The fully-leased prime retail property refinances at $24 million

New York, NY – Avison Young has arranged a $24 million first mortgage refinancing of a retail condominium at 30 East 85^th Street on Manhattan’s Upper East Side for an affiliate of owner/developer The Zucker Organization. The 35,000-square-foot (sf), multi-tenanted property is fully leased, including an E by Equinox location on the second floor.

The Zucker Organization was represented by Avison Young’s Tri-State Debt & Equity Finance Team, led by Principal & Co-Lead, Scott A. Singer, Executive Director, Kevin Swartz, Senior Director, Jeffrey Moroch, and Associate Director, Andrew McNulty. The team arranged the 10-year loan with J.P. Morgan’s CMBS platform, and the proceeds will be used to repay the existing loan.  The retail condominium at 30 East 85^th Street is managed by Manhattan Skyline Management, a division of The Zucker Organization.

“Our ability to refinance the retail condominium at 30 East 85th Street is a validation of the enduring quality of both the asset and the neighborhood,” said Daniel Lederman, Executive Vice President, The Zucker Organization. “This was our first time working with Avison Young, and we are grateful to the Tri-State team for their thoughtful guidance and proactive support throughout the process. We also appreciate J.P. Morgan for its ability to secure and close on the CMBS loan.”

Located in a prime retail corridor of Madison Avenue between 84^th and 85^th Streets, the building was developed by The Zucker Organization in 1987 and the two-story retail portion has maintained consistently high occupancy. Since its founding in 1961, The Zucker Organization has followed a clear consistent approach to the development, construction, investment, financing, acquisition, and management of residential and commercial real estate, becoming one of the New York City’s most prominent developer, owner, and management firms.

“In late Spring 2024, many balance sheet lenders were shying away from non-grocery retail. CMBS stepped up, as it was created to do, to fill a capital vacuum and we were able to generate strong competition from a variety of CMBS originators,” said Singer. “The Zucker Organization is a strong addition to our portfolio of highly regarded NYC-based family office clients. The fully leased, 35+ year old property coupled with the Zucker’s strategic approach to marketing and leasing provided lenders with the confidence that it will continue to be a stable and successful asset for many years to come.”