Piermont Properties signs $29.2M refi with private lender for 93-unit project in Holliswood

Piermont Properties through the entity 188-11 Hillside Partners LLC as borrower signed a refi loan with lender entity Davis Hillside LLC valued at $29.2 million for the development at 188-11 Hillside Avenue in Holliswood, Queens.
On the lot, there is one active new building construction project for a 93-unit, 72,308 square-foot R-2 building. The project was submitted by Piermont Properties and filed by Michael Grey with plans filed July 5, 2019 and permitted October 26, 2020.
The deal closed on May 22, 2023 and was recorded on May 30, 2023. The prior lender was Bank OZK which held debt that had an original loan amount of $29.2 million.

The owner bought the property on March 29, 2017, for $9.2 million. The signatory for Piermont Properties was Michael Grey. The signatory for the lender was Brian Davis.

The property

The parcel has frontage of 249 feet and is 100 feet deep with a total lot size of 25,223 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $3.7 million. The most recent loan totaled $29.2 million and was provided by Bank OZK on May 20, 2020.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received two DOB violations in the last year.

The neighborhood

In Holliswood, The majority, or 65 percent of the 1.4 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 14 percent of the space. In sales, Holliswood has had very little sales volume relative to other neighborhoods with $131.5 million in sales volume in the last two years. For development, Holliswood has not had any major developments in the last two years.

The block

On this tax block, PincusCo has identified the owners of four of the nine commercial properties representing 189,782 square feet of the 192,833 square feet. The largest owner is Piermont Properties, followed by Martin Schwartz and then Chaim Schweid.
On the tax block, there were five new building construction projects totaling 88,013 square feet. The largest is a 93-unit, 72,308 square-foot residential (R-2) building submitted by Piermont Properties and filed by Michael Grey with plans filed July 5, 2019 and permitted August 31, 2020. The second largest is a one-unit, 5,060 square-foot residential (R-3) building submitted by Mandeep Gill with plans filed July 28, 2022 and permitted April 20, 2023.

The majority, or 98 percent of the 192,833 square feet of built space are elevator buildings, with mixed-use buildings next occupying 2 percent of the space.

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