Kingswood Centre, a shopping centre in Brooklyn's Midwood neighbourhood, has a new owner. The 229,926-square-foot (approx. 21,365 square metres) property at 1630 East 15th Street was sold to Michael Berfield's Bridges Development Group for US$31 million, as reported by Commercial Observer, citing brokerage firm JLL.
The current sale represents a substantial discount, as the shopping centre last changed hands in early 2020 for US$89 million. The three-storey, Class B property is currently anchored by T.J. Maxx. A listing on LoopNet advertises nearly 100,000 square feet (approx. 9,290 square metres) of retail and commercial space for lease.
Kingswood Centre was built in 2007 and extensively renovated in 2019. It also features its own multi-storey car park. The sale was brokered by JLL, with Ethan Stanton, Michael Mazzara and Brendan Maddigan representing the seller, Midland Loan Services of PNC, in direct negotiations with the buyer.
A JLL financing team, comprising Scott Aiese and Alex Staikos, secured US$34.65 million in acquisition financing for the buyer. The lender's identity was not disclosed by the company. According to a JLL spokesperson, the financing will enable Bridges Development Group to implement a business plan involving investments in the property and the leasing of vacant spaces.
Midland acquired the property in 2023 from its previous owner, retail REIT Urban Edge Properties. The REIT defaulted on a US$66 million CMBS (Commercial Mortgage-Backed Securities) loan, which had been used to acquire the centre in February 2020. Following this, in hindsight ill-timed, purchase, the shopping centre's annual net operating income reportedly dropped to US$1.9 million, and the occupancy rate fell to 35 per cent, as reported by The Real Deal at the time. Urban Edge Properties still owns the nearby Kingswood Crossing at 1715 East 13th Street, according to its website.
Spokespersons for Bridges Development Group and PNC did not immediately respond to requests for comment.
