Sioni Capital buys $13M note from Dime Community secured by mixed-use in Flushing

Sioni Capital bought a note with an original principal of $12.975 million from Dime Community Bank secured by Ching Lam and Choy Lam’s mixed-use building (K2) at 33-37 Farrington Street in Flushing, Queens.
The deal closed on April 20, 2022 and was recorded on July 19, 2022. The property has 67,197 square feet of built space according to PincusCo analysis of city data.
The owner bought the property on November 21, 2017, for $20.5 million.

Prior sales and revenue

The 67,197-square-foot property generated revenue of $1.1 million or $16 per square foot, according to the most recent income and expense figures.

The property

The 33-37 Farrington Street parcel has frontage of 98 feet and is 250 feet deep with a total lot size of 29,323 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $8.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received eight DOB violations, $13,810 in ECB penalties, and $17,660 in OATH penalties in the last year.

Development

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 Flushing, the bulk, or 45 percent of the 37.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 1.6 times the average sales volume among other neighborhoods with $534.6 million in sales volume in the last two years and is the 4th highest in Queens. For development, Flushing has 3.3 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 3.3 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. There were two pre-foreclosure suit filed among other mixed-use buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of three of the 29 commercial properties representing 30,170 square feet of the 243,405 square feet. The largest owner is Ravinder Chopra, followed by Century Development Group and then Joseph Vitulli Jr..
There are three active new building construction projects totaling 19,401 square feet. The largest is a 33-unit, 9,361-square-foot R-1 building developed by Lam Chung with plans filed December 24, 2012 and permitted September 4, 2013. The second largest is a nine-unit, 6,977-square-foot B building developed by Sweeney Lee with plans filed October 24, 2012 and it has not been permitted yet.

The majority, or 48 percent of the 243,405 square feet of built space are mixed-use buildings, with industrial buildings next occupying 31 percent of the space.

Surrounding

Within a 400-foot radius of 33-37 Farrington Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Century Development Group borrowed $8 million from East West Bank secured by the 15,658-square-foot, eight-unit retail building (K1) on 135-01 35th Avenue on July 13, 2021.

Direct link to Acris document. link