RJ Capital Holdings signs $72M construction loan for development in Rego Park
RJ Capital Holdings through the entity Trylon LLC as borrower signed a new construction loan with lender Valley National Bank valued at $72 million for the development parcel (V1) at 98-01 Queens Boulevard in Rego Park, Queens.
On the lot, there is one active new building construction project for a 62-unit, 82,425 square-foot R-2 building. The project was submitted by RJ Capital Holdings and filed by Rudolf Abramov with plans filed December 14, 2021 and permitted May 10, 2022.
The deal closed on June 28, 2023 and was recorded on July 11, 2023. The prior lender was Valley National Bank which held debt that had an original loan amount of $6.6 million.
The property has 25,664 square feet of built space and 103,490 square feet of additional air rights for a total buildable of 129,255 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $2,805 and the price per buildable square foot is $557 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 December 26, 2012, for $9 million. The signatory for RJ Capital Holdings was Rudolf Abramov. The signatory for Valley National Bank was Victor Brown.
The property
The parcel has frontage of 201 feet and is 200 feet deep with a total lot size of 21,471 square feet. The lot is irregular. The zoning is R8X which allows for up to 6.02 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $4.8 million. The most recent loan totaled $6.6 million and was provided by Bank Leumi on May 21, 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 one DOB violation, $4,374 in ECB penalties, and $4,774 in OATH penalties in the last year.
The neighborhood
In Rego Park, The majority, or 65 percent of the 10.6 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 13 percent of the space. In sales, Rego Park has had very little sales volume relative to other neighborhoods with $150.4 million in sales volume in the last two years. For development, Rego Park has had very little major development activity relative to other neighborhoods.It had 446,635 square feet of commercial and multi-family construction under development in the last two years, which represents 4 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 25,664 square feet on the block.The identified owner is Rudolf Abramov.
On the tax block, there was one new building construction project filed totaling 82,425 square feet. It is a 62-unit, 82,425 square-foot residential (R-2) building submitted by RJ Capital Holdings and filed by Rudolf Abramov with plans filed December 14, 2021 and permitted May 10, 2022.
All properties are development.
The borrower
The PincusCo database currently indicates that Rj Capital Holdings owned at least nine commercial properties with 74 residential units in New York City with 380,287 square feet and a city-determined market value of $63.4 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 38 percent of the 380,287 square feet of built space are elevator properties, with retail properties next occupying 27 percent of the space. The bulk, or 67 percent of the built space, is in Queens, with Brooklyn next at 28 percent of the space.
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