Carlyle Group, King Street sign $114M refi loan with ACORE for LIC office

The Carlyle Group and King Street Properties through the entity 45-18 Court Square Owner, L.L.C. as borrower signed a refi loan with lender ACORE Capital through the entity Acore Capital Mortgage, LP valued at $114 million for the office building (O2) at 45-18 Court Square in Long Island City, Queens.
The deal closed on February 10, 2023 and was recorded on February 15, 2023. The prior lender was ACORE Capital which held debt that had an original loan amount of $152.1 million. The property has 203,103 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $561 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 July 25, 2007, for $33 million. The signatory for Carlyle Group and King Street Properties was Thomas Ragno. The signatory for ACORE Capital was Emily Marcus Ralda.

Prior sales and revenue

The 203,103-square-foot property generated revenue of $8.4 million or $41 per square foot, according to the most recent income and expense figures.

The property

The 45-18 Court Square parcel has frontage of 225 feet and is 200 feet deep with a total lot size of 32,500 square feet. The lot is irregular. The zoning is M1-5/R7-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $26.4 million.The most recent loan totaled $152.1 million and was provided by ACORE Capital on December 19, 2019.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $5,000 in OATH penalties in the last year.

Development

On the lot, there is one active major alteration construction project for a 183,490 square-foot B building. The project was developed by Ed Jaram of King Street with plans filed April 10, 2019 and permitted February 10, 2020.

The neighborhood

In Long Island City, the bulk, or 33 percent of the 62.1 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 32 percent of the space. In sales, Long Island City has the 9th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 9 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the nine commercial properties representing 213,103 square feet of the 488,935 square feet. The identified owner is King Street Properties.
there are no active new building construction projects on this tax block.

the majority, or 46 percent of the 488,935 square feet of built space are office buildings, with industrial buildings next occupying 44 percent of the space.

The borrower

The PincusCo database currently indicates that Carlyle Group owned at least 189 commercial properties in New York City with 2,103,522 square feet and a city-determined market value of $524.8 million. (Market value is typically about 50% of actual value.) The portfolio has $1.1 billion in debt, with top three lenders as Invesco Real Estate, Invesco, and Santander Bank respectively. Within the portfolio, the bulk, or 61 percent of the 2,103,522 square feet of built space are elevator properties, with walkup properties next occupying 15 percent of the space. The bulk, or 45 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.
The PincusCo database currently indicates that King Street Properties owned at least one commercial property in New York City with 10,000 square feet and a city-determined market value of $413,000. (Market value is typically about 50% of actual value.) The portfolio has $152.1 million in debt, borrowed from ACORE Capital. The portfolio consists of at least a single O2 property. It is located in Queens.

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