Vorea Group signs $24.1M loan with ACRES for hotel in Long Island City

Vorea Group through the entity Vorea Jackson LLC as borrower signed a loan with lender ACRES Capital through the entity Acres Loan Origination, LLC valued at $24.1 million for the hotel building at 23-20 Jackson Avenue in Long Island City, Queens.
The deal closed on October 8, 2021 and was recorded on March 18, 2022.The property has 64,387 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $374 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.)

Prior sales and revenue

The 64,387-square-foot property generated revenue of $2.5 million or $39 per square foot, according to the most recent income and expense figures.

The property

The 23-20 Jackson Avenue parcel has frontage of 100 feet and is 100 feet deep with a total lot size of 10,000 square feet. The zoning is M1-5/R7-3 which allows for up to 5 times floor area ratio (FAR) for manufacturing. The city-designated market value for the property in 2022 is $2.1 million.

Violations and lawsuits

The property was not involved in any lawsuits or bankruptcies in the past years. In addition, according to city public data, the property has received $6,310 in ECB penalties and $8,110 in OATH penalties in the last year.

Development

On these lots, there is one active new building construction project for a 72-unit, 66,670-square-foot R-1 building. The project was developed by Peter Papamichael with plans filed March 1, 2019 and permitted July 24, 2020.

The neighborhood

In Long Island City, the bulk, or 33 percent of the 66.2 million square feet of built space are residential elevator buildings, with industrial buildings next occupying 30 percent of the space. In sales, Long Island City has 4.2 times the average sales volume among other neighborhoods with $1.2 billion in sales volume in the last two years and is the highest in Queens. For development, Long Island City is the 2nd most active neighborhood among other neighborhoods. It had 9.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 14 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other hotel buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of 12 of the 20 commercial properties representing 351,766 square feet of the 396,066 square feet. The largest owner is L+M Development Partners, followed by Bent Philipson and then Ascent Development. There are five active new building construction projects totaling 352,492 square feet. The largest is a 158-unit, 107,322-square-foot R-2 building developed by Solomon Feder with plans filed February 13, 2018 and permitted September 19, 2019. The second largest is a 92-unit, 76,322-square-foot R-2 building developed by Amit Veeramachaneni with plans filed February 1, 2019 and permitted June 15, 2021.

The majority, or 65 percent of the 413,624 square feet of built space are residential elevator buildings, with hotel buildings next occupying 16 percent of the space.

Surrounding

Within a 400-foot radius of 23-20 Jackson Avenue, Pincusco identified 11 commercial real estate items of interests occurred over the past 24 months.
Of those 11 items, three were in new building development. There were two new building permit applications and one new building permit. The most recent of these three items was a filing on February 11, 2022 for a 61,639-square-foot R-2 building with 54 residential units at 24-11 Jackson Avenue.
Of those 11 items, two were sales above $5 million totaling $18.7 million. The most recent of the two was ZD Jasper Realty which bought the 6,000-square-foot, one-unit industrial (E1) on 45-11 Davis Street for $7.7 million from Werwaiss Properties on February 9, 2022.
Of those 11 items, six were loans above $5 million totaling $336.9 million. The most recent of the six was Zhidong Wu which borrowed $37 million from Bank Hapoalim secured by the 7,125-square-foot, one-unit industrial (E9) on 45-17 Davis Street on August 6, 2021.

Direct link to Acris document. link