Victor Peng, Yi Hua Chen sign $30.5M loan with Deutsche Bank for industrial in Flushing

Victor Peng and Yi Hua Chen through the entity 133-16 35 Ave LLC as borrower signed an acquisition loan with lender Deutsche Bank valued at $30.5 million for seven industrial properties including the industrial building (G2) at 133-16 35th Avenue in Flushing, Queens, industrial building (E9) at 134-01 Northern Boulevard in Flushing, Queens, and industrial building (E9) at 34-69 Collins Place in Flushing, Queens.
The deal closed on March 17, 2023 and was recorded on April 5, 2023. The seven properties have 66,423 square feet of built space and 51,412 square feet of additional air rights for a total buildable of 112,384 square feet according to a PincusCo analysis of city data. The loan price per built square foot is $459 and the price per buildable square foot is $271 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 Victor Peng and Yi Hua Chen was Victor Peng and Yi Hua Chen.

Because multiple properties have been transacted, some of the following sections will follow the property with the largest assessed value, which in this case, is the property on 133-16 35th Avenue.

Prior sales and revenue

Out of the seven properties, five with a total of 66,423 square feet of built space generated revenue of $1 million per year.

The property

The industrial building in Flushing has 66,423 square feet of built space and 51,412 square feet of additional air rights for a total buildable of 112,384 square feet according to a PincusCo analysis of city data. The parcel has frontage of 127 feet and is 201 feet deep with a total lot size of 22,000 square feet. The lot is irregular. The zoning is M1-1 which allows for up to 1 times floor area ratio (FAR) for manufacturing The city-designated market value for the property in 2022 is $3.5 million. The most recent loan totaled 0.0 and was provided by Robert Mannheimer on April 12, 2022.

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 received $1,050 in OATH penalties in the last year.

Development

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 Flushing, The bulk, or 45 percent of the 37.7 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 2.1 times the average sales volume among other neighborhoods with $729.7 million in sales volume in the last two years and is the 4th highest in Queens. For development, Flushing has 2.4 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 2.5 million 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. There was one pre-foreclosure suit filed among other industrial buildings in the past 12 months.

The block

On the tax block of 133-16 35th Avenue, PincusCo has identified the owners of 12 of the 42 commercial properties representing 147,308 square feet of the 424,279 square feet. The largest owner is Victor Ping, followed by Victor Peng and then Shun Qian Liu.
On the tax block, there were two new building construction projects totaling 16,249 square feet. The largest is a 9,597 square-foot assembly (A-3) building submitted by Ivy Lueng with plans filed November 21, 2014 and permitted December 7, 2017. The second largest is a 6,652 square-foot industrial (F-2) building submitted by Tony Xiao with plans filed June 25, 2019 and it has not been permitted yet.

The majority, or 83 percent of the 424,279 square feet of built space are industrial buildings, with office buildings next occupying 6 percent of the space.

The borrower

The PincusCo database currently indicates that Victor Peng owned at least nine commercial properties in New York City with 91,533 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $6 million in debt, borrowed from Preferred Bank. Within the portfolio, the bulk, or 77 percent of the 91,533 square feet of built space are industrial properties, with hotel properties next occupying 23 percent of the space. The bulk, or 77 percent of the built space, is in Queens, with Brooklyn next at 23 percent of the space.
The PincusCo database currently indicates that Yi Hua Chen owned at least three commercial properties in New York City with 32,908 square feet and a city-determined market value of None. (Market value is typically about 50% of actual value.) The portfolio has $13 million in debt, borrowed from Soung Eun Hong. Within the portfolio, the bulk, or 100 percent of the 32,908 square feet of built space are mixed-use properties, with industrial properties next occupying 0 percent of the space. They are all located in Queens.

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