J&J Farms signs $22.5M refi with Israel Discount Bank for industrial in Maspeth

J&J Farms Creamery through the entity J&J Maspeth Owner LLC as borrower signed a refi loan with lender Israel Discount Bank valued at $22.5 million for the industrial building (E1) at 57-48 49th Place in Maspeth, Queens.
The deal closed on March 29, 2024 and was recorded on April 16, 2024. The prior lender was Alma Bank which held debt that had an original loan amount of $22.5 million.
The property has 57,430 square feet of built space and 78,878 square feet of additional air rights for a total buildable of 135,998 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $391 and the price per buildable square foot is $165 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 J&J Farms Creamery was Morris Schlager. The signatory for Israel Discount Bank was Mitchell Barnett and Ender Cetin.

Prior sales and revenue

The 57,430-square-foot property generated revenue of $824,010 or $14 per square foot, according to the most recent income and expense figures.

The property

The industrial building in Maspeth has 57,430 square feet of built space and 78,878 square feet of additional air rights for a total buildable of 135,998 square feet according to a PincusCo analysis of city data. The parcel has frontage of 213 feet and is 340 feet deep with a total lot size of 67,999 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $4.8 million. The most recent loan totaled $22.5 million and was provided by Alma Bank on March 29, 2023.

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 $600 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 Maspeth, The majority, or 73 percent of the 22.3 million square feet of commercial built space are industrial buildings, with specialty buildings next occupying 8 percent of the space. In sales, Maspeth has 1.7 times the average sales volume among other neighborhoods with $474.5 million in sales volume in the last two years and is the 4th highest in Queens. For development, Maspeth has had very little major development activity relative to other neighborhoods.It had 588,082 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. There were 10 pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of seven of the 26 commercial properties representing 239,671 square feet of the 1,342,778 square feet. The largest owner is Seagis Property Group, followed by Prologis and then J&J Farms Creamery.
There are no active new building construction projects on this tax block.

The majority, or 100 percent of the 1.3 million square feet of built space are industrial buildings, with office buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that J&J Farms Creamery owned at least one commercial property in New York City with 57,430 square feet and a city-determined market value of $4.8 million. (Market value is typically about 50% of actual value.) The portfolio has $45 million in debt, borrowed from CDK Lending and Alma Bank. The portfolio consists of at least a single industrial property. It is located in Queens.

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