Lone Star Funds buys 3 notes totaling $162M secured by A&E rentals in Queens

Lone Star Funds bought three loans from Deutsche Bank with a combined original principal of just over $162 million that are secured by three A&E Real Estate Holdings rental buildings in Queens.

In the first, Lone Star Funds through the entity Lsref7 Size, LLC bought a note with an original principal of $59.4 million from Deutsche Bank secured by A&E Real Estate Holdings’s 122-unit residential elevator building (D1) at 41-40 Denman Street in Elmhurst, Queens.
The deal closed on November 14, 2024 and was recorded on January 10, 2025. The property has 99,180 square feet of built space according to a PincusCo analysis of city data.
The owner bought the property on June 21, 2018, for $36 million.

In the second, Lone Star Funds through the entity Lsref7 Size, LLC bought a note with an original principal of $54.6 million from Deutsche Bank secured by A&E Real Estate Holdings’s 126-unit residential elevator building (D1) at 132-57 Sanford Avenue in Flushing, Queens.
The deal closed on November 14, 2024 and was recorded on January 10, 2025. The property has 113,348 square feet of built space according to a PincusCo analysis of city data.
The owner bought the property on June 21, 2018, for $40.4 million.

In the third, Lone Star Funds through the entity Lsref7 Size, LLC bought a note with an original principal of $48.2 million from Deutsche Bank secured by A&E Real Estate Holdings’s 180-unit residential elevator building (D1) at 132-25 Maple Avenue in Flushing, Queens.
The deal closed on November 14, 2024 and was recorded on January 13, 2025. The property has 161,520 square feet of built space according to a PincusCo analysis of city data.
The owner bought the property on June 21, 2018, for $51.1 million.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Maggie McCormick, head officer and Brian Garland, agent. The business entity is 41-40 Denman Streetventures , Llc. The 99,180-square-foot property generated revenue of $2.4 million or $24 per square foot, according to the most recent income and expense figures.

The property

The residential elevator building with 122 residential units in Elmhurst has 99,180 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 250 feet and is 100 feet deep with a total lot size of 25,000 square feet. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $8.7 million. The most recent loan totaled $59.4 million and was provided by Deutsche Bank on September 29, 2022. The property has 114 rent regulated units according to city tax records from 2023.

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 one DOB violation, $6,250 in ECB penalties, 171 housing violations, $6,550 in OATH penalties, and three housing litigations 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

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 99,180 square feet of the 211,650 square feet. The identified owner is A&E Real Estate Holdings.
There are no active new building construction projects on this tax block.

The majority, or 79 percent of the 211,650 square feet of built space are elevator buildings, with walkup buildings next occupying 21 percent of the space.

The borrower

The PincusCo database currently indicates that A&E Real Estate Holdings owned at least 176 commercial properties with 15,397 residential units in New York City with 14,257,186 square feet and a city-determined market value of $1.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $2.8 billion in debt, with top three lenders as Signature Bank, JPMorgan Chase, and Mesa West Capital respectively. Within the portfolio, the bulk, or 75 percent of the 14,257,186 square feet of built space are elevator properties, with walkup properties next occupying 24 percent of the space. The bulk, or 50 percent of the built space, is in Queens, with Manhattan next at 31 percent of the space.

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