KSL Capital Partners signs $23M refi for hotel in South Ozone Park
KSL Capital Partners through the entity 44 Metro, LLC as borrower signed a refi loan with lender Wells Fargo and Citibank through the entity Citi Real Estate Funding Inc. valued at $23 million for the hotel building (H2) at 148-18 134th Street in South Ozone Park, Queens. This property was formerly owned by Hersha Hospitality Trust, which KSL Capital Partners acquired earlier this year.
The deal closed on November 28, 2023 and was recorded on December 18, 2023. The prior lender was Citibank which held debt that had an original loan amount of $19 million.
The property has 75,838 square feet of built space and 2,348 square feet of additional air rights for a total buildable of 78,296 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $302 and the price per buildable 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 April 30, 2013, for $1.8 million. The signatory for KSL Capital Partners was Kevin Rohnstock. The signatory for Wells Fargo and Citibank was Jonathan Misher and John Gordon Nicol.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Ashish Parikh, head officer and Jay Shah, officer. The business entity is Metro Jfk Associates, Llc.
The property
The hotel building in South Ozone Park has 75,838 square feet of built space and 2,348 square feet of additional air rights for a total buildable of 78,296 square feet according to a PincusCo analysis of city data. The parcel has frontage of 165 feet and is 256 feet deep with a total lot size of 39,148 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 $31.4 million. The most recent loan totaled $19 million and was provided by Citibank on June 28, 2020.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $5,935 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 $1 million on this tax lot.
The neighborhood
In South Ozone Park, The bulk, or 27 percent of the 6.3 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 26 percent of the space. In sales, South Ozone Park has the 24th highest sale turnover among other neighborhoods in Queens with $76.8 million in sales volume in the last two years. For development, South Ozone Park has had very little major development activity relative to other neighborhoods.It had 420,852 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of two of the three commercial properties representing 145,538 square feet of the 191,033 square feet. The two identified owners are Hersha Hospitality Trust and Bayrock Capital.
There are no active new building construction projects on this tax block.
All properties are hotel.
The borrower
The PincusCo database currently indicates that KSL Capital Partners owned at least three commercial properties in New York City with 225,035 square feet and a city-determined market value of $109.9 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are hotel properties. They are all located in Manhattan.
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