Henry Modell & Co. signs $15M refi with Lalezarian for industrial in Astoria

Henry Modell & Co. through the entity Henry Modell & Company, Inc as borrower signed a refi loan with lender Lalezarian Properties through the entity Mmm Lender LLC valued at $15 million for two industrial properties including the industrial building (E9) at 34-24 Vernon Boulevard and the industrial lot across the street (G7) at 34-31 Vernon Boulevard in Astoria, Queens.
The deal closed on November 7, 2024 and was recorded on November 29, 2024. The prior lender was an affiliate of Modell’s Sporting Goods, MSGI Liquidation Trust, which held debt that had an original loan amount of $22.7 million. The two properties have 135,400 square feet of built space and 199,384 square feet of additional air rights for a total buildable of 334,552 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $110 and the price per buildable square foot is $44 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 Henry Modell & Co. was Bert E. Brodsky. The signatory for Lalezarian Properties was Kevin Lalezarian.

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 34-24 Vernon Boulevard.

The property

The industrial building in Astoria has 135,400 square feet of built space and 199,384 square feet of additional air rights for a total buildable of 334,552 square feet according to a PincusCo analysis of city data. The parcel has frontage of 168 feet and is 543 feet deep with a total lot size of 94,523 square feet. The lot is irregular. The zoning is R7-1 which allows for up to 3.44 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $8.9 million. The most recent loan totaled $22.7 million and was provided by Modell’s Sporting Goods on July 2, 2024.

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 received $625 in ECB penalties and $625 in OATH penalties in the last year.

Development

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 Astoria, The bulk, or 36 percent of the 40.2 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 31 percent of the space. In sales, Astoria has 2.2 times the average sales volume among other neighborhoods with $574.5 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Astoria has near average amount of major developments among other neighborhoods and is the 5th highest in Queens. It had 1.2 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 the tax block of 34-24 Vernon Boulevard, PincusCo has identified the owners of two of the three commercial properties representing 135,400 square feet of the 530,203 square feet. The two identified owners are Henry Modell & Co. and Consolidated Edison.
There are no active new building construction projects on this tax block.

The majority, or 74 percent of the 530,203 square feet of built space are elevator buildings, with industrial buildings next occupying 26 percent of the space.

The borrower

The PincusCo database currently indicates that Henry Modell & Co. owned at least one commercial property in New York City with 135,400 square feet and a city-determined market value of $8.9 million. (Market value is typically about 50% of actual value.) The portfolio has $22.7 million in debt, borrowed from Modell’s Sporting Goods. The portfolio consists of at least a single industrial property. It is located in Queens.

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