sought-after asset classes for lenders, Braddish said. That view is gaining traction across capital markets, even as CMBS delinquency concerns mount elsewhere in retail.
The Whitestone financing shows how grocery anchors can reduce perceived risk for retail loans.
Institutional capital is also favoring grocery-anchored centers over other retail types. Enclosed malls and power centers have faced more uneven investor demand. Neighborhood centers anchored by daily-needs tenants, such as supermarkets, continue to attract acquisition and construction financing.
Retail lending volume across the city has been uneven this year. Lenders remain selective about property type and sponsor track record. That makes Whitestone’s swift financing notable. It signals confidence in both the asset and its ownership team.
Why It Matters
The deal comes amid historically tight NYC retail fundamentals. Prime markets across the metro posted an 11.9% availability rate in the second quarter, according to JLL. That marked a third consecutive quarter of record lows.
Scarce space is giving landlords more leverage. However, asking rents in Prime New York fell 2.7% year-over-year to $592 per square foot. The decline was largely driven by weakness in Times Square and Union Square/Flatiron.
For owners of similar aging, grocery-anchored properties, Whitestone offers a useful data point. Lenders remain willing to finance redevelopment alongside acquisitions when the anchor tenant and location fundamentals are strong.
What’s Next
Watch for permit filings or leasing updates from Northmarq or BTF Whitestone as redevelopment plans take shape. Also watch whether the grocery-anchored financing appetite Braddish described continues to attract capital to similar outer-borough centers.
The bigger test will be whether Whitestone’s redevelopment can support higher rents. New or expanded tenants will need to generate enough income to validate the strategy. The outcome could show whether grocery-anchored centers in dense, transit-accessible neighborhoods still have room to grow without ground-up construction.
