JLL arranges $50 million sale of 361,948 s/f City Center

White Plains, NY JLL Capital Markets has secured the $50 million sale of City Center, a 361,948 s/f retail property. JLL also arranged acquisition financing in the amount of $39.2 million from a regional bank on behalf of the buyer.

JLL worked on behalf of the seller, Kite Realty Group Trust. The buyer was PropUp Group.

The JLL Capital Markets investment sales and advisory team was led by Kevin O’Hearn, J.B. Bruno and Jose Cruz.

City Center is positioned at 5 Mamaroneck Ave. in the downtown, at the crossroads of several major avenues and one mile from I-287. The property is within walking distance of the White Plains Metro-North Railroad station, which provides a 38-minute commute to Grand Central Terminal in New York City.

White Plains is the commercial center of Westchester County, with a population of 59,000 residents and a thriving daytime population of 75,000 workers. The downtown area has undergone significant revitalization in recent years, with 7,000 multifamily residential units under construction, approved or proposed. The area’s average household income exceeding $246,000 within a five-mile radius.

The multi-level retail center was originally built in 2003 and features 91.5% occupancy. City Center is anchored by ShopRite, the New York region’s dominant grocery store operator. Additional anchor and junior anchor tenants include Burlington, Nordstrom Rack, New York Sports Club and Apple Cinemas, a 15-screen movie theater. The property also includes 24 affordable apartment units and benefits from a 154,000 s/f Target on the lower level and the 17,500 s/f White Plains Performing Arts Center on the top floor that shadow anchor the property. The ground level inline tenants have street-level entrances while the anchors and junior anchors are accessed from an atrium lobby that is connected to a city-owned parking garage.

City Center is part of a larger mixed-use complex that includes two luxury residential towers comprising 528 apartments and condominiums, as well as the 365-unit Ritz-Carlton Condominium across the street. The property attracts 3.4 million annual visitors with an average dwell time of 64 minutes.

The center presents upside potential for the PropUp Group, with the ability to lease 30,650 s/f of vacant space, including a former Barnes & Noble unit with prime ground-floor visibility and plaza access.

“White Plains is a phenomenal submarket and only getting better with more luxury residential and mixed-use developments underway,” O’Hearn said. “This led to a tremendous response for this grocery-anchored, multi-level urban asset, and we’re excited to see where the buyer takes it.”

Bruno said, “The strong fundamentals within the retail sector are creating unprecedented competition amongst buyers and lenders for well-located, institutionally maintained, properties such as City Center.”