Marx Development signs non-binding MOU to sell Flushing nursing home for $75M

Marx Development Group signed a non-binding memorandum of understanding to sell the Union Plaza Care Center at 33-23 Union Street in Flushing, Queens, for $75 million, according to a filing with the Tel Aviv Stock Exchange published last month. The building has 280 beds, according to New York State Department of Health records for the property.
The TASE filing notes that the deal is not finalized and may not not be consummated. If it were to be completed, the report states it would likely close in the first half of 2025. The potential buyer was not identified.

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 this nursing home.
The loan closed on October 19, 2022. The prior lender was Capital One which held debt that had an original loan amount of $24 million.

Marx Development sold an East New York nursing home to Benjamin Landa in 2022 for $40.4 million.

The property

The specialty building at 33-23 Union Street in Flushing has 146,042 square feet of built space according to a PincusCo analysis of city data. The 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

According to city public data, the property has received five DOB violations, $4,375 in ECB penalties, and $7,245 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

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 near average sales volume among other neighborhoods with $743.8 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Flushing has near average amount of major developments among other neighborhoods and is the 3rd highest in Queens. It had 2 million square feet of commercial and multi-family construction under development in the last two years, which represents 5 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the two commercial properties representing 253,982 square feet of the 253,982 square feet. The two identified owners are Marx Development Group and S.W. Management. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Marx Development Group owned at least 12 commercial properties with 408 residential units in New York City with 1,306,349 square feet and a city-determined market value of $292.3 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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