Queensgate Investments signs $147.2M loan modification with servicer Trimont for Freehand hotel in Kips Bay

23 Lexington Avenue

23 Lexington Avenue (Credit: Google)

Queensgate Investments through the entity 23 Lexington Associates LLC as borrower signed a loan modification with lender servicer Trimont through the entity Trimont, LLC valued at $147.2 million for the 26-unit hotel building (H2) at 135 East 23rd Street in Kips Bay, Manhattan. Trimont is a servicer of loans and the identity of the lender was not disclosed.

The maturity date was extended to May 6, 2025 and the modification “increase(d) the spread,” of the loan, but did not provide additional details.

An unidentified lender serviced by Credit Suisse made the original $147.2 million loan in 2019, and in 2021 that loan was assigned to a lender being serviced by Trimont, which is the current servicer. That 2021 transaction was only recorded a few weeks ago.
The deal closed on November 6, 2023 and was recorded on November 14, 2023. The property has 163,311 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $901 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 Queensgate Investments was Renai Venables. The signatory for Trimont was Michael J. Roberts.

Prior sales and revenue

The owner according to the Department of Housing Preservation and Development is Alain Derderian, head officer. The business entity is 23 Lexington Associates Llc.

The property

The hotel building with 26 residential units in Kips Bay has 163,311 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 197 feet deep with a total lot size of 9,875 square feet. The zoning is C6-4A which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $38.6 million.

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 eight DOB violations, one housing violation, and $3,500 in OATH penalties in the last year.


For the tax lot building, it received its initial rehab certificate of occupancy on June 5, 2018. On the lot, there is one active major alteration construction project for a 417-unit, 148,767 square-foot R-2 building. The project was submitted by Jordan Goldberg with plans filed April 21, 2016 and permitted October 26, 2016.

The neighborhood

In Kips Bay, The bulk, or 50 percent of the 21.5 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 32 percent of the space. In sales, Kips Bay has 2.5 times the average sales volume among other neighborhoods with $882.6 million in sales volume in the last two years and is the 15th highest in Manhattan. For development, Kips Bay has had very little major development activity relative to other neighborhoods.It had 588,585 square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of nine of the 24 commercial properties representing 818,785 square feet of the 1,149,704 square feet. The largest owner is United States Postal Service, followed by Steven Rosenthal and then Solil Management.
On the tax block, there was one new building construction project filed totaling 24,991 square feet. It is a 14-unit, 24,991 square-foot residential (R-2) building submitted by Stefano Farsura with plans filed August 4, 2016 and permitted February 13, 2018.

The majority, or 38 percent of the 1.1 million square feet of built space are office buildings, with elevator buildings next occupying 32 percent of the space.

The borrower

The PincusCo database currently indicates that Queensgate Investments owned at least one commercial property with 26 residential units in New York City with 163,311 square feet and a city-determined market value of $38.6 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single hotel property. It is located in Manhattan.

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