What changed in this filing

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Item 2. Properties

2021-02-16 compared with 2020-02-18 · 50 added, 33 removed, 46 unchanged (64% of the section changed)

The following table shows the location, ownership, approximate size (excluding parking garages) and occupancy of each of our properties as of December 31, 2020.

Development Or

Lease Expiration(s)

Not Available

Square Feet Weighted

Under Average

Development Or In Service Escalated Lease Expiration(s)

Land Total Not Available Occupancy Annual Original Option

Property Acreage Property In Service For Lease Rate Rent PSF (1)

Tenants Term (2)

Operating Properties:

731 Lexington Avenue

Bloomberg L.P.

The Home Depot

The Container Store

Bed Bath & Beyond

Office 920,000 920,000 — 100% $130.00 Bloomberg L.P.

Retail 83,000 83,000 — The Home Depot 2025 2035

34,000 34,000 — The Container Store 2021 N/A

38,000 38,000 — Various Various Various

155,000 155,000 — 93% 278.46

1.9 1,075,000 1,075,000 —

112,000 112,000 — IKEA 2025 (4) 2030

50,000 50,000 — Burlington 2027 N/A

46,000 46,000 — Bed Bath & Beyond 2026 N/A

36,000 36,000 — Marshalls 2032 N/A

16,000 16,000 — Old Navy 2022 N/A

78,000 — 78,000 (5) N/A N/A

4.8 338,000 260,000 78,000 100% 53.58

145,000 145,000 — Costco 2034 2059

135,000 135,000 — Century 21 (6)

133,000 133,000 — Kohl’s (7)

196,000 196,000 — Various Various Various

6.6 609,000 609,000 — 96% 59.73

The Alexander apartment tower, 312 units

IKEA (ground lessee)

Queens, NY — 255,000 255,000 — 82% 46.26 (8)

Residential (9) N/A

Paramus, NJ 30.3 — — — 100% — IKEA (ground lessee) 2041 (10) N/A

Queens, NY (11)

1 167,000 167,000 — 100% 32.09 New World Mall LLC 2027 2037

1 unchanged sentence

Rego Park III, adjacent to Rego Park II

Queens, NY 3.2 — — — — — — — —

2,444,000 2,366,000 78,000

(1) Represents the weighted average escalated annual rent per square foot, which includes tenant reimbursements and excludes the impact of tenant concessions (such as free rent), as of December 31, 2020.

3 unchanged sentences

(3) Represents the year in which the tenant’s lease expires if all renewal or extension options are exercised.

On September 23, 2019, we entered into a lease agreement with IKEA, replacing a significant portion of the space formerly occupied by Sears.

Currently out of service due to redevelopment.

(4) IKEA has the option to terminate its lease after the fifth year of the lease term subject to payment to us of the lesser of $10,000,000 or the amount of rent due under the remaining term.

1 unchanged sentence

Currently out of service due to redevelopment.

On April 13, 2019, Kohl’s closed its store at the property.

On January 24, 2020, Kohl’s subleased its store to At Home and remains obligated under its lease which expires in January 2031.

(6) On September 10, 2020, Century 21 filed for Chapter 11 bankruptcy and closed its store on December 7, 2020.

(7) Subleased through remaining original lease term.

(8) Average monthly rent per unit is $3,212.

(9) Residential tenants have one or two year leases.

(10) IKEA’s lease has a purchase option in October 2021.

(11) Ground leased through January 2027 with one 10-year extension option.

5 unchanged sentences

Bloomberg occupies all of the office space.

The Home Depot (83,000 square feet) and The Container Store (34,000 square feet) are the principal retail tenants.

The office portion of 731 Lexington Avenue is encumbered by a mortgage loan with a balance of $500,000,000 as of December 31, 2019 .

The interest-only loan is at LIBOR plus 0.90% (2.64% as of December 31, 2019 ) and matures in June 2020, with four one-year unilateral extension options.

The Home Depot (83,000 square feet) is the principal retail tenant.

The office portion of 731 Lexington Avenue is encumbered by a mortgage loan with a balance of $500,000,000 which matures in June 2021, with three one-year unilateral extension options.

The interest-only loan is at LIBOR plus 0.90% (1.06% as of December 31, 2020).

In connection therewith, we purchased an interest rate cap with a notional amount of $500,000,000 that caps LIBOR at a rate of 6.0%.

The retail portion of 731 Lexington Avenue is encumbered by a mortgage loan with a balance of $350,000,000 as of December 31, 2019 .

The interest-only loan is at LIBOR plus 1.40% (3.10 % as of December 31, 2019 ) and matures in August 2020, with two one-year conditional extension options.

Rego Park I, a 343,000 square foot shopping center, located on Queens Boulevard and 63 rd Road in Queens.

On April 4, 2017, Sears closed its 195,000 square foot anchor store at the property ($10,300,000 of annual revenue).

On October 15, 2018, Sears filed for Chapter 11 bankruptcy relief and rejected its lease.

On September 23, 2019, we leased 113,000 square feet at the property to IKEA, replacing a significant portion of the space formerly occupied by Sears.

The center is also anchored by a 50,000 square foot Burlington, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls.

The retail portion of 731 Lexington Avenue is encumbered by a mortgage loan with a balance of $300,000,000 which matures in August 2025.

The interest-only loan is at LIBOR plus 1.40% (1.55% as of December 31, 2020) which is subject to an interest rate swap with a fixed rate of 1.72%.

Rego Park I, a 338,000 square foot shopping center, located on Queens Boulevard and 63 rd Road in Queens, New York.

The center is anchored by a 112,000 square foot IKEA, a 50,000 square foot Burlington, a 46,000 square foot Bed Bath & Beyond and a 36,000 square foot Marshalls.

The center contains a parking deck (1,241 spaces) that provides for paid parking.

Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens.

The center is anchored by a 145,000 square foot Costco, a 135,000 square foot Century 21 and a 133,000 square foot Kohl’s.

On April 13, 2019, Kohl’s closed its store at the property.

On January 24, 2020, Kohl’s subleased its store to At Home and remains obligated under its lease which expires in January 2031.

Rego Park II, a 609,000 square foot shopping center, adjacent to the Rego Park I shopping center in Queens, New York.

The center is anchored by a 145,000 square foot Costco and a 133,000 square foot Kohl’s, which has been subleased.

On September 10, 2020, Century 21 ($6,400,000 of annual revenue) filed for Chapter 11 bankruptcy and closed its 135,000 square foot store on December 7, 2020.

The center contains a parking deck (1,326 spaces) that provides for paid parking.

This center is encumbered by a mortgage loan in the amount of $252,544,000.

The interest-only loan is at LIBOR plus 1.35% (3.15% as of December 31, 2019 ) and matures in December 2025.

This center is encumbered by a mortgage loan in the amount of $252,544,000 which matures in December 2025.

The interest-only loan is at LIBOR plus 1.35% (1.50% as of December 31, 2020).

As of December 31, 2020, we have a participation in the mortgage in the amount of $50,000,000 which for GAAP purposes is netted against the mortgage balance.

Therefore, the balance sheet amount of the mortgage loan is $202,544,000.

On February 14, 2020, we reduced our participation in the mortgage loan to $50,000,000 and received cash proceeds of approximately $145,000,000.

The Alexander Apartment Tower

The Alexander apartment tower, located above our Rego Park II shopping center, contains 312 units aggregating 255,000 square feet.

The property is encumbered by a mortgage loan in the amount of $94,000,000 which matures in November 2027.

The interest-only loan has a fixed rate of 2.63%.

Operating Properties - continued

1 unchanged sentence

The land is located directly across from the Garden State Plaza regional shopping mall and is within two miles of three other regional shopping malls and ten miles of New York City.

The land has been ground leased to IKEA Property, Inc.

The lease expires in 2041, with a purchase option in 2021 for $75,000,000.

The land has been ground leased to IKEA since 2001.

The lease expires in 2041, with a purchase option in October 2021 for $75,000,000.

The property is encumbered by a $68,000,000 interest-only mortgage loan with a fixed rate of 4.72%, which matures in October 2021.

2 unchanged sentences

If the purchase option is not exercised, the triple-net rent for the last 20 years would include debt service sufficient to fully amortize $68,000,000 over the remaining 20-year lease term.

Flushing is located on Roosevelt Avenue and Main Street in the downtown, commercial section of Flushing, Queens, New York.

Our Flushing property is located on Roosevelt Avenue and Main Street in the downtown, commercial section of Flushing, Queens, New York.

Roosevelt Avenue and Main Street are active shopping districts and there are many national retailers located in the area.

A subway entrance is located directly in front of the property with bus service across the street.

The property comprises a four-floor building containing 167,000 square feet and a parking garage, which is sub-leased to New World Mall LLC for the remainder of our ground lease term, which expires in 2027 and has one 10-year extension option.

Property to be Developed

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties