Alexander’s, Inc. has executed a 15-year lease with Target Corporation at its Rego Park Shopping Center, adding a major national retailer to the multi-level open-air complex. The new lease, which includes renewal options, will place Target in approximately 135,000 square feet at the property, located on Junction Boulevard at the Long Island Expressway. The commitment expands the center’s roster of large-format retailers and builds on Alexander’s ongoing repositioning and capital activity in the Rego Park area.
Rego Park Shopping Center totals 600,000 square feet of open-air retail across multiple levels and is anchored by a collection of national chains, including Costco, Burlington, Best Buy, Marshalls, T.J. Maxx, Aldi and Petco. With Target now added to the tenant lineup, the center is reported to be 99% leased, with a weighted average lease term of approximately 9.3 years. The long-duration lease structure, combined with high occupancy, underscores the property’s role as a regional shopping destination with a diverse mix of big-box and discount retailers.
The Target lease follows Alexander’s recent sale of its Rego Park I property to Northwell Health for $235.5 million. That separate asset, described as long-vacant retail space that originally housed an Alexander’s department store, had been out of active retail use prior to the transaction. The disposition marks a shift in use for the former department store site while enabling Alexander’s to focus on its performing retail holdings in the immediate trade area, including Rego Park Shopping Center.
In addition to the sale, Alexander’s completed a $175 million refinancing of Rego Park Shopping Center this past December. The interest-only loan is priced at SOFR plus 2.00% and carries a maturity date in December 2030. This financing extends the center’s debt profile while the property remains largely leased to national credit tenants on long-term agreements, including the newly signed Target lease.
Taken together, the long-term lease with Target, the sale of the long-vacant Rego Park I property, and the recent refinancing of Rego Park Shopping Center highlight a period of active portfolio and capital management for Alexander’s in the Rego Park submarket. The combination of high occupancy, extended lease terms and updated debt financing provides a clearer picture of how the owner is positioning this open-air retail asset for the remainder of the decade.
