GTJ REIT signs $144.3M refi loan with AIG for bus depot in Jackson Heights

GTJ REIT through the entity 85-01 24th Avenue, LLC as borrower signed a refi loan with lender AIG through the entity AIG Asset Management (U.S.), LLC valued at $144.3 million for the industrial parcel (G1) that is home to the Metropolitan Transportation Authority’s LaGuardia Bus Depot at 85-01 24th Avenue in Jackson Heights, Queens.
The deal closed on August 5, 2022 and was recorded on August 19, 2022. The prior lender was AIG which held debt that had an original loan amount of $158.8 million. The property has 118,430 square feet of built space and 162,504 square feet of additional air rights for a total buildable of 280,180 square feet according to PincusCo analysis of city data. The loan price per built square foot is $1,218 and the price per buildable square foot is $515 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 A. Cooper. The signatory for AIG was Michael Medvin.

Prior sales and revenue

The 118,430-square-foot property generated revenue of $4 million or $34 per square foot, according to the most recent income and expense figures.

The property

The 85-01 24th Avenue parcel has frontage of 460 feet and is 629 feet deep with a total lot size of 280,180 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $19.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. 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 Jackson Heights, the bulk, or 42 percent of the 16.3 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 19 percent of the space. In sales, Jackson Heights has had very little sales volume relative to other neighborhoods with $179 million in sales volume in the last two years. For development, Jackson Heights has had very little major development activity relative to other neighborhoods.It had 441,418 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

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

All properties are industrial.

The borrower

The PincusCo database currently indicates that GTJ Reit owned at least one commercial property in New York City with 58,000 square feet and a city-determined market value of $5.3 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single industrial property. It is located in Brooklyn.

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