Jenel Management signs $45M refi for newly built retail in Ditmars Steinway

Jenel Management through the entity Ditmars 22-11 LLC as borrower signed a refi loan with lender Webster Bank valued at $45 million for the retail building (K2) at 22-11 31st Street in Ditmars Steinway, Queens.
The deal closed on November 12, 2024 and was recorded on November 19, 2024. The prior lender was Santander Bank which held debt that had an original loan amount of $39.5 million.
The property has 84,454 square feet of built space and 2,912 square feet of additional air rights for a total buildable of 87,387 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $532 and the price per buildable square foot is $514 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 Jenel Management was David Dushey. The signatory for Webster Bank was Adam Brenner.

The property

The retail building in Ditmars Steinway has 84,454 square feet of built space and 2,912 square feet of additional air rights for a total buildable of 87,387 square feet according to a PincusCo analysis of city data. The parcel has frontage of 175 feet and is 163 feet deep with a total lot size of 29,129 square feet. The lot is irregular. The zoning is C4-2A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.1 million. The most recent loan totaled $39.5 million and was provided by Santander Bank on May 27, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $6,000 in OATH penalties in the last year.

Development

On the lot, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 122,732 square feet. The largest, Q00737966, is a new building project for a 61,366 square-foot M building submitted by Jenel Management and filed by Sam Dushey with plans filed October 7, 2022 and permitted June 16, 2023. The second largest, 420664962, is a new building project for a 61,366 square-foot M building submitted by Jenel Real Estate and filed by Sam Dushey with plans filed January 9, 2019 and permitted January 14, 2022.

The neighborhood

In Ditmars Steinway, The bulk, or 41 percent of the 11.3 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 25 percent of the space. In sales, Ditmars Steinway has had very little sales volume relative to other neighborhoods with $109.9 million in sales volume in the last two years. For development, Ditmars Steinway has had very little major development activity relative to other neighborhoods.It had 481,823 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 37 commercial properties representing 23,420 square feet of the 147,472 square feet. The largest owner is Jenel Management, followed by Vescovo and then Adeeb Saeidi.
On the tax block, there were two new building construction projects totaling 122,732 square feet. The largest is a 61,366 square-foot mercantile (M) building submitted by Jenel Management and filed by Sam Dushey with plans filed October 7, 2022 and permitted June 16, 2023. The second largest is a 61,366 square-foot mercantile (M) building submitted by Jenel Real Estate and filed by Sam Dushey with plans filed January 9, 2019 and permitted August 9, 2021.

The majority, or 55 percent of the 147,472 square feet of built space are mixed-use buildings, with retail buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Jenel Management owned at least 21 commercial properties with 675 residential units in New York City with 961,370 square feet and a city-determined market value of $325.5 million. (Market value is typically about 50% of actual value.) The portfolio has $594.1 million in debt, with top three lenders as H.I.G. Capital, Signature Bank, and Aareal Capital respectively. Within the portfolio, the bulk, or 39 percent of the 961,370 square feet of built space are elevator properties, with retail properties next occupying 27 percent of the space. The bulk, or 42 percent of the built space, is in Brooklyn, with Manhattan next at 39 percent of the space.

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