Item 2. Properties
ITEM 2. PROPERTIES
The following table shows the location, ownership, approximate size (excluding parking garages) and occupancy of each of our properties as of December 31, 2022.
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)
Term (3)
Operating Properties:
731 Lexington Avenue
New York, NY
Office 939,000 939,000 — 100.0% $132.11 Bloomberg L.P. 2029 2039
Retail 83,000 83,000 — The Home Depot 2025 2035
57,000 57,000 — Various Various Various
140,000 140,000 — 90.3% 250.68
1.9 1,079,000 1,079,000 —
Rego Park I
Queens, NY
112,000 112,000 — IKEA (4)
2026 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 2037
16,000 16,000 — Old Navy 2027 N/A
78,000 — 78,000 (5) N/A N/A
4.8 338,000 260,000 78,000 100.0% 50.12
Rego Park II
Queens, NY
145,000 145,000 — Costco 2034 2059
133,000 133,000 — Kohl’s (6)
2031 2051
202,000 202,000 — Various Various Various
135,000 — 135,000 (7)
N/A N/A
6.6 615,000 480,000 135,000 87.3% 64.78
The Alexander apartment tower, 312 units
Queens, NY — 255,000 255,000 — 98.7% 47.59 (8)
Residential (9) N/A
Flushing
Queens, NY (10)
1 167,000 167,000 — 100.0% 32.08 New World Mall LLC 2037 N/A
Property to be Developed:
Rego Park III, adjacent to Rego Park II
Queens, NY 3.2 — — — — — — — —
2,454,000 2,241,000 213,000
(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, 2022. For a discussion of our leasing activity, see Item 7 - Overview - Square Footage, Occupancy and Leasing Activity.
(2) Represents the year in which the tenant’s lease expires, without consideration of any renewal or extension options. Lease expiration dates are based on non-cancelable lease terms and do not extend beyond any early termination rights that the tenant may have under its lease.
(3) Represents the year in which the tenant’s lease expires if all renewal or extension options are exercised.
(4) On December 3, 2022, IKEA closed its store at the property. IKEA remains obligated under its lease which expires in December 2030. The lease includes a right to terminate effective no earlier than March 2026, subject to payment of rent through the termination date and an additional termination payment equal to the lesser of $10,000,000 or the amount of rent due under the remaining term.
(5) Formerly occupied by Sears. Currently out of service due to redevelopment.
(6) Subleased through remaining original lease term.
(7) Formerly occupied by Century 21. Currently out of service due to redevelopment.
(8) Average monthly rent per unit is $3,227.
(9) Residential tenants have one or two year leases.
(10) Ground leased through January 2027 with one 10-year extension option.
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Operating Properties
731 Lexington Avenue
731 Lexington Avenue, a 1,079,000 square foot multi-use building, comprising the entire block bounded by Lexington Avenue, East 59 th Street, Third Avenue and East 58 th Street in Manhattan, New York, and is situated in the heart of one of Manhattan’s busiest business and shopping districts, with convenient access to several subway and bus lines. The building contain s 939,000 and 140,000 of net rentable square feet of office and retail space, respectively. Bloomberg occupies all of the office space. 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 2023, with a one-year as-of right extension option. The interest-only loan is at LIBOR plus 0.90 % (5.22% as of December 31, 2022). In connection therewith, we purchased an interest rate cap with a notional amount of $500,000,000 that caps LIBOR at a rate of 6.00% through June 2023. If we decide to exercise our one-year as-of right extension option, the interest rate of the loan will be equal to the Prime rate (7.50% as of December 31, 2022).
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 SOFR p lus 1.51% which was swapped to a fixed rate of 1.76% through May 2025.
Rego Park I
Rego Park I, a 338,000 square foot shopping center, is located on Queens Boulevard and 63rd 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. On December 3, 2022, IKEA closed its store at the property. IKEA remains obligated under its lease which expires in December 2030. The lease includes a right to terminate effective no earlier than March 2026, subject to payment of rent through the termination date and an additional termination payment equal to the lesser of $10,000,000 or the amount of rent due under the remaining term.
Rego Park II
Rego Park II, a 615,000 square foot shopping center, is located 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 squ are foot Kohl’s, which has been subleased. 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 $202,544,000 which matures in December 2025. The interest-only loan is at SOFR plus 1.45 % (5.60% as of December 31, 2022). In connection therewith, we purchased an interest rate cap with a notional amount of $202,544,000 that caps SOFR at a rate of 4.15% through November 2024.
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%.
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Operating Properties - continued
Flushing
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 through January 2037. The property is ground leased through January 2027 with one 10-year extension option.
Property to be Developed
Rego Park III
We own a 140,000 square foot land parcel adjacent to the Rego Park II shopping center in Queens, New York, at the intersection of Junction Boulevard and the Horace Harding Service Road. In 2022, we secured permits to construct an apartment tower at the property and commenced foundation work necessary to vest the benefits of the Affordable New York (421a) residential program, provided we obtain a certificate of occupancy for the apartment tower by June 2026, subject to any extension that may be granted by the legislature.
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