RB Realty Capital signs $47M refi loan with Ponce Bank for retail in Kew Garden Hills

RB Realty Capital through the entity Vp Capital Holdings LLC as borrower signed a refi loan with lender Ponce Bank valued at $47 million for the retail building (K2) at 77-39 Vleigh Place in Kew Garden Hills, Queens.
The deal closed on August 25, 2023 and was recorded on September 5, 2023. The prior lender was Dime Community Bank which held debt that had an original loan amount of $22.3 million. The property has 96,638 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $486 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 owner bought the property on July 10, 2018, for $6.5 million. The signatory for RB Realty Capital was Avi Matatov. The signatory for Ponce Bank was Steven A. Tsavaris.

The property

The retail building in Kew Garden Hills has 96,638 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 220 feet and is 180 feet deep with a total lot size of 30,055 square feet. The lot is irregular. The zoning is R6B which allows for up to 2 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.5 million. The most recent loan totaled $22.3 million and was provided by Dime Community Bank on August 11, 2021.

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 not received any significant violations in the last year.

Development

On the lot, there is one active new building construction project for a retail (M) building. The project was submitted by RB Realty Capital and filed by Valeri Matatov with plans filed October 5, 2018 and permitted March 15, 2019.

The neighborhood

In Kew Garden Hills, The bulk, or 36 percent of the 4.1 million square feet of commercial built space are walkup buildings, with specialty buildings next occupying 24 percent of the space. In sales, Kew Garden Hills has the 32nd highest sale turnover among other neighborhoods in Queens with $50 million in sales volume in the last two years. For development, Kew Garden Hills has had very little major development activity relative to other neighborhoods.It had 41,224 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owner of the one commercial property that spans that spans 96,638 square feet on the block.The identified owner is RB Realty Capital.

All properties are mixed-use.

The borrower

The PincusCo database currently indicates that Rb Realty Capital owned at least three commercial properties with 74 residential units in New York City with 450,352 square feet and a city-determined market value of $16.5 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 75 percent of the 450,352 square feet of built space are elevator properties, with mixed-use properties next occupying 21 percent of the space. They are all located in Queens.

Direct link to Acris document. link