GTJ REIT signs $136.2M refi loan with AIG for seven properties in Edgemere

GTJ REIT through the entity 49-19 Rockaway Beach Boulevard, LLC as borrower signed a refi loan with lender AIG through the entity Aig Asset Management (U.S.), LLC valued at $136.2 million for seven properties including the specialty building (Y7) at 49-19 Rockaway Beach Boulevard in Edgemere, Queens, industrial building (G7) at N/A Beach 50th Street in Edgemere, Queens, and industrial building (G7) at N/A Rockaway Beach Boulevard in Edgemere, Queens.
The deal closed on August 5, 2022 and was recorded on August 23, 2022. The prior lender was AIG which held debt that had an original loan amount of $152.8 million. The seven properties have 31,957 square feet of built space and 100,087 square feet of additional air rights for a total buildable of 131,817 square feet according to PincusCo analysis of city data. The loan price per built square foot is $4,262 and the price per buildable square foot is $1,033 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 GTJ REIT was Paul Cooper. The signatory for AIG was Michael Medvin.

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 49-19 Rockaway Beach Blvd.

The property

The 49-19 Rockaway Beach Blvd parcel has frontage of 543 feet and is 165 feet deep with a total lot size of 90,656 square feet. The lot is irregular. The zoning is C8-1 which allows for up to 1 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $6.3 million.

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 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 Edgemere, the majority, or 79 percent of the 4.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Edgemere has had very little sales volume relative to other neighborhoods with $127.1 million in sales volume in the last two years. For development, Edgemere has had very little major development activity relative to other neighborhoods.It had 418,818 square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

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

All properties are specialty.

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