Turret Equities buys $23.5M note secured by AB Capstone’s office building in Bellerose

Turret Equities through the entity 25177 Jericho Note Holder 2 LLC bought a note with an original principal of $23.5 million from Jovia Financial secured by AB Capstone’s office building at 251-77 Jericho Turnpike in Bellerose, Queens.
The deal closed on February 18, 2022 and was recorded on March 7, 2022. The prior lender was Jovia Financial which held debt that had an original loan amount of $23.5 million.The property has 84,352 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $zero 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 July 21, 2014, for $2.5 million.

Prior sales and revenue

The 84,352-square-foot property generated revenue of $4.4 million or $52 per square foot, according to the most recent income and expense figures.

The property

The 251-77 Jericho Turnpike parcel has frontage of 190 feet and is 134 feet deep with a total lot size of 28,406 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 $17.2 million.The most recent loan totaled $23.5 million and was provided by Nassau Educators Federal Credit Union on 22-Aug-19. The property has a city-determined energy rating of 100 out of 100.

Development

On this blocks, there was a new building project for a 58,368-square-foot office (B) building developed by Meir Babaev with plans filed March 11, 2015 and permitted February 1, 2017.

The neighborhood

In Bellerose Manor, the majority, or 61 percent of the 13.2 million square feet of built space are 1-4 family buildings, with specialty buildings next occupying 18 percent of the space. In sales, Bellerose Manor has the 48th highest sale turnover among other neighborhoods in Queens with $3.2 million in sales volume in the last two years. For development, Bellerose Manor has had very little major development activity relative to other neighborhoods.It had 17,363 square feet of commercial and multi-family construction under development in the last two years, which represents 0.13 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the 37 commercial properties representing 84,352 square feet of the 272,325 square feet. The identified owner is Meir Babaev.

The majority, or 36 percent of the 373,672 square feet of built space are industrial buildings, with 1-4 family buildings next occupying 27 percent of the space.

The borrower

The PincusCo database currently indicates that AB Capstone owned at least six commercial properties with 169,512 square feet and a city-determined market value of $27.9 million. (Market value is typically about 50% of actual value.) The portfolio has $74 million in debt, with top three lenders as Lightstone Group, Argentic Investment Management, and Sterling National Bank respectively. Within the portfolio, the bulk, or 37 percent of the 169,512 square feet of built space are retail properties, with industrial properties next occupying 32 percent of the space. They are all located in Queens.

Surrounding

PincusCo has not identified any commercial real estate items of interest within a 400-foot radius of 251-77 Jericho Turnpike that occurred over the past 24 months.

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