East End signs $193.6M construction loan with Canyon for 216K sf project in Sunnyside
East End Capital through the entity Sunnyside Studios Owner, LLC as borrower signed a new construction loan with lender Canyon Partners through the entity Cred III-Sl Acquisition LLC valued at $193.6 million for the industrial building (F2) at 48-02 48th Avenue in Sunnyside, Queens.
On the lot, there is one active new building construction project for a 216,255 square-foot industrial building. The project was submitted by East End Capital and filed by Denis Iserovich with plans filed April 19, 2022.
The deal closed on July 13, 2023 and was recorded on July 21, 2023.
The owner bought the property on January 18, 2022, for $41.7 million. The signatory for East End Capital was Jonathon K. Yormak. The signatory for Canyon Partners was Luis A. Silva.
The property
The parcel has frontage of 600 feet and is 253 feet deep with a total lot size of 110,444 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $10.7 million. The most recent loan totaled $34 million and was provided by Calmwater Capital on January 18, 2022.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received two DOB violations and $4,247 in OATH penalties in the last year.
The neighborhood
In Sunnyside, The bulk, or 32 percent of the 15.9 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 29 percent of the space. In sales, Sunnyside has near average sales volume among other neighborhoods with $317.1 million in sales volume in the last two years and is the 7th highest in Queens. For development, Sunnyside has had very little major development activity relative to other neighborhoods.It had 631,622 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 126,533 square feet of the 126,533 square feet. The identified owner is East End Capital.
On the tax block, there was one new building construction project filed totaling 216,255 square feet. It is a 216,255 square-foot institutional (I) building submitted by East End Capital and filed by Denis Iserovich with plans filed April 19, 2022 and it has not been permitted yet.
The majority, or 100 percent of the 126,533 square feet of built space are industrial buildings, with development buildings next occupying 0 percent of the space.
The borrower
The PincusCo database currently indicates that East End Capital owned at least three commercial properties in New York City with 151,333 square feet and a city-determined market value of $13.7 million. (Market value is typically about 50% of actual value.) The portfolio has $113.6 million in debt, borrowed from Fortress Investment Group and Calmwater Capital. Within the portfolio, the bulk, or 84 percent of the 151,333 square feet of built space are industrial properties, with specialty properties next occupying 16 percent of the space. The bulk, or 84 percent of the built space, is in Queens, with Manhattan next at 16 percent of the space.
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