TF Cornerstone ups debt by $121.9M at 345-unit tower at Long Island City
45-40 Center Boulevard (Credit - Google)
TF Cornerstone through the entity 4540 East Coast LLC as borrower signed a loan with lender PNC Bank valued at $121.9 million for the 345-unit residential elevator building (D7) at 45-40 Center Boulevard in Long Island City, Queens.
The deal closed on July 1, 2022 and was recorded on July 11, 2022. The property has 311,266 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $417 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 building still has a loan with an original principal of $120 million provided by Walker & Dunlop in 2012.
Because the loan is on state-owned land, there are no mortgage recording taxes or fees, which would otherwise require a payment of approximately $3 million.
Prior sales and revenue
The owners according to the Department of Housing Preservation and Development includes Kamran Elghanayan, head officer and Frederick Elghanayan, officer. The business entities are TF Cornerstone Inc. and 4540 East Coast LLC. The 311,266-square-foot property generated revenue of $15.7 million or $50 per square foot, according to the most recent income and expense figures.
The property
The 45-40 Center Boulevard parcel has frontage of 194 feet and is 117 feet deep with a total lot size of 22,558 square feet. The lot is irregular. The zoning is M3-1 which allows for up to 2 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $82.2 million.
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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 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 Long Island City, the bulk, or 34 percent of the 64.6 million square feet of commercial built space are residential elevator buildings, with industrial buildings next occupying 31 percent of the space. In sales, Long Island City has the 7th highest sale turnover among other neighborhoods in the city with $1.6 billion in sales volume in the last two years. For development, Long Island City is the 4th most active neighborhood among other neighborhoods. It had 8.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of six of the nine commercial properties representing 3,408,922 square feet of the 3,502,062 square feet. The two identified owners are TF Cornerstone and Rockrose Development. There are no active new building construction projects on this tax block.
The majority, or 97 percent of the 3.5 million square feet of built space are residential elevator buildings, with specialty buildings next occupying 3 percent of the space.
Surrounding
PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 45-40 Center Boulevard that occurred over the past 24 months.
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