Tishman Speyer signs $132.3M construction loan for 237-unit development in Edgemere
Tishman Speyer as borrower signed a new construction loan with lender NYC Housing Development Corporation valued at $132.3 million for the 237-unit development site (V6) at 5119 Beach Channel Drive in Edgemere, Queens. The total financing package was $196.8 million.
On the lot, there is one active new building construction project for a 237-unit, 220,478 square-foot R-2 building. The project was submitted by Arker Companies and filed by Alex Arker with plans filed September 25, 2020. The plan was originally 257 units, but the Real Estate Weekly article reports the number is 237 units.
The deal closed on June 26, 2023 and was recorded on July 7, 2023. The property has zero square feet of built space and 168,694 square feet of additional air rights for a total buildable of 168,694 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $N/A and the price per buildable square foot is $784 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.)
Tishman Speyer bought the property and others on November 18, 2021, for $90.4 million. The signatory for Tishman Speyer was Joseph G. Doran.
The property
The parcel has frontage of 430 feet and is 794 feet deep with a total lot size of 49,039 square feet. The lot is irregular. The zoning is C4-4 which allows for up to 3.4 times floor area ratio (FAR) for commercial and up to 3.44 times FAR for residential. The city-designated market value for the property in 2022 is $1.5 million. The most recent loan totaled $55 million and was provided by Wells Fargo on November 18, 2021.
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 not received any significant violations in the last year.
The neighborhood
In Edgemere, The majority, or 79 percent of the 4.4 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 17 percent of the space. In sales, Edgemere has had very little sales volume relative to other neighborhoods with $154.6 million in sales volume in the last two years. For development, Edgemere has had very little major development activity relative to other neighborhoods.It had 311,421 square feet of commercial and multi-family construction under development in the last two years, which represents 7 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of 10 of the 10 commercial properties representing zero square feet of the zero square feet. The two identified owners are Tishman Speyer and Block Institute.
On the tax block, there were two new building construction projects totaling 382,260 square feet. The largest is a 257-unit, 220,478 square-foot residential (R-2) building submitted by Arker Companies and filed by Alex Arker with plans filed September 25, 2020 and it has not been permitted yet. The second largest is a 194-unit, 161,782 square-foot residential (R-2) building submitted by Arker Companies and filed by Alex Arker with plans filed October 19, 2020 and permitted December 2, 2021.
All properties are development.
The borrower
The PincusCo database currently indicates that Tishman Speyer owned at least 34 commercial properties with 2,352 residential units in New York City with 16,982,970 square feet and a city-determined market value of $6.3 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.5 billion in debt, with top three lenders as Wells Fargo, Bank of America, and Blackstone Group respectively. Within the portfolio, the bulk, or 75 percent of the 16,982,970 square feet of built space are office properties, with specialty properties next occupying 9 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.
Direct link to Acris document. link