Grubb Properties signs $40M refi loan with Maxim Capital for 317-unit LIC project

Grubb Properties through the entity Queens Plaza North New York, LLC as borrower signed a refi loan with lender Maxim Capital Group through the entity Maxim Credit Group, LLC valued at $40 million for the 317-unit development at 41-34 27th Street in Long Island City, Queens.
On the lot, there is one active new building construction project for a 317-unit, 240,611 square-foot R-2 building. The project was submitted by Grubb Properties and filed by Brian Bradley with plans filed August 23, 2021 and permitted April 21, 2022.
The deal closed on September 22, 2023 and was recorded on September 27, 2023. The prior lender was Emerald Creek Capital which held debt that had an original loan amount of $25 million.

The owner bought the property on September 14, 2021, for $63 million. The signatory for Grubb Properties was Robert Miller. The signatory for Maxim Capital Group was Joshua Knoll.

The property

The parcel has frontage of 201 feet and is 152 feet deep with a total lot size of 30,540 square feet. The lot is irregular. The zoning is M1-5/R9 which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $8.1 million. The most recent loan totaled $25 million and was provided by Emerald Creek Capital on December 16, 2021.

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 $5,000 in ECB penalties and $5,350 in OATH penalties in the last year.

The neighborhood

In Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 8th highest sale turnover among other neighborhoods in the city with $2 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 8.3 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. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the four commercial properties representing 139,900 square feet of the 151,300 square feet. The largest owner is Prospect Management, followed by Hakimian Organization and then Grubb Properties.
On the tax block, there was one new building construction project filed totaling 240,611 square feet. It is a 317-unit, 240,611 square-foot residential (R-2) building submitted by Grubb Properties and filed by Brian Bradley with plans filed August 23, 2021 and permitted April 21, 2022.

The majority, or 57 percent of the 151,300 square feet of built space are elevator buildings, with office buildings next occupying 36 percent of the space.

The borrower

The PincusCo database currently indicates that Grubb Properties owned at least three commercial properties in New York City with 54,000 square feet and a city-determined market value of $19.1 million. (Market value is typically about 50% of actual value.) The portfolio has $130.1 million in debt, with top three lenders as Fortress Investment Group, Naftali Credit Partners, and Emerald Creek Capital respectively. Within the portfolio, the bulk, or 100 percent of the 54,000 square feet of built space are office properties, with G7 properties next occupying 0 percent of the space. They are all located in Queens.

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