Deepak Verma pays $12.5M for hotel in Springfield Gardens threatened with foreclosure

Deepak Verma through the entity Anant Hospitality LLC paid $12.5 million to Miriam Chan through the entity American Prosperity LLC for the Howard Johnson-branded hotel building (H4) at 153-95 Rockaway Boulevard in Springfield Gardens, Queens. The State Bank of Texas sued in May 2022 to foreclose on a $7.25 million loan secured by the property.
The deal closed on July 11, 2022 and was recorded on July 14, 2022. The property has 22,193 square feet of built space according to PincusCo analysis of city data. The sale price per built square foot is $563 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 seller bought the property on January 26, 2015, for $10.8 million.

The property

The 153-95 Rockaway Boulevard parcel has frontage of 120 feet and is 131 feet deep with a total lot size of 14,780 square feet. The lot is irregular. The zoning is R3-1 which allows for up to 0.5 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $4.4 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $7.5 million commercial foreclosure concerning a loan filed on May 11, 2022, by State Bank of Texas against Miriam Chan. In addition, according to city public data, the property has 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 Springfield Gardens, the bulk, or 34 percent of the 1.8 million square feet of commercial built space are specialty buildings, with industrial buildings next occupying 25 percent of the space. In sales, Springfield Gardens has the 28th highest sale turnover among other neighborhoods in Queens with $56.4 million in sales volume in the last two years. For development, Springfield Gardens has had very little major development activity relative to other neighborhoods.It had 2,776 square feet of commercial and multi-family construction under development in the last two years, which represents 0.15 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

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

All properties are hotel.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 153-95 Rockaway Boulevard that occurred over the past 24 months.

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