SKW Funding buys notes with $8.7M in original principal secured by Albert Rabizadeh property in Manhattan, Queens

SKW Funding in two transactions bought two notes that have a total of $8.7 million in original principal that were secured by Albert Rabizadeh’s property in Manhattan and Queens.

In the first, SKW Funding bought a note with an original principal of $4.7 million from BankUnited secured by Albert Rabizadeh’s retail building at 87-36 Avon Street in Jamaica Estates, Queens.
The deal closed on December 21, 2021 and was recorded on March 23, 2022. The property has 5,800 square feet of built space and 90,240 square feet of additional air rights for a total buildable of 96,000 square feet according to PincusCo analysis of city data.

In the second, SKW Funding bought a note with an original principal of $4 million from BankUnited secured by Albert Rabizadeh’s midblock six-unit mixed-use building at 145 Bleecker Street in Greenwich Village, Manhattan.
The deal closed on December 21, 2021 and was recorded on March 23, 2022. The property has 5,809 square feet of built space and 4,088 square feet of additional air rights for a total buildable of 9,903 square feet according to PincusCo analysis of city data.

Prior sales and revenue

The 5,800-square-foot at 87-36 Avon Street generated revenue of $660,225 or $114 per square foot, according to the most recent income and expense figures.

The property

The 87-36 Avon Street parcel has frontage of 201 feet and is 140 feet deep with a total lot size of 32,000 square feet. The lot is irregular. The zoning is R6A which allows for up to 3 times floor area ratio (FAR) for residential with inclusionary housing. The city-designated market value for the property in 2022 is $2.9 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has not received any significant violations 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 Jamaica Estates, the majority, or 57 percent of the 9.1 million square feet of commercial built space are 1-4 family buildings, with residential elevator buildings next occupying 26 percent of the space. In sales, Jamaica Estates has the 34th highest sale turnover among other neighborhoods in Queens with $23 million in sales volume in the last two years. For development, Jamaica Estates has had very little major development activity relative to other neighborhoods.It had 81,396 square feet of commercial and multi-family construction under development in the last two years, which represents 0.90 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of two of the eight commercial properties representing 42,508 square feet of the 68,167 square feet. The two identified owners are Healthcare Trust of America and Albert Rabizadeh. There are no active new building construction projects on this tax block.

The majority, or 44 percent of the 110,406 square feet of built space are residential elevator buildings, with specialty buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that Albert Rabizadeh owned at least 18 commercial properties with 50,681 square feet and a city-determined market value of $21 million. (Market value is typically about 50% of actual value.) The portfolio has $13.8 million in debt, borrowed from Flushing Bank and SKW Funding. Within the portfolio, the bulk, or 35 percent of the 50,681 square feet of built space are industrial properties, with retail properties next occupying 34 percent of the space. The bulk, or 49 percent of the built space, is in Brooklyn, with Bronx next at 20 percent of the space.

Surrounding

Within a 400-foot radius of 87-36 Avon Street, Pincusco identified one commercial real estate item of interests occurred over the past 24 months.
It was a sale which Healthcare Trust of America bought the 36,708-square-foot industrial (I5) on 180-05 Hillside Avenue for $20.5 million from EmblemHealth on January 15, 2020.

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