JLL Capital Markets arranges acquisition financing for grocery-anchored retail center in Albany

NEW YORK, May 10, 2024  – JLL Capital Markets today announced it has arranged acquisition financing for At Colonie Center, a 243,389-square-foot retail destination located just off I-87 at 1425 Central Ave. in Albany, New York.

JLL represented the borrower, New Jersey-based retail developer, owner and operator, Heidenberg Properties Group, securing $17.6 million in financing through Provident Bank.

Located at the convergence of Albany's key retail corridors, At Colonie Center is a retail destination for over one million residents within the 30-mile trade area and is visited by over six million shoppers per year.

The property is anchored by a 33,783-square-foot Whole Foods that is ranked among the grocer’s top 12% of locations nationwide in terms of shoppers. Other key tenants include Floor & Décor, TJX's Sierra Trading Post and Bank of America. Some 94,000 square feet of upper-floor space formerly occupied by Sear’s is currently vacant, presenting ownership with an opportunity to add value though re-tenanting.

A JLL Capital Markets team led by Senior Managing Director Scott Aiese and Senior Director Stephen Van Leer arranged the financing.

“In addition to stable in-place cash flow from a powerful tenant roster, At Colonie Center offers multiple pathways to add value,” said Aiese. “With a solid business plan and a four-decade reputation of excellence in open-air shopping centers and retail properties, Heidenberg Properties Group is the kind of borrower that lenders actively seek out in today’s market. We are thrilled to close this loan with them.”

According to Heidenberg Properties’ COO Jason Lazar, “In the face of a challenging capital market environment, the JLL team ran a process that resulted in a competitive landscape of lenders willing to meet our needs. They understand the retail market from both a borrower’s and lender’s perspective and played a key role in this successful transaction.”

At Colonie Center sits on 20.68 acres and includes 1,554 parking spaces. It is adjacent to the institutionally owned, 1.3-million-square-foot regional shopping center known as Colonie Center - where anchor tenants include Boscov's, Nordstrom Rack and Macy's - and is well positioned at a highly trafficked intersection providing excellent accessibility and exposure to customers.

In recent years, Heidenberg Properties has successfully re-tenanted several former Sears/Kmart anchored locations in Michigan, Pennsylvania, and New York.

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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