Konstandinos Vorillas signs $31.5M construction loan with Kriss Capital for LIC project

Konstandinos Vorillas through the entity 40th Ave Dutch Kills Realty LLC as borrower signed a new construction loan with lender Kriss Capital through the entity Umb Bank, National Association valued at $31.5 million for the 56-unit condo development at (V1) at 27-09 40th Avenue in Long Island City, Queens. The Commercial Observer reported on this loan earlier. 
The deal closed on August 25, 2022 and was recorded on September 7, 2022. The prior lender was GCP Capital Group which held debt that had an original loan amount of $4.3 million.The three properties have zero square feet of built space and 35,004 square feet of additional air rights for a total buildable of 35,004 square feet according to PincusCo analysis of city data. The loan price per buildable square foot is $899 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 Konstandinos Vorillas was Konstandinos Vorillas. The signatory for Kriss Capital was Harvey M. Lederman.

The property

The 27-09 40th Avenue parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is M1-2/R5D which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 2 times FAR for residential. The city-designated market value for the property in 2022 is $1.2 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $6,250 in ECB penalties and $7,200 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 46-unit, 52,469-square-foot R-2 building. The project was developed by Gus Vorillas with plans filed September 16, 2019.

The neighborhood

In Long Island City, the bulk, or 34 percent of the 63.3 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 32 percent of the space. In sales, Long Island City has the 7th highest sale turnover among other neighborhoods in the city with $1.8 billion in sales volume in the last two years. For development, Long Island City is the 3rd most active neighborhood among other neighborhoods. It had 10.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On the tax block of 27-09 40th Avenue, PincusCo has identified the owners of two of the nine commercial properties representing 53,475 square feet of the 68,585 square feet. The two identified owners are Issta Group and George Lambadis Inc..
There are three active new building construction projects totaling 70,962 square feet. The largest is a 46-unit, 52,469-square-foot R-2 building developed by Gus Vorillas with plans filed September 16, 2019 and it has not been permitted yet.The second largest is a nine-unit, 13,718-square-foot R-2 building developed by Paul Macropoulos with plans filed November 15, 2017 and it has not been permitted yet.

the majority, or 41 percent of the 68,585 square feet of built space are hotel buildings, with walkup buildings next occupying 37 percent of the space.

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