Pi Capital signs $43M refi for 83-unit Elmhurst rental

Pi Capital Partners through the entity 864163 Realty, LLC as borrower signed a refi loan with lender Industrial and Commercial Bank of China valued at $43 million for the 83-unit rental condo at 86-55 Broadway in Elmhurst, Queens, which is divided into four commercial condominium units.
The deal closed on July 20, 2022 and was recorded on August 9, 2022. The prior lender was Bank of China which held debt that had an original loan amount of $43 million. The four condo units have 105,325 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $408 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 Pi Capital Partners was Jerry C. Pi. The signatories for Industrial and Commercial Bank of China were Carmen Lee and Amy Tsang-Tong.

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 86-55 Broadway.

The property

The 86-55 Broadway parcel has a total lot size of 56,131 square feet. The property has a 421A exemption that started in 2013 and expires in 2028. The city-designated market value for the property in 2022 is $11.3 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 not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the four buildings received an 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 $5 million on this tax lot.

The block

On the tax block of 86-55 Broadway, PincusCo has identified the owners of three of the 81 commercial properties representing 438,429 square feet of the 795,042 square feet. The two identified owners are United Construction & Development Group and Pi Capital Partners.
There are three active new building construction projects totaling 440,361 square feet. The largest is a 184-unit, 289,994-square-foot R-2 building developed by Jia Xu with plans filed May 29, 2015 and permitted December 23, 2015. The second largest is a 142-unit, 112,681-square-foot R-2 building developed by James Pi with plans filed June 9, 2020 and it has not been permitted yet.

The majority, or 64 percent of the 681,259 square feet of built space are office buildings, with elevator buildings next occupying 34 percent of the space.

The borrower

The PincusCo database currently indicates that Pi Capital Partners owned at least nine commercial properties in New York City with 307,045 square feet and a city-determined market value of $73.6 million. (Market value is typically about 50% of actual value.) The portfolio has $170.1 million in debt, with top three lenders as Bank of America, Signature Bank, and Bank of China respectively. Within the portfolio, the bulk, or 44 percent of the 307,045 square feet of built space are office properties, with rental condo properties next occupying 36 percent of the space. The bulk, or 82 percent of the built space, is in Queens, with Manhattan next at 18 percent of the space.

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