Yitzchok Katz signs $48.6M construction loan for 137-unit development in Astoria

Yitzchok Katz through the entity Astoria 2 LLC as borrower signed a new construction loan with lender Popular Bank valued at $48.6 million for the development building (V0) at 2-24 26th Avenue in Astoria, Queens.

On this parcel, there is new building project for a 137-unit, 111,862 square-foot R-2 building developed by Yitzchok Katz with plans filed February 3, 2022 and it has not been permitted yet.
The deal closed on December 5, 2022 and was recorded on December 19, 2022.The property has zero square feet of built space and 5,953 square feet of additional air rights for a total buildable of 5,953 square feet according to PincusCo analysis of city data. The loan price per built square foot is $N/A and the price per buildable square foot is $8,163 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 February 3, 2022, for $7.4 million. The signatory for Yitzchok Katz was Yitzchok Katz Jr. The signatory for Popular Bank was Gary Hoffson. Loan is $48.6 million including the land loan.

The property

The 2-24 26th Avenue parcel has frontage of 24 feet and is 100 feet deep with a total lot size of 2,450 square feet. 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 $367,000.

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 $2,500 in ECB penalties and $2,900 in OATH penalties in the last year.

Development

On the lot, there are three active new building construction projects and major alteration projects with initial costs more than $5 million. The largest is a new building project for a 137-unit, 111,862 square-foot R-2 building developed by Yitzchok Katz with plans filed February 3, 2022 and it has not been permitted yet.

The neighborhood

In Astoria, the bulk, or 36 percent of the 40.1 million square feet of commercial built space are walkup buildings, with elevator buildings next occupying 31 percent of the space. In sales, Astoria has 3.1 times the average sales volume among other neighborhoods with $1.1 billion in sales volume in the last two years and is the 2nd highest in Queens. For development, Astoria has 3.2 times the average amount of major developments relative to other neighborhoods and is the 3rd highest in Queens. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 9 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of eight of the 21 commercial properties representing 1,237 square feet of the 92,241 square feet. The identified owner is Yitzchok Katz.
On the tax block, there were four new building construction projects totaling 150,272 square feet. The largest is a 137-unit, 111,862-square-foot R-2 building developed by Yitzchok Katz with plans filed February 3, 2022 and permitted March 25, 2022. The second largest is a 25-unit, 21,450-square-foot R-2 building developed by Gino Fazio with plans filed April 24, 2017 and permitted September 20, 2021.

the majority, or 57 percent of the 92,241 square feet of built space are walkup buildings, with elevator buildings next occupying 30 percent of the space.

The borrower

The PincusCo database currently indicates that Yitzchok Katz owned at least 18 commercial properties in New York City with 172,909 square feet and a city-determined market value of $29.9 million. (Market value is typically about 50% of actual value.) The portfolio has $254.1 million in debt, with top three lenders as G4 Capital Partners, SCALE Lending, and Scale Lending respectively. Within the portfolio, the bulk, or 51 percent of the 172,909 square feet of built space are elevator properties, with walkup properties next occupying 20 percent of the space. The bulk, or 81 percent of the built space, is in Brooklyn, with Queens next at 19 percent of the space.

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