Hirshmark Capital buys $4.5M note secured by LIC office building

Hirshmark Capital through the entity 3001 Northern Blvd Funding LLC bought a note with an original principal of $4.5 million from Kearny Bank secured by Matthew Schwartz’s office building (O2) at 30-01 Northern Boulevard in Long Island City, Queens.
The deal closed on February 7, 2024 and was recorded on February 22, 2024. The prior lender was Kearny Bank which held debt that had an original loan amount of $4.5 million.The property has 9,200 square feet of built space and 15,256 square feet of additional air rights for a total buildable of 24,450 square feet according to a PincusCo analysis of city data.
The owner bought the property on December 23, 2005, for $1.6 million. The signatory for Matthew Schwartz for the Kearny loan was Matthew Schwartz.

Hirshmark Capital bought another Kearny Bank loan, with an original principal of $9.7 million, on the same day.

The property

The office building in Long Island City has 9,200 square feet of built space and 15,256 square feet of additional air rights for a total buildable of 24,450 square feet according to a PincusCo analysis of city data. The parcel has frontage of 51 feet and is 92 feet deep with a total lot size of 4,890 square feet. 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 $1.3 million.

Violations and lawsuits

The property was involved in one lawsuit and zero bankruptcies over the past two years. The suit was a $4.5 million commercial foreclosure concerning a loan filed on May 9, 2023, by Kearny Bank against Matthew Schwartz. 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 July 22, 2013. 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 Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 8th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Long Island City is the 5th most active neighborhood among other neighborhoods. It had 7.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space. There were three pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 11 of the 15 commercial properties representing 266,361 square feet of the 349,749 square feet. The largest owner is Yali Li, followed by Sb Development Group and then Perla Alves.
On the tax block, there were three new building construction projects totaling 41,414 square feet. The largest is a 26-unit, 29,674 square-foot residential (R-2) building submitted by SB Development Group and filed by Joseph Stern with plans filed March 4, 2022 and permitted December 11, 2023. The second largest is a 5,870 square-foot mercantile (M) building submitted by Kyong Park with plans filed February 12, 2016 and permitted August 14, 2019.

The majority, or 45 percent of the 349,749 square feet of built space are hotel buildings, with industrial buildings next occupying 43 percent of the space.

The borrower

The PincusCo database currently indicates that Matthew Schwartz owned at least one commercial property with 15 residential units in New York City with 14,114 square feet and a city-determined market value of $2.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single elevator property. It is located in Queens.

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