Soundview Real Estate signs $94M refi with MSD Partners for two hotel properties near JFK airport

Soundview Real Estate Partners through the entity 135th Avenue JFK Property LLC as borrower signed a refi loan with lender MSD Partners through the entity Msd Rcof Partners LXII, LLC valued at $94 million for two hotel properties including the hotel building (H3) at 135-25 142nd Street in South Ozone Park, Queens and hotel building (H3) at 142-30 135th Avenue in South Ozone Park, Queens. The hotels are near the John F. Kennedy International Airport.
The deal closed on November 28, 2022 and was recorded on December 1, 2022. The prior lender was Bank OZK which held debt that had an original loan amount of $54.8 million. The two properties have 254,829 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $368 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 signatory for Soundview Real Estate Partners was Nicholas D. Newman. The signatory for MSD Partners was Kenneth Gerold.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 135-25 142nd Street.

Prior sales and revenue

The two properties with a total of 254,829 square feet of built space generated revenue of $24.9 million per year or $98 per square foot.

The property

The 135-25 142nd Street parcel has frontage of 259 feet and is 200 feet deep with a total lot size of 29,732 square feet. The zoning is C4-2 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 2.43 times FAR for residential. The city-designated market value for the property in 2022 is $13.9 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received two DOB violations, $10,000 in ECB penalties, and $10,000 in OATH penalties in the last year.

Development

On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 323,055 square feet. The largest is a new building project for a 360-unit, 162,504 square-foot R-1 building developed by Robert Schaedle Iii with plans filed December 8, 2015 and permitted April 9, 2019. The second largest is a new building project for a 360-unit, 160,551 square-foot R-1 building developed by Robert Schaedle Iii with plans filed December 8, 2015 and permitted November 8, 2018.

The neighborhood

In South Ozone Park, the bulk, or 28 percent of the 6 million square feet of commercial built space are mixed-use buildings, with specialty buildings next occupying 27 percent of the space. In sales, South Ozone Park has the 29th highest sale turnover among other neighborhoods in Queens with $69.3 million in sales volume in the last two years. For development, South Ozone Park has had very little major development activity relative to other neighborhoods.It had 336,467 square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.

The block

On the tax block of 135-25 142nd Street, PincusCo has identified the owners of three of the six commercial properties representing 188,276 square feet of the 650,041 square feet. The largest owner is Jfk, followed by ASAP Property Holdings and then Consolidated Edison.
On the tax block, there were five new building construction projects totaling 628,369 square feet. The largest is a 360-unit, 162,504-square-foot R-1 building developed by Robert Schaedle Iii with plans filed December 8, 2015 and permitted April 9, 2019. The second largest is a 360-unit, 160,551-square-foot R-1 building developed by Robert Schaedle Iii with plans filed December 8, 2015 and permitted August 2, 2018.

the majority, or 100 percent of the 650,041 square feet of built space are hotel buildings, with specialty buildings next occupying 0 percent of the space.

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