Michael Steg signs $20M refi for five industrial properties in Long Island City

Michael Steg through the entity 40-21 Corners, LLC as borrower signed a refi loan with lender Signature Bank through the entity Signature Bank valued at $20 million for five industrial properties including the industrial building (F1) at 40-29 21st Street in Long Island City, Queens, industrial building (F1) at 21-02 40th Avenue in Long Island City, Queens, and industrial building (F1) at 40-18 22nd Street in Long Island City, Queens.
The deal closed on September 21, 2022 and was recorded on October 6, 2022. The prior lender was Signature Bank which held debt that had an original loan amount of $15 million.The five properties have 269,189 square feet of built space and 112,656 square feet of additional air rights for a total buildable of 377,365 square feet according to PincusCo analysis of city data. The loan price per built square foot is $74 and the price per buildable square foot is $52 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 Michael Steg was Michael Steg. The signatory for Signature Bank was Jesse Punn.

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 40-29 21st Street.

Prior sales and revenue

The five properties with a total of 269,189 square feet of built space generated revenue of $3.5 million per year or $13 per square foot.

The property

The 40-29 21st Street parcel has frontage of 262 feet and is 57 feet deep with a total lot size of 13,773 square feet. The lot is irregular. The zoning is M1-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $5.6 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $4,900 in ECB penalties and $5,000 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 Long Island City, the bulk, or 34 percent of the 63.3 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 32 percent of the space. In sales, Long Island City has the 9th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Long Island City is the 3rd most active neighborhood among other neighborhoods. It had 9.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block of 40-29 21st Street, PincusCo has identified the owners of one of the eight commercial properties representing 39,063 square feet of the 480,397 square feet. The identified owner is Heights Real Estate Company.
There are no active new building construction projects on this tax block.

The majority, or 92 percent of the 480,397 square feet of built space are industrial buildings, with office buildings next occupying 8 percent of the space.

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