Sunlight Development signs $92M construction loan with S3 Capital for 127-unit condo project in Flushing
Sunlight Development through the entity Jingang Northern LLC as borrower signed a new construction loan with lender S3 Capital through the entity S3 RE Northern Blvd II Funding LLC valued at $92 million for the 127-unit condominium project at 138-18 Northern Boulevard in Flushing, Queens.
On the lot, there are two active new building construction projects. The largest is a new building project for a 127-unit, residential (R-2) building submitted by Sunlight Development Group and filed by Linzhong Zhuo with plans filed October 29, 2022 and permitted October 5, 2023. The second largest is a new building project for an office (B) building submitted by Linzhong Zhuo with plans filed October 28, 2022 and permitted November 1, 2023.
On the tax lot, the most recent condominium plan was filed by JINGANG NORTHERN LLC to create 127 residential units and 51 commercial units in a building at 138-18 Northern Boulevard in Flushing, Queens, called Northern Center Condominiumthat has a $268.7 million sellout, according to an December 15, 2023 submission to the New York State Attorney General.
The deal closed on April 16, 2024 and was recorded on May 6, 2024. The prior lender was S3 Capital which held debt that had an original loan amount of $28 million.The property has 13,702 square feet of built space and 91,390 square feet of additional air rights for a total buildable of 105,250 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $6,714 and the price per buildable square foot is $874 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 October 14, 2022, for $48 million. The signatory for Sunlight Development was Linzhong Zhuo. The signatory for S3 Capital was Joshua Crane.
The property
The retail building in Flushing has 13,702 square feet of built space and 91,390 square feet of additional air rights for a total buildable of 105,250 square feet according to a PincusCo analysis of city data. The parcel has frontage of 184 feet and is 232 feet deep with a total lot size of 43,313 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $10.1 million. The most recent loan totaled $28 million and was provided by S3 Capital on October 14, 2022.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $24,375 in ECB penalties and $24,375 in OATH penalties in the last year.
The neighborhood
In Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 2.7 times the average sales volume among other neighborhoods with $747.1 million in sales volume in the last two years and is the 2nd highest in Queens. For development, Flushing has 2.1 times the average amount of major developments relative to other neighborhoods and is the 4th highest in Queens. It had 2.4 million 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 this tax block, PincusCo has identified the owners of two of the 11 commercial properties representing 92,926 square feet of the 240,496 square feet. The two identified owners are Sunlight Development and Steven Frey.
The majority, or 79 percent of the 240,496 square feet of built space are elevator buildings, with retail buildings next occupying 9 percent of the space.
The borrower
The PincusCo database currently indicates that Sunlight Development owned at least five commercial properties with 23 residential units in New York City with 48,347 square feet and a city-determined market value of $18.1 million. (Market value is typically about 50% of actual value.) The portfolio has $36.4 million in debt, borrowed from S3 Capital. Within the portfolio, the bulk, or 72 percent of the 48,347 square feet of built space are elevator properties, with retail properties next occupying 28 percent of the space. They are all located in Queens.
Direct link to Acris document. link