Hirshmark Capital acquires 15-unit Astoria building through $9.7M deed-in-lieu

Hirshmark Capital through the entity 3516 FS LLC As Nominee For Astoria LIC Funding LLC acquired from Matthew Schwartz and Scott Minuta through the entity 35-16 Astoria Blvd Holdings, LLC, the 15-unit residential elevator building (D7) at 35-16 Astoria Boulevard in Astoria, Queens, through a $9.7 million deed-in-lieu of foreclosure. The transfer value for a deed-in-lieu is typically the loan value or the latest judgment in a foreclosure case.
The deal closed on May 31, 2024 and was recorded on June 13, 2024. The property has 14,114 square feet of built space according to a PincusCo analysis of city data. The transfer price per built square foot is $687 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 Matthew Schwartz and Scott Minuta was Matthew Schwartz. The signatory for Hirshmark Capital was an attorney, Erick Vallely. The contract date was May 31, 2024. This is a deed in lieu of foreclosure, according to the transfer records. Hirshmark Capital bought the note with an original principal of $9.7 million, in February 2024, as PincusCo reported at the time.

Prior sales and revenue

The former owners according to the Department of Housing Preservation and Development includes Matthew Schwartz, head officer and Scott Minuta, officer. The business entities are Schwartz Re Management Inc and 35-16 Astoria Blvd Holdings, Llc.

The property

The residential elevator building with 15 residential units in Astoria has 14,114 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 46 feet and is 73 feet deep with a total lot size of 3,385 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The property has a 421A exemption that started in 2016 and expires in 2031. The city-designated market value for the property in 2022 is $2.6 million. The most recent loan totaled 0.0 and was provided by Hirshmark Capital on February 7, 2024.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $9.7 million commercial foreclosure concerning a loan filed on August 11, 2023, by Kearny Bank against Scott Minuta and Matthew Schwartz. In addition, according to city public data, the property has received $4,405 in ECB penalties, two housing violations, and $5,185 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 14, 2014. 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 nine of the 36 commercial properties representing 98,860 square feet of the 227,634 square feet. The largest owner is Styliani Moustakas, followed by Sebastiano Casabianca Of Salvatore Casabianca and then Peak Capital Advisors.
On the tax block, there was one new building construction project filed totaling 7,618 square feet. It is a 10-unit, 7,618 square-foot residential (R-2) building submitted by Alex Mubarez with plans filed March 20, 2017 and permitted February 6, 2019.

The majority, or 58 percent of the 227,634 square feet of built space are walkup buildings, with elevator buildings next occupying 35 percent of the space.

The seller

The PincusCo database currently indicates that Matthew Schwartz owned at least two commercial properties with 15 residential units in New York City with 23,314 square feet and a city-determined market value of $3.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 61 percent of the 23,314 square feet of built space are elevator properties, with office properties next occupying 39 percent of the space. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Hirshmark Capital owned at least five commercial properties with 21 residential units in New York City with 38,679 square feet and a city-determined market value of $8.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 54 percent of the 38,679 square feet of built space are office properties, with walkup properties next occupying 40 percent of the space. The bulk, or 54 percent of the built space, is in Manhattan, with Brooklyn next at 46 percent of the space.

Direct link to Acris document. link