Ken Huang borrows $54.3M for hotel in Jackson Heights, bought for $53M in December

Ken Huang through the entity 90-10 Ditmars Holding LLC as borrower signed a refi loan with lender Popular Bank valued at $54.3 million for the hotel building (H3) at 90-10 Ditmars Boulevard in Jackson Heights, Queens.
The deal closed on March 22, 2023 and was recorded on March 24, 2023. The prior lender was Maxim Capital Group which held debt that had an original loan amount of $38.2 million.
The property has 189,250 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $286 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 Ken Huang was attorney Jeffrey Zwick. The signatory for Popular Bank was Joseph Farrauto.

On December 15, 2022, Ken Huang through the entity 90-10 Ditmars Holding LLC paid $53 million to Heyman Enterprise through the entity GCP Realty II, LLC for the hotel building (H3) at 90-10 Ditmars Avenue in Jackson Heights, Queens.

The property

The 90-10 Ditmars Boulevard parcel has frontage of 477 feet and is 699 feet deep with a total lot size of 183,415 square feet. The lot is irregular. The zoning is R3-2 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 $33.5 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 five DOB violations 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 Jackson Heights, the bulk, or 42 percent of the 16.4 million square feet of commercial built space are elevator buildings, with walkup buildings next occupying 18 percent of the space. In sales, Jackson Heights has had very little sales volume relative to other neighborhoods with $221.1 million in sales volume in the last two years. For development, Jackson Heights has had very little major development activity relative to other neighborhoods.It had 414,730 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

there are no active new building construction projects on this tax block.

the majority, or 100 percent of the 189,850 square feet of built space are hotel buildings, with industrial buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Ken Huang owned at least one commercial property in New York City with 189,250 square feet and a city-determined market value of $33.5 million. (Market value is typically about 50% of actual value.) The portfolio has $38.2 million in debt, borrowed from Maxim Capital Group. The portfolio consists of at least a single hotel property. It is located in Queens.

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