Blackstone Group signs $65.1M refi with TIAA for industrial in Jackson Heights

Blackstone Group through the entity Bpp 83-15 24th Property Owner LLC as borrower signed a refi loan with lender TIAA through the entity Teachers Insurance And Annuity valued at $65.1 million for the industrial building at 83-15 24th Avenue in Jackson Heights, Queens.
The deal closed on March 1, 2022 and was recorded on March 14, 2022. The prior lender was TIAA which held debt that had an original loan amount of $38.9 million. The property has 118,312 square feet of built space and 13,189 square feet of additional air rights for a total buildable of 131,897 square feet according to PincusCo analysis of city data. The loan price per built square foot is $550 and the price per buildable square foot is $493 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 February 7, 2019, for $55.5 million. The signatory for Blackstone Group was Anthony Beovich. The signatory for TIAA was Paul St. Arnauld.

Prior sales and revenue

The 118,312-square-foot property generated revenue of $3.5 million or $29 per square foot, according to the most recent income and expense figures.

The property

The 83-15 24th Avenue parcel has frontage of 385 feet and is 441 feet deep with a total lot size of 131,897 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 $23.9 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 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 one of the seven commercial properties representing 8,800 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 51 commercial properties with 15,658,983 square feet and a city-determined market value of $2.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $698.5 million in debt, with top three lenders as Morgan Stanley, PNC Bank, and New York Life Insurance Company respectively. Within the portfolio, the bulk, or 92 percent of the 15,658,983 square feet of built space are residential elevator properties, with industrial properties next occupying 5 percent of the space. The bulk, or 81 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.

Surrounding

Within a 400-foot radius of 83-15 24th Avenue, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a sale which Blackstone Group bought the 8,800-square-foot, one-unit industrial (G1) on 83-34 23rd Avenue for $19 million from Axia Urban affiliate on November 24, 2020.

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