Lightstone Group signs $168M refi for 428-unit ARC rental in LIC

Lightstone Group through the entity 30-02 Associates LLC as borrower signed a refi loan with lender JLL through the entity JLL Real Estate Capital, LLC valued at $168 million for the 428-unit rental building ARC at 30-02 39th Avenue in Long Island City, Queens. The property is divided into three commercial condominium units, and this loan covers all three.
The deal closed on February 29, 2024 and was recorded on March 6, 2024. The prior lender was Series 2019-B10 which held debt that had an original loan amount of $187 million.
The three properties have 384,940 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $436 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 Lightstone Group was Joseph E. Teichman. The signatory for JLL was Patrick McCarren.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 30-02 39th Avenue.

The property

The rental condo with 428 residential units in Long Island City has 384,940 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 349,126 square feet. The property has a 421a exemption that started in 2020 and expires in 2035. The city-designated market value for the property in 2022 is $74.3 million.

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 not received any significant violations 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 block

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

The majority, or 50 percent of the 34,639 square feet of built space are hotel buildings, with industrial buildings next occupying 44 percent of the space.

The borrower

The PincusCo database currently indicates that Lightstone Group owned at least 34 commercial properties with 2,314 residential units in New York City with 2,823,226 square feet and a city-determined market value of $351.6 million. (Market value is typically about 50% of actual value.) The portfolio has $1.3 billion in debt, with top three lenders as Goldman Sachs, JPMorgan Chase, and JLL respectively. Within the portfolio, the bulk, or 61 percent of the 2,823,226 square feet of built space are elevator properties, with hotel properties next occupying 17 percent of the space. The bulk, or 37 percent of the built space, is in Bronx, with Queens next at 26 percent of the space.

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