ZD Jasper Realty signs $32.4M refi loan with Bank Hapoalim for 82-unit dev site in Long Island City

ZD Jasper Realty through the entity Davis Street Development LLC as borrower signed a refi loan with lender Bank Hapoalim valued at $32.4 million for the development parcels at 45-17 Davis Street and 45-11 Davis Street in Long Island City, Queens.

On these lots, there is one active new building construction project for a 82-unit, 62,313 square-foot R-2 building. The project was developed by Tom Wu with plans filed April 29, 2021 and it has not been permitted yet.
The deal closed on November 14, 2022 and was recorded on November 30, 2022.
The signatory for ZD Jasper Realty was Zhidong Wu. The signatory for Bank Hapoalim was Mimi Vu and Yaroslav Portuhay.

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 45-17 Davis Street.

Prior sales and revenue

Out of the two properties, one with a total of 13,125 square feet of built space generated revenue of $158,336 per year.

The property

The 45-17 Davis Street parcel has frontage of 75 feet and is 100 feet deep with a total lot size of 7,500 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 $699,000.The most recent loan totaled $37 million and was provided by Bank Hapoalim on July 21, 2021.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the properties since September of 2020. In addition, according to city public data, the properties have received $2,500 in ECB penalties and $5,500 in OATH penalties in the last year.

The neighborhood

In Long Island City, the bulk, or 34 percent of the 63.3 million square feet of commercial built space are elevator buildings, with industrial buildings next occupying 32 percent of the space. In sales, Long Island City has the 9th highest sale turnover among other neighborhoods in the city with $1.7 billion in sales volume in the last two years. For development, Long Island City is the 3rd most active neighborhood among other neighborhoods. It had 9.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 15 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 45-17 Davis Street, 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 Solomon Feder and then Ascent Development.
On the tax block, there were three new building construction projects totaling 205,305 square feet. The largest is a 92-unit, 76,322-square-foot R-2 building developed by Amit Veeramachaneni with plans filed February 1, 2019 and permitted February 4, 2021. The second largest is a 72-unit, 66,670-square-foot R-1 building developed by Peter Papamichael with plans filed March 1, 2019 and permitted July 21, 2020.

the majority, or 68 percent of the 396,066 square feet of built space are elevator buildings, with hotel buildings next occupying 16 percent of the space.

The borrower

The PincusCo database currently indicates that Zd Jasper Realty owned at least 13 commercial properties in New York City with 216,600 square feet and a city-determined market value of $40.1 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 71 percent of the 216,600 square feet of built space are elevator properties, with industrial properties next occupying 29 percent of the space. The bulk, or 80 percent of the built space, is in Queens, with Manhattan next at 20 percent of the space.

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