Feder, Zupnick sign $88M refi with Signature Bank for 158-unit elevator rental in LIC

Solomon Feder and Joel Zupnick through the entity 45 Davis Realty LLC as borrower signed a refi loan with lender Signature Bank valued at $88 million for the 158-unit residential elevator building at 45-57 Davis Street in Long Island City, Queens.
The deal closed on March 31, 2022 and was recorded on April 13, 2022. The prior lender was Shelter Growth Capital Partners through its Shelter Growth CRE 2021-FL3 which held debt that had an original loan amount of $70 million.

The developers filed for the initial temporary certificate of occupancy in December 2020, and city records do not indicate if and when a certificate of occupancy has been issued.

The property has 127,456 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $690 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 Solomon Feder and Joel Zupnick was Joel Zupnick. The signatory for Signature Bank was Nicholas A. LaMorte. Simultaneously with this loan, Bent Philipson sold his 10% interest in the property to Solomon Feder.

Prior sales and revenue

The 127,456-square-foot property generated revenue of $4.5 million or $35 per square foot, according to the most recent income and expense figures.

The property

The 45-57 Davis Street parcel has frontage of 216 feet and is 100 feet deep with a total lot size of 21,600 square feet. 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 $11 million.The most recent loan totaled $70 million and was provided by Shelter Growth Capital Partners on April 29, 2021.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $3,230 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 158-unit, 107,322-square-foot R-2 building. The project was developed by Solomon Feder with plans filed February 13, 2018 and permitted September 19, 2019.

The neighborhood

In Long Island City, the bulk, or 33 percent of the 66.2 million square feet of commercial built space are residential elevator buildings, with industrial buildings next occupying 30 percent of the space. In sales, Long Island City has 4.2 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 2nd most active neighborhood among other neighborhoods. It had 9.2 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 12 of the 20 commercial properties representing 351,766 square feet of the 396,066 square feet. The largest owner is L+M Development Partners, followed by Solomon Feder and then Ascent Development. There are five active new building construction projects totaling 352,492 square feet. The largest is a 158-unit, 107,322-square-foot R-2 building developed by Solomon Feder with plans filed February 13, 2018 and permitted September 19, 2019. The second largest is a 92-unit, 76,322-square-foot R-2 building developed by Amit Veeramachaneni with plans filed February 1, 2019 and permitted June 15, 2021.

The majority, or 65 percent of the 413,624 square feet of built space are residential elevator buildings, with hotel buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that Solomon Feder owned at least 13 commercial properties with 211,219 square feet and a city-determined market value of $23.9 million. (Market value is typically about 50% of actual value.) The portfolio has $120.2 million in debt, with top three lenders as Shelter Growth Capital Partners, Signature Bank, and Bethpage Federal Credit Union respectively. Within the portfolio, the bulk, or 51 percent of the 211,219 square feet of built space are residential elevator properties, with retail properties next occupying 29 percent of the space. They are all located in Brooklyn.
The PincusCo database currently indicates that Joel Zupnick owned at least one commercial property with 30,863 square feet and a city-determined market value of $3.5 million. (Market value is typically about 50% of actual value.) The portfolio has $12.7 million in debt, borrowed from Sterling National Bank. The portfolio consists of at least a single office property. It is located in Brooklyn.

Surrounding

Within a 400-foot radius of 45-57 Davis Street, Pincusco identified seven commercial real estate items of interests occurred over the past 24 months.
Of those seven items, two were in new building development. There were one new building permit application and one new building permit. The most recent of these two items was a permit on June 15, 2021 for a 76,322-square-foot R-2 building with 92 residential units at 45-25 Davis Street.
One of those seven items was a sale which Zhidong Wu bought the 7,125-square-foot, one-unit industrial (E9) on 45-17 Davis Street for $11 million from Jasmin Patel on July 30, 2021.
Of those seven items, four were loans above $5 million totaling $417.2 million. The most recent of the four was Zhidong Wu which borrowed $37 million from Bank Hapoalim secured by the 7,125-square-foot, one-unit industrial (E9) on 45-17 Davis Street on August 6, 2021.

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