Breaking Ground pays $5.98M for 172-unit dev site in Jamaica, gets $106M construction loan

Breaking Ground through the entity BG Sutphin Housing Development Fund Corporation paid $5.98 million to Community Healthcare Network through the entity Community Healthcare Network, Inc. for the development site at 97-04 Sutphin Boulevard in Jamaica, Queens.
The deal closed on March 30, 2023 and was recorded on April 7, 2023.
The signatory for Community Healthcare Network was Robert M. Hayes. The signatory for Breaking Ground was David Beer. David Beer is director of real estate at Breaking Ground also known as Common Ground. Breaking Ground plans to construct 172 residential units and 15,000 square feet of healthcare clinic space that Community Healthcare will occupy.

Simultaneously with the purchase, Breaking Ground obtained a $105.8 million construction loan from government entities including the state’s Housing Finance Agency and the city’s Department of Housing Preservation and Development,

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 97-04 Sutphin Boulevard.

Prior sales and revenue

Prior to this transaction, PincusCo has no record that the buyer Breaking Ground had purchased any other properties and has no record it sold any properties over the past 24 months.
The seller Community Healthcare Network purchased one properties in one transactions for a total of $4.5 million and had not sold any properties over the same time period.

The property

PincusCo cannot determine the lot area of the 97-04 Sutphin Boulevard parcel at this time.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. 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 $1 million on this tax lot.

The block

On the tax block, there were five new building construction projects totaling 641,495 square feet. The largest is a 108-unit, 166,463 square-foot hotel/dormitory/shelter (R-1) building submitted by Kaushik Patel and filed by Kaushik Patel with plans filed October 21, 2015 and permitted August 31, 2021. The second largest is a 142-unit, 166,463 square-foot hotel/dormitory/shelter (R-1) building submitted by Kaushik Patel and filed by Kaushik Patel with plans filed October 21, 2015 and permitted September 17, 2021.

The majority, or 94 percent of the 105,444 square feet of built space are hotel buildings, with specialty buildings next occupying 6 percent of the space.

The seller

The PincusCo database currently indicates that Community Healthcare Network owned at least one commercial property in New York City with 9,100 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single specialty property. It is located in Queens.

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