Vernon Hills Shopping Center in Eastchester Trades for $125 Million

John Jordan | November 2019

Vernon Hills Shopping Center in Eastchester

EASTCHESTER— Ashkenazy Acquisition Corp. has added Vernon Hills Shopping Center in Eastchester for more than $125 million from Vernon Hills Shopping Center LLC.

The five-building, mixed-use property, totaling more than 380,000 square feet at 700 White Plains Road, features a mix of retail, medical and professional credit tenants. The purchase was reported by Cushman & Wakefield, which was a broker in the transaction.

The property’s notable retailers include Starbucks, New York Sports Club, Barnes & Noble, Gap, American Eagle, Brooks Brother  and West Elm, among others. Its medical presence is expanding significantly due to high demand in the local market, with major tenants including Lawrence Hospital along with its affiliated NY Presbyterian and Columbia Medical practices.

More than 450,000 people live within five miles of Vernon Hills Shopping Center; the average household income within that same radius is nearly $144,000.

“Ashkenazy Acquisition Corp. had been eying this investment property—with its irreplaceable location and remarkable tenant demand—for more than 15 years, said Cushman & Wakefield’s Andrew Merin. “This was a family-owned and operated asset since it was originally developed in the 1950s, and as such it can be considered a once in a lifetime acquisition.”

Cushman & Wakefield’s East Rutherford, N.J.-based capital markets team represented the seller and procured the buyer in the Vernon Hills Shopping Center trade, with Merin. David Bernhaut, Gary Gabriel, Brian Whitmer, Frank DiTommaso and Kyle Schmidt led the assignment with Matt Lisk and Al Mirin of the commercial real estate services firm’s Stamford, CT., office.

Additionally, John Alascio, Gideon Gil, Sridhar Vankayala, TJ Sullivan and Maya Steinberger of Cushman & Wakefield’s Manhattan-based Equity, Debt & Structured Finance team represented Ashkenazy Acquisition Corp in arranging acquisition financing. The loan was provided by Peoples United Bank, as lead lender, with Amerant Bank, Iberia Bank and Westchester Bank as lending participants.

No financial terms of the loan financing transactions were disclosed.

“The asset is a flagship mixed-use center in one of the most affluent townships outside New York City,” Alascio said. “Ashkenazy Acquisition Corp.’s sponsorship and business plan resonated with the banking community. In turn, active bidding from the debt markets resulted in long-term balance sheet execution.”

“Vernon Hills Shopping Center is a welcomed addition to Ashkenazy Acquisition Corp’s portfolio,” said Ashkenazy president Daniel Levy. The firm invests in retail, hotel, and office assets and maintains a growing portfolio of more than 100 buildings valued at $14 billion.

“We have watched Vernon Hills Shopping Center thrive for years under the stewardship of the seller and his family, who built the Vernon Hills Shopping Center,” Levy said. “Now our family-owned organization will aspire to continue this track record. We are proud to incorporate this outstanding property among our most iconic holdings.”

Ashkenazy owns a host of trophy retail and office properties in Boston, Miami, and New York City. In addition to the Mall at Cross County in Yonkers, some of the firm’s other notable holdings include: the Plaza Hotel in New York City, South Station in Boston, Barney’s New York and Los Angeles, and the Cross Bronx Plaza in the Bronx.

John Jordan
Editor, Real Estate In-Depth