United Construction & Development Group signs $31.1M refi with State Bank of Texas in North Corona

United Construction & Development Group through the entity Hbc Corona LLC as borrower signed a refi loan with lender State Bank of Texas valued at $31.1 million for the 72-unit SpringHill Suites New York LaGuardia Airport at 112-15 Northern Boulevard in North Corona, Queens. The hotel property is divided into five commercial condominium units, and this loan covers all five.
The deal closed on October 16, 2023 and was recorded on November 14, 2023. The prior lender was M&T Bank which held debt that had an original loan amount of $35 million.
The five units have 128,389 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $242 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 signatory for United Construction & Development Group was Jiashu Xu. The signatory for State Bank of Texas was Sushil Patel.

The property

The hotel condo in North Corona has 128,389 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 45,705 square feet. The city-designated market value for the property in 2022 is $14.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.

Development

For the tax lot buildings, one out of the five buildings received a initial certificate of occupancy in the last ten years. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In North Corona, The bulk, or 29 percent of the 5.3 million square feet of commercial built space are mixed-use buildings, with walkup buildings next occupying 26 percent of the space. In sales, North Corona has had very little sales volume relative to other neighborhoods with $176.5 million in sales volume in the last two years. For development, North Corona has had very little major development activity relative to other neighborhoods.It had 333,234 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 the tax block of 112-15 Northern Boulevard, PincusCo has identified the owners of one of the two commercial properties representing 87,661 square feet of the 93,771 square feet. The identified owner is Marx Development Group.
On the tax block, there were three new building construction projects totaling 84,400 square feet. The largest is a 126-unit, 48,401 square-foot hotel/dormitory/shelter (R-1) building submitted by Marx Development Group and filed by David Marx with plans filed January 9, 2013 and permitted August 22, 2019. The second largest is a six-unit, 31,946 square-foot residential (R-2) building submitted by Chen Wu with plans filed December 5, 2013 and it has not been permitted yet.

The majority, or 93 percent of the 93,771 square feet of built space are hotel buildings, with industrial buildings next occupying 7 percent of the space.

The borrower

The PincusCo database currently indicates that United Construction & Development Group owned at least 18 commercial properties with 317 residential units in New York City with 999,508 square feet and a city-determined market value of $98.2 million. (Market value is typically about 50% of actual value.) The portfolio has $518.9 million in debt, with top three lenders as Bank of China, Centennial Bank, and Maxim Capital Group respectively. Within the portfolio, the bulk, or 42 percent of the 999,508 square feet of built space are O8 properties, with elevator properties next occupying 30 percent of the space. They are all located in Queens.

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