Marx Development Group signs $32M refi loan with Bankwell Bank for nursing home in Flushing

Marx Development Group through the entity Union Plaza Realty LP as borrower signed a refi loan with lender Bankwell Bank valued at $32 million for the nursing home (I6) at 33-23 Union Street in Flushing, Queens.
The deal closed on October 19, 2022 and was recorded on October 31, 2022. The prior lender was Capital One which held debt that had an original loan amount of $24 million.The property has 146,042 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $219 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 E. Marx. The signatory for Bankwell Bank was Konstantin Grinberg.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes David Marx, officer and Simon Pelman, President, lessee. The business entities are Union Plaza Nursing Home Inc, Union Plaza Nursing Home., and Union Plaza Realty Lp.

The property

The 33-23 Union Street parcel has frontage of 164 feet and is 107 feet deep with a total lot size of 21,685 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $44.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received three DOB violations and $16,555 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 $5 million on this tax lot.

The neighborhood

In Flushing, the bulk, or 45 percent of the 37.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 1.6 times the average sales volume among other neighborhoods with $547.5 million in sales volume in the last two years and is the 4th highest in Queens. For development, Flushing has 2.8 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 2.8 million 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 one of the five commercial properties representing 107,940 square feet of the 264,444 square feet. The identified owner is S.W. Management.
There are no active new building construction projects on this tax block.

The majority, or 57 percent of the 256,806 square feet of built space are specialty buildings, with elevator buildings next occupying 42 percent of the space.

The borrower

The PincusCo database currently indicates that Marx Development Group owned at least 10 commercial properties in New York City with 1,160,307 square feet and a city-determined market value of $182.8 million. (Market value is typically about 50% of actual value.) The portfolio has $733.4 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 49 percent of the 1,160,307 square feet of built space are elevator properties, with hotel properties next occupying 26 percent of the space. The bulk, or 48 percent of the built space, is in Queens, with Manhattan next at 42 percent of the space.

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