Prime Group Holdings signs $147M refi loan with Slate Asset Management for three industrial properties in NYC

Prime Group Holdings through the entity Prime Storage Astoria, LLC as borrower signed a refi loan with lender Slate Asset Management through the entity Srec Reit Holdings Inc. valued at $147 million for three industrial properties including the industrial building (E7) at 31-07 20th Avenue in Ditmars Steinway, Queens, industrial building (E7) at 1260 Zerega Avenue in Unionport, Bronx, and industrial building (E7) at 1084 Rockaway Avenue in Brownsville, Brooklyn.
The deal closed on August 15, 2022 and was recorded on August 26, 2022. The prior lender was PIMCO which held debt that had an original loan amount of $155 million. The three properties have 353,663 square feet of built space and 4,161 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $415 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 Prime Group Holdings was Robert S. Moser. The signatory for Slate Asset Management was Michael Quinn.

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 31-07 20th Avenue.

Prior sales and revenue

Out of the three properties, two with a total of 353,663 square feet of built space generated revenue of $5.2 million per year.

The property

The 31-07 20th Avenue parcel has frontage of 195 feet and is zero feet deep with a total lot size of 87,120 square feet. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $25.2 million.The most recent loan totaled $155 million and was provided by PIMCO on November 1, 2019.

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 seven DOB violations in the last year.

Development

For the tax lot buildings, three out of the three 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 Ditmars Steinway, the bulk, or 40 percent of the 11.3 million square feet of commercial built space are walkup buildings, with industrial buildings next occupying 25 percent of the space. In sales, Ditmars Steinway has had very little sales volume relative to other neighborhoods with $200.5 million in sales volume in the last two years. For development, Ditmars Steinway has near average amount of major developments among other neighborhoods and is the 9th highest in Queens. It had 1 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 31-07 20th Avenue, PincusCo has identified the owners of three of the 11 commercial properties representing 173,801 square feet of the 204,482 square feet. The largest owner is Prime Storage, followed by Luyster Creek LLC and then Consolidated Edison.
There are three active new building construction projects totaling 11,799 square feet. The largest is a N/A-unit, 10,333-square-foot S-2 building developed by Domenic Acquista with plans filed October 6, 2015 and permitted November 16, 2017. The second largest is a zero-unit, 1,018-square-foot F-2 building developed by Steven Parisi with plans filed December 8, 2016 and permitted November 29, 2017.

The majority, or 99 percent of the 204,482 square feet of built space are industrial buildings, with retail buildings next occupying 1 percent of the space.

The borrower

The PincusCo database currently indicates that Prime Group Holdings owned at least three commercial properties in New York City.

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