Hazelton Capital, SB Development sign $38.7M refi for 103-unit rental in LIC

Hazelton Capital Group and SB Development Group through the entity LIC Owner LLC as borrower signed a refi loan with lender M&T Bank through the entity M&T Realty Capital Corporation valued at $38.7 million for the 103-unit residential elevator building (D6) at 29-17 40th Avenue in Long Island City, Queens.
The deal closed on February 3, 2025 and was recorded on February 11, 2025. The prior lender was Santander Bank which held debt that had an original loan amount of $35 million.The property has 95,634 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $404 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 March 19, 2019, for $15.2 million. The signatory for Hazelton Capital Group and SB Development Group was Joseph Stern . The signatory for M&T Bank was Wendy LeBlanc.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Joseph Stern, head officer and David Sorise, agent. The business entities are Pinnacle City Living and Lic Owner Llc. The 95,634-square-foot property generated revenue of $4.3 million or $45 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 103 residential units in Long Island City has 95,634 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 133 feet and is 100 feet deep with a total lot size of 14,000 square feet. The lot is irregular. The zoning is M1-3/R7X which allows for up to 5 times floor area ratio (FAR) for manufacturing and up to 5 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $18.6 million. The most recent loan totaled $35 million and was provided by Santander Bank on December 31, 2019. The property has 99 rent regulated units according to city tax records from 2023.

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 $1,650 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on June 27, 2023. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of seven of the 12 commercial properties representing 253,069 square feet of the 304,930 square feet. The largest owner is Hazelton Capital Group, followed by Paceline Equity Partners and then Hafeez Choudhary.
On the tax block, there were two new building construction projects totaling 74,627 square feet. The largest is a 50-unit, 37,314 square-foot residential (R-2) building submitted by Hui Shi and filed by Hui Shi with plans filed November 12, 2021 and it has not been permitted yet. The second largest is a 50-unit, 37,313 square-foot residential (R-2) building submitted by Hui Shi and filed by Hui Shi with plans filed December 15, 2021 and permitted February 6, 2023.

The majority, or 42 percent of the 304,930 square feet of built space are hotel buildings, with elevator buildings next occupying 31 percent of the space.

The borrower

The PincusCo database currently indicates that SB Development Group owned at least five commercial properties with 87 residential units in New York City with 124,963 square feet and a city-determined market value of $8.8 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 73 percent of the 124,963 square feet of built space are elevator properties, with industrial properties next occupying 27 percent of the space. They are all located in Queens.
The PincusCo database currently indicates that Hazelton Capital Group owned at least one commercial property with 103 residential units in New York City with 95,634 square feet and a city-determined market value of $18.6 million. (Market value is typically about 50% of actual value.) The portfolio has $35 million in debt, borrowed from Santander Bank. The portfolio consists of at least a single elevator property. It is located in Queens.

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