Maverick acquires two Flushing buildings valued at $6.4M through foreclosure

Maverick Real Estate Partners through the entity Haight Street Mixed Use LLC acquired an interest from J&C International Group through the entity 41 Haight Street Mezzanine, LLC valued at $6.4M for 21-unit residential elevator building (D7) at 41-31 Haight Street in Flushing, Queens and four-unit mixed-use building (S4) at 41-27 Haight Street in Flushing, Queens.
The deal closed on July 12, 2023 and was recorded on July 28, 2023. The two properties have 29,054 square feet of built space according to a PincusCo analysis of city data. The sale price per built square foot is $218 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.)
Maverick Real Estate Partners bought the debt in 2022 from Castellan Capital and filed to foreclose 702889/2023 in February 2023. This is an entity level transfer, not a deed transfer.

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 41-31 Haight Street.

Prior sales and revenue

Prior to this transaction, PincusCo has records that the buyer Maverick Real Estate Partners purchased three properties in three transactions for a total of $109.2 million and sold four properties in four transactions for a total of $9.4 million over the past 24 months.
The seller J&C International Group had not purchased any other properties and sold three properties in three transactions for a total of $7.7 million over the same time period. The former owner according to the Department of Housing Preservation and Development is Chung Lam, head officer. The business entity is 41 Haight Street Owner Llc. The two properties with a total of 29,054 square feet of built space generated revenue of $817,348 per year or $28 per square foot. The sale price per square foot was $219.

The property

The residential elevator building with 21 residential units in Flushing has 29,054 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 60 feet and is 100 feet deep with a total lot size of 5,999 square feet. 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 $4.5 million. The most recent loan totaled $15.7 million and was provided by Castellan Capital on June 24, 2021.

Violations and lawsuits

The properties were involved in three lawsuits and zero bankruptcies over the past two years. The highest value suit was a $5.5 million commercial foreclosure concerning a loan filed on February 8, 2023, by Maverick Real Estate Partners against John Jun Xu, Jinyu Zhang, and Chung Lam. In addition, according to city public data, the properties have received $6,415 in OATH penalties in the last year.

Development

For the tax lot buildings, two out of the two buildings received a initial certificate of occupancy in the last ten years. 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 the tax block of 41-31 Haight Street, PincusCo has identified the owners of 13 of the 27 commercial properties representing 97,501 square feet of the 138,131 square feet. The largest owner is Zhifeng Chen, followed by Yungwa Ho and then Yun Li.
There are no active new building construction projects on this tax block.

The majority, or 48 percent of the 138,131 square feet of built space are mixed-use buildings, with elevator buildings next occupying 23 percent of the space.

The seller

The PincusCo database currently indicates that J&C International Group owned at least four commercial properties with 33 residential units in New York City with 39,762 square feet and a city-determined market value of $6.5 million. (Market value is typically about 50% of actual value.) The portfolio has $31.4 million in debt, borrowed from Castellan Capital. Within the portfolio, the bulk, or 60 percent of the 39,762 square feet of built space are elevator properties, with mixed-use properties next occupying 40 percent of the space. They are all located in Queens.

The buyer

The PincusCo database currently indicates that Maverick Real Estate Partners owned at least four commercial properties with 34 residential units in New York City with 178,142 square feet and a city-determined market value of $18.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 88 percent of the 178,142 square feet of built space are hotel properties, with walkup properties next occupying 8 percent of the space. The bulk, or 88 percent of the built space, is in Manhattan, with Brooklyn next at 12 percent of the space.

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