ASAP Holdings signs $43.7M refi loan with Peachtree Hotel Group for hotel in South Ozone Park
ASAP Holdings through the entity Asap 135th Ave Jamaica, LLC as borrower signed a refi loan with lender Peachtree Hotel Group through the entity Psof Lo Jamaica, LLC valued at $43.7 million for the hotel building (H3) at 144-10 135th Avenue in South Ozone Park, Queens.
The deal closed on September 1, 2022 and was recorded on October 18, 2022. The prior lender was Wells Fargo which held debt that had an original loan amount of $36.5 million. The property has 114,800 square feet of built space and 5,952 square feet of additional air rights for a total buildable of 120,535 square feet according to PincusCo analysis of city data. The loan price per built square foot is $380 and the price per buildable square foot is $362 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 owner bought the property on July 18, 2018, for $39.7 million. The signatory for ASAP Holdings was Jatin Desai. The signatory for Peachtree Hotel Group was Jatin Desai.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Jerome Yuan, head officer and Robert Solis, site manager. The business entities are M&R Hospitality Management Corp. and Asap 135th Ave Jamaica, Llc.
The property
The 144-10 135th Avenue parcel has frontage of 166 feet and is 339 feet deep with a total lot size of 49,603 square feet. The lot is irregular. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $24.2 million.The most recent loan totaled $36.5 million and was provided by Wells Fargo on August 9, 2019.
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, $1,250 in ECB penalties, and $1,250 in OATH penalties in the last year.
Development
On the lot, there was one new building construction project for a 360-unit, 160,551 square-foot R-1 building. The project was developed by Robert Schaedle Iii with plans filed December 8, 2015 and permitted November 8, 2018.
The neighborhood
In South Ozone Park, the bulk, or 28 percent of the 6 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 27 percent of the space. In sales, South Ozone Park has the 30th highest sale turnover among other neighborhoods in Queens with $61 million in sales volume in the last two years. For development, South Ozone Park has had very little major development activity relative to other neighborhoods.It had 336,020 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of three of the six commercial properties representing 188,276 square feet of the 650,041 square feet. The largest owner is Jfk, followed by ASAP Property Holdings and then Consolidated Edison.
On the tax block, there were five new building construction projects totaling 628,369 square feet. The largest is a 360-unit, 162,504-square-foot R-1 building developed by Robert Schaedle Iii with plans filed December 8, 2015 and permitted April 9, 2019. The second largest is a 360-unit, 160,551-square-foot R-1 building developed by Robert Schaedle Iii with plans filed December 8, 2015 and permitted August 2, 2018.
The majority, or 100 percent of the 650,041 square feet of built space are hotel buildings, with specialty buildings next occupying 0 percent of the space.
The borrower
The PincusCo database currently indicates that Asap Holdings owned at least two commercial properties in New York City with 261,267 square feet and a city-determined market value of $64.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 261,267 square feet of built space are hotel properties, with development properties next occupying 0 percent of the space. They are all located in Queens.
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