Storage Deluxe signs $22.5M construction loan with Truist Bank for storage in Bayside

Storage Deluxe through the entity 215-01 42nd Avenue LLC as borrower signed a new construction loan with lender Truist Bank valued at $22.5 million for the 45,585-square-foot storage (S-1) development at 215-01 42nd Avenue in Bayside, Queens.
The deal closed on July 22, 2022 and was recorded on August 8, 2022. The prior lender was PNC Bank which held debt that had an original loan amount of $6.3 million. The property has 8,000 square feet of built space and 38,470 square feet of additional air rights for a total buildable of 46,350 square feet according to PincusCo analysis of city data. The loan price per built square foot is $2,810 and the price per buildable square foot is $485 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 August 2, 2018, for $9.7 million. The signatory for Storage Deluxe was Nicholas S. Coslov. The signatory for Truist Bank was Jason Paxton.

Storage Deluxe sold a large portfolio of New York City properties to CubeSmart.

Prior sales and revenue

The 8,000-square-foot property generated revenue of $301,048 or $38 per square foot, according to the most recent income and expense figures.

The property

The 215-01 42nd Avenue parcel has frontage of 214 feet and is 169 feet deep with a total lot size of 46,350 square feet. The lot is irregular. The zoning is C8-1 which allows for up to 1 times floor area ratio (FAR) for commercial The city-designated market value for the property in 2022 is $1.9 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 $30,715 in ECB penalties and $33,715 in OATH penalties in the last year.

Development

On these lots, there is one active major alteration construction project for a 45,585-square-foot storage (S-1) building. The project was developed by Chris Lynch with plans filed June 8, 2020 and permitted July 1, 2020.

The neighborhood

In Bayside, the bulk, or 42 percent of the 6.8 million square feet of commercial built space are specialty buildings, with walkup buildings next occupying 18 percent of the space. In sales, Bayside has had very little sales volume relative to other neighborhoods with $90.2 million in sales volume in the last two years. For development, Bayside has had very little major development activity relative to other neighborhoods.It had 157,484 square feet of commercial and multi-family construction under development in the last two years, which represents 2 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the 29 commercial properties representing 13,826 square feet of the 146,067 square feet. The two identified owners are Bo Jiang and LIRR.
There are no active new building construction projects on this tax block.

The majority, or 41 percent of the 146,067 square feet of built space are office buildings, with mixed-use buildings next occupying 33 percent of the space.

The borrower

The PincusCo database currently indicates that Storage Deluxe owned at least two commercial properties in New York City with 53,550 square feet and a city-determined market value of $5.6 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 100 percent of the 53,550 square feet of built space are P6 properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

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