SNL Storage signs $34.6M construction loan with Axos Bank for 54K sf project in Elmhurst

SNL Storage through the entity SNL XXIII, LLC as borrower signed a new construction loan with lender Axos Bank through the entity Axos Bank valued at $34.6 million for the industrial building (E1) at 52-35 74th Street in Elmhurst, Queens.
The deal closed on July 28, 2022 and was recorded on September 6, 2022. The prior lender was Emerald Creek Capital which held debt that had an original loan amount of $9 million. The property has 28,430 square feet of built space and 1,186 square feet of additional air rights for a total buildable of 29,658 square feet according to PincusCo analysis of city data. The loan price per built square foot is $1,216 and the price per buildable square foot is $1,166 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 March 10, 2021, for $14.9 million. The signatory for SNL Storage was Marc Sharinn.

Prior sales and revenue

The 28,430-square-foot property generated revenue of $483,879 or $17 per square foot, according to the most recent income and expense figures.

The property

The 52-35 74th Street parcel has frontage of 223 feet and is 232 feet deep with a total lot size of 29,658 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 $2.2 million.The most recent loan totaled $9 million and was provided by Emerald Creek Capital on March 10, 2021.

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 $7,400 in ECB penalties and $7,400 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 54,121-square-foot S-1 building. The project was developed by Michael Jayne with plans filed May 6, 2020 and it has not been permitted yet.

The neighborhood

In Elmhurst, the bulk, or 40 percent of the 20.3 million square feet of commercial built space are elevator buildings, with mixed-use buildings next occupying 21 percent of the space. In sales, Elmhurst has had very little sales volume relative to other neighborhoods with $153.5 million in sales volume in the last two years. For development, Elmhurst has had very little major development activity relative to other neighborhoods.It had 737,341 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. There were two pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of two of the 16 commercial properties representing 28,430 square feet of the 163,085 square feet. The two identified owners are Safe N Lock Self Storage and George Or Nick Sakellis.
There is one active new building construction project totaling 54,121 square feet. It is a N/A-unit, 54,121-square-foot S-1 building developed by Michael Jayne with plans filed May 6, 2020 and permitted June 30, 2020.

the majority, or 62 percent of the 163,085 square feet of built space are retail buildings, with industrial buildings next occupying 34 percent of the space.

The borrower

The PincusCo database currently indicates that SNL Storage owned at least three commercial properties in New York City with 191,712 square feet and a city-determined market value of $11.3 million. (Market value is typically about 50% of actual value.) Within the portfolio, all identified are industrial properties. The bulk, or 74 percent of the built space, is in Brooklyn, with Bronx next at 26 percent of the space.

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