HCRE Hung & Chong signs $25M refi for two commercial condos in Flushing

HCRE Hung & Chong Real Estate through the entity Winner Properties Management LLC as borrower signed a refi loan with lender Morgan Stanley through the entity Morgan Stanley Bank valued at $25 million for an office and a retail condominium unit at 42-35 Main Street in Flushing, Queens.

The deal closed on July 31, 2024 and was recorded on August 5, 2024. The prior lender was Shanghai Commercial Bank which held debt that had an original loan amount of $30 million.The two properties have 39,741 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $629 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 HCRE Hung & Chong Real Estate was Eric Chong. The signatory for Morgan Stanley was Cynthia Eckes.

The property

The retail condos in Flushing has 39,741 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 24,426 square feet.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 3.1 times the average sales volume among other neighborhoods with $816.8 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Flushing has 2.2 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Queens. It had 2.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 42-35 Main Street, PincusCo has identified the owners of three of the 14 commercial properties representing 290,132 square feet of the 359,525 square feet. The largest owner is Nuverse Advisors, followed by Renle Xia and then Vincent Young.
There are no active new building construction projects on this tax block.

The majority, or 80 percent of the 359,525 square feet of built space are elevator buildings, with retail buildings next occupying 10 percent of the space.

The borrower

The PincusCo database currently indicates that Hcre Hung & Chong Real Estate owned at least two commercial properties with 174 residential units in New York City with 103,047 square feet and a city-determined market value of $31.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 103,047 square feet of built space are office properties, with elevator properties next occupying 0 percent of the space. They are all located in Manhattan.
Correction: an earlier version of this post said both the units were retail.

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