Royal Companies signs $23M construction loan for 114-unit LIC hotel
42-31 Crescent Street (Credit - Google)
Royal Companies through the entity Royal Cp Hotel Holdings, L.P. as borrower signed a new construction loan with lender International Bank of Chicago valued at $23 million for the 114-unit hotel project at 25-10 42nd Road in Long Island City, Queens. The parcel has an alternate address of 42-31 Crescent Street.
Mason Chen of Greenpoint Construction Corp. submitted a new building construction project for a 114-unit, hotel (R-1) building at 25-10 42nd Road in Long Island City, Queens. The plan was filed with the New York City Department of Buildings on August 11, 2021 under job number Q00555969.
The deal closed on March 5, 2024 and was recorded on March 26, 2024.
The owner bought the property on August 25, 2016, for $12.5 million. The signatory for Royal Companies was Sharol Hsueh. Judy Pan Chang signed a loan in 2022.
The property
The zoning is M1-5/R7-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing. The most recent loan totaled $5 million and was provided by International Bank of Chicago on March 29, 2022.
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 $11,250 in ECB penalties and $280 in OATH penalties in the last year.
The neighborhood
In Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 8th highest sale turnover among other neighborhoods in the city with $1.3 billion in sales volume in the last two years. For development, Long Island City is the 7th most active neighborhood among other neighborhoods. It had 5.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.
The block
On this tax block, PincusCo has identified the owners of 10 of the 12 commercial properties representing 34,786 square feet of the 34,786 square feet. The two identified owners are Royal Companies and Hang Dong Zhang.
The majority, or 70 percent of the 34,786 square feet of built space are hotel buildings, with industrial buildings next occupying 16 percent of the space.
The borrower
The PincusCo database currently indicates that Royal Companies owned at least six commercial properties in New York City with 24,346 square feet and a city-determined market value of $5 million. (Market value is typically about 50% of actual value.) The portfolio has $5 million in debt, borrowed from International Bank of Chicago. Within the portfolio, the bulk, or 100 percent of the 24,346 square feet of built space are hotel properties, with development properties next occupying 0 percent of the space. They are all located in Queens.
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