Blumenfeld Development Group signs $22.5M refi loan for two retail properties in Jackson Heights

Blumenfeld Development Group through the entity BCC II, LLC as borrower signed a refi loan with lender NYS Common Retirement Fund valued at $22.5 million for two retail properties including the retail building at 72-15 25th Avenue in Jackson Heights, Queens and retail building at 71-01 25th Avenue in Jackson Heights, Queens.
The deal closed on April 5, 2022 and was recorded on April 27, 2022. The prior lender was NYS Common Retirement Fund which held debt that had an original loan amount of $18.5 million. The two properties have 132,944 square feet of built space and 162,850 square feet of additional air rights for a total buildable of 294,808 square feet according to PincusCo analysis of city data. The loan price per built square foot is $169 and the price per buildable square foot is $76 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 Blumenfeld Development Group was Brad Blumenfeld. Brad Blumenfeld is the vice president of Blumenfeld Development Group (BDG)

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 72-15 25th Avenue.

Prior sales and revenue

The two properties with a total of 132,944 square feet of built space generated revenue of $2.7 million per year or $21 per square foot.

The property

The 72-15 25th Avenue parcel has frontage of 199 feet and is 496 feet deep with a total lot size of 189,196 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 $14 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have 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

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

The majority, or 74 percent of the 647,913 square feet of built space are office buildings, with retail buildings next occupying 21 percent of the space.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 72-15 25th Avenue that occurred over the past 24 months.

Direct link to Acris document. link