Xin Development Group signs $34.4M refi loan with Maverick for dev site in Flushing

Xinyuan Real Estate Co. and Xin Development Group International through the entity Queens Theater Owner LLC as borrower signed a refi loan with lender Maverick Real Estate Partners through the entity Rko Flushing Development LLC valued at $34.4 million for the specialty building (J9) at 135-35 Northern Boulevard in Flushing, Queens.
The deal closed on October 5, 2022 and was recorded on October 11, 2022. The prior lender was Maverick Real Estate Partners which held debt that had an original loan amount of $26 million. The property has 80,541 square feet of built space and 20,339 square feet of additional air rights for a total buildable of 100,866 square feet according to PincusCo analysis of city data. The loan price per built square foot is $427 and the price per buildable square foot is $341 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 29, 2016, for $65.8 million. The signatory for Xinyuan Real Estate Co. and Xin Development Group International was Jane Weng, Xin’s CFO. The signatory for Maverick Real Estate Partners was Thomas Hooker. The Real Deal reported in 2017 about a shakeup at Xinyuan at the time.

The property

The 135-35 Northern Boulevard parcel has frontage of 158 feet and is 278 feet deep with a total lot size of 41,509 square feet. The lot is irregular. The zoning is R6 which allows for up to 2.43 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $14.3 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has received one DOB violation, $2,500 in ECB penalties, and $2,500 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 $5 million on this tax lot.

The neighborhood

In Flushing, the bulk, or 45 percent of the 37.8 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 20 percent of the space. In sales, Flushing has 1.6 times the average sales volume among other neighborhoods with $542.6 million in sales volume in the last two years and is the 4th highest in Queens. For development, Flushing has 2.8 times the average amount of major developments relative to other neighborhoods and is the 5th highest in Queens. It had 2.7 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.

The block

On this tax block, PincusCo has identified the owners of one of the 27 commercial properties representing 2,520 square feet of the 245,783 square feet. The identified owner is Chien Hua Corp..
On the tax block, there were two new building construction projects totaling 145,737 square feet. The largest is a 96,536-square-foot B building developed by Orrin Feingold with plans filed December 26, 2018 and it has not been permitted yet. The second largest is a 39-unit, 49,201-square-foot R-1 building developed by Ai-Yu Chen with plans filed March 1, 2013 and it has not been permitted yet.

the majority, or 35 percent of the 230,903 square feet of built space are specialty buildings, with mixed-use buildings next occupying 28 percent of the space.

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