Kaushik Patel, Chandresh Patel sign $12M refi loan with Unity Bank for LIC hotel

Kaushik Patel and Chandresh Patel through the entity Hotel 21 as borrower signed a refi loan with lender Unity Bank through the entity Unity Bank valued at $12 million for the hotel building at 41-01 21st Street in Long Island City, Queens.
The deal closed on February 11, 2022 and was recorded on March 8, 2022. The prior lender was Queensboro Fund LLC which held debt that had an original loan amount of $11 million. The property has 40,946 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $293 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 owner bought the property on December 9, 2008, for $4 million. The signatory for Kaushik Patel and Chandresh Patel was Kaushik Patel and Chandresh Patel.

Prior sales and revenue

The 40,946-square-foot property generated revenue of $3.5 million or $86 per square foot, according to the most recent income and expense figures.

The property

The 41-01 21st Street parcel has frontage of 100 feet and is 72 feet deep with a total lot size of 7,200 square feet. The lot is irregular. The zoning is M1-5 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $6.2 million.The most recent loan totaled $11 million and was provided by Queensboro Funding on 12-Apr-21.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received one DOB violation and $300 in OATH penalties in the last year.

Development

For the tax block buildings, one out of the three buildings received an initial certificate of occupancy in the last ten years. On these lots, there was a new building construction project for a 114-unit, 34,258-square-foot R-1 building. The project was developed by Chandresh Patel with plans filed March 12, 2013 and permitted February 22, 2019.

The neighborhood

In Long Island City, the bulk, or 33 percent of the 66.2 million square feet of built space are residential elevator buildings, with industrial buildings next occupying 30 percent of the space. In sales, Long Island City has 4.2 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 2nd most active neighborhood among other neighborhoods. It had 9.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of one of the six commercial properties representing 40,946 square feet of the 371,772 square feet. The identified owner is Kaushik Patel. There is one active new building construction project totaling 34,258 square feet. It is a 114-unit, 34,258-square-foot R-1 building developed by Chandresh Patel with plans filed March 12, 2013 and permitted February 22, 2019.

The majority, or 89 percent of the 371,772 square feet of built space are industrial buildings, with hotel buildings next occupying 11 percent of the space.

Surrounding

Within a 400-foot radius of 41-01 21st Street, Pincusco identified two commercial real estate items of interests occurred over the past 24 months.
Of those two items, two were loans above $5 million totaling $22 million. The most recent of the two was Heights Real Estate Company which borrowed $10 million from Signature Bank secured by the 39,063-square-foot, 12-unit office building (O5) on 21-01 41st Avenue on October 18, 2021.

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