Centers Health Care signs $20M initial loan with Signature Bank for two industrial properties in Astoria

Centers Health Care through the entity 35-11 9th LLC as borrower signed a initial loan with lender Signature Bank valued at $20 million for two industrial properties including the industrial building (F5) at 35-11 9th Street in Astoria, Queens and industrial building (G7) at 3531 9th Street in Astoria, Queens.
The deal closed on October 20, 2022 and was recorded on October 25, 2022. The prior lender was NCC Holdings which held debt that had an original loan amount of $27.2 million. The two properties have 102,670 square feet of built space and 6,262 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $194 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 Centers Health Care was Daryl Hagler. The signatory for Signature Bank was Nicholas A. LaMorte.

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 35-11 9th Street.

Prior sales and revenue

Out of the two properties, one with a total of 102,670 square feet of built space generated revenue of $1.7 million per year.

The property

The 35-11 9th Street parcel has frontage of 210 feet and is 200 feet deep with a total lot size of 42,000 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $9 million.The most recent loan totaled 0.0 and was provided by NCC Holdings on May 5, 2022.

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 $2,500 in ECB penalties and $2,500 in OATH penalties 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 Astoria, the bulk, or 37 percent of the 39.2 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 29 percent of the space. In sales, Astoria has 3.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 2nd highest in Queens. For development, Astoria has 2.8 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Queens. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.

The block

On the tax block of 35-11 9th Street, PincusCo has identified the owners of three of the 14 commercial properties representing 108,670 square feet of the 142,046 square feet. The two identified owners are Daryl Hagler and Mike Psoras.
there are no active new building construction projects on this tax block.

The majority, or 85 percent of the 142,046 square feet of built space are industrial buildings, with walkup buildings next occupying 8 percent of the space.

The borrower

The PincusCo database currently indicates that Centers Health Care owned at least three commercial properties in New York City with 308,350 square feet and a city-determined market value of $33.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 67 percent of the 308,350 square feet of built space are specialty properties, with industrial properties next occupying 33 percent of the space. The bulk, or 67 percent of the built space, is in Brooklyn, with Queens next at 33 percent of the space.

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