Marx Development signs $76.8M refi through TASE in Flushing, East New York

Marx Development Group through the entity Boulevard Alp Associates, L.L.C. as borrower signed a refi loan with lender Tel Aviv Stock Exchange bondholders through the entity Mishmeret Trust Company Ltd valued at $76.8 million for two specialty properties with 204 residential units including the 204-unit specialty building (I7) at 71-61 159th Street in Flushing, Queens and specialty building (I7) at 636 Louisiana Avenue in East New York, Brooklyn.
The deal closed on March 21, 2025 and was recorded on April 3, 2025. The prior lender was Capital Funding Group which held debt that had an original loan amount of $91.3 million.The two properties have 282,608 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $271 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.

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 71-61 159th Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes David Marx, head officer and Sam Horowitz, agent. The business entities are Boulevard Alp Associates, Llc and Boulevard Alp Associates, Llc.

The property

The specialty building with 204 residential units in Flushing has 282,608 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 319 feet and is 210 feet deep with a total lot size of 67,807 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 property has a 421A exemption that started in 2007 and expires in 2022. The city-designated market value for the property in 2022 is $20.7 million. The most recent loan totaled $51.5 million and was provided by Capital Funding Group on March 11, 2021.

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 received two DOB violations and four housing violations in the last year.

Development

For the tax lot buildings, one out of the two buildings received a initial certificate of occupancy in the last ten years. On these lots, there is one active new building construction project, 421694857, for a 800-unit, 791,277 square-foot R-2 building. The project was submitted by Marx Development Group and filed by David Marx with plans filed August 12, 2019 and it has not been permitted yet.

The neighborhood

In Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 2.5 times the average sales volume among other neighborhoods with $666.6 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Flushing has 1.9 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Queens. It had 2.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 71-61 159th Street, PincusCo has identified the owners of five of the five commercial properties representing 383,531 square feet of the 383,531 square feet. The two identified owners are Marx Development Group and New York Police Department.
On the tax block, there was one new building construction project filed totaling 791,277 square feet. It is a 800-unit, 791,277 square-foot residential (R-2) building submitted by Marx Development Group and filed by David Marx with plans filed August 12, 2019 and it has not been permitted yet.

The majority, or 55 percent of the 383,531 square feet of built space are elevator buildings, with specialty buildings next occupying 45 percent of the space.

The borrower

The PincusCo database currently indicates that Marx Development Group owned at least 13 commercial properties with 408 residential units in New York City with 1,306,349 square feet and a city-determined market value of $298.3 million. (Market value is typically about 50% of actual value.) The portfolio has $964.3 million in debt, with top three lenders as Mack Real Estate Group, Rialto Capital, and Madison Realty Capital 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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