Gwoli Chen, Shui Xian Liu sign $9M refi loan with Verus Mortgage for specialty in Flushing

Gwoli Chen and Shui Xian Liu through the entity Xin Tai Delaware 888 LLC as borrower signed a refi loan with lender Verus Mortgage Capital through the entity Verus Commercial Real Estate Finance LLC valued at $9 million for the midblock specialty building at 133-24 41st Road in Flushing, Queens.
The deal closed on April 12, 2022 and was recorded on June 3, 2022. The prior lender was BP3 Capital which held debt that had an original loan amount of $3.6 million. The property has 14,399 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $625 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 owner bought the property on April 12, 2018, for $2.8 million. The signatory for Gwoli Chen and Shui Xian Liu was Gwoli Chen and Shui Xian Liu. The signatory for Verus Mortgage Capital was Troy Gibbens.

Prior sales and revenue

The 14,399-square-foot property generated revenue of $680,785 or $47 per square foot, according to the most recent income and expense figures.

The property

The 133-24 41st Road parcel has frontage of 25 feet and is 100 feet deep with a total lot size of 2,500 square feet. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $3.8 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

For the tax lot building, it received its initial certificate of occupancy on September 21, 2021. 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 Flushing, the bulk, or 39 percent of the 78.7 million square feet of commercial built space are residential elevator buildings, with 1-4 family buildings next occupying 29 percent of the space. In sales, Flushing has near average sales volume among other neighborhoods with $312.4 million in sales volume in the last two years and is the 4th highest in Queens. For development, Flushing has 2.9 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 2.6 million 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

On this tax block, PincusCo has identified the owners of four of the 111 commercial properties representing 95,014 square feet of the 292,788 square feet. The largest owner is Hui Ian Cheng, followed by Morris Schreiber and then Jason & Jeanne Inc.. There is one active new building construction project totaling 23,507 square feet. It is a 23,507-square-foot office (B) building developed by Dennis Zhao with plans filed March 14, 2018 and permitted August 25, 2020.

The majority, or 60 percent of the 265,038 square feet of built space are residential elevator buildings, with mixed-use buildings next occupying 14 percent of the space.

Surrounding

Within a 400-foot radius of 133-24 41st Road, PincusCo identified five commercial real estate items of interests occurred over the past 24 months.
Of those five items, one was in new building development. It was a new building permit issued on August 25, 2020 for a 23,507-square-foot B building at 133-20 41st Road.
One of those five items was a sale which Anna Lo bought one condo unit in the 24,000-square-foot, 100-unit mixed-use building (RM) on 133-36 Sanford Avenue for $17.6 million from Madison Realty Capital on September 16, 2021.
Of those five items, three were loans above $5 million totaling $57.2 million. The most recent of the three was Hui Ian Cheng which borrowed $31 million from Cathay Bank secured by the 16,200-square-foot, nine-unit mixed-use building (K2) on 41-28 Main Street on November 5, 2021.

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