Zehao Fang signs $10M construction loan for 47-unit project in LIC

Zehao Fang and Simon Hung through the entity FH 2Bro Builder Corp. as borrower signed a new construction loan with lender Ponce Bank valued at $10 million for the 47-unit development at 37-42 30th Street in Long Island City, Queens.

On the lot, there is one active new building construction project for a 47-unit, 39,427 square-foot residential (R-2) building. The project was submitted by Zehao Fang and filed by Jack Fang with plans filed September 10, 2021 and permitted February 5, 2024.

The deal closed on March 26, 2024 and was recorded on April 24, 2024.
The owner bought the property on October 15, 2020, for $9.2 million. The signatories for Zehao Fang and Simon Hung were Zehao Fang and Simon Hung.

The property

The parcel has frontage of 159 feet and is 73 feet deep with a total lot size of 10,600 square feet. The lot is irregular. The zoning is M1-2/R6A which allows for up to 2 times floor area ratio (FAR) for manufacturing and up to 3 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $1.4 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $3,750 in ECB penalties and $3,750 in OATH penalties in the last year.

The neighborhood

In Long Island City, The bulk, or 32 percent of the 60.1 million square feet of commercial built space are industrial buildings, with elevator buildings next occupying 31 percent of the space. In sales, Long Island City has the 7th highest sale turnover among other neighborhoods in the city with $1.4 billion in sales volume in the last two years. For development, Long Island City is the 7th most active neighborhood among other neighborhoods. It had 6.1 million square feet of commercial and multi-family construction under development in the last two years, which represents 10 percent of the neighborhood’s built space. There was one pre-foreclosure suit filed among other development buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the 14 commercial properties representing 61,475 square feet of the 113,319 square feet. The largest owner is Zehao Fang, followed by Park Construction Corp. and then Mei Yu Jow.
On the tax block, there were three new building construction projects totaling 87,044 square feet. The largest is a 47-unit, 39,427 square-foot residential (R-2) building submitted by Zehao Fang and filed by Jack Fang with plans filed September 10, 2021 and permitted April 7, 2022. The second largest is a 33-unit, 24,258 square-foot residential (R-2) building submitted by Robert Cerrone with plans filed June 22, 2019 and permitted August 26, 2020.

The majority, or 51 percent of the 113,319 square feet of built space are elevator buildings, with industrial buildings next occupying 47 percent of the space.

The borrower

The PincusCo database currently indicates that Zehao Fang owned at least three commercial properties with 17 residential units in New York City with 22,194 square feet and a city-determined market value of $6.4 million. (Market value is typically about 50% of actual value.) The portfolio has $6.5 million in debt, borrowed from Amalgamated Bank and 37-44 Associates, Inc.. Within the portfolio, the bulk, or 100 percent of the 22,194 square feet of built space are elevator properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

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