Zara Realty signs $47M refi for two rentals in Queens

Zara Realty Holding through the entity Hillside Place LLC as borrower signed a refi loan with lender Customers Bank through the entity Customers Bank valued at $47 million for two residential elevator properties with 266 residential units including the 130-unit residential elevator building (D6) at 87-50 167th Street in Jamaica Hills, Queens and 136-unit residential elevator building (D3) at 166-33 89th Avenue in Jamaica, Queens.
The deal closed on November 27, 2024 and was recorded on January 13, 2025. The prior lender was Northern Trust Company which held debt that had an original loan amount of $54 million.The two properties have 223,258 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $210 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 Zara Realty Holding was Rajesh Anthony Subraj. The signatory for Customers Bank was Elizabeth Arato.

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 87-50 167th Street.

Prior sales and revenue

The owners according to the Department of Housing Preservation and Development includes Jairaj Sobhraj, head officer and Kenneth Subraj, officer. The business entities are Zara Realty Holding Corp and Hillside Place, Llc.

The property

The parcel has frontage of 172 feet and is 141 feet deep with a total lot size of 40,350 square feet. The lot is irregular. The zoning is R5 which allows for up to 1.25 times floor area ratio (FAR) for residential. The city-designated market value for the property in 2022 is $23.9 million. The most recent loan totaled $54 million and was provided by Northern Trust Company on December 3, 2020. The property has 79 rent regulated units according to city tax records from 2023.

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 18 housing violations, $9,120 in OATH penalties, and one housing litigation 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 block

On the tax block of 87-50 167th Street, PincusCo has identified the owners of one of the three commercial properties representing 123,914 square feet of the 129,722 square feet. The identified owner is Zara Realty Holding.
There are no active new building construction projects on this tax block.

The majority, or 96 percent of the 129,722 square feet of built space are elevator buildings, with mixed-use buildings next occupying 4 percent of the space.

The borrower

The PincusCo database currently indicates that Zara Realty Holding owned at least 52 commercial properties with 3,121 residential units in New York City with 2,755,580 square feet and a city-determined market value of $263.7 million. (Market value is typically about 50% of actual value.) The portfolio has $433.9 million in debt, with top three lenders as Northern Trust Company, Arbor Realty Trust, and Signature Bank respectively. Within the portfolio, the bulk, or 91 percent of the 2,755,580 square feet of built space are elevator properties, with walkup properties next occupying 9 percent of the space. They are all located in Queens.

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