Cronheim Mortgage arranges $70 million UPREIT acquisition/financing for Mayfair Shopping Center

Commack, NY Cronheim Mortgage has arranged an UPREIT acquisition and financing for Mayfair Shopping Center, a 221,000 s/f, 25-acre community center located along Jericho Tpke. (Rte. 25). Allison Villamagna and Andrew Stewart represented the seller, Arlona Limited Partnership and Arlona Realty LLC, and arranged acquisition financing on behalf of the buyer, Brixmor Property Group. The senior loan was placed with Voya Investment Management, whom Cronheim represents as correspondent and servicer.

In a first for the company, and through a novel structure engineered by Cronheim, Brixmor used partnership units as currency for the balance of the purchase price net of debt. “This was a rare opportunity to acquire an institutional-quality retail asset in one of the most supply-constrained markets in the country,” said Allison Villamagna of Cronheim Mortgage. “We were pleased to structure an UPREIT transaction that delivered meaningful tax advantages for the seller while locking rate on favorable acquisition financing for the buyer ahead of rising rates.”

Originally constructed in 1958, Mayfair Shopping Center has long served as a prominent retail destination within the Commack community. It is one of the first open air shopping centers built in Long Island. The subject was 99% leased at closing and is anchored by Lidl, Planet Fitness, and PGA TOUR Superstore. The center is complemented by a diverse mix of national and regional tenants including Gap, Sephora, J.Crew Factory, H&R Block, and Tropical Smoothie Café. Recent leasing activity underscores the center’s appeal, with MyGym now open, M Nail and Lash Bar signed, and Kid’s Empire under construction and expected to open later this year. 

The subject property has visibility from Jericho Tpke. with over 28,000 VPD and offers parking with 1,582 spaces (7.16/1,000 s/f), which positions the asset for value-add opportunities. It is situated in an affluent trade area with an average household income of $210,000 within a three-mile radius, surrounded by residential neighborhoods and school districts.