L+M Development Partners signs $85.5M new construction loan for two properties in Edgemere
L+M Development Partners through the entity Bgd III Owners LLC as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $85.5 million for two properties including the development building (V1) at Beach Channel Drive in Edgemere, Queens.
The deal closed on December 23, 2022 and was recorded on January 3, 2023. The two properties have zero square feet of built space.
On these lots, there is one active new building construction project for a 138-unit, 115,181 square-foot R-2 building. The project was developed by Rona Reodica with plans filed March 11, 2020 and it has not been permitted yet.
The signatory for L+M Development Partners was Spencer Orkus. The signatory for NYC Housing Development Corporation was Lauren Connors.
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 N/A Beach Channel Drive.
The property
The N/A Beach Channel Drive parcel has frontage of 115 feet and is 166 feet deep with a total lot size of 7,625 square feet. The lot is irregular. The zoning is C4-3A which allows for up to 3 times floor area ratio (FAR) for commercial and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $453,000.
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 not received any significant violations in the last year.
The neighborhood
In Edgemere, the majority, or 79 percent of the 4.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Edgemere has had very little sales volume relative to other neighborhoods with $150.9 million in sales volume in the last two years. For development, Edgemere has had very little major development activity relative to other neighborhoods.It had 198,341 square feet of commercial and multi-family construction under development in the last two years, which represents 4 percent of the neighborhood’s built space.
The block
On the tax block, there was one new building construction project filed totaling 115,181 square feet. It is a 138-unit, 115,181-square-foot R-2 building developed by Rona Reodica with plans filed March 11, 2020 and it has not been permitted yet.
All properties are development.
The borrower
The PincusCo database currently indicates that L+M Development Partners owned at least 218 commercial properties in New York City with 19,270,731 square feet and a city-determined market value of $1.9 billion. (Market value is typically about 50% of actual value.) The portfolio has $2.8 billion in debt, with top three lenders as NYC Housing Development Corporation, Wells Fargo, and Barings respectively. Within the portfolio, the bulk, or 84 percent of the 19,270,731 square feet of built space are elevator properties, with walkup properties next occupying 13 percent of the space. The bulk, or 46 percent of the built space, is in Brooklyn, with Manhattan next at 36 percent of the space.
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