InSite Property Group signs $49.8M refi loan with Goldman Sachs for development in Maspeth
InSite Property Group through the entity 59 02 Borden Ave LLC as borrower signed a refi loan with lender Goldman Sachs through the entity Goldman Sachs Bank USA valued at $49.8 million for the development building (V1) at 59-02 Borden Avenue in Maspeth, Queens.
The deal closed on August 17, 2022 and was recorded on November 29, 2022. The prior lender was Valley National Bank which held debt that had an original loan amount of $25.8 million.
The owner bought the property on August 17, 2022, for $63 million. The signatory for InSite Property Group was Charles A. Brown IV. The signatory for Goldman Sachs was Cameron Birdwell and James E. Akers.
The property
The Borden Avenue parcel has frontage of 327 feet and is 107 feet deep with a total lot size of 32,607 square feet. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $2.1 million.The most recent loan totaled $25.8 million and was provided by Valley National Bank on March 29, 2021.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received $39,375 in ECB penalties and $39,425 in OATH penalties in the last year.
The neighborhood
In Maspeth, the majority, or 75 percent of the 20 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 8 percent of the space. In sales, Maspeth has 2.2 times the average sales volume among other neighborhoods with $752.6 million in sales volume in the last two years and is the 3rd highest in Queens. For development, Maspeth has 2.6 times the average amount of major developments relative to other neighborhoods and is the 6th highest in Queens. It had 2.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of seven of the 12 commercial properties representing 38,630 square feet of the 186,925 square feet. The largest owner is Sitex Group, followed by Liberty Coca-Cola Beverages and then InSite Property Group.
On the tax block, there were two new building construction projects totaling 19,555 square feet. The largest is a zero-unit, 11,994-square-foot M building developed by Michael Berfield with plans filed November 1, 2019 and permitted November 17, 2020. The second largest is a zero-unit, 7,561-square-foot M building developed by Michael Berfield with plans filed November 1, 2019 and permitted November 17, 2020.
The majority, or 99 percent of the 186,925 square feet of built space are industrial buildings, with retail buildings next occupying 1 percent of the space.
The borrower
The PincusCo database currently indicates that InSite Property Group owned at least six commercial properties in New York City. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 82 percent of the 109,004 square feet of built space are industrial properties, with retail properties next occupying 18 percent of the space. The bulk, or 51 percent of the built space, is in Queens, with Manhattan next at 46 percent of the space.
Direct link to Acris document. link