Blackstone Unit to Sell Queens Mall for $425M

Blackstone subsidiary Perform Properties is selling The Shops at Skyview, a 550,000-square-foot mall in New York City’s Queens borough, to TPG and Acadia Realty Trust for $425 million, Bloomberg first reported. Newmark is representing the seller.

Blackstone combined three of its portfolio companies in May to create Perform Properties. The new entity encompasses ShopCore Properties, Retail Opportunity Investments Corp. and EQ Office. At that time, the combined portfolio contained 33 million square feet of retail and office space across the U.S.

The Shops at Skyview, up close

Blackstone acquired the 5.7-acre retail property at 40-24 College Point Blvd. in August 2015 for $382.4 million, according to Yardi Matrix data. On June 15, 2021, the property became subject to a four-year $285 million CMBS loan originated by Morgan Stanley.

Constructed by Onex Real Estate Partners and Muss Development and completed in 2010, the shopping center comprises two three-story buildings and a parking garage with more than 2,600 spaces. Onex bought out Muss a year before the Blackstone acquisition, according to The Real Deal.

The retail center is nearly fully leased. Tenants include BJ’s Wholesale Club, Michaels, Burlington, Marshalls, Old Navy, Famous Footwear, Bath & Body Works, Round 1 Bowling & Arcade and Skyfoods supermarket.

The Shops at Skyview is part of a 3 million-square-foot development that also includes 1,100 apartments and medical offices. It is less than a mile from Citi Field and the site where a joint venture backed by New York Mets owner Steve Cohen and Hard Rock International Inc. want to build a $5.3 billion casino resort and entertainment district.

A Newmark team led by Adam Spies, Adam Doneger and Ben Lushing is representing Blackstone in the deal, according to various media reports.

Acadia recent retail moves

Acadia has $6 billion in assets under management and a 14 million-square-foot portfolio that spans 65 U.S. cities, including New York City. In September, the REIT sold 640 Broadway, a mixed-use retail and residential asset in Manhattan’s NoHo neighborhood, to Pamera North America and Targo Capital for approximately $50 million. A month later, Acadia sold the retail component of 1035 Third Ave. on the Upper East Side for $22 million to Global Asset Properties.

Also in September, Acadia acquired The Avenue West Cobb, a 254,000-square-foot, open-air lifestyle center in Marietta, Ga., from PGIM Real Estate for approximately $63 million. The REIT stated the purchase in the Atlanta market brought the company’s total acquisition volume through the third quarter to $487 million.