$17M pre-foreclosure filed on 58 units in Jackson Heights

LNR Partners, on behalf of a securitized trust, Series 2021-C12, filed a pre-foreclosure action against the owners of two Jackson Heights, Queens, walkups with a total of 58 units, at 33-54 83rd Street and 33-53 82nd Street, alleging payment defaults since early 2023. The property owners include HC Equities, Saliman Coy and Ginny Werner.
The owners acquired the building in October 2021 for $17.1 million, a few days after buying the $17.7 million debt from Arbor Realty Trust.
Case LINK
Court filings represent the position of one party and are not necessarily accurate or complete.

According to the complaint, “Borrower failed to timely pay the full amount due under the Loan Documents on February 1, 2023, and on each Monthly Payment Date thereafter through and including at least November 1, 2024…” HC Equities, the former lender, took title to the properties in 2021.

The properties

The walkup building at 33-54 83rd Street with 29 residential units in Jackson Heights has 27,312 square feet of built space and 17,420 square feet of additional air rights for a total buildable of 44,720 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 130 feet deep with a total lot size of 13,000 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Jackson Heights Historic District. The city-designated market value for the property in 2022 is $4.3 million. The most recent loan totaled $17.1 million and was provided by Societe Generale on October 21, 2021.

The walkup building at 33-53 82nd Street with 29 residential units in Jackson Heights has 27,312 square feet of built space and 17,420 square feet of additional air rights for a total buildable of 44,720 square feet according to a PincusCo analysis of city data. The parcel has frontage of 100 feet and is 130 feet deep with a total lot size of 13,000 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The property is in the Jackson Heights Historic District. The city-designated market value for the property in 2022 is $3.3 million. The most recent loan totaled $17.1 million and was provided by Societe Generale on October 21, 2021.

Prior sales and revenue

This properties were sold by Henley Investment Management for $17.1 million to HC Equities on October 29, 2021.

The 27,312-square-foot property generated revenue of $759,361 or $28 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

According to city public data, the property has received five DOB violations, $2,530 in ECB penalties, 310 housing violations, $7,580 in OATH penalties, and four housing litigations in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Jackson Heights, The bulk, or 42 percent of the 16.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 18 percent of the space. In sales, Jackson Heights has near average sales volume among other neighborhoods with $148.1 million in sales volume in the last two years and is the 14th highest in Queens. For development, Jackson Heights has near average amount of major developments among other neighborhoods and is the 17th highest in Queens. It had 383,327 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the five commercial properties representing 88,454 square feet of the 116,489 square feet. The two identified owners are Hc Equities and Rema Management. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Hc Equities owned at least two commercial properties with 58 residential units in New York City with 54,624 square feet and a city-determined market value of $8.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are walkup properties. They are all located in Queens.

The owners according to the Department of Housing Preservation and Development includes Mark Anthony, head officer and Mary Peter, site manager. The business entity is Hcec Equities Llc.

The surrounding

This is the first commercial real estate event of interest identified within the 400-foot radius of 33-53 82 Street in the past 24 months.

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