Retail center on block in Queens, NY

Real Estate Alert, Feb 18, 2004

Yale University Endowment is preparing to market a shopping center in Queens, N.Y., that's expected to fetch about $42 million.

The 300,000-square-foot Douglaston Plaza is fully leased to five major tenants and a handful of small shops. A two-level Macy's store occupies about half of the space. The other major tenants are Toys R Us, a Waldbaum's supermarket, a Modell's sporting goods store and a seven-screen theater operated by United Artists. Two of the larger leases expire in 2007 and 2008, with the rest rolling over several years later.

Projected net operating income is around $3 million. At a $42 million sales price, the buyer's initial annual yield would be about 7.25%. Eastdil Realty has the listing.

The center is located about 11 miles east of Manhattan, at the high-traffic intersection of the Long Island Expressway and Cross Island Parkway. Some 900,000 people reside within five miles. The average annual income is about $60,000.

Acadia Realty manages the center. A rooftop parking deck was recently upgraded and repaired.

The Yale endowment has a number of real estate holdings around the country, including office, hotel and retail properties. Eastdil recently marketed a 14-property shopping center portfolio for Yale and M&H Realty in California. Brokers at the firm declined to comment on the Queens offering, which is slated to hit the market in a few weeks.