Bayrock Capital signs $40M refi loan with Dime for two properties in North Corona

Bayrock Capital through the entity 3710 Partners LLC as borrower signed a refi loan with lender Dime Community Bank valued at $40 million for two properties including the hotel building (H2) at 37-10 114th Street in North Corona, Queens and industrial building (G7) at 37-20 114th Street in North Corona, Queens.
The deal closed on March 14, 2023 and was recorded on March 20, 2023. The prior lender was Broadview Capital which held debt that had an original loan amount of $35 million.
Bayrock paid Moinian Group $50 million for the hotel and development site.
The two properties have 118,300 square feet of built space and 37,968 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $338 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 Bayrock Capital was Zev Brachfeld. The signatory for Dime Community Bank was Joseph Grunwald.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 37-10 114th Street.

The property

The 37-10 114th Street parcel has frontage of 125 feet and is 250 feet deep with a total lot size of 31,250 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $20.1 million. The most recent loan totaled $35 million and was provided by Broadview Capital on December 29, 2022.

Violations and lawsuits

The properties were involved in four lawsuits and zero bankruptcies over the past two years. The highest value suit was a $8.6 million money judgment concerning a UCC mezzanine filed on November 12, 2021, by Joseph Moinian and Moinian Group against Ai Yun Chen and Wendy Chau. In addition, according to city public data, the properties have received six DOB violations, $42,560 in ECB penalties, and $43,860 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 103-unit, 173,574 square-foot R-2 building. The project was developed by Ai Chen with plans filed February 16, 2018 and it has not been permitted yet.

The neighborhood

In North Corona, the bulk, or 31 percent of the 5 million square feet of commercial built space are mixed-use buildings, with walkup buildings next occupying 28 percent of the space. In sales, North Corona has had very little sales volume relative to other neighborhoods with $168.5 million in sales volume in the last two years. For development, North Corona has had very little major development activity relative to other neighborhoods.It had 281,183 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 the tax block of 37-10 114th Street, PincusCo has identified the owners of two of the 18 commercial properties representing 142,690 square feet of the 208,289 square feet. The two identified owners are Moinian Group and Lin Long Guang.
On the tax block, there was one new building construction project filed totaling 173,574 square feet. It is a 103-unit, 173,574-square-foot R-2 building developed by Ai Chen with plans filed February 16, 2018 and permitted June 2, 2022.

the majority, or 58 percent of the 205,510 square feet of built space are hotel buildings, with walkup buildings next occupying 31 percent of the space.

The borrower

The PincusCo database currently indicates that Bayrock Capital owned at least 12 commercial properties in New York City with 295,295 square feet and a city-determined market value of $67.8 million. (Market value is typically about 50% of actual value.) The portfolio has $105.4 million in debt, with top three lenders as Merchants Capital, Broadview Capital, and M&T Bank respectively. Within the portfolio, the bulk, or 74 percent of the 295,295 square feet of built space are hotel properties, with walkup properties next occupying 20 percent of the space. The bulk, or 84 percent of the built space, is in Queens, with Bronx next at 8 percent of the space.

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