Carmel Partners signs $500M construction loan with Wells Fargo for 923-unit development in Long Island City

Carmel Partners through the entity Cp VIII LIC Owner, LLC as borrower signed a new construction loan with lender Wells Fargo valued at $500 million for the 923-unit development at 43-30 24th Street in Long Island City, Queens.

There is a new building project for a 923-unit, 934,864-square-foot building filed by Axel Stawski, the former owner, with plans filed May 11, 2016 and permitted August 25, 2022.
The deal closed on August 31, 2022 and was recorded on September 14, 2022.
The signatory for Carmel Partners was Dennis Markus. The signatory for Wells Fargo was Chinar Mithani Starck. Stawski Partners sold for $176.0M to Carmel Partners for 2 properties on March 16, 2022.

The property

The 43-30 24th Street parcel has frontage of 192 feet and is 291 feet deep with a total lot size of 56,459 square feet. The lot is irregular. The zoning is M1-6/R10 which allows for up to 10 times floor area ratio (FAR) for manufacturing and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $6.8 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 received one DOB violation and $130 in OATH penalties in the last year.

The neighborhood

In Long Island City, the bulk, or 34 percent of the 63.3 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 8th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Long Island City is the 3rd most active neighborhood among other neighborhoods. It had 10.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On the tax block of 43-30 24th Street, PincusCo has identified the owners of two of the three commercial properties representing 3,092 square feet of the 100,742 square feet. The identified owner is Carmel Partners.
There are two active new building construction projects totaling 937,956 square feet. The largest is a 923-unit, 934,864-square-foot B building developed by Axel Stawski with plans filed May 11, 2016 and permitted April 26, 2017. The second largest is a one-unit, 3,092-square-foot B building developed by Axel Stawski with plans filed December 22, 2015 and permitted August 11, 2016.

The majority, or 100 percent of the 100,742 square feet of built space are office buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Carmel Partners owned at least seven commercial properties in New York City.

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