KABR signs $55.3M senior refi with Acore for industrial in Hollis, part of $69.1M loan package

UPDATED 5:16 p.m., June 26, 2024: KABR Group through the entity 184 Jamaica Ave, LLC as borrower signed a loan with lender Acore Capital Mortgage valued at $55.3 million for two industrial properties including the industrial buildings (E1) at 184-60 and 184-10 Jamaica Avenue in Hollis, Queens. The total loan including portions such as mezzanine and future funding is $69.125 million.
The deal closed on June 7, 2024 and was recorded on June 18, 2024. The two properties have 618,414 square feet of rentable space using industry standards (513,845 square feet of built space according to a PincusCo analysis of city data) so the full loan per rentable square foot is $112 per foot.

Prior sales and revenue

The two properties with a total of 513,845 square feet of built space generated revenue of $5.5 million per year or $11 per square foot.

The property

The parcel has frontage of 193 feet and is 313 feet deep with a total lot size of 95,000 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $16.3 million. The most recent loan totaled $61.3 million and was provided by KKR & Co. on February 22, 2022.
The parcel has two buildings with frontage of 188 feet and is 306 feet deep with a total lot size of 57,100 square feet. The lot is irregular. The zoning is M1-2 which allows for up to 2 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $12.1 million. The most recent loan totaled $61.3 million and was provided by KKR & Co. on February 22, 2022.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have received $9,200 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. 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 Hollis, The bulk, or 27 percent of the 4.5 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 22 percent of the space. In sales, Hollis has the 46th highest sale turnover among other neighborhoods in Queens with $16.4 million in sales volume in the last two years. For development, Hollis has had very little major development activity relative to other neighborhoods.It had 119,221 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.

The block

On the tax block of 184-60 Jamaica Avenue, PincusCo has identified the owners of four of the 17 commercial properties representing 541,961 square feet of the 888,690 square feet. The largest owner is City Of New York, followed by Fca-Orbita Group and then Storagemart.
There are no active new building construction projects on this tax block.

The majority, or 97 percent of the 888,690 square feet of built space are industrial buildings, with hotel buildings next occupying 3 percent of the space.

Correction and clarification: A prior version of this post only reported the recorded loan total of $55.3 million, when in fact the entire loan is $69.125 million including portions such as mezzanine and future funding. In addition, the rentable square feet for the buildings, which is the industry and brokerage standard, is 618,414 square feet, while PincusCo uses the city figures used for tax and city planning purposes.

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