Marx Development Group signs $18.6M refi from TASE for lot with 15-unit project in Little Neck

Marx Development Group through the entity Douglaston Realty Associates LLC as borrower signed a refi loan with lender Tel Aviv Stock Exchange bondholders through the entity Mishmeret Trust Company Ltd. valued at $18.6 million for a large development parcel that has a 15-unit development project at 242-22 61st Avenue in Little Neck, Queens.
On the lot, there is one active new building construction project for a 15-unit, 52,188 square-foot R-2 building. The project was submitted by Marx Development Group and filed by David Marx with plans filed January 24, 2022 and permitted May 18, 2022.

The lot is between a mall owned by Ashkenazy Acquisition and the Douglaston Golf Course.
The deal closed on November 6, 2023 and was recorded on November 21, 2023. The prior lender was Madison Realty Capital which held debt that had an original loan amount of $22.5 million.
The property has zero square feet of built space and 91,574 square feet of additional air rights for a total buildable of 91,574 square feet according to a PincusCo analysis of city data. The loan price per buildable square foot is $203 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 Marx Development Group was David Marx. The signatory for Tel Aviv Stock Exchange bondholders was Hillel Lazarus.

The property

The parcel has frontage of 150 feet and is 810 feet deep with a total lot size of 122,099 square feet. The zoning is R4 which allows for up to 0.75 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $12 million. The most recent loan totaled 0.0 and was provided by Sterling National Bank on December 7, 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 not received any significant violations in the last year.

The neighborhood

In Little Neck, The bulk, or 30 percent of the 2.2 million square feet of commercial built space are retail buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Little Neck has the 27th highest sale turnover among other neighborhoods in Queens with $67.7 million in sales volume in the last two years. For development, Little Neck has had very little major development activity relative to other neighborhoods.It had 57,360 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the two commercial properties representing zero square feet of the 344,292 square feet. The identified owner is Marx Development Group.
On the tax block, there were two new building construction projects totaling 53,160 square feet. The largest is a 15-unit, 52,188 square-foot residential (R-2) building submitted by Marx Development Group and filed by David Marx with plans filed January 24, 2022 and permitted May 18, 2022. The second largest is a 972 square-foot industrial (F-1) building submitted by Jerry Delaney with plans filed June 4, 2018 and permitted July 26, 2018.

The majority, or 100 percent of the 344,292 square feet of built space are retail buildings, with development buildings next occupying 0 percent of the space.

The borrower

The PincusCo database currently indicates that Marx Development Group owned at least 11 commercial properties with 408 residential units in New York City with 1,306,349 square feet and a city-determined market value of $291.2 million. (Market value is typically about 50% of actual value.) The portfolio has $765.4 million in debt, with top three lenders as Mack Real Estate Group, Rialto Capital, and Capital Funding Group respectively. Within the portfolio, the bulk, or 44 percent of the 1,306,349 square feet of built space are elevator properties, with specialty properties next occupying 33 percent of the space. The bulk, or 54 percent of the built space, is in Queens, with Manhattan next at 37 percent of the space.

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