Pi Capital signs $76.7M refi loan with Bank of America for five properties in NYC

Pi Capital Partners through the entity 130 Water (Ny) L.L.C. (and others) as borrower signed a refi loan with lender Bank of America through the entity Bank Of America, N.A. valued at $76.7 million for five properties including the office building (O6) at 136-21 Roosevelt Avenue in Flushing, Queens, mixed-use building (K4) at 474 7th Avenue in Garment District, Manhattan, and retail condo at 130 Water Street in Financial District, Manhattan.
The deal closed on May 13, 2022 and was recorded on July 21, 2022. The prior lender was Industrial and Commercial Bank of China which held debt that had an original loan amount of $81 million. The five properties have 120,418 square feet of built space and 28,865 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $636 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 James Tung-Chiang Pi. The signatory for Bank of America was Michelle Neuerman.

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 136-21 Roosevelt Avenue.

Prior sales and revenue

Out of the five properties, four with a total of 120,418 square feet of built space generated revenue of $7.2 million per year.

The property

The 136-21 Roosevelt Avenue parcel has frontage of 77 feet and is 176 feet deep with a total lot size of 13,552 square feet. The lot is irregular. The zoning is C4-3 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $21.2 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 five DOB violations, $12,500 in ECB penalties, and $14,535 in OATH penalties in the last year.

Development

For the tax lot buildings, one out of the five 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 $5 million on this tax lot.

The neighborhood

In Flushing, the bulk, or 45 percent of the 37.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 1.6 times the average sales volume among other neighborhoods with $534.6 million in sales volume in the last two years and is the 4th highest in Queens. For development, Flushing has 3.3 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 3.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On the tax block of 136-21 Roosevelt Avenue, PincusCo has identified the owners of two of the 64 commercial properties representing 114,373 square feet of the 469,209 square feet. The two identified owners are Pi Capital and Uikun Lee. There are three active new building construction projects totaling 10,160 square feet. The largest is a N/A-unit, 3,802-square-foot B building developed by Youn Sook Suh with plans filed May 1, 2013 and it has not been permitted yet.The second largest is a N/A-unit, 3,786-square-foot M building developed by Minsun Kim with plans filed June 27, 2014 and permitted July 13, 2015.

The majority, or 42 percent of the 442,778 square feet of built space are retail buildings, with office buildings next occupying 39 percent of the space.

The borrower

The PincusCo database, which is not complete, currently indicates that Pi Capital Partners owned at least four commercial properties in New York City with 186,627 square feet and a city-determined market value of $35.9 million. (Market value is typically about 50% of actual value.) The portfolio has $93.4 million in debt, borrowed from Signature Bank and Bank of China. Within the portfolio, the bulk, or 59 percent of the 186,627 square feet of built space are rental condo properties, with office properties next occupying 26 percent of the space. The bulk, or 85 percent of the built space, is in Queens, with Manhattan next at 15 percent of the space.

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