Blackstone Group signs $18.5M refi loan with TIAA for industrial in Jackson Heights

Blackstone Group through the entity Bpp83-34 23rd Property Owner LLC as borrower signed a refi loan with lender Teachers Insurance and Annuity valued at $18.5 million for the industrial building at 83-34 23rd Avenue in Jackson Heights, Queens.
The deal closed on March 1, 2022 and was recorded on March 22, 2022. The prior lender was Teachers Insurance and Annuity which held debt that had an original loan amount of $10 million. The property has 8,800 square feet of built space and 63,615 square feet of additional air rights for a total buildable of 72,290 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,100 and the price per buildable square foot is $255 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 November 13, 2020, for $19 million. The signatory for Blackstone Group was Anthony Beovich. The signatory for Teachers Insurance and Annuity was Paul St. Arnauld.

Prior sales and revenue

The 8,800-square-foot property generated revenue of $771,878 or $88 per square foot, according to the most recent income and expense figures.

The property

The 83-34 23rd Avenue parcel has frontage of 464 feet and is 194 feet deep with a total lot size of 72,290 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $10.2 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant 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

On this tax block, PincusCo has identified the owners of two of the seven commercial properties representing 127,112 square feet of the 163,406 square feet. The identified owner is Blackstone Group. There are no active new building construction projects on this tax block.

The majority, or 89 percent of the 165,212 square feet of built space are industrial buildings, with hotel buildings next occupying 10 percent of the space.

The borrower

The PincusCo database currently indicates that Blackstone Group owned at least 52 commercial properties with 15,777,295 square feet and a city-determined market value of $2.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $763.7 million in debt, with top three lenders as Morgan Stanley, PNC Bank, and TIAA respectively. Within the portfolio, the bulk, or 91 percent of the 15,777,295 square feet of built space are residential elevator properties, with industrial properties next occupying 5 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.

Surrounding

Within a 400-foot radius of 83-34 23rd Avenue, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Blackstone Group borrowed $65.1 million from TIAA secured by the 118,312-square-foot, eight-unit industrial (E9) on 83-15 24th Avenue on March 14, 2022.

Direct link to Acris document. link