Sal Rusi and Marvin Schein’s Salmar Properties has secured a $117.6 million loan from the Blackstone Group to refinance 850 Third Avenue in Sunset Park. The new debt replaces a $30 million acquisition loan provided by Goldman Sachs.
- Political Angle: Salmar paid the city $9.4 million for the property in 2011, and subsequently invested $240 million in the redevelopment. As part of the deal, the New York City Economic Development Corporation (NYCED) required that 85 percent of the property be occupied and used by industrial businesses for 30 years, in exchange for a zoning variance that permitted larger ground-floor retail stores.
- Dig Deeper: The developers also received millions in tax breaks to encourage their transformation of the 1.1 million-square-foot vacant warehouse into a state-of-the-art industrial center. After years of the property sitting half-empty, Salmar has now received permission the NYCED to lease up to 268,404 SF on the upper floors to commercial office tenants, TRD first reported.
- Tenant mix: Industrial tenants include Amazon, while the retail is occupied by Saks Fifth Avenue, Micro Center, and Bed Bath & Beyond.