ABC Properties, Fisher Associates sign $25.4M refi for 210-unit rental in Jackson Heights

ABC Properties and Fisher Associates through the entity Jackson Surrey 35th LLC as borrower signed a refi loan with lender JPMorgan Chase valued at $25.4 million for the 210-unit residential elevator building at 74-10 35th Avenue in Jackson Heights, Queens.
The deal closed on May 12, 2022 and was recorded on June 8, 2022. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $23 million. The property has 147,000 square feet of built space and 42,350 square feet of additional air rights for a total buildable of 189,200 square feet according to PincusCo analysis of city data. The loan price per built square foot is $172 and the price per buildable square foot is $134 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for ABC Properties and Fisher Associates was David Lansey. The signatory for JPMorgan Chase was Jennifer Smith.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Alan Fisher, head officer and David Lansey, officer. The business entities are Fisher Associates and Jackson Surrey 35th, Llc. The 147,000-square-foot property generated revenue of $4.3 million or $29 per square foot, according to the most recent income and expense figures.

The property

The 74-10 35th Avenue parcel has frontage of 200 feet and is 275 feet deep with a total lot size of 55,000 square feet. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $20.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received four DOB violations and five housing violations in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Jackson Heights, the bulk, or 41 percent of the 41.7 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 33 percent of the space. In sales, Jackson Heights has had very little sales volume relative to other neighborhoods with $199.6 million in sales volume in the last two years. For development, Jackson Heights has had very little major development activity relative to other neighborhoods.It had 435,140 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The majority, or 77 percent of the 412,276 square feet of built space are residential elevator buildings, with office buildings next occupying 23 percent of the space.

The borrower

The PincusCo database currently indicates that Fisher Associates owned at least nine commercial properties with 571,708 square feet and a city-determined market value of $55.7 million. (Market value is typically about 50% of actual value.) The portfolio has $69.5 million in debt, borrowed from JPMorgan Chase. Within the portfolio, the bulk, or 95 percent of the 571,708 square feet of built space are elevator properties, with walkup properties next occupying 5 percent of the space. The bulk, or 73 percent of the built space, is in Queens, with Brooklyn next at 27 percent of the space.

Surrounding

Within a 400-foot radius of 74-10 35th Avenue, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, two were loans above $5 million totaling $27.5 million. The most recent of the two was David Lansey which borrowed $12.3 million from JPMorgan Chase secured by the 108,732-square-foot, 96-unit rental (D1) on 35-46 74th Street on January 20, 2021.

Direct link to Acris document. link