$16.5M pre-foreclosure at 106-unit rental complex in Jackson Heights

The special servicer for a commercial mortgage-backed security with an original principal of $16.5 million filed a pre-foreclosure action against the owner of two buildings Jackson Heights, Queens rental buildings at 71-09 and 71-15 37th Avenue, with a total of 106 units. The owner, Rajmattie Persaud, bought the pair of rental buildings in March 2017 for $31.5 million. The two buildings cover the entire block front of 37th Avenue between 71st and 72nd streets, and the owner entity is 590-600 One Realty Corp. LINK

According to the complaint, “Borrower’s subsequent payments were partial payments and resulted in payment shortfalls for April through July 2020, March through June 2021 and January, March and April 2022 (the “Payment Defaults”)… By letter dated July 6, 2023 (the “2023 Notice of Default”), Borrower and Guarantor were notified of additional events of default under the Loan Documents, including the Payment Defaults, Financial Reporting Defaults, and Cash Management Defaults. The 2023 Notice of Default also demanded that Borrower immediately provide the Outstanding Financial Items as required by the Loan Documents.”

Court filings represent the position of one party and are not necessarily accurate or complete.

The two elevator buildings at 71-09 and 71-15 37th Avenue in Jackson Heights, each have 53 residential units and 42,928 square feet of built space, according to a PincusCo analysis of city data. Each parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 9,999 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.1 million. The most recent loan totaled $16.5 million and was provided by Natixis on August 9, 2019.

In 2019 Persaud refinanced with a $16.5 million loan from Natixis, which packaged it into a commercial mortgage-backed security, Series 2019-C18. The complaint says $14.5 million remains outstanding on the loan.

The block

On this tax block, PincusCo has identified the owners of three of the 15 commercial properties representing 89,412 square feet of the 243,434 square feet. The two identified owners are Rajmattie Persaud and Shaju Miah. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Rajmattie Persaud owned at least four commercial properties with 324 residential units in New York City with 251,994 square feet and a city-determined market value of $19.8 million. (Market value is typically about 50% of actual value.) The portfolio has $46.1 million in debt, with top three lenders as Signature Bank, Natixis, and JY Quaheens LP respectively. Within the portfolio, the bulk, or 82 percent of the 251,994 square feet of built space are elevator properties, with walkup properties next occupying 18 percent of the space. They are all located in Queens.

The owners according to the Department of Housing Preservation and Development includes Rajmatte Persuad, head officer and Karan Singh, agent. The business entity is 590-600 One Realty Corp.

The surrounding

This is the first commercial real estate event of interest identified within the 400-foot radius of 71-15 37 Avenue in the past 24 months.

Direct link to the property’s ACRIS page and link to DOB NOW portal.