United Construction & Development signs $52.2M replacement loan with State Bank of Texas for hotel in Jamaica

United Construction & Development Group through the entity Archer Ave Realty De, LLC as borrower signed a refi loan with lender State Bank of Texas valued at $52.2 million for the hotel building (H2) at 148-22 Archer Avenue in Jamaica, Queens.
The deal closed on April 8, 2024 and was recorded on April 30, 2024. The prior lender was Acore Capital which held construction debt that had an original loan amount of $57 million.
The property has 203,782 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $256 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 December 17, 2007, for $6.3 million. The signatory for United Construction & Development Group was Jiashu Xu. The signatory for State Bank of Texas was Melody Collins.

The property

The hotel building in Jamaica has 203,782 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 180 feet and is 100 feet deep with a total lot size of 17,999 square feet. The zoning is C6-3 which allows for up to 6 times floor area ratio (FAR) for commercial and up to 7.52 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $29.1 million.

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.

Development

On the lot, there was one active new building construction project for a 338-unit, 143,911 square-foot R-1 building. The project was submitted by United Construction & Development Group and filed by Jia Shu Xu with plans filed July 30, 2013 and permitted April 22, 2015.

The neighborhood

In Jamaica, The bulk, or 34 percent of the 29.2 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 14 percent of the space. In sales, Jamaica has 1.2 times the average sales volume among other neighborhoods with $322.8 million in sales volume in the last two years and is the 5th highest in Queens. For development, Jamaica has 2.2 times the average amount of major developments relative to other neighborhoods and is the 3rd 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 8 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of five of the 20 commercial properties representing 678,142 square feet of the 916,199 square feet. The largest owner is LIRR, followed by Goldman Sachs and then BRP Companies.
On the tax block, there were six new building construction projects totaling 912,933 square feet. The largest is a 539-unit, 486,087 square-foot residential (R-2) building submitted by BRP Companies and filed by Meredith Marshall with plans filed June 29, 2015 and permitted January 4, 2017. The second largest is a 338-unit, 143,911 square-foot hotel/dormitory/shelter (R-1) building submitted by United Construction & Development Group and filed by Jia Shu Xu with plans filed July 30, 2013 and permitted April 22, 2015.

The majority, or 74 percent of the 916,199 square feet of built space are elevator buildings, with hotel buildings next occupying 22 percent of the space.

The borrower

The PincusCo database currently indicates that United Construction & Development Group owned at least 19 commercial properties with 317 residential units in New York City with 999,508 square feet and a city-determined market value of $101.7 million. (Market value is typically about 50% of actual value.) The portfolio has $615.7 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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