JY Capital Group buys $8M note secured by dev site in Bayside

Alexander Hofstedter’s JY Capital Group through the entity Straits of JY Inc bought a note with an original principal of $8 million from 5 Arch Funding Corp. secured by Faizulmunir Kazi’s development site at 214-43 39th Avenue in Bayside, Queens.
The deal closed on December 30, 2022 and was recorded on January 6, 2023. The prior lender was 5 Arch Funding Corp. which held debt that had an original loan amount of $8 million. The property has 6,442 square feet of built space and 7,425 square feet of additional air rights for a total buildable of 13,750 square feet according to PincusCo analysis of city data.
The owner bought the property on January 16, 2019, for $5.4 million. The signatory for Faizulmunir Kazi was Faizulmunir Kazi. Alexander Hofstedter is the principal of the note-buying entity, Straits of JY Inc. and managing principal of JY Capital Group, according to the LinkedIn account.

Prior sales and revenue

The 6,442-square-foot property generated revenue of $239,965 or $37 per square foot, according to the most recent income and expense figures.

The property

The 214-43 39th Avenue parcel has frontage of 200 feet and is 175 feet deep with a total lot size of 27,500 square feet. The lot is irregular. The zoning is R3X which allows for up to 0.5 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $1.1 million.

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 two DOB violations, $31,250 in ECB penalties, and $55,300 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 $5 million on this tax lot.

The neighborhood

In Bayside, the bulk, or 42 percent of the 6.9 million square feet of commercial built space are specialty buildings, with walkup buildings next occupying 18 percent of the space. In sales, Bayside has had very little sales volume relative to other neighborhoods with $104.3 million in sales volume in the last two years. For development, Bayside has had very little major development activity relative to other neighborhoods. It had 169,818 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On the tax block, there was one new building construction project filed totaling 2,095 square feet. It is a two-unit, 2,095-square-foot R-3 building developed by Faizulmunir Kazi with plans filed July 11, 2019 and it has not been permitted yet.

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