Phipps signs $218.9M construction loan in Far Rockaway
Phipps Houses through the entity Frv Phase 5 CF Master Tenant LLC as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $218.9 million for multiple development parcels including 16-25 Redfern Avenue in Far Rockaway, Queens.
On these lots, there are active new building construction projects. The largest is a new building project for a 55-unit, residential R-2 building submitted by Phipps Houses and filed by Matthew Kelly with plans filed May 8, 2020 and permitted March 17, 2022. The second largest is a new building project for a 129-unit, residential R-2 building submitted by Phipps Houses and filed by Matthew Kelly with plans filed May 8, 2020 and permitted March 17, 2022.
The loan closed on January 22, 2023 and was recorded on January 24, 2024.
The signatory for Phipps Houses was Matthew Kelly. The signatory for NYC Housing Development Corporation was Lauren Connors.
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 10 DOB violations in the last year.
The neighborhood
In Far Rockaway, The majority, or 65 percent of the 12.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 18 percent of the space. In sales, Far Rockaway has had very little sales volume relative to other neighborhoods with $104.3 million in sales volume in the last two years. For development, Far Rockaway has 3.9 times the average amount of major developments relative to other neighborhoods and is the 2nd highest in Queens. It had 3.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 31 percent of the neighborhood’s built space.
The borrower
The PincusCo database currently indicates that Phipps Houses owned at least 93 commercial properties with 5,899 residential units in New York City with 5,741,607 square feet and a city-determined market value of $537.3 million. (Market value is typically about 50% of actual value.) The portfolio has $1.2 billion in debt, with top three lenders as NYC Housing Development Corporation, Citibank, and City of New York respectively. Within the portfolio, the bulk, or 70 percent of the 5,741,607 square feet of built space are elevator properties, with walkup properties next occupying 16 percent of the space. The bulk, or 47 percent of the built space, is in Bronx, with Manhattan next at 34 percent of the space.
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